The Sustainable Materials Market Is Gaining Momentum Through Increased Adoption of Environment-friendly Products

The sustainable materials market comprises materials that cause less harm to the environment in comparison to conventional materials. These materials include bio-based plastics, recycled plastics, wood, paper, bamboo, etc. Sustainable materials help reduce waste generation, lower carbon footprint, and conserve natural resources. They are extensively used in various industries like packaging, construction, automobiles, textiles, and others. The growing environmental consciousness and stringent regulations have boosted the demand for sustainable alternatives to traditional materials.

The sustainable materials market is estimated to be valued at USD 333.31 Billion in 2024 and is expected to reach USD 755.91 Billion by 2031, growing at a compound annual growth rate (CAGR) of 12.41% from 2024 to 2031.

Key Takeaways

Key players operating in the sustainable materials market are BASF SE, DuPont, Braskem, Amcor, HP Inc.

The massive amounts of waste generated from various end-use industries are propelling the adoption of sustainable materials. Rapid urbanization and industrialization have exacerbated environmental issues like plastic pollution, deforestation, etc. Sustainable materials help tackle these problems by providing eco-friendly substitutes.

Many countries are also supporting the Sustainable Materials Market through policies and subsidies. The expansion of production facilities by leading players in developing regions will further aid the global outreach of these materials.

Market Key Trends

Increased Use of Bioplastics - Concerns regarding plastic waste have amplified the use of bioplastics made from renewable biomass sources. Major players like BASF, Novamont, NatureWorks etc. are heavily investing in commercializing new generations of bioplastics. The market for bioplastics is expected to grow at over 15% annually owing to wide acceptance.

Growth ofGreen Building Movement -Strict regulations and builders' emphasis on achieving green certifications are driving the demand for materials like recycled wood, bamboo, strawbales etc. in the construction of energy-efficient green buildings. Investments in green infrastructure will further bolster the adoption of sustainable construction materials.

Porter's Analysis
Threat of new entrants: Low costs of entering the material industry but high costs associated with meeting sustainability standards make it difficult for new players to enter.
Bargaining power of buyers: Large buyers have significant influence over material suppliers due to consolidation in end-user industries and focus on sustainable materials.
Bargaining power of suppliers: Suppliers of sustainable raw materials have some bargaining power due to limitations in sources of renewable/ recycled materials and difficulties meeting regulations.
Threat of new substitutes: Substitutes exist for most materials but shifting to alternatives presents high costs for switching supply chains and achieving required sustainability certifications.
Competitive rivalry: Intense competition exists among material producers with pressure to continually reduce costs and improve sustainability performance.

Geographical region

The value share of the sustainable materials market is currently concentrated in Western Europe and North America. Corporates and consumers in these regions have led demands for responsibly sourced and less resource-intensive materials. However, the Asia Pacific region is emerging as the fastest growing market for sustainable materials. Rapid economic development and urbanization have increased materials consumption in countries like China, India and Indonesia which are now implementing more robust regulations and incentivizing use of renewables and recycled content to reduce environmental impacts. With rising affluence and awareness, sustainable alternatives are gaining traction among Asian buyers and producers.

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About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.

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