Poly (Butylene Adipate-Co-Terephthalate)

Global Poly (Butylene Adipate-Co-Terephthalate) Market to Reach US$2.4 Billion by 2030

The global market for Poly (Butylene Adipate-Co-Terephthalate) estimated at US$1.7 Billion in the year 2024, is expected to reach US$2.4 Billion by 2030, growing at a CAGR of 6.3% over the analysis period 2024-2030. Extrusion Grade, one of the segments analyzed in the report, is expected to record a 5.5% CAGR and reach US$1.4 Billion by the end of the analysis period. Growth in the Thermoforming Grade segment is estimated at 7.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$460.6 Million While China is Forecast to Grow at 9.7% CAGR

The Poly (Butylene Adipate-Co-Terephthalate) market in the U.S. is estimated at US$460.6 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$494.6 Million by the year 2030 trailing a CAGR of 9.7% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.2% and 6.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.1% CAGR.

Global Poly (Butylene Adipate-Co-Terephthalate) (PBAT) Market – Key Trends & Drivers Summarized

Why Is PBAT Gaining Popularity in Sustainable Plastics?

Poly (Butylene Adipate-Co-Terephthalate) (PBAT) is emerging as a leading biodegradable and compostable polymer in the global shift toward sustainable plastics. As governments and industries work to reduce plastic pollution, PBAT has become a preferred alternative to traditional petroleum-based plastics, particularly in single-use packaging, agricultural films, and consumer goods.

PBAT is known for its high flexibility, excellent biodegradability, and mechanical properties similar to conventional low-density polyethylene (LDPE). This makes it an ideal material for compostable plastic bags, mulch films, food packaging, and disposable tableware. Unlike conventional plastics, PBAT decomposes under industrial composting conditions, breaking down into water, carbon dioxide, and biomass without leaving microplastic residues.

The rising global bans on non-biodegradable plastics and regulations promoting compostable alternatives have significantly accelerated PBAT adoption. Countries such as China, India, and EU nations have implemented strict policies restricting single-use plastics, driving demand for biodegradable polymers like PBAT. Additionally, corporate sustainability commitments, particularly from brands in packaging, FMCG, and agriculture, are further fueling market growth.

How Are Innovations in PBAT Production Improving Market Potential?

Technological advancements in PBAT synthesis, copolymerization techniques, and material engineering are expanding its applications and enhancing cost efficiency, mechanical strength, and biodegradation performance.

One of the major innovations is the development of bio-based PBAT, where manufacturers are exploring bio-derived feedstocks to replace fossil-based components. Traditionally, PBAT is synthesized from butanediol, adipic acid, and terephthalic acid, which are petrochemical derivatives. However, recent R&D efforts focus on producing PBAT using renewable biomass sources, reducing carbon footprints and fossil fuel dependency. Companies like BASF, Novamont, and SK Chemicals are investing in bio-based PBAT to cater to the rising demand for fully sustainable plastic alternatives.

Another critical advancement is the blending of PBAT with other biodegradable polymers such as Polylactic Acid (PLA), Polyhydroxyalkanoates (PHA), and Starch-based Plastics. These blends enhance PBAT’s properties, making it stronger, more heat-resistant, and cost-effective while retaining its biodegradability. The integration of nanotechnology and reinforcement fillers is further improving PBAT’s mechanical performance and processability in industrial applications.

Additionally, advancements in composting technology and enzymatic degradation studies are accelerating the commercial viability of PBAT-based materials. Research into microbial enzymatic degradation of PBAT in marine and soil environments aims to develop next-generation biodegradable plastics that break down in various natural ecosystems, addressing concerns about plastic waste pollution.

Why Is Demand for PBAT Rising Across Key Industries?

The demand for PBAT is experiencing rapid growth across packaging, agriculture, medical, and consumer goods sectors, driven by environmental regulations and increasing sustainability commitments.

• Packaging Industry: PBAT is widely used in biodegradable shopping bags, compostable food packaging, and single-use cutlery. Leading retailers and brands, including Unilever, Nestlé, and Coca-Cola, are replacing conventional plastics with PBAT-based flexible films and bioplastic alternatives to align with their net-zero and circular economy goals.
• Agriculture Sector: PBAT is a key material in mulch films, seed coatings, and controlled-release fertilizers. Unlike traditional polyethylene mulch films, which contribute to soil contamination and microplastic accumulation, PBAT-based films degrade naturally in soil, reducing environmental impact. Countries like China and India, where agricultural plastic waste is a major issue, are actively promoting biodegradable mulch films, driving PBAT adoption.
• Medical & Healthcare: The medical sector is increasingly using PBAT for biodegradable drug delivery systems, compostable surgical tools, and eco-friendly packaging for medical disposables. Given the rising concerns about plastic waste in hospitals, PBAT-based medical products offer a sustainable alternative to conventional non-recyclable plastics.
• Consumer Goods: PBAT is being used in biodegradable diapers, wipes, hygiene products, and 3D printing filaments. The growing awareness of eco-friendly personal care products and green consumer trends has driven demand for PBAT-based materials in the hygiene and fashion industries.

The e-commerce boom and sustainable logistics have also increased PBAT demand for compostable mailing bags, void-fill packaging, and protective films, as companies move toward eco-friendly shipping materials.

What Factors Are Driving the Growth of the PBAT Market?

The growth in the PBAT market is driven by stringent environmental regulations, increasing corporate sustainability initiatives, technological advancements, and consumer demand for eco-friendly alternatives.

• Government Regulations on Single-Use Plastics: Bans and restrictions on non-biodegradable plastics in regions like the EU, China, India, and the U.S. are pushing industries to shift to PBAT-based alternatives. The EU’s Single-Use Plastics Directive (SUPD) and China’s plastic restriction policies are among the key regulatory drivers.
• Corporate Sustainability Commitments: Global brands are integrating PBAT into their sustainable packaging strategies to meet ESG (Environmental, Social, and Governance) goals. Companies are investing in compostable bioplastics to replace traditional polyethylene and polypropylene packaging.
• Advancements in Biopolymer Manufacturing: Innovations in cost-effective PBAT synthesis, bio-based raw materials, and enhanced processing techniques are making PBAT more competitive with conventional plastics. Increased investments in bioplastic refineries and large-scale PBAT production plants are reducing costs and improving market scalability.
• Rising Consumer Preference for Green Products: Consumers are increasingly choosing eco-friendly, biodegradable products, leading to higher demand for PBAT in food packaging, personal care, and consumer goods. The shift toward circular economy practices and compostable packaging solutions is further driving market expansion.
• Partnerships & Industry Collaborations: Companies are forming strategic partnerships to expand PBAT production capacity and develop next-generation biodegradable materials. Collaborations between chemical manufacturers, packaging companies, and recycling firms are fostering PBAT market growth.

With ongoing innovations in PBAT technology, expanding industrial applications, and strong regulatory support for biodegradable plastics, the PBAT market is poised for significant expansion. As governments, businesses, and consumers accelerate the transition toward sustainable materials, PBAT will play a pivotal role in reducing plastic pollution and advancing global sustainability efforts.

 

SCOPE OF STUDY:

The report analyzes the Poly (Butylene Adipate-Co-Terephthalate) market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Grade (Extrusion Grade, Thermoforming Grade, Other Grades); Application (Composite Bags, Bin Bags, Mulch Films, Cling Films, Stabilizers); End-Use (Packaging, Agriculture, Bio-medical, Others)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 44 Featured) -

• Anhui Jumei Biotechnology Co., Ltd.
• BASF SE
• Chang Chun Group
• Cheer Young
• Dawn Group
• Eastman Chemical Company
• Far Eastern New Century Corporation
• Go Yen Chemical Industrial Co., Ltd.
• Hangzhou Peijin Chemical Co., Ltd.
• Jiangsu Torise Biomaterials Co., Ltd.
• Jinhui Zhaolong High Technology Co., Ltd.
• Kingfa Sci. & Tech. Co., Ltd.
• Lotte Fine Chemical Co., Ltd.
• Mitsui Plastics, Inc.
• Novamont S.p.A
• Polyrocks Chemical Co., Ltd.
• Sinochem Donghua Tianye New Materials Co.
• SK Chemicals
• Zhejiang Biodegradable Advanced Material Co.
• Zhuhai Wango Chemical Co., Ltd.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

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JAPAN
INDIA
176 OTHER COUNTRIES.

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