A brief analysis of the current price situation of biodegradable plastics in China

     In recent years, China's biodegradable plastics market has grown rapidly, but prices have fluctuated significantly. In March 2023, the average price of biodegradable plastics in China was approximately 22,550 yuan per ton. However, with the rapid expansion of production capacity, prices have begun to decline. For example, the average price of PBAT fell to approximately 10,000 yuan per ton in early 2024, a decrease of nearly 15% compared to 2023.

     These price fluctuations are primarily influenced by supply and demand. For one thing, after the 2020 plastic ban, demand for PBAT surged, causing prices to soar to 35,000 yuan per ton. However, with the influx of new companies and rapid expansion of production capacity, the market gradually became oversupplied, leading to a subsequent decline in prices. Furthermore, factors such as raw material costs, technological advancements, and policy support also significantly impacted prices.

      Despite price fluctuations, market demand for biodegradable plastics will continue to grow with growing environmental awareness and continued policy implementation. China's biodegradable plastics market is projected to reach 111 billion yuan by 2029, with a compound annual growth rate of 30% from 2024 to 2029. In the future, as technology matures and market competition intensifies, prices for biodegradable plastics are expected to stabilize, creating a promising market.