Bio-based Polyethylene Market - By Raw Material, By Product, By End Use and Forecast, 2025-2034

Bio-based Polyethylene Market Size

The global bio-based polyethylene market was valued at USD 634 million in 2024 and is estimated to grow at a CAGR of over 15.1% from 2025 to 2034.
 

The bio-based polyethylene (Bio-PE) market has been experiencing significant growth, driven by increasing environmental concerns and the shift toward sustainable materials. Bio-PE is derived from renewable sources such as sugarcane, offering a more sustainable alternative to traditional polyethylene made from fossil fuels. This shift is particularly relevant as industries face growing pressure to reduce carbon footprints and adopt eco-friendly practices.
 

One of the key growth drivers is the rising demand for sustainable packaging solutions. Bio-PE is widely used in packaging for food and beverages, personal care products, and household goods. Its properties, such as high strength, durability, and recyclability, make it a preferred choice for manufacturers seeking to meet regulatory requirements and consumer preferences for sustainable products. Additionally, the development of advanced technologies has improved the efficiency and cost-effectiveness of bio-PE production, making it more accessible.
 

Other applications of Bio-PE include automotive parts, agricultural films, and textiles. As the global market for sustainable materials continues to expand, the bio-based polyethylene industry is expected to experience robust growth. Innovations in production methods and the establishment of large-scale production facilities will further accelerate market adoption and contribute to the growing emphasis on circular economy principles.
 

Bio-based Polyethylene Market Trends

The bio-based polyethylene (Bio-PE) market is experiencing significant growth due to increasing demand for sustainable, eco-friendly materials. Driven by heightened environmental awareness and regulatory pressures, companies are focusing on developing alternative, renewable polyethylene from bio-based feedstocks like sugarcane, corn, and other plant-based sources. Bio-PE offers a lower carbon footprint compared to conventional polyethylene, and it is fully recyclable. The packaging industry, particularly for food and beverages, is a key driver, with Bio-PE being increasingly adopted for packaging solutions. Technological advancements in production processes and the expansion of eco-conscious consumer markets are also contributing to market growth.
 

Bio-based Polyethylene Market Analysis

The bio-based polyethylene (Bio-PE) market is expanding rapidly as industries seek sustainable alternatives to conventional polyethylene. Growth drivers include increasing environmental concerns, rising consumer demand for eco-friendly products, and stricter government regulations on plastic waste and carbon emissions. Bio-PE, produced from renewable resources like sugarcane, offers a significant reduction in carbon footprint compared to fossil-based polyethylene, making it an attractive choice for industries aiming to meet sustainability targets.

The packaging sector, particularly in food and beverages, is a major adopter, with Bio-PE used in bottles, films, and bags. The automotive and textile industries are also exploring Bio-PE for various applications, creating further growth opportunities. Technological advancements in bio-based production methods, such as improved fermentation and enzymatic processes, are enhancing the cost-effectiveness and scalability of Bio-PE production.
 

Upcoming opportunities lie in the expansion of Bio-PE production capacity, the development of more efficient recycling methods, and the increasing integration of Bio-PE in mainstream consumer products.
 

The bio-based polyethylene market from sugar cane segment held over USD 332.2 million in 2024, and it is anticipated to expand 15.4% of CAGR during 2025-2034. Sugar cane is a dominant feedstock in the bio-based polyethylene (PE) market due to its sustainability and renewability. As a highly efficient biomass source, sugar cane provides the necessary sugars for fermentation processes that yield ethanol, which is then converted into polyethylene. Its widespread cultivation, especially in tropical regions, makes it a cost-effective and abundant resource. The environmental benefits of using sugar cane, such as lower carbon emissions and reduced dependency on fossil fuels, further drive its preference. Additionally, sugar cane-derived bio-PE aligns with the growing demand for eco-friendly packaging and the broader push towards a circular economy.
 

The LDPE segment dominates the market by generating revenue USD 299 million in 2024 and is expected to grow by 15.4% CAGR from 2025 to 2034. In the bio-based polyethylene (bio-PE) market, Low-Density Polyethylene (LDPE) dominates due to its widespread use in flexible packaging, agricultural films, and consumer goods. LDPE is favored for its excellent processing characteristics, high clarity, and moisture resistance. The growing demand for sustainable packaging solutions is driving the adoption of bio-based LDPE, as it can be produced from renewable sources like sugarcane and corn. Its lower environmental impact, combined with its versatility and strong mechanical properties, makes bio-based LDPE a preferred choice across industries seeking to reduce their carbon footprint while maintaining performance. This dominance is expected to continue as bio-based polyethylene production scales up.
 

The food & beverages segment dominates the bio-based polyethylene market by generating revenue USD 191.9 million in 2024 and is expected to grow by 15.8% CAGR from 2025 to 2034. The food and beverage sector dominates the bio-based polyethylene (bio-PE) market due to its significant demand for sustainable packaging solutions. With growing consumer awareness about environmental concerns, companies are increasingly adopting bio-PE made from renewable sources like sugarcane, offering a more eco-friendly alternative to traditional petroleum-based plastics. This shift is driven by regulatory pressures for reduced plastic waste, alongside a consumer preference for recyclable and biodegradable packaging. Bio-PE’s suitability for food and beverage packaging—offering durability, safety, and compliance with food-grade standards—has made it a key material in the industry's push for sustainability and reduced environmental impact.
 

Germany bio-based polyethylene market held over USD 59.5 million in 2024 and expected to grow at a 14.9% CAGR. Germany is a dominant player in the bio-based polyethylene (Bio-PE) market, primarily due to its strong industrial base, robust research and development capabilities, and commitment to sustainability. The country’s leadership in green chemistry and advanced manufacturing technologies has propelled it ahead in the production of bio-based plastics. Additionally, Germany's stringent environmental regulations and support for renewable materials foster the growth of the Bio-PE sector. Major companies based in Germany, along with its innovation-driven approach and established recycling infrastructure, reinforce its market dominance, positioning it as a key hub in Europe for the development and adoption of Bio-PE.
 

Bio-based Polyethylene Market Share

The competitive landscape of the bio-based polyethylene (Bio-PE) market features key players such as Avery Dennison, BASF, BRASKEM, FKuR, Kuraray, LyondellBasell, and Mitsui Chemicals, each playing a significant role in driving market growth. BRASKEM leads with its Bio-PE production from renewable sugarcane, positioning itself as a market pioneer with a strong focus on sustainability. BASF integrates bio-based solutions into its product portfolio, leveraging its technological expertise to support the shift toward greener alternatives. LyondellBasell and Mitsui Chemicals focus on developing and commercializing eco-friendly polyethylene products, backed by their large-scale production capabilities.
 

Avery Dennison specializes in sustainable packaging solutions, incorporating Bio-PE into its offerings with a focus on circularity and waste reduction. FKuR and Kuraray, while smaller players, innovate in bio-based plastics with specialized applications in packaging and automotive sectors, catering to the growing demand for sustainable solutions. Collectively, these companies are pushing the industry toward more sustainable plastics, leveraging innovation and regulatory support.
 

Bio-based Polyethylene Market Companies

Major players operating in the Bio-based polyethylene industry are:

• Avery Dennison
• BASF
• BRASKEM
• FKuR
• Kuraray
• LyondellBasell
• Mitsui Chemicals
• SABIC
•  The Dow Chemical Company
• Toyota Tsusho Corporation
   

Bio-based Polyethylene Industry News

• In November 2023, Neste partnered with Prime Polymer, a subsidiary of Mitsui Chemicals, Inc., to develop an innovative renewable polypropylene packaging material for a seaweed snack sold under the CO/OP brand. The bio-content of the packaging is established using the mass balance method, representing a breakthrough in sustainable packaging solutions. Initially focused on seaweed packaging, Neste and Prime Polymer aim to extend the use of bio-based raw materials to other products in subsequent phases of their collaboration, reinforcing their commitment to environmental stewardship.
   
• In August 2023, Braskem and SCG Chemicals signed an agreement to establish Braskem Siam Company Limited. This collaborative effort is aimed at commercializing bio-based polyethylene (PE). The partnership leverages Braskem's expertise in bio-based plastics and SCG Chemicals' strong presence in the Asian market, coupled with their proficiency in PE production.
   

This bio-based polyethylene market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) & volume (Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Raw Material

• Sugar cane
• Sugar beet
• Others

Market, By Product

• HDPE
• LDPE
• LLDPE

Market, By End Use

• Food & beverages
• Agriculture
• Pharmaceutical
• Cosmetics & personal care
• Textile
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa