Why are investors hot on biopolymers? 🧬

The global biopolymers market is expected to double by 2031 with a projected growth from $19.46 billion in 2024 to $40.67 billion. The market has been steadily growing since 2018, driven by environmental concerns about plastic waste and tightening regulations, driving innovation in the sector. 

Policies like the EU’s ban on single-use plastics in 2021 have fuelled demand and spiked R&D investment, leading to breakthroughs in biopolymer production techniques and applications. This has made investors and corporations gain interest in the sector, with biopolymers poised to play a crucial role in shaping the future of materials science. 

So what are biopolymers?

Biopolymers are a form of polymers – groups of molecules chemically bonded together. Polymers are widely used in materials in our daily lives either naturally in fabrics such as wool and cellulose, or synthetically like in polyethylene and nylon.

Biopolymers naturally occur in living organisms, forming components like proteins, DNA, and cellulose. Unlike synthetic polymers, biopolymers are biodegradable and environmentally friendly, making them a focus of interest in sustainable materials, science, and biotechnology.

All biopolymers are natural, but not all natural polymers are classified as biopolymers. If that sounds confusing, hang in there. The key differentiator lies in their production and applications. Biopolymers are specifically engineered for industrial use cases, while natural polymers occur in their raw, unmodified, forms in materials like wool or silk.

Why are biopolymers having a resurgence in 2024?

Biopolymers are quickly gaining in popularity due to growing awareness of the detrimental effects of plastic pollution. The global movement toward sustainability has made corporations, governments, and consumers gravitate toward eco-friendly materials, especially in sectors like packaging. The resurgence is further fuelled by:

• Regulatory Pressures: Governments are increasingly introducing stricter plastic regulations. New policies promote the use of biodegradable, recyclable, or compostable materials, accelerating the adoption of biopolymers
• R&D Investment: Biopolymers are becoming more versatile and efficient thanks to advances in production techniques and material science. Innovations such as protein-based biopolymers, cellulose derivatives, and polylactic acid (PLA) are now being used across industries like packaging and medicine

• Consumer Preferences: A clear shift in consumer behavior towards sustainable products contributes to this growth. Many consumers are now willing to pay a premium for products with eco-friendly packaging, driving demand and pushing companies to integrate biopolymers into their product lines
• Corporate Commitments: Major corporations are pledging to scale their sustainability efforts, including transitioning to sustainable packaging solutions. This is spurring the adoption, as companies seek to meet environmental goals and cater to growing consumer demand

Applications across industries

Biopolymers are increasingly used in industries like packaging, textiles, agriculture, and healthcare. 

• Packaging & Plastics: According to our data, 42% of funding for biodegradable packaging in Europe has gone to companies developing biopolymer-based solutions. That’s more than double the amount than that of paper and cardboard.
• Construction: Biopolymers are being explored as sustainable alternatives to traditional building materials. Conventional insulation, coatings, and adhesives can be replaced with biopolymer composites, contributing to greater energy efficiency and durability.
• Agriculture: Biopolymers are used to create biodegradable films and coatings in agriculture, reducing plastic waste and improving soil health. Startups are developing innovative solutions like degradable biopolymer-based mulch films, eliminating the need for removal and disposal.
• Medicine: The medical industry is leveraging biopolymers for applications such as drug delivery systems, biodegradable sutures, and implants. Tech startups are pioneering in this field, creating biopolymer materials that offer biocompatibility, controlled degradation rates, and the ability to deliver drugs precisely within the body. This innovation is crucial for developing advanced medical devices and treatments that improve patient outcomes.

Hurdles to overcome on the path to mainstream

Biopolymers could be the next-generation sustainable material, but the path to mainstream isn’t linear. Many biopolymer materials still face the challenge of competing with conventional plastic in durability and cost, restricting widespread adoption.

Another challenge is one of recyclability. Despite being bio-degradable, biomaterials often miss out on recycling opportunities in reality. Most recycling plants aren’t equipped to identify and separate biomaterials, making most end up in landfills.

Scaling the production of biomaterials can be challenging too. Unlike, for example, plastic wrap, biomaterials often require resource-intensive processes that hinder mass production. Fungi, for example, require propagation trays, while wool production depends on sheep. As the demand for sustainable solutions continues to rise, finding new and scalable production methods for biomaterials becomes imperative to ensure the transition. While investment is increasing, further innovation is needed for biopolymers to reach the mainstream.