Polyhydroxyalkanoate (PHA) Market

Updated on : June 17, 2024

Polyhydroxyalkanoate Market

Polyhydroxyalkanoate Market was valued at USD 93 million in 2023 and is projected to reach USD 195 million by 2028, growing at 15.9% cagr from 2023 to 2028. This positive growth projection is driven by several factors. One key factor is the growing emphasis on reducing the use of non-degradable plastics, which has led to the implementation of strict government regulations regarding the use of petroleum-based plastics. Furthermore, there is a rising demand for environmentally friendly materials, which is propelling the polyhydroxyalkanoate (PHA) market forward. PHA offers an ecological choice as they can be produced using various bio-materials and production methods. Consequently, the global demand for PHA, particularly in applications such as packaging & food services, biomedical, and agriculture, is expected to witness significant growth during the forecast period. Considering these factors, the PHA market is poised for stable and balanced growth.

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Polyhydroxyalkanoate (PHA) Market Dynamics

Driver : Rising concerns regarding human health and safety

The presence of toxic substances in conventional plastics poses a notable risk to human health and safety. One example is polyvinyl chloride (PVC), which has been associated with various health disorders, including genetic disorders, ulcers, deafness, and vision impairment, which can be either temporary or permanent. Due to these significant risks, there is a growing demand for innovative products that prioritize human health and safety. The demand is fueled by increasing consumer awareness and the implementation of government regulations. This is driving a shift in preference from conventional plastics to bio-based alternatives like PHA.

Restraints: Excessive cost in contrast with conventional polymers

Higher cost of PHA as compared to conventional polymers is one of the key restraint to the market's growth. Typically, the production of biodegradable plastics like PHA incurs a cost 20% to 80% higher than that of conventional plastics. The primary reason behind this cost disparity is the expensive polymerization process involved in biodegradable plastics. Additionally, due to limited commercialization when compared to petrochemical alternatives, many of the processes are still in the developmental stages, making it difficult to achieve economies of scale.

Opportunities : The advent of novel raw materials.

The global production of biodegradable plastics presents significant opportunities through the utilization of raw materials derived from non-food sources or waste residues. This trend is driven by the rising global demand for cereals like maize, wheat, barley, and others, which are extensively used for food, animal feed, and biofuels. By employing non-food raw materials such as organic waste, biomass, and dead plants, there is an expectation of improved waste management practices. Moreover, the waste generated during the preprocessing stage of sugarcane in the sugar industry holds substantial potential as a valuable raw material for biodegradable plastics production. Exploiting these alternative raw materials not only addresses waste management concerns but also reduces reliance on food crops, contributing to a more sustainable and resource-efficient approach.

Challenges: Manufacturing technology is in its first phase

The manufacturing technology for PHA is currently in its early stages of development, with ongoing experimentation and testing of various raw materials to optimize production. Similarly, efforts are being made to enhance the performance of strains that contribute to the reduction in PHA demand. However, the purification and processing of PHA from biomass result in high costs. To achieve a significant surge in PHA production, it is crucial to finalize the technology by carefully selecting raw materials, biological/natural strains, and purification methods. This can only be realized through widespread global production. Currently, PHA production is relatively limited, with the United States and China accounting for nearly 90% of the total global PHA production. However, as research and development progress and technological advancements are made, it is anticipated that PHA production will expand more globally, leading to increased availability and market growth.

PHA Market Ecosystem

Leading players in the PHA market are reputable companies known for their stable financial position and extensive portfolio of PHA products. These well-established businesses have a history of successful operations and are equipped with pioneering technologies, robust international sales, and effective marketing networks. Key companies driving the market growth include Danimer Scientific (US), Shenzhen Ecomann Biotechnology Co., Ltd. (China), Kaneka Corporation (Japan), RWDC Industries (Singapore), TianAn Biologic Materials Co. Ltd. (China), Newlight Technologies LLC (US), and Biomer (Germany).

Based on application, Packaging & food services are estimated to be the largest market for PHA, in terms of value, during the forecast period.

The application of PHA in packaging holds great potential as a substitute for conventional plastics. According to a recent report by the United Nations Environment Programme on plastic waste, packaging contributes to 42% of the total global plastic waste generated. A significant portion of this waste comes from single-use plastics. Several European countries have already taken steps to ban the use of single-use plastics, with Spain and Italy leading the way by prohibiting their use in department stores and malls. This presents a favorable opportunity for PHA to gain traction in the packaging and food services sector.

Based on type, Short chain length was the largest segment for the PHA market, in terms of value, in 2022

Short chain length PHA refers to monomers that consist of four to ten carbon atoms. Examples of these PHA monomers include Polyhydroxybutyrate (PHB), Poly-3-hydroxybutyrate (P3HB), and Polyhydroxyvalerate (PHV). These monomers can form various structures, including short chain length and medium chain length variants. The structure of these monomers plays a crucial role in determining their thermal and mechanical properties, making them suitable for a wide range of applications. These applications include environmentally-friendly packaging plastics and biomedical uses such as implants and controlled-release drug carriers. A significant portion of short chain length PHA is exported to Europe, with TianAn Biologic Material Co Ltd being one of the prominent producers in this segment. TianAn Biologic Material Co Ltd primarily exports its production to Europe through its distributors, Helien Polymers and Natureplast.

Based on region, Europe accounted for the largest market share for PHA market, in terms of value, in 2022

Europe takes the lead in the global PHA market in terms of value. The region has been at the forefront of biodegradable plastics and demonstrates a strong commitment to sustainable packaging. In response to increased environmental awareness, Europe has implemented laws and regulations that have led to the establishment of biological waste treatment facilities. This proactive approach has contributed to significant growth rates, both in terms of value and volume, within the European market. Several countries, including Italy and Spain, have enacted stringent legislation against the use of plastics, further driving this growth. Notably, European countries exhibit high socio-economic lobbying in favor of bioplastics or biodegradable plastics, further bolstering the market's development in the region.

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Key Market Players

The key players in this market Danimer Scientific(US), Shenzhen Ecomann Biotechnology Co., Ltd. (China), Kaneka Corporation (Japan), RWDC Industries (Singapore), TianAn Biologic Materials Co. Ltd. (China), Newlight Technologies LLC (US), and Biomer (Germany) and among others, are the key manufacturers that hold major market share in the last few years. In response to evolving global user demands, the major emphasis has been placed on acquisition, innovation, and new product development within the PHA industry. Prominent PHA manufacturers have strategically focused on new product launches to maintain their market position, introducing various offerings while making significant investments to expand their PHA production capacity. These key manufacturers have held substantial market shares in recent years, solidifying their presence in the industry.

Read More: Polyhydroxyalkanoate (PHA) Companies

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Scope of the Report

This report categorizes the global coated fabrics market based on product type, application, and region.

On the basis of type, the PHA market has been segmented as follows:

• Short Chain Length
• Medium Chain Length

On the basis of production method, the PHA market has been segmented as follows:

• Sugar Fermentation
• Vegetable Oil Fermentation
• Methane Fermentation

On the basis of application, the PHA market has been segmented as follows:

• Packaging & Food Services
• Biomedical
• Agriculture
• Others

On the basis of region, the PHA market has been segmented as follows:

• Asia Pacific
• Europe
• North America
• Rest of the World

Recent Developments

• In January 2022, Kaneka Corporation successfully created biodegradable polymer-based straws, and they are set to be introduced in the DAISO 100-yen shops operated by Daiso Industries Co. Ltd. These eco-friendly straws will be made available in approximately 2,500 stores starting from mid-January.
•  In May 2022, Danimer Scientific introduced a new range of Eco choice compostable dental flossers, utilizing their Nodax-based technology. This addition to their existing Placker portfolio significantly enhances the sustainability of their dental products, offering eco-friendly alternatives for consumers.
• In July 2022, Newlight Technologies and CNX Resources Corporation have recently formed a 15-year agreement. The partnership aims to capture and utilize methane emissions for the purpose of producing Aircarbon.
• In June 2021, RWDC Industries and Kimberly Clark joined forces in a collaborative partnership aimed at advancing sustainable technology for consumer products. This strategic alliance seeks to address the global challenges posed by traditional single-use plastics by offering innovative solutions. The partnership involves the provision of PHA source material, which will enable the development of new products that are marine degradable, further contributing to the promotion of environmental sustainability.
• In January 2022, Bluepha established its inaugural commercial PHA plant, spanning an area of 86,000 square meters in the Coastal Industrial Park of Jiangsu Binhai Economic Development Zone. This facility boasts an annual PHA production capacity of 25,000 tons. The plant's construction is divided into two phases, with the first phase set to be finalized by the end of 2022, achieving a capacity of 5,000 tons per year.

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