Polybutylene Succinate Market

The Polybutylene Succinate Market is valued at USD 750 Mn in 2026 and is projected to reach USD 1710.5 Mn, growing at a CAGR of 13% by 2033.

Rising Boom Around Biodegradable Plastics to Favor Polybutylene Succinate Market Expansion

It is predicted that the increase in demand for polybutylene succinate (PBS) is due in part to end-use industries such as food packaging, pharmaceuticals, agriculture, and consumer products. PBS is a synthetic aliphatic polyester that degrades naturally and has characteristics akin to polyethylene terephthalate (PET). It is the most widely used biopolymer and is created by mixing 1,4-BDO, which comes from maleic anhydride, with succinic acid, which is sourced from petroleum. Factors including product cost, and production capacity still constrain the polybutylene succinate market for this. However, as the need for biodegradable plastics rises internationally, this industry is anticipated to expand. The growing inclination for packaged foods and the rising need for personal protective equipment brought on by the COVID-19 epidemic are credited with driving demand for the product. PBS is now being used more frequently in manufacturing various 3D filaments, 3D printed face shields, and face masks due to its simplicity of disposal and environmental friendliness. PBS's soaring global demand is anticipated to be significantly influenced by its application as a PET alternative over the forecasted timeframe.

During the projected period, the industry's growth is anticipated to be supplemented by bio-based PBS to lower carbon footprint and positive regulatory policy to raise awareness about hazards associated with petroleum-based chemicals. To stop the spread of viruses and other bacterial infections, businesses like NatureWorks LLC, and Benvic are concentrating on developing biodegradable plastics with antibacterial properties that can be used for various packing materials and medical equipment that will likely come into contact with the skin of people. Throughout the forecast period, it is predicted that intensive research and development about the manufacturing process by various firms for lowering production costs of bio-based PBS and increasing efficiency would present new growth prospects for polybutylene succinate market players. In August 2021, the Sarnia biobased succinic acid factory owned by BioAmber was purchased by LCY Biosciences (Ontario, Canada). The firm now produces 18 tons. By the end of 2023, 30 tons will be the desired output.

Polybutylene Succinate Market: COVID-19 Impact

An industry that was already experiencing a recession cycle, and the coronavirus epidemic happened at the same time. Management strategies that consider the lessons discovered during the first half of 2020 are necessary to adapt to the new normal. COVID-19 exhorts petrochemical leaders to reconsider the company's future. Before the epidemic, these trends were already evident and have become more pronounced. The expansion of calls has slowed, surpluses have increased, and the store of value has decreased. Additionally, the firm will undergo significant changes as a result of the switch to renewable energy sources and a circular or regenerative economy. To focus on recovery scenarios, regionalized supply chains, and capital productivity, executives in the chemical sector and financial investors will need to alter their management perspectives and agendas.

Growing Agricultural Initiatives by Governments to Drive Polybutylene Succinate Market Growth

Polybutylene succinate is becoming more extensively used in agricultural applications, such as mulch films. Mulch films are frequently used to modify soil temperature, control weed development, stop moisture loss, and enhance crop yield and precociousness. Since agriculture is one of the best methods to improve environmental sustainability, governments spend a lot of money on projects and investments. The American government declared the opening of an Rs. 15,000 crores (US$2.13 Bn) fund for developing animal husbandry infrastructure in May 2020. As a result, the government's different agricultural efforts are causing the agricultural sector in various regions to thrive. Additionally, as the agricultural sector grows, so will the demand for polybutylene succinate to make mulch films, propelling the polybutylene succinate market during the projection period.

Rise in Automotive Production to Complement Polybutylene Succinate Market Growth

Polybutylene succinate is frequently combined with natural fibers like switchgrass (SG) for automotive products. These cutting-edge composite materials are widely used in the production of automobiles because they are promoted as potential bio-based substitutes for traditional petroleum-based polymers in the automotive sector. According to International Trade Administration, China is the world's largest automobile market. The Chinese government estimates that the output will reach 30 million cars by 2020 and 35 million by 2025. As a result, the demand for polybutylene succinate will gradually rise along with the growth in vehicle manufacturing, acting as a driving force for the polybutylene succinate market for the substance.

Price Volatility of Crude Oil to Impede Polybutylene Succinate Market Expansion

Succinic acid and 1,4-butanediols, the basic ingredients for polybutylene succinate, are made from petroleum feedstock. Therefore, the volatility in crude oil prices also affects the cost of raw materials for polybutylene succinate. Statistical Review of the World Energy by BP indicates that crude oil price volatility has grown during the previous 12 months. And the price of polybutylene succinate rises due to the volatility in crude oil prices. As a result, the fluctuation in crude oil prices is anticipated to be a significant challenge for the makers of polybutylene succinate, which would impede the growth of the polybutylene succinate market during the forecast period.

Trans-esterification Process to Dominate Polybutylene Succinate Market as it Enhances Characteristics of Polybutylene Succinate

The trans-esterification sector significantly dominated the polybutylene succinate market. PBS is made using two distinct monomers and direct esterification in open and closed systems, with or without nitrogen (succinic acid, and anhydride). PBS is also created through trans-esterification using several metal catalysts and temperature ranges. Then, techniques like nuclear magnetic resonance, fourier transform infrared spectroscopy, polymer melt rheology, and others are used to characterize them. Based on the data, it is predicted that PBS is created through trans-esterification, which gives polybutylene succinate balanced mechanical qualities, outstanding biodegradability, and thermoplastic processability to produce the optimum set of final properties.

With Biodegradability Feature, Packaging Sector to Dominate Polybutylene Succinate Market

The packaging industry held a sizeable share of the global polybutylene succinate market due to the growing use of polybutylene succinate in packaging. With their strong gas barrier qualities, polybutylene succinates are widely employed for food packaging applications. They are typically used in food packagings, such as paper cups and disposable dinnerware. Additionally, the Biodegradable Products Institute lists polybutylene succinate's direct food contact grades as certified biodegradable and accessible. PBS's biodegradability is desirable for single-use food packaging because it can decompose quickly and at high rates. Commercial and residential biodegradable end-of-life alternatives would then help reduce waste accumulation in landfills.

Asia Pacific to Acquire a Major Revenue Share in Polybutylene Succinate Market as Demand for Packaged Food Items Ascends

Asia Pacific captures the biggest revenue share in the global polybutylene succinate market. The increased demand for the product from various end-use sectors in China, Japan, South Korea, and Thailand is the primary cause of the high revenue share. Growing disposable income, soaring plastics use, shifting consumer lifestyles, and a booming packaging business drive the growth. In rising economies around the region, the aforementioned considerations have sparked a need for biodegradable & non-toxic PET bottles, disposable syringes, food containers, and other consumer goods. The Indian government is making every effort to increase investment in the food processing sector through the Ministry of Food Processing Industries (MoFPI). As of October 29, 2020, 20 of the 37 food parks approved by the government and sponsored by the Mega Food Parks Scheme are open for business. The remaining 17 are still being developed. With the rising population, rapid urbanization, and rising disposable income, packaged food and beverage demand is increasing in Asia Pacific countries. This is fueling the expansion of the market in the region throughout the forecast period.

Europe is predicted to experience relatively high PBS demand due to customers' growing preference for bio-based PBS as a drop-in substitute. The polybutylene succinate market growth is anticipated due to Europe's expanding healthcare and agricultural industries. It is anticipated that expanding automotive production facilities in the area will foster the expansion of the automotive sector and increase demand for lightweight vehicle components. The severe regulations imposed on the use of some hazardous chemicals that harm the environment and people make Europe the top revenue-generating market. As a result, to meet the standards, manufacturers are switching to eco-friendly alternatives (bio-succinic acid). Expanding automobile production facilities in the region are projected to encourage the demand for lightweight car components. The  market is anticipated to gain from this in the upcoming years. Europe is therefore anticipated to increase as a result of the aforementioned factors.

Global Polybutylene Succinate Market: Competitive Landscape

In August 2022, Technip Energies acquired DSM's Biosuccinium® technology, providing a technical solution to its growing Sustainable Chemicals portfolio. This method works in conjunction with recently established patented bio-polymer technologies to provide a commercially referenced production of bio-based succinic acid (bio-SAc), which is used as a feedstock in manufacturing polybutylene succinate (PBS). Moreover, in June 2021, Cargill formed a joint venture with Helm Company. The company aims to invest USD 300 million in biobased alternatives to petroleum-derived chemicals. According to the business, the plant emits 93% fewer greenhouse gases than petroleum-feedstock systems.

A few of the players in the polybutylene succinate market include:

• NatureWorks LLC
• Mitsubishi Chemical Group Corporation
• SK Chemicals Co., Ltd.
• BASF SE
• Lonza Group AG
• DSM (now part of BASF)
• Far Eastern New Century Corporation
• Daicel Corporation
• Formosa Plastics Corporation
• Copolymer Products LLC
• Arkema S.A.
• Toray Industries, Inc.
• Eastman Chemical Company
• LG Chem Ltd.
• SABIC (Saudi Basic Industries Corporation)

Global Polybutylene Succinate Market is Segmented as Below:

By Product

• Conventional Polybutylene Succinate (PBS)
• Bio-Based Polybutylene Succinate (PBS)

By Process

• Trans-Esterification
• Direct Esterification

By Application

• Bags
• Mulch Film
• Packaging Film
• Flushable Hygiene Products
• Fishing Nets
• Coffee Capsules
• Wood Plastic Composites
• Others

By Usage

• Single-Use
• Reusable

By Packaging Layer

• Primary Packaging
• Secondary Packaging
• Tertiary Packaging
• By End-Use
• Packaging
• Agriculture
• Textile
• Consumer Goods
• Electrical and Electronics
• Automotive
• Others

By Region

• North America
• Europe
• Asia Pacific
• LAMEA