Report Overview

The end-use industries, such as agriculture, transportation, textiles, and packaging, are mainly accountable for the product's demand. Furthermore, the lower carbon emissions produced by biodegradable plastics than conventional plastics are driving up demand. Moreover, the rising product demand from flexible packaging is fueling market growth.

Japan Biodegradable Plastics Market- Industry Trends & Forecast Report 2027

The Japan biodegradable plastics market is estimated to grow at a CAGR of 20.2% during the forecast period (2021-2027). The end-use industries, such as agriculture, transportation, textiles, and packaging, are mainly accountable for the geiwing demand for biodegradable plastics in Japan. Moreover, biodegradable plastics produce fewer carbon emissions than conventional plastics, which drives up demand. Additionally, the market is growing due to the growing demand for flexible packaging. The growing demand for packaged foods, snacks, ready-to-eat meals (RTEs), and other foods is influencing the packaging industry's growth. Thus, the rapidly growing packaging industry is further anticipated to generate demand for biodegradable plastics during the forecast period.

Japan Biodegradable Plastics Market Overview

Biologically degradable plastic is a type of plastic that breaks down when it comes into contact with microorganisms. Biologically degradable plastics derived from biological substances (such as bamboo or sugarcane) are considered one of the answers to the plastic pollution problem. Water, oxygen, and microbes decompose these substances back into organic matter over time. It is mainly produced from natural byproducts and in an industrial setting under strict temperature and humidity control. The compostability of these bioplastics must be proven according to international standards to be handled in industrial composting units.

Japan is stepping up its effort to add strength to bioplastics. The Japanese government is planning to launch a public-private partnership to develop biodegradable plastic materials that can be broken down by marine microbes, aiming to promote the use of such materials. Additionally, Green Science Alliance Co., Ltd. located in Obana Kawanishi-city of Japan, is one of the companies striving to innovate bioplastic. In addition to focusing on green energy and environmental science, the company creates new green materials that satisfy both consumer and industrial needs with less waste and pollution.

Japan Biodegradable Plastics Market Trend

Growth Drivers

Increasing Use of Bio-Polylactic Acid (PLA) in Packaging Industry is Driving the Market

Bio-PLA is commonly found in supermarket fruit and vegetable packaging, bread bags and bakery boxes, bottles, envelopes, display carton windows, and shopping or carrier bags, among other applications. In Japanese countries, demand for bio-PLA in the packaging business is rapidly expanding. Food and Drug Administration (FDA) and affiliated organizations recommend the use of biodegradable and food-grade plastics for beverages and snacks as part of their increased food safety interventions.

Biodegradable materials are increasingly being used in food packaging by Japan’s restaurant chains and the food processing industry. Consumer awareness of food safety is also quickly evolving, as some plastics are carcinogens. Due to the strengthening food packaging standards of various food and safety organizations in the country, the packaging industry in the Japan is estimated to grow over the forecast period, thereby propelling the biodegradable plastics market forward.

Japan Biodegradable Plastics Market - Restraints

The High price of Biodegradable-Plastics is Restricting the Market’s Growth

One of the major obstacles to industry expansion is the significant cost difference between biodegradable plastics such as PHA and conventional plastics. The cost of biodegradable plastics, such as PHA, is 20% to 80% higher than that of conventional plastics. Most biodegradable polymers require high polymerization costs, since they are still in their early stages of development and have not yet reached the same level of commercialization as their petrochemical counterparts. Thus, the high cost of biodegradable plastics is restraining the growth of the market during the forecast period.

Impact of COVID-19 on Japan Biodegradable Plastics Market

As the global supply chain has been reorganized as a result of the COVID-19 outbreak, the Japanese government is considering stimulus packages to help the economy. Furthermore, the polyhydroxyalkanoates (PHAs) plastics market companies are taking advantage of the stimulus packages to keep their economies going during the pandemic. Since polyhydroxyalkanoates (PHAs) have been promoted as natural biodegradable polyesters produced by microorganisms, market participants are capitalizing on their popularity by investing in long-term value chains.

Cash-rich polyhydroxyalkanoate firms are expected to use the COVID-19 crisis to bolster their business ambitions and benefit society as a whole. Consequently, producers of polyhydroxyalkanoates are optimizing local manufacturing capabilities to combat trade conflicts and structural sector changes disrupting supply chains, thereby enhancing the biodegradable plastics market during the forecast period.

Japan Biodegradable Plastics Market: By End-Use Industry

Based on the end-use industry, Japan biodegradable plastics market is segmented into packaging, consumer goods, textile, agriculture & horticulture, and others. Among these, the packaging segment is projected to hold the largest market share during the forecast period. Consumers' preference for sustainable packaging and growing environmental concerns across the country are driving producers to utilize the product in a variety of package solutions. This is due to the widespread use of polylactic acid (PLA) in manufacturing bottles, jars, containers, and fresh food packing. PLA is widely used in the packaging industry, particularly in the food packaging industry. Bottles made of PLA plastic are long-lasting, disposable, and have properties such as transparency and gloss. Furthermore, the country's severe restrictions on single-use plastics are boosting product demand in the packaging end-use market.

Source: BlueWeave Consulting

Competitive Landscape

The Japan biodegradable plastics market is highly fragmented due to the presence of limited domestic and international players. Additionally, the emergence of new players has resulted in healthier competition among long-established service providers in the industry. Some key players in the Japan biodegradable plastics market are Kaneka Corporation, Toppan Printing Co., GSI Creos Corp., Fukusuke Kogyo Co., Green Science Alliance Co., Ltd. and other Prominent Players.

Recent Development

• In September 2021, several Japanese companies resorted to paper as a more environmentally-friendly alternative to plastic. The decision comes as the Japanese government prepares to implement a rule in April next year that would strengthen the country's plastic recycling operations and reduce trash. 

• In November 2020, Researchers at Osaka University have developed a plastic made from the ingredient starch to combat the global problem of marine plastics, which come from used plastics found in bottles, bags, and straws and end up in the oceans, threatening the environment and marine life.

Scope of the Report

• By Type
  • • • Polylactic Acid (PLA)
      • Starch Blends
      • Polyhydroxyalkanoates (PHA)
        • Polycaprolactone (PCL)
        • Polybutylene Adipate Terephthalate (PBAT)
        • Polybutylene Succinate (PBS)
      • Others
• By End-Use Industry
  • • • Packaging
      • Consumer Goods
      • Textile
      • Agriculture & Horticulture
      • Others