Bioplastics are a category of materials that come entirely or partly from renewable biological resources like corn starch, sugarcane, vegetable oils, or cellulose, to be used as sustainable substitutes for traditional petroleum-based plastics. Bioplastics may be biodegradable, non-biodegradable, or compostable, depending on their chemical composition and manufacturing process. The most widely used ones are polylactic acid (PLA), polyhydroxyalkanoates (PHA), bio-based polyethylene (bio-PE), and polyethylene furanoate (PEF). Bioplastics merge the functional benefits of conventional plastics, flexibility, strength, and transparency with the sustainability of renewable origin and, in certain instances, with additional biodegradability. Bioplastic manufacturing involves the conversion of biomass feedstock to monomers via fermentation or chemical synthesis and subsequent polymerization to the end material. They are increasingly applied in various industries like packaging, agriculture, consumer goods, textiles, and automotive parts, as they have a lesser carbon footprint and adhere to the circular economy approach. Processing and additive improvements in biopolymers have enhanced their thermal stability, resistance, and affordability, such that they can be used on a large scale. Further, with rising global plastic waste and microplastic pollution, bioplastics have proven to be a potential gateway towards sustainable materials management. Governments, companies, and consumers are moving toward the adoption of bioplastics to comply with environmental regulations and corporate sustainability ambitions, making the industry one of the main drivers of the world's green material revolution. The global bioplastics market reached a value of USD 13.9 Billion in 2024. According to IMARC Group, the market is projected to reach USD 33.3 Billion by 2033, at a projected CAGR of 10.18% during 2025-2033. The global market for bioplastics is growing rapidly, led mainly by growing environmental consciousness, regulatory requirements, and technological advancements. The largest driver is the worldwide move toward renewable materials to mitigate dependence on fossil fuels and decrease carbon footprints. Governments worldwide, such as those in the European Union, United States, India, and Japan, are imposing stringent regulations and bans on single-use plastics, fueling bioplastic uptake throughout packaging and consumer goods industries. Rising demand from the packaging industry, which has a significant global bioplastic demand, is yet another key driver. Players like Coca-Cola, Nestlé, and Unilever are incorporating bioplastics into product packaging to achieve circular economy promises and enhance brand reputation. Technological progress in biopolymer technology, e.g., enhanced mechanical properties, heat resistance, and processability is broadening the scope of applications for bioplastics into automotive interiors, 3D printing, and electronics. Corporate sustainability objectives and ESG (Environmental, Social, and Governance) requirements are also compelling companies to procure renewable materials, driving market penetration. Growing availability of cost-competitive biomass feedstocks such as sugarcane, corn, and waste biomass, together with declining production costs as a result of technology scale-up, also aids development. Increased industrial composting capacity and consumer demand for environmentally friendly products are further boosting demand. Additionally, strategic investments by companies including NatureWorks, TotalEnergies Corbion, and Avantium in mega-scale PLA and PEF plants are reinforcing world supply capacity. The production of bioplastics is a process of turning renewable biological biomass into polymeric materials that can replace traditional petroleum-derived plastics.
One of our clients reached out to us to conduct a feasibility study for setting up a medium scale bioplastics manufacturing plant. We developed a comprehensive financial model for the setup and operation of a proposed bioplastics manufacturing plant in India. This plant is designed to produce 3,000 tons of bioplastics annually.
Manufacturing Process: The first step of manufacturing bioplastics is selecting raw materials, commonly using crops such as corn, sugarcane, cassava, or vegetable oils, while occasionally agricultural or food waste are also used. In the case of starch- or sugar-derived bioplastics like polylactic acid (PLA), the initial step is fermentation, wherein sugars extracted from the feedstock are microbial culture to convert them to lactic acid. The lactic acid is then purified and polymerized towards condensation polymerization or ring-opening polymerization to yield PLA resin. For polyhydroxyalkanoates (PHA), microorganisms are cultured in bioreactors and provided with sugars, oils, or waste materials, and intracellular polymers are produced. These polymers are subsequently harvested from bacterial cells, cleaned, and pelletized for subsequent processing. Bio-based polyethylene (bio-PE) and polybutylene succinate (PBS) are produced through chemical reactions, wherein bio-derived ethanol or succinic acid is employed as a precursor in conventional polymerization reactions identical to petrochemical plastics. After the polymer resin is produced, compounding and pelletizing are conducted, during which additives, plasticizers, and stabilizers can be added to improve mechanical, thermal, or barrier characteristics. The pellets are then formed by standard plastic-forming methods including extrusion, injection molding, blow molding, or film casting depending on the end application. Throughout the process, rigorous quality control and environmental requirements are upheld to ensure uniformity, biodegradability, and certification compliance. This holistic approach enables bioplastics producers to deliver sustainable high-performance materials suitable for packaging, agriculture, automotive, textiles, and consumer goods applications.
The basic raw materials required for bioplastics manufacturing include:
Our financial model for the bioplastic manufacturing plant was meticulously developed to meet the client’s objectives, providing an in-depth analysis of production costs, including raw materials, manufacturing, capital expenditure, and operational expenses. By addressing the specific requirements of manufacturing 3,000 tons of bioplastic annually, we successfully identified key cost drivers and projected profitability, considering market trends, inflation, and potential fluctuations in raw material prices. This comprehensive financial model equipped the client with valuable insights into strategic decision-making, demonstrating our commitment to delivering high-quality, client-focused solutions that ensure the long-term success of large-scale manufacturing ventures.
IMARC is a global market research company that offers a wide range of services, including market entry and expansion, market entry and opportunity assessment, competitive intelligence and benchmarking, procurement research, pricing and cost research, regulatory approvals and licensing, factory setup, factory auditing, company incorporation, incubation services, recruitment services, and marketing and sales.
Under our factory setup services, we assist our clients in exploring the feasibility of their plants by providing comprehensive financial modeling. Additionally, we offer end-to-end consultation for setting up a plant in India or abroad. Our financial modeling includes an analysis of capital expenditure (CapEx) required to establish the manufacturing facility, covering costs such as land acquisition, building infrastructure, purchasing high-tech production equipment, and installation. Furthermore, the layout and design of the factory significantly influence operational efficiency, energy consumption, and labor productivity, all of which impact long-term operational expenditure (OpEx). So, every parameter is covered in the analysis.
At IMARC, we leverage our comprehensive market research expertise to support companies in every aspect of their business journey, from market entry and expansion to operational efficiency and innovation. By integrating our factory setup services with our deep knowledge of industry dynamics, we empower our clients to not only establish manufacturing facilities but also strategically position themselves in highly competitive markets. Our financial modeling and end-to-end consultation services ensure that clients can explore the feasibility of their plant setups while also gaining insights into competitors' strategies, technological advancements, and regulatory landscapes. This holistic approach enables our clients to make informed decisions, optimize their operations, and align with sustainable practices, ultimately driving long-term success and growth.
Have a question or need assistance?
Please complete the form with your inquiry or reach out to us at
Phone Number
+91-120-433-0800