Polybutylene Adipate Terephthalate (PBAT) Industry Analysis in North America

Polybutylene Adipate Terephthalate (PBAT) Sales Outlook for North America (2024 to 2034)

Sales of polybutylene adipate terephthalate (PBAT) in North America are evaluated at US$ 483.8 million for 2024 and are projected to rise at a high-value CAGR of 8.7% to reach US$ 1.11 billion by 2034.

Polybutylene adipate terephthalate is a type of biodegradable and compostable polymer that belongs to the family of bioplastics. It is commonly used as a sustainable alternative to traditional petroleum-based plastics. PBAT is known for its ability to break down naturally in the environment, reducing the environmental impact associated with plastic waste.

Due to its eco-friendly characteristics, polybutylene adipate terephthalate is often utilized in various applications, including packaging materials, disposable products, agricultural films, and more. It addresses concerns about the environmental impact of conventional plastics by offering a solution that can degrade under appropriate conditions, contributing to the reduction of long-term plastic pollution.

• According to Fact.MR, a market research and competitive intelligence provider, demand for polybutylene adipate terephthalate in cling film production is estimated to increase at a CAGR of 8.6% from 2024 to 2034.

PBAT is known for its biodegradable and compostable nature. Cling films made with polybutylene adipate terephthalate can break down more easily in composting environments compared to traditional plastics. This aligns with the increasing consumer and regulatory focus on environmentally friendly packaging solutions.

The packaging industry in North America is facing stricter environmental regulations, and companies are seeking alternatives to non-biodegradable plastics. PBAT, being a bioplastic, provides a solution that meets these regulatory requirements and is exhibiting high demand in North America.

Report Attributes	Details
PBAT Sales in North America (2024E)	US$ 483.8 Million
Forecasted Sales (2034F)	US$ 1.11 Billion
Demand Growth (2024 to 2034)	8.7% CAGR
PBAT-based Compost & Garbage Bag Demand Growth (2024 to 2034)	9.9% CAGR
Key Companies Profiled	BASF SE; Novamont S.p.A.; Eastman Chemical Company; HUSK-ITT Corporation

Why is Consumption of Polybutylene Adipate Terephthalate Rising Fast in North America?

“Research and Development Efforts Set to Enhance PBAT Properties”

Ongoing research and development (R&D) efforts within the field of polybutylene adipate terephthalate are strategically geared toward enhancing the intrinsic properties of this biodegradable polymer. One key focus of these endeavors is the improvement of PBAT's tensile strength. Tensile strength is a critical mechanical property that measures a material’s ability to withstand axial stress without permanent deformation or breakage. Strengthening PBAT’s tensile strength is essential for expanding its utility in various applications, particularly those that demand durability and resilience.

Another facet of R&D in PBAT is directed towards augmenting its barrier properties. Barrier properties are crucial in applications such as packaging, where the material must provide an effective barrier against gases, moisture, and other environmental factors. Enhancing PBAT’s barrier properties not only improves its performance as a packaging material but also broadens its potential use in sectors requiring stringent containment or isolation capabilities, contributing to the material's versatility.

Processability is another key area of focus in the ongoing research efforts related to PBAT. Processability refers to the ease with which a material can be manufactured into finished products using different processing techniques. Improving PBAT’s processability is vital for optimizing manufacturing efficiency, reducing production costs, and enhancing the feasibility of large-scale adoption in various industries. Streamlining the processing characteristics of polybutylene adipate terephthalate makes it more attractive to manufacturers seeking cost-effective and efficient production methods.

Country-wise Analysis

What’s Influencing Polybutylene Adipate Terephthalate Demand in the United States?

“Growing Sustainable Packaging Trends Fuelling Sales of Polybutylene Adipate Terephthalate”

Attribute	United States
Market Value (2024E)	US$ 354.9 Million
Growth Rate (2024 to 2034)	9.1% CAGR
Projected Value (2034F)	US$ 847.92 Million

The packaging industry in the United States is witnessing a notable shift toward sustainable packaging solutions. PBAT is gaining traction as a viable option for manufacturers looking to adopt eco-friendly materials in their packaging. As more companies seek alternatives to traditional plastics, PBAT is becoming a key player in the sustainable packaging landscape. Its use in flexible packaging, films, and other applications is contributing to its sales growth in the United States. Demand for polybutylene adipate terephthalate is also driven by increasing consumer awareness regarding the environmental impact of plastic waste.

How are Polybutylene Adipate Terephthalate Manufacturers Faring in Canada?

“Supportive Government Policies on Use of Biodegradable Materials Boosting Profits of PBAT Producers”

Attribute	Canada
Market Value (2024E)	US$ 128.8 Million
Growth Rate (2024 to 2034)	7.3% CAGR
Projected Value (2034F)	US$ 260.56 Million

Government policies in Canada favoring the use of biodegradable and compostable materials are contributing to the growth of PBAT sales. Incentives and regulations encouraging businesses to adopt environmentally friendly practices are boosting the consumption of polybutylene adipate terephthalate.

Category-wise Analysis

Why is the Packaging Industry a Key Consumer of Polybutylene Adipate Terephthalate?

“Environmental Concerns and Shift from Traditional Plastic Use Increasing PBAT Demand”

Attribute	Packaging
Segment Value (2024E)	US$ 314.4 Million
Growth Rate (2024 to 2034)	8.8% CAGR
Projected Value (2034F)	US$ 730.75 Million

The North American packaging industry is experiencing increasing regulations aimed at reducing the environmental impact of plastic waste. Polybutylene adipate terephthalate aligns with these regulations as a biodegradable polymer, making it an attractive choice for packaging manufacturers looking to comply with sustainability requirements.

Conventional plastics, especially single-use plastics, are raising environmental concerns due to their persistence in the environment. Polybutylene adipate terephthalate provides an alternative that addresses these concerns, offering a material that degrades naturally, thus reducing the long-term environmental impact. PBAT also supports circular economy principles by offering a solution to the end-of-life disposal challenges associated with traditional plastics. As the packaging industry aims to reduce waste and promote recyclability or compostability, PBAT is emerging as a strategic choice.

Competitive Landscape

Success of leading PBAT companies in North America is driven by a combination of strategic initiatives, including diversification, collaborations, R&D investments, responsive supply chains, customization, and effective brand positioning. These strategies are collectively contributing to their revenue growth and market leadership.

Leading companies are allocating significant resources to research and development activities aimed at enhancing PBAT properties, reducing production costs, and exploring new applications. Continuous innovation in PBAT formulations is aiding these companies to stay ahead in terms of product performance and market competitiveness.

Segmentation of PBAT Study in North America

• By Application :

  • Compost & Garbage Bags
  • Cling Films
  • Mulch Films
  • Medical Accessories
  • Others

• By End-use Industry :

  • Packaging
    • Rigid
    • Flexible
  • Agriculture & Horticulture
  • Consumer & Homecare
  • Coatings
  • Others

• By Country :

  • United States
  • Canada