Thermoplastic Starch Market is Estimated to Witness High Growth...

Thermoplastic Starch Market is Estimated to Witness High Growth Owing to Opportunity in Food Packaging Applications

Posted 2024-01-23 13:24:10

Thermoplastic starch (TPS) are biodegradable and biobased plastics derived from starch and can be processed similar to conventional plastics. TPS offer advantages over conventional plastics such as being eco-friendly as they are plant-based, renewable, compostable and biodegradable. TPS finds applications in food packaging, agricultural films and disposable tableware among others due to their ability to decompose.

The global Thermoplastic Starch Market is estimated to be valued at US$ 268.89 Bn in 2024 and is expected to exhibit a CAGR of 9.6% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
Food Packaging Applications
The opportunity in food packaging applications is expected to drive the growth of thermoplastic starch market during the forecast period. TPS offers advantages for food packaging such as being moisture resistant, grease proof and providing good oxygen and aroma barrier properties. Also, they are suitable for hot-filling applications and microwave compatibility. Thus, growth in demand for sustainable and biodegradable packaging from the food industry is estimated to offer high growth opportunities for thermoplastic starch in the coming years.

Porter's Analysis

Threat of new entrants: The thermoplastic starch market requires significant capital investment in R&D, production facilities, and distribution channels. Established companies have significant economies of scale advantages.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products. However, strict environmental regulations favor thermoplastic starch over petroleum-based plastics.

Bargaining power of suppliers: A handful of companies supply raw materials like corn and tapioca starch. Suppliers have moderate bargaining power due to high production costs and availability of substitutes.

Threat of new substitutes: Potential substitutes include petroleum-based plastics, PLA, and PBS. However, strict environmental regulations are driving demand for biodegradable alternatives.

Competitive rivalry: The market has several global players competing on quality, price, production capacity, and innovation. Market consolidation is expected with larger players acquiring smaller ones.

SWOT Analysis
Strengths: Biodegradability, recyclability, availability of raw materials, compliance with environmental regulations
Weaknesses: High production costs, limited processing capabilities compared to petroleum plastics
Opportunities: Growth in food packaging, textiles, electronics, agriculture sectors. Increasing focus on sustainability.
Threats: Dependence on crop prices, availability of better substitutes, regulations around bioplastics varied globally

Key Takeaways

The global Thermoplastic Starch Market Growth is expected to witness high growth over the forecast period driven by stringent environmental regulations banning single-use plastics. The global Thermoplastic Starch Market is estimated to be valued at US$ 268.89 Bn in 2024 and is expected to exhibit a CAGR of 9.6% over the forecast period 2024 to 2031.

The Asia Pacific region dominates the market currently due to the easy availability of raw materials and a large packaging industry in countries like China and India. Europe is also a major market driven by favorable policies around circular economy. This is attributed to factors such as easy availability of raw materials, large packaging industry, and price competitiveness of domestic manufacturers. Stringent environmental regulations in countries like China, Japan, and South Korea are also fueling market growth. The European region is also a major market for thermoplastic starch driven by regulatory push for circular economy principles. Countries like Germany, Italy, UK, and France are major contributors to the regional market.

Key players operating in the thermoplastic starch market are Access Scanning Document Services, LLC, Ripcord, Inc., Armstrong Archives, LLC, Novamont S.p.A., Rodenburg Biopolymers, Biotec GmbH & Co. KG, Kingfa Sci. & Tech. Co., Ltd., BASF SE, BIOP Biopolymer Technologies Australia Ltd., and Biodegradable Product Institute. Major thermoplastic starch producers are adopting collaboration and acquisition strategies to expand globally and enhance production capacities.

For more insights, read- https://www.newsstatix.com/thermoplastic-starch-market-trends-size-and-share-analysis/

For more details on the report, Read- https://techaxen.com/glycerol-the-versatile-elixir-fueling-industries-and-nurturing-skincare-unveiling-the-liquid-golds-hidden-potentials/