As the "white pollution" caused by traditional plastics has become a global environmental challenge, a profound materials revolution is quietly reshaping the fundamental logic of the packaging industry.
According to the analysis by Zhongyan Puhua Industry Research Institute in its report "Global Biodegradable Plastic Bag Market Size, Leading Companies' Domestic and International Market Shares, and Rankings in 2026," by 2026, with the mandatory implementation of the EU's PPWR (Packaging and Packaging Waste Regulation), the official enforcement of China's new Environmental Protection Code, and increasingly stringent plastic bans in countries such as India and Australia, biodegradable plastic bags are rapidly transforming from an "optional environmental choice" into a "mandatory compliance requirement."
A hundred-billion-yuan market is fully unfolding, driven by the combined forces of policy rigidity, continuous technological iteration, and upgraded consumer demand.
For investors, this is a highly certain growth opportunity; for corporate strategists, it represents a window period for reshaping the industrial chain; and for newcomers to the market, it offers an excellent entry point to understand the underlying logic of the green economy.
01 Industry Definition and Classification: Clarifying the Core of "Biodegradable"
Biodegradable plastic bags are plastic film products that can be broken down by microorganisms into carbon dioxide, water, biomass, or other harmless small molecules under natural environmental conditions such as soil, seawater, or composting.
In stark contrast to traditional polyethylene (PE) plastic bags, which can take hundreds of years to degrade, the core value of biodegradable plastic bags lies in reducing the long-term environmental persistence of plastic waste at the source.
From the perspective of material technology, current mainstream biodegradable plastic bags can be categorized into the following major types:
The first category consists of polylactic acid (PLA)-based products. PLA is made from renewable plant resources such as corn and sugarcane, processed through fermentation and polymerization. It offers excellent transparency and rigidity, and is widely used in food packaging and shopping bags.
NatureWorks in the United States and Total Corbion PLA in the Netherlands are leading global suppliers of PLA resin.
The second category consists of polybutylene adipate-co-terephthalate (PBAT)-based products. PBAT is a petrochemical-based biodegradable material known for its excellent flexibility and outstanding film-forming properties, making it currently the most widely used substrate for biodegradable plastic bags—particularly shopping bags, garbage bags, and courier bags.
China's Kingfa Technology, Wanhua Chemical, Italy's Novamont, and Germany's BASF are the key players in the global PBAT market.
The third category consists of starch-based blended products. Made primarily from natural starch and modified by blending with PBAT or PLA, these products are relatively low-cost when used for bag production, but their mechanical properties and weather resistance are slightly inferior to those of pure synthetic biodegradable materials.
The fourth category consists of polyhydroxyalkanoate (PHA)-based products. PHA is synthesized through microbial fermentation and offers the unique advantage of being biodegradable in marine environments. However, due to high production costs, large-scale applications are still in the early stages. Danimer Scientific in the United States is a representative company in this field.
In addition, polybutylene succinate (PBS) and its modified materials also hold a significant position in specific application scenarios, with Mitsubishi Chemical of Japan maintaining a technological leadership advantage in this field.
02 Industrial Chain Overview: From Raw Materials to End-Use Applications
Understanding the biodegradable plastic bag industry requires grasping its "three-stage" industrial chain structure.
Upstream—raw material supply stage. The upstream raw materials for biodegradable plastic bags are primarily divided into two major systems: bio-based and petrochemical-based raw materials.
Bio-based feedstocks include renewable resources such as corn starch, sugarcane, and cellulose, as well as key intermediates produced through fermentation, such as lactic acid and succinic acid. Petrochemical-based feedstocks, on the other hand, consist of bulk chemicals like adipic acid (AA), terephthalic acid (PTA), and 1,4-butanediol (BDO).
Fluctuations in upstream raw material prices directly affect the cost structure of midstream resin polymerization and downstream bag manufacturing.
Taking BDO as an example, as the core monomer for PBAT production, its price experienced significant fluctuations between 2024 and 2025, substantially affecting industry profit margins.
Midstream—resin polymerization and modified granulation. This is the stage with the highest technical barriers and the largest capital investment in the industrial chain.
The company processes upstream raw materials into biodegradable resins such as PLA, PBAT, PBS, and PHA through condensation polymerization and ring-opening polymerization, then further modifies and granulates them to produce specialty compounds suitable for downstream blown film processing.
The core competitiveness of this segment lies in the extensive range of resin grades, large-scale and stable supply capability, product performance certifications (such as EU EN 13432 and U.S. ASTM D6400 compostability certification), and strong customer collaboration and loyalty downstream.
Downstream—bag manufacturing and end-use applications. The modified pellets produced in the midstream are processed into various biodegradable plastic bag products through processes such as blown film extrusion, printing, heat sealing, and cutting. End-use applications span multiple fields, including supermarket shopping bags, household waste sorting bags, express delivery packaging bags, food delivery packaging bags, agricultural mulch films, and industrial packaging.
There are numerous downstream bag-making enterprises with relatively low entry barriers, resulting in a fragmented competitive landscape. However, leading companies with brand certifications, scale production capabilities, and distribution advantages are accelerating industry consolidation.
In terms of industrial layout, global production capacity for biodegradable plastic bags is primarily concentrated in the Asia-Pacific region (especially China). China is not only the world's largest producer of biodegradable plastics but also a key supplier to consumer markets in Europe and North America.
Europe and North America, benefiting from early advantages in technology development, standard setting, and high-end applications, maintain strong influence over key segments in the upstream and midstream of the industrial chain.
03 Global Market Size: Policy-Driven Deterministic Growth
2026 is a pivotal year for the global biodegradable plastic bag industry, marking a transition from quantitative growth to qualitative transformation. The叠加 of multiple policy incentives is turning environmental awareness into tangible market expansion.
The global market size continues to expand. According to aggregated data from multiple research institutions, the global biodegradable plastic bag market was valued at approximately 5.938 billion RMB in 2025 (based on BZG Consulting's figures), while the broader degradable plastics market—including applications across packaging, agriculture, healthcare, and other sectors—reached around 18 billion USD by the end of 2025.
By 2026, driven by mandatory plastic restriction or ban regulations in over 75 countries and regions worldwide, the global biodegradable plastics market is expected to exceed $21.5 billion.
Focusing on the subcategory of biodegradable plastic bags, the global market size is projected to reach approximately $885 million by 2026 and is expected to exceed $1.295 billion by 2035, with a compound annual growth rate of about 4.32% during this period.
Expanding the scope to the overall market for biodegradable plastic packaging, the global scale reached 53.263 billion RMB in 2025 and is projected to rise to 234.465 billion RMB by 2032, with a compound annual growth rate as high as 23.58%, indicating an exceptionally strong growth trend.
China's market penetration rate is accelerating. In July 2026, multiple regions across the country upgraded their plastic pollution control regulations, fully banning ultra-thin non-degradable plastic bags in supermarkets, food delivery, and fresh produce sectors, while simultaneously expanding the ban on plastic use in agriculture and distribution fields.
According to industry research and calculations by Zhongyan Puhua, the overall market penetration rate of biodegradable plastic products in China exceeded 31% in 2026, with biodegradable plastic bags being the segment with the highest penetration rate and the broadest range of applications.
According to data from the State Administration for Market Regulation, since the implementation of the national standard "Biodegradable Plastic Shopping Bags" over five years ago, China has reduced the use of traditional plastic bags by approximately 20 billion annually, and the proportion of conventional plastics in urban household waste has significantly decreased.
The Chinese biodegradable plastic bag market reached approximately 1.596 billion RMB in 2025 and is expected to maintain high double-digit growth in the coming years.
Production capacity is expanding in tandem. Global bioplastic production capacity is expected to increase significantly from approximately 2.47 million tons in 2024 to around 5.73 million tons in 2029, more than doubling.
Among them, PLA has the largest production capacity, followed by PBAT, with the two together accounting for the vast majority of global biodegradable plastic capacity.
Chinese companies have been rapidly expanding their PBAT production capacity, with Jinfa Technology, Wanhua Chemical, Changhong High-Tech, and Lanshan Tunhe continuously increasing investments, further solidifying China's position in the global PBAT production landscape.
04 Global competitive landscape and enterprise rankings: One dominant player and multiple strong competitors
In the global biodegradable plastic bag industry in 2026, the competitive landscape is gradually shifting from the initial "diverse contenders" to a clear pattern of "one dominant player along with multiple strong competitors".
The following presents a comprehensive analysis of the market position and core advantages of leading enterprises from both international and domestic perspectives.
(1) Leading enterprises in the international market
1. Novamont (Italy) - A global pioneer and benchmark in biodegradable plastics. Novamont is one of the earliest enterprises worldwide to achieve industrialization of biodegradable plastics. Its core brand, Mater-Bi series, mainly consists of starch-based blend materials, covering various application scenarios such as shopping bags, garbage bags, and agricultural mulch films.
The company enjoys an extremely high brand recognition and policy certification advantage in the European market, and is a key participant in the EU's standards for compostable plastic bags.
Novamont has long held a leading position in the global market for PBAT and starch-based degradable materials, with its production capacity and customer base forming a deep moat.
2. BASF (German BASF) - Global chemical giant empowering green materials. BASF's ecoflex series (PBAT type) and ecovio series (PLA/PBAT blend type) are well-known product portfolios in the field of biodegradable plastics worldwide.
At the CHINAPLAS International Plastics and Rubber Exhibition in 2026, BASF presented its sustainable product portfolio, showcasing a 30% to 60% increase compared to 2024, under the theme of "The Road of Carbon".
BASF, with its global supply chain, strong R&D capabilities and cross-industry customer network, maintains a leading global market share in the field of degradable plastic resins.
3. NatureWorks (USA) - The global leader in the PLA sector. Established through a joint venture between Thailand's PTT Global Chemicals and the US-based Cargill, NatureWorks is the world's largest PLA producer. Its Ingeo brand PLA resin is widely used in packaging, fibers, and 3D printing, among other applications.
Although the direct application ratio of PLA in the plastic bag sector is lower than that of PBAT, NatureWorks' continuous innovations in the areas of PLA blending modification and barrier performance improvement have enabled it to occupy an important position in the overall market of degradable packaging.
4. Total Corbion PLA (Netherlands) - The second-largest supplier of PLA in Europe. It was jointly established by French Total Energy and Dutch Corbion, with an annual production capacity of approximately 150,000 tons of PLA. The products are mainly targeted at the European and North American markets, and it has strong competitiveness in the fields of food packaging and disposable products.
5. Danimer Scientific (USA) - A pioneer in the PHA field. Danimer Scientific focuses on the research and production of PHA (polyhydroxyalkanoates). Its Nodax brand PHA materials possess the unique advantage of being degradable in marine environments and have established partnerships with several globally renowned consumer goods enterprises.
Although the current application scale of PHA in the plastic bag industry is still relatively small, with the increasing efforts to address marine plastic pollution, Danimer Scientific is expected to experience rapid growth in the coming years.
6. Mitsubishi Chemical Group (Japan) - A representative enterprise of the PBS technology route. Mitsubishi Chemical has extensive technical expertise in the field of PBS and its modified materials. Its products are mainly used in high-end packaging and agricultural mulching films. It holds a strong market position in the Asia-Pacific region, especially in Japan.
(2) Leading enterprises in the domestic market
Jinfa Technology (600143.SH) - undoubtedly the leading company in PBAT industry in China and globally.
In 2025, the total sales volume of all categories of biodegradable plastics produced by Jinfa Technology reached 226,300 tons, with a year-on-year growth of 25.37%. Among them, the sales volume of PBAT ranked first globally, and the market share of biodegradable film bags remained the top in Asia.
The company has established a complete industrial chain covering "biobased monomers - polyesters - modified materials". Key raw materials such as biobased succinic acid and biobased BDO have been put into production, and the products cover various application scenarios including environmental protection packaging, green agriculture, food-grade tableware, and 3D printing consumables.
In the first quarter of 2026, Jinfa Technology achieved a total revenue of 15.59 billion yuan, ranking among the top in the degradable plastic概念股 sector. The company's PBAT production capacity planning will reach 3 million tons， further consolidating its scale advantage.
2. Wanhua Chemical (600309.SH) - A cross-border expansion by a chemical platform giant. As the largest MDI producer in China, Wanhua Chemical leverages its strong chemical platform advantages and integrated industrial chain to enter the PBAT and PLA sectors.
The PBAT production capacity built by the company at its Yantai base has achieved stable shipments. Leveraging its brand effect, distribution network and cost control capabilities, it has rapidly risen to the top ranks of domestic biodegradable plastics.
3. Changhong Hi-tech (300717.SZ) - A leading new player in PBAT industry. Changhong Hi-tech focuses on the research and production of PBAT, with its production capacity accounting for approximately 9% of the total domestic capacity. The products are mainly targeted at the markets of biodegradable plastic bags and plastic films, and it is an important player in the specific field.
4. Lan Shan Tunhe (Xinjiang Lan Shan Tunhe Chemicals) - A leader in production capacity in the western region. Lan Shan Tunhe takes advantage of the energy and raw material cost advantages in Xinjiang region. Its PBAT production capacity also accounts for approximately 9% of the total domestic production capacity, ranking alongside Chang Hong Gaoke and other companies in the top tier of the domestic second梯队.
5. JinDan Technology (300829.SZ) - A pioneer in the polylactic acid (PLA) industry chain. JinDan Technology mainly focuses on lactic acid and its related products as its core business, and extends to the upstream production of caprolactone and PLA polymerization. It is one of the few enterprises in China with the capability to complete the entire PLA industrial chain. The company's products are mainly targeted at degradable packaging, tableware, and fibers.
6. Haizheng Materials (688203.SH) - Zhejiang Haizheng Biomedical Materials, one of the earliest enterprises in China to achieve PLA industrialization. It has certain technical accumulation and market share in the fields of PLA resin and modified materials.
7. COFCO Technology (000930.SZ) - Leveraging the resource advantages of COFCO Group in the corn processing industry, it has established a layout for upstream raw materials (lactic acid, caprolactone) of PLA, occupying a key node in the bio-based material supply chain.
(III) Summary of Global Competitive Landscape
Overall, the competitive landscape of the global biodegradable plastic bag industry in 2026 is characterized by the following features: In the PBAT sector, Chinese enterprises (represented by Jinfa Technology) have taken the lead globally by virtue of their production capacity and cost advantages; in the PLA sector, the US company NatureWorks and the Dutch company Total Corbion PLA still maintain technological and production leadership, while Chinese enterprises are accelerating their pursuit.
In the field of starch-based materials, Italy's Novamont maintains a global benchmark position; in the advanced materials such as PHA, enterprises like the US-based Danimer Scientific are at the stage of technological leadership.
The core competitive enterprises in the global field of biodegradable plastic resins also include multinational chemical giants such as BASF, Kaneka (Japan), and Arkema (France).
05 Industry Trends and Investment Decision Recommendations
(1) Core Trend Judgment
Trend 1: Policy drive shifts from "advocacy" to "compulsion". 2026 will be a "major year" for the implementation of global plastic restriction policies.
The EU's PPWR has set strict standards for the materials, degradation criteria, and product identification of biodegradable plastic bags; China's new environmental protection code has established a comprehensive regulatory system covering the entire chain of plastic bag production, circulation, use, and recycling.
The first mandatory national standard for excessive packaging of express deliveries in China will come into effect in July 2026. The rigid constraints of this policy will continuously stimulate the demand for alternative products such as biodegradable plastic bags, providing a solid foundation for the growth of the industry.
Trend 2: Technological iterations focus on cost reduction and efficiency improvement. Currently, the cost of biodegradable plastic bags is still approximately 1.5 to 3 times higher than that of traditional PE bags. The cost gap is the core bottleneck restricting the further increase in penetration rate.
The direction of industry technological progress focuses on three aspects: Firstly, breakthroughs in low-cost bio-based routes for raw materials at the upstream (such as BDO and lactic acid); secondly, improvement in catalytic efficiency and reduction in energy consumption in the midstream polymerization process; thirdly, optimization of performance and cost control in the downstream blending and modification formulations. The enterprises that first achieve a breakthrough in cost competitiveness will enjoy significant excess profits.
Trend 3: The concentration of the industry is accelerating. As environmental protection standards become stricter, customer certification requirements increase, and the advantages of scale effect become more prominent, small and medium-sized production capacities will be rapidly eliminated, and industry resources will be concentrated among leading enterprises.
Enterprises with the comprehensive integration capability covering the entire process from "raw materials - resin - modification - bag making" will occupy a more advantageous position in the competition.
Trend 4: The export market is facing compliance upgrades. After the EU's PPWR was officially implemented in August 2026, the export of domestic eco-friendly plastic bags to the EU is required to meet even stricter compliance entry standards, including requirements for compostability certification, carbon footprint declaration, and limits on hazardous substances. Enterprises with international certification capabilities will enjoy the structural benefits of the export market.
(2) Investment Decision Recommendations
For investors, it is recommended to focus on the following areas: Firstly, leading enterprises in PBAT and PLA production with large-scale capacity and already achieving profitability, such as Jinfa Technology and Wanhua Chemical;
Second, enterprises that have the ability to independently supply key raw materials (such as BDO, lactic acid, and caprolactone) possess structural advantages in cost control; third, innovative enterprises that have core technology reserves in next-generation degradable materials (such as PHA) have broad long-term growth potential.
For enterprise strategic decision-makers, it is recommended to plan and arrange the layout from the following aspects: Firstly, accelerate the establishment of international certification systems, especially the EU EN 13432 and the US ASTM D6400 composting certifications, in order to seize the initiative in the export market;
Second, we will enhance the research and development of blending modification technologies and functional products, to improve the applicability of the products in special scenarios such as cold chain, high humidity, and high strength; third, we will explore in-depth cooperation with downstream brand customers, and establish long-term customer loyalty through customized solutions.
For newcomers to the market, it is recommended to start by focusing on specific application scenarios, such as courier packaging, food delivery, and agricultural film, which have the most urgent policy substitution demands. Avoid competing head-on with leading enterprises in general-purpose products.
At the same time, closely monitor the implementation pace and enforcement strength of plastic ban policies in various regions, and seize market opportunities in different regions.
06 Risk Warning and Industry Challenges
Although the prospects are promising, the industry still faces several risks and challenges that deserve attention. The first one is the risk of raw material price fluctuations.
Petrochemical-based raw materials such as BDO and PTA are significantly affected by international crude oil prices, while bio-based raw materials are influenced by fluctuations in agricultural product production and prices. The uncertainty in the cost end may erode corporate profits.
Secondly, the market disruption caused by "pseudo-degradable" products. Some enterprises use "destructive degradation" technologies such as photo-oxidation degradation and thermal-oxidation degradation to falsely claim that their products are truly fully biodegradable, thereby disrupting the market order and damaging the overall reputation of the industry.
Thirdly, concerns over overcapacity. Domestic production capacity for PBAT has expanded rapidly in the past two years. If the growth rate of downstream demand fails to meet expectations, the industry may face a temporary situation of oversupply.
Fourth, the infrastructure for recycling and disposal is insufficient. Biodegradable plastic bags can only be efficiently degraded under industrial composting conditions. However, the coverage rate of industrial composting facilities in China is still relatively low, which hinders the full realization of the environmental benefits of these products.
Conclusion
The conclusion analysis of the "2026 Global Biodegradable Plastic Bag Industry Market Size, Leading Enterprises' Domestic and Overseas Market Share and Ranking" report by Zhongyanpuhua Industry Research Institute holds that in 2026, the global biodegradable plastic bag industry is at a critical juncture of transitioning from policy-driven to market-driven.
The irreversible global trend of plastic restriction, the continuous breakthroughs in material technology, and the profound awakening of consumers' environmental awareness have jointly formed the long-term growth logic of this sector.
On this green track, leading enterprises with scale advantages, technological barriers and the ability to integrate the entire industry chain are expected to stand out in the industry reshuffle over the next five to ten years and become the winners that define the new order of the industry. For all market participants, understanding the trends, identifying the right position, and respecting the rules will enable them to seize the real gold-mining opportunities in the green wave.
