|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD175.63
million
|
|
CAGR
(2023-2028)
|
3.61%
|
|
Fastest
Growing Segment
|
PLA
|
|
Largest
Market
|
Quebec
|
Market Overview
Canada Compostable Plastics Market has valued at USD175.63
million in 2022 and is anticipated to project robust growth in the forecast
period with a CAGR of 3.61% through 2028. The growth of the compostable
plastics market is being driven not only by the development and approval of
products from major resin suppliers through programs like the Compostable Logo
program, but also by the increasing consumer demand for environmentally
friendly alternatives. These initiatives ensure that compostable products meet
specific standards, providing consumers with confidence in their purchases and
promoting a more sustainable future.
However, the road to a sustainable future is not
without its challenges. One of the main issues is that compostable plastics
require specific conditions to decompose properly, such as high temperatures
and oxygen levels. Unfortunately, these conditions are often only found in
industrial composting facilities, which are still relatively rare in Canada. As
a result, many compostable items end up in landfills where they do not break
down as intended, contributing to the overall waste problem.
Moreover, the labelling of compostable products can
be misleading, leading to confusion among consumers. Many items labelled as
"100% compostable plastic" may not break down entirely in a typical
backyard compost bin. This discrepancy can undermine the trust that consumers
have in compostable products and further complicate the adoption of more
sustainable alternatives.
Despite these challenges, bio-based plastics, most
of them compostable to some degree, are gaining popularity across Canada. With
continued investment in research and development, infrastructure, and consumer
education, the compostable plastics market in Canada has the potential to
overcome these hurdles and become a viable solution for reducing single-use
plastic waste.
Furthermore, the Canadian government's ban on
single-use plastics presents a unique opportunity for the compostable plastics
market. As restaurants, retailers, and consumers seek alternatives, there is a
growing demand for single-use paper, bamboo, and compostable products. This
shift towards more sustainable options not only aligns with environmental goals
but also creates new business opportunities and supports the development of a
circular economy.
In conclusion, while there are challenges to be
addressed, the compostable plastics market in Canada is poised for growth and
innovation. By addressing issues related to decomposition conditions, accurate
labelling, and expanding composting infrastructure, we can pave the way for a
more sustainable future and reduce our reliance on traditional single-use
plastics.
Key Market Drivers
Growing Demand of Compostable Plastics in Packaging
Industry
The packaging industry plays a crucial and
indispensable role in the overall growth and development of various sectors.
Packaging applications not only ensure the safety and preservation of products
but also have a significant impact on the compostable plastics market. This
impact is primarily driven by the extensive consumption of single-use plastic
products, such as bags, films, and containers, which constitute a dominant
share of the market. Recognizing the urgent need to address the environmental
challenges posed by such plastic waste, the industry has been increasingly
shifting towards compostable plastic packaging solutions.
Compostable plastic packaging offers numerous
advantages when compared to traditional plastic packaging. One of the key
benefits is its ability to degrade into natural components within a composting
environment, leaving behind no toxic residue. This distinctive feature makes
compostable plastic packaging an environmentally friendly option, significantly
reducing the amount of plastic waste that ultimately ends up in landfills or
oceans, where it can have detrimental effects on ecosystems and marine life.
Moreover, the adoption of compostable plastic
packaging aligns perfectly with the evolving preferences of today's consumers.
With a growing number of individuals actively seeking out sustainable and
eco-friendly products, businesses that embrace compostable plastic packaging
can effectively cater to the demands of these environmentally conscious
consumers. By doing so, they not only contribute to reducing plastic pollution
but also enhance their brand reputation and market competitiveness.
The increasing demand for compostable plastics
within the packaging industry serves as a major driver for the growth of
Canada's compostable plastics market. While certain challenges persist, for
continued investment in research and development, infrastructure including
continued investment in research and development, infrastructure improvements,
and consumer education, the potential of the need for continued investment in
research and development, infrastructure improvements, and consumer education,
the potential of the compostable plastics market to shape a more sustainable
future for Canada cannot be underestimated. By embracing innovative solutions,
collaborating with stakeholders, and implementing effective strategies, the
packaging industry can pave the way for a greener and more environmentally
conscious future.
Growing Demand of Compostable Plastics in Textile
Industry
The textile industry is playing a significant role
in driving the demand for compostable plastics. As the global consciousness
about environmental sustainability continues to grow, fashion brands are
seeking out eco-friendly alternatives to traditional petroleum-based fabrics.
Compostable plastics, also known as bioplastics, have emerged as an appealing
solution to address this demand.
Compostable plastics offer the advantage of
degrading into natural components in composting environments, leaving no toxic
residue. This feature makes them a more environmentally friendly option for
textiles, ultimately reducing the industry's environmental impact. By adopting
compostable plastic textiles, businesses can align with consumer preferences
and cater to the increasing number of individuals seeking sustainable products.
However, despite the promise of compostable
plastics, they also present challenges. These materials require specific
conditions to decompose properly, which are often found only in industrial
composting facilities. Additionally, there has been criticism regarding the
complete degradation of bio-based or blended fabrics in ocean environments,
raising concerns about their impact on marine ecosystems.
In conclusion, the rising demand for compostable
plastics in the textile industry is a significant driver of Canada's
compostable plastics market. While challenges persist, the potential for growth
and contribution to a more sustainable future is undeniable. With further
research and development, compostable plastics can continue to revolutionize
the textile industry, shaping a more eco-friendly and responsible approach to
fashion production.
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Key Market Challenges
Limited Composting Infrastructure
Compostable plastics require specific conditions to
decompose properly. They need high temperatures, the right level of moisture,
and a certain amount of time to break down into natural components.
Unfortunately, these conditions are often only found in industrial composting
facilities.
Currently, Canada lacks sufficient industrial
composting infrastructure to manage the increasing volume of compostable
plastics. Many municipalities do not have access to such facilities, resulting
in compostable products ending up in landfills where they do not decompose as intended.
The lack of composting infrastructure not only
hampers the decomposition of compostable plastics but also affects consumer and
business behavior. Consumers may become disillusioned with compostable products
if they learn that these items are not being composted properly. This could
undermine trust in compostable products and potentially slow market growth.
For businesses, the limited composting
infrastructure can pose operational challenges. Companies may find it difficult
to dispose of compostable waste effectively, leading to increased costs and
complexities. This could deter businesses from transitioning to compostable
products.
Furthermore, the inadequate composting
infrastructure in Canada also has environmental implications. Improper disposal
of compostable plastics contributes to landfill waste and adds to the overall
burden on the environment. The lack of access to proper composting facilities
hinders the progress towards a more sustainable waste management system.
Addressing the issue of insufficient composting
infrastructure requires collaborative efforts between government, businesses,
and communities. Investing in the development of more industrial composting
facilities and expanding access to such facilities across municipalities can help
manage the growing volume of compostable plastics effectively. Additionally,
raising awareness among consumers about proper composting practices and the
importance of supporting composting infrastructure can encourage responsible
waste disposal habits and promote the adoption of compostable products.
Key Market Trends
Increasing Focus on Biodegradability and
Certification
Biodegradability has become an increasingly crucial
attribute of compostable plastics. As consumers and businesses become more aware
of the detrimental environmental impact of traditional plastics, there is a
growing interest in finding alternatives that are biodegradable and can
decompose into natural components under specific conditions.
In response to this demand, companies like CTK Bio
Canada have made significant strides in developing new biodegradable and
compostable plastic pellets that can be combined with organic waste. These
innovative solutions offer a promising alternative to conventional plastics,
highlighting the industry's commitment to improving the overall
biodegradability of compostable plastics.
Alongside the focus on biodegradability,
certification is emerging as a key trend in the compostable plastics market.
Certification provides assurance to consumers and businesses that a product
meets specific standards of compostability and biodegradability. This
certification process involves rigorous testing and evaluation to ensure that
the product can effectively break down into organic matter.
Clear certification and labelling are crucial in
supporting the effective biological treatment of a wide range of biodegradable
bioplastics. By clearly indicating the compostability and biodegradability of
these products, businesses and consumers can make more informed choices, promoting
the adoption of compostable plastics and facilitating their proper disposal.
In conclusion, the increasing focus on
biodegradability and certification is a significant and positive trend in
Canada's compostable plastics market. By continuing to innovate and invest in
these areas, the compostable plastics industry can play a vital role in
contributing to a more sustainable and environmentally friendly future.
Segmental Insights
Resin Type Insights
Based on the category of resin type, the PLA segment
emerged as the dominant player in the Canada market for compostable plastics in
2022. Polylactic acid (PLA) is a versatile and adaptable material that finds
applications in a wide range of industries. In the automobile sector, PLA is
used for manufacturing lightweight and fuel-efficient components, contributing
to the overall performance and sustainability of vehicles. In construction,
PLA-based materials are utilized for their durability and eco-friendly nature,
allowing for the development of sustainable infrastructure. The aerospace
industry benefits from PLA's high strength-to-weight ratio, enabling the
production of lightweight aircraft parts without compromising safety. Woodwork
enthusiasts appreciate PLA's ability to mimic the appearance and texture of
wood, offering a sustainable alternative to traditional timber.
Additionally, the petroleum sector leverages PLA
for its biodegradability and reduced environmental impact compared to
conventional plastics, aligning with the industry's growing focus on
sustainability. This combination of versatility, adaptability, and
eco-friendliness has propelled PLA to a dominant position in the compostable
plastics market, meeting the increasing demand for environmentally friendly
materials in both consumer and business contexts.
End User Insights
The packaging segment is projected to experience
rapid growth during the forecast period. There is an increasing awareness among
consumers about the significant environmental consequences of plastic waste,
particularly in the context of packaging. This heightened consciousness has
fueled the demand for more sustainable alternatives, and one such solution is
compostable plastics. Compostable plastic packaging not only addresses the
concerns of consumers but also aligns with their eco-friendly values, making it
a dominant force in the market.
Given the growing global focus on sustainability,
industries are actively seeking packaging solutions that can effectively reduce
their environmental impact. Compostable plastic packaging emerges as the ideal
answer, offering a more sustainable and eco-conscious alternative to
traditional plastics. The continuous innovation and technological advancements
in bio-based and compostable plastics have made them increasingly attractive
for businesses that strive to enhance their sustainability credentials.
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Regional Insights
Quebec emerged as the dominant player in the Canada
Compostable Plastics Market in 2022, holding the largest market share in terms
of value. Quebec has emerged as a frontrunner in Canada's pursuit of
environmental sustainability. Recognizing the urgent need to combat plastic
waste, the province has implemented a range of innovative initiatives to reduce
its ecological footprint. These efforts encompass not only the reduction of
plastic waste but also the promotion of sustainable alternatives that align
with circular economy principles. By fostering a culture of sustainability,
Quebec has created an ideal environment for the flourishing of the compostable
plastics market.
With its thriving industrial sector, Quebec plays a
vital role in various industries, including food and beverage and retail. These
sectors heavily rely on packaging materials, making the demand for sustainable
packaging solutions all the more crucial. Embracing compostable plastics has
emerged as a dominant trend in the region, driven by the desire to meet the
sustainability goals set by businesses and consumers alike.
The regulatory framework in Quebec further
reinforces the adoption of compostable plastics. Unlike other Canadian regions,
Quebec has proactively implemented regulations that incentivize the use and
development of compostable plastics. By setting ambitious targets for plastic
waste reduction and promoting circular economy principles, Quebec has
positioned itself as a trailblazer in the sustainable packaging arena. Through
these comprehensive measures, the province aims to create a future where plastic
waste is minimized, and the principles of a circular economy are fully
embraced.
Recent Developments
- In 2021, Loblaw Companies Limited, the largest
grocery retailer in Canada, made an exciting announcement. They revealed a
strategic partnership with NatureWorks LLC to collaborate on the development
and launch of a brand new line of compostable packaging. This innovative
packaging is specifically designed for their popular President's Choice brand,
further emphasizing their commitment to sustainability and environmental
responsibility. By introducing compostable packaging, Loblaw aims to provide
their customers with a greener and more eco-friendly option while maintaining
the high quality and value that their brand represents.
Key Market Players
- BOSK
Bioproducts Inc.
- TerraVerdae
Bioworks Inc.
- S2G
Biochemicals Inc.
- Good
Natured Products, Inc.
- Be-Up
Biotechnology, Inc.
|
By Resin Type
|
By End User
|
By Region
|
- PLA
- Starch
Blends
- PHA
- PBAT
- Others
|
- Packaging
- Consumer
Goods
- Textiles
- Others
|
- Quebec
- Ontario
- Alberta
- British
Columbia
- Saskatchewan
& Manitoba
|
Report Scope:
In this report, the Canada Compostable Plastics
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- Canada Compostable Plastics Market, By Resin Type:
o PLA
o Starch Blends
o PHA
o PBAT
o Others
- Canada Compostable Plastics Market, By End User:
o Packaging
o Consumer Goods
o Textiles
o Others
- Canada Compostable Plastics Market, By Region:
o Quebec
o Ontario
o Alberta
o British Columbia
o Saskatchewan & Manitoba
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Canada
Compostable Plastics Market.
Available Customizations:
Canada Compostable Plastics Market report with the
given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Canada Compostable Plastics Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]