The market is expected to reach a value of 255. 82 kilo metric ton by 2025, at an estimated CAGR of 7. 01% over 2020-2025. - The film segment is the major consumer of the thermoplastic starch market, with a share of more than 48%.
New York, Dec. 21, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Thermoplastic Starch (TPS) Market - Growth, Trends, Forecasts (2020 - 2025)" - https://www.reportlinker.com/p05891632/?utm_source=GNW
- Owing to the continuous rise in environmental regulations in Asia-Pacific, the region is likely to dominate the thermoplastic starch market during the forecast period and witness the fastest CAGR.
- However, being optimistic regarding the forecasted growth, the recent breakdown of the COVID-19 pandemic across the world is likely to have a drastic effect on the global economy due to the stalling of various manufacturing activities. This might result in a decrease in the purchasing power of the people in 2020
- Farms and agricultural companies are switching to plastic injection molding as a low-cost alternative to using metal. Adreco Plastics, a major player in providing tooling and molding services, is committed to providing high-quality plastic injection molded parts to the agricultural sector at competitive prices without compromising on product quality. The company works closely with farmers, agriculture consultants, and other experts to produce what is needed to keep farm-wheels turning across the United Kingdom and abroad: durable, flexible, and, above all, effective plastic components and equipment.
Key Market Trends
Increasing Demand from the Packaging Industries
- Plastic consumption stands at 500 billion single-use plastic bags annually, and the consumption is expected to continue to increase. While, the plastic bags currently being used across the world are majorly non-biodegradable, which has been continuously leading to the accumulation of plastic waste on land and well as in oceans. This has significantly surged environmental concerns across the world.
- Many countries across the world have also banned the use of lightweight single-use plastic bags or have begun imposing taxes on them. Furthermore, the packaging industry has been investing in the innovation of eco-friendly and biodegradable packaging material. Besides this, another focus of the packaging industry has been toward developing convenient and lightweight packaging, which is driving the demand for flexible packaging.
- Companies are also focusing on the development of thermoplastic starch for packaging application. For instance, in 2019, Agrana introduced AGENACOMP bioplastic, a 50:50 blend of thermoplastic starch and a biologically degradable polyester that has given rise to bioplastic compounds that are fully compostable at home. The TÜV-certified compost tests revealed 100% degradation without microplastic residues. Application areas for the new compound range from thin bags for vegetables and fruit to thicker carrier bags and even as packaging film.
- In Japan, the food and beverage industry is expected to reach USD 22,200 million by 2023. This growth is attributed to the increase in demand for packaged food and beverages, coupled with increasing consumer’s affordability. This expected growth in the food and beverage industry is expected to positively influence the demand for hot-melt adhesives.
The Asia-Pacific Region to Dominate the Market in the Coming Years
- In the Asia-Pacific region, China is the largest economy in terms of GDP. The country witnessed about 6.1% growth in its GDP during 2019, even after the trade disturbance caused due to its trade war with the United States. The economic growth rate of China in 2020 was initially expected to be moderate as compared to the previous year.
- However, due to the onset of COVID-19 in 2020, the economic growth of China is expected to contract to a considerable extent. In the first quarter of the year, the Gross Domestic Product of the country shrank by 6.8%, but the country has recorded a growth of 3.2% (when compared to the previous year) in the second quarter ending in June 2020. However, the country’s GDP in the six months of 2020 is 1.2% smaller than the same period in the year 2019.
- In Asia, Japan holds the second-highest packaged food consumption share, next to China. The consumer profile has changed a lot, as the Japanese have adopted western habits when it comes to food choice and consumption.
- As the increasing number of Japanese consumers allocate a higher budget percentage for food, various opportunities await investors and international brands to enter the packaging market, to introduce new food packaging preferences for local consumption. Thus, the TPS market holds opportunities in the Japanese packaging market in the future.
- Also, India is preparing for a complete phase-out of single-use plastic items by 2022, which is going to present many structural changes to the packaging and agricultural films market. This scenario is likely to propel the demand for TPS bags used for vegetable items during the forecast period.
- Additionally, acccording to the Packaging Industry Association of India (PIAI), the packaging sector in the country is growing at 22-25% per annum. The Indian packaging industry has made a mark with its exports and imports, thus driving technology and innovation growth in the country and adding value to the various manufacturing sectors.
The global thermoplastic starch (TPS) market is consolidated in nature with a few major players dominating a significant portion of the market. Some of the major companies are Novamont SpA, BIOTEC, Plantic (Kuraray), Biome Bioplastics Limited, and AGRANA Beteiligungs-AG.
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