The global polybutylene adipate terephthalate market size was valued at USD 184.0 million in 2023. The industry is expected to expand from USD 198.7 million in 2024 to USD 376.5 million by 2032, exhibiting a CAGR of 8.3% over the study period.

Polybutylene adipate terephthalate (PBAT) refers to the renewable and biodegradable synthetic polymer manufactured using a combination of 1,4-butanediol, terephthalic acid, and adipic acid. The superior attributes of the product, which is poised to surge its uptake in sustainable packaging, are fostering the market growth. Owing to its high composability and biodegradability, PBAT is becoming popular in the packaging sector.

Segmentation:

Surging Consumer Demand for Sustainable Packaging Solutions to Fuel the Segment Expansion

On the basis of application, the market is divided into agriculture & horticulture, consumer goods, coatings & adhesives, packaging, and others. The packaging segment captured the largest polybutylene adipate terephthalate market share in 2023. The growing regulatory and consumer demand for sustainable packaging solutions is bolstering the adoption of the product in the packaging sector.

On the regional front, the market is segmented into Europe, the Asia Pacific, North America, and the rest of the world.

Drivers and Restraints:

Developments in Bio-based PBAT and Production Process to Surge Sustainability and Economic Viability, Fueling the Market Growth

Renewable feedstock, including agricultural waste or plant oils instead of fossil fuels is used to make bio-based PBAT. This move toward renewable raw materials shows consistency with the growing focus on transforming to a circular economy and sustainability. Along with the development of biobased PBAT, advancements have been made in the production processes of the product manufacturing industry. Thus, these factors are impelling the polybutylene adipate terephthalate market growth.

Despite such growth opportunities, the weak waste infrastructure, restricted production, and steep costs may hamper the market expansion. The higher expense of the product can be attributed to the relatively nascent stage of its manufacturing coupled with the complex synthesis process.

Regional Insights:

Asia Pacific Dominates Due to Growing Environmental Awareness

The Asia Pacific market for polybutylene adipate terephthalate captures the largest share. This is on the back of the surging awareness pertaining to the environment, urbanization, and quick industrialization in nations including South Korea, India, Japan, and China.

North America market growth can be credited to the rising consumer demand for sustainable options to traditional plastics, which has driven product uptake.

Browse Summary:https://www.fortunebusinessinsights.com/polybutylene-adipate-terephthalate-market-109772