Market Overview

Most of the petroleum-derived materials in Japan are imported. This is also true for bioplastics, such as bio polyethylene (bio-PE) and polylactic acid (PLA), most of which come from the United States and Europe. Therefore, Japan depends on other countries for these products and has been striving to change this.

This research calculates the size of the bioplastics market based on the sales of domestically produced or imported biobased plastics, which include bio polyethylene terephthalate (bio-PET), bio-PE, bio polypropylene (bio-PP), bio polystyrene (bio-PS), and bio engineering plastics; and biodegradable plastics, which include polylactic acid (PLA), polybutylene adipate terephthalate (PBAT), polybutylene succinate (PBS), and polyhydroxyalkanoates (PHA). Sales of bioplastics produced using mass balance measurements (*) are excluded.
Estimated sales of the bioplastics market, including both domestically produced and imported products, were 42,000 tons in 2021. Biobased plastics are used for plastic bags and container packaging, while biodegradable plastics are used for agricultural materials and disposable items, such as straws and cutlery.

To achieve carbon neutrality by 2050, the Ministry of Land, Infrastructure, Transport and Tourism is preparing to require the use of sustainable aviation fuel (SAF). SAF is an aviation fuel derived from waste or renewable materials. A byproduct of this process is bio naphtha. Starting in 2025, major oil refinery companies will begin producing SAF domestically. This will make domestic bioplastics derived from bio naphtha to be available for the first time. As SAF plants begin operating, the production of domestic bioplastics derived from bio naphtha is projected to steadily increase.

*) Mass balance measurement is an idea to allocate environmental value to products based on the inputs when combining and processing renewable materials, such as biomass and recycled materials, with fossil-based materials in the same manufacturing processes.

Noteworthy Topics

Bioplastics Market Trends in Japan

Petroleum refinery companies are set to begin operating plants that use hydroprocessed esters and fatty acids (HEFA) technology to produce SAF derived from edible oil waste. Bio naphtha, a byproduct of SAF production, is expected to fuel the growth in Japan's bio plastics market.

Domestic production of bio naphtha, a byproduct of domestic SAF production, is projected to reach 126 thousand tons by 2030. Domestic sales of bioplastics, including both domestic and imported products, are expected to reach 81,015 tons by 2030. This figure includes bioplastics generated from domestic bio naphtha, as well as the currently imported bio-PE and PLA. As imports of bioplastics decline, bioplastics produced domestically from bio naphtha will be crucial for the growth of the domestic bioplastics market.

Future Outlook

For the domestic bioplastics market to grow, bio-naphtha-derived bioplastics are necessary. In addition, the use of carbon dioxide (CO2)-based chemicals that do not rely on fossil-fuel derived materials has increased and is expected to be a game changer.  

While European countries and the United States promote the shift to biodegradable plastics by regulating disposable plastic waste, Japan's humid climate and small land area make establish composting facilities for biodegradable plastics too risky. This makes it difficult for Japan to transition to biodegradable plastics alone.
To expand the Japanese bioplastics market, the country must introduce recyclable bioplastics made from bio naphtha or CO2, while continuing to promote the use of biodegradable plastics. 

Research Outline