|  I. Market Status: Explosive Growth Driven by Policy, Demand and Technology Together 

1.Policy dividends: A comprehensive upgrade from the "plastic restriction order" to the "plastic ban order" 

The explosion of the biodegradable plastic market in China began with the continuous strengthening of policies. Since the implementation of the "Plastic Restriction Order" in 2008, the policy intensity has been escalating year by year: In 2020, the National Development and Reform Commission and the Ministry of Ecology and Environment jointly issued the "Opinions on Further Strengthening Plastic Pollution Governance", clearly requiring that by the end of 2025, all postal and express delivery outlets across the country should prohibit the use of non-biodegradable plastic packaging bags; In 2025, the "Three-Year Action Plan for Plastic Pollution Governance" further detailed the requirements, requiring that the proportion of biodegradable plastics in scenarios such as catering delivery and supermarket retail should reach 30%. The policies not only cover the production end but also extend to the consumption end. Through incentive measures such as "green points" and "trade-in", they promote changes in consumer behavior. According to the "In-depth Analysis and Investment Strategy Consultation Report on China's Biodegradable Plastic Market from 2025 to 2030", it is predicted that by 2030, the policies will drive the penetration rate of biodegradable plastics in areas such as express packaging and agricultural mulching film to exceed 50%, forming a billion-dollar incremental market. 

2. Demand Surge: The Transition from "Replacing Traditional Plastics" to "Creating New Scenarios" 

The demand for degradable plastics has soared, not only due to the substitution of traditional plastics, but also because of the creation of new scenarios. In the packaging sector, the demand for substitutes for courier bags, takeout containers, and supermarket shopping bags has increased significantly, and the market size is expected to exceed 60 billion yuan by 2030; in the agricultural sector, the penetration rate of biodegradable plastic film in major agricultural provinces such as Xinjiang and Shandong will exceed 40%, and the market size will exceed 20 billion yuan; in the medical field, the demand for high-value-added products such as surgical sutures and drug sustained-release carriers has an annual growth rate of over 15%, and the market size will reach 12 billion yuan. In addition, the demand in emerging fields such as textiles, 3C electronics, and automotive lightweighting is rapidly rising, driving the shift from "single substitution" to "diversified innovation" for degradable plastics. For example, a certain brand's degradable phone case, made of PLA and bamboo fiber composite materials, achieved sales of over one million units within three months of its launch, becoming a "green item" sought after by young consumers. 

3. Technological Breakthrough: The Path to Overcoming "High Costs" and Achieving "Performance Enhancement" 

Technological breakthroughs are the core driving force behind the explosive growth of the biodegradable plastic market. The production technology for PLA has shifted from the traditional lactide ring-opening polymerization method to the direct condensation method, reducing the production cost from 28,000 yuan per ton in 2020 to 16,000 yuan per ton in 2025, and is expected to further drop to 8,000 yuan per ton in 2030. For PBAT, the production technology has improved through catalyst optimization and process improvement, reducing the production cost from 25,000 yuan per ton in 2020 to 15,000 yuan per ton in 2025, and is expected to fall to 10,000 yuan per ton in 2030. This cost reduction enables biodegradable plastics to have economic competitiveness with traditional plastics by 2030. At the same time, nanocellulose reinforced composite materials have increased the tensile strength of PLA to 45 MPa, enabling it to replace traditional plastics in the high-end packaging sector. The intelligent degradation identification technology uses RFID for full traceability, meeting the environmental supply chain demands of brand owners. Technological breakthroughs not only expand application scenarios but also enhance the added value of biodegradable plastics. 

|  II. Technological Breakthrough: From "Material Innovation" to "Ecological Closed Loop" - The Green Revolution 

1.Material Innovation: From "PLA/PBAT Dominance" to "Diverse Materials Dancing Together" 

Polylactic acid (PLA) and polybutylene adipate/caprolactone (PBAT) remain the mainstream materials for biodegradable plastics, accounting for over 80% of the market share. However, technological breakthroughs are driving the diversification of materials: Polyhydroxyalkanoates (PHA) with their complete biodegradability have achieved an annual growth rate of 17% in the medical field; Polybutylene succinate (PBS) has made breakthroughs in heat resistance and mechanical properties, enabling it to achieve import substitution in 3D printing and automotive interiors; Photodegradable materials have significantly expanded their application in agricultural films. According to predictions, by 2030, the combined market share of PLA and PHA will exceed 60%, forming a pattern where PLA dominates packaging, PHA dominates healthcare, and PBS/PBAT dominates agriculture. 

2. Process Optimization: A Cost Revolution from "Two-Step Method" to "One-Step Method" 

The high cost of degradable plastics was once a major obstacle hindering their large-scale application. However, technological breakthroughs are driving a cost revolution: The production technology of PLA has shifted from the traditional lactide ring-opening polymerization method to the direct condensation method, reducing the production cost from 28,000 yuan per ton in 2020 to 16,000 yuan per ton in 2025, and is expected to further drop to 8,000 yuan per ton in 2030; The production technology of PBAT has achieved cost reduction through catalyst optimization and process improvement, dropping from 25,000 yuan per ton in 2020 to 15,000 yuan per ton in 2025, and is expected to fall to 10,000 yuan per ton in 2030. This cost reduction enables degradable plastics to have economic competitiveness with traditional plastics in 2030. 

3. Ecological Loop: A Sustainable Path from "Degradation" to "Recycling" 

The ultimate goal of degradable plastics is not only to degrade, but also to achieve a closed-loop cycle of "resources - products - recycled resources". The establishment of this ecological closed-loop not only solves the problem of plastic pollution, but also promotes the sustainable development of the green economy. 

|  III. Competitive Landscape: Transition from "Headline Monopoly" to "Ecological Competition" 

1.Headquarters: From "Scale Expansion" to "Ecosystem Construction" 

The leading enterprises are the "rule-makers" in the biodegradable plastic market. Companies like Goldschmidt Technology and Wanhua Chemical have established competitive barriers through "technological ecologization" and "global service expansion". In terms of technological ecologization, the leading enterprises integrate upstream raw materials, midstream product processing, and downstream applications to form a "raw material - modification - product" full industrial chain layout; in terms of global service expansion, the leading enterprises establish operation and maintenance bases in Southeast Asia, the Middle East, and Africa to provide local services and technical support. According to predictions, by 2030, the market share of the leading enterprises will exceed 60%, and the ecological barriers will become the core of competition. 

2. Small and Medium-sized Enterprises: From "Technology Follow-up" to "Segmentation Breakthrough" 

Small and medium-sized enterprises are the "innovation pioneers" in the biodegradable plastic market. These enterprises break through by achieving "specialization in technology" and "segmentation of the market". In terms of technology specialization, small and medium-sized enterprises focus on the research and development of high-end materials such as PHA and PBS, thereby establishing technological advantages. In terms of market segmentation, these enterprises provide customized products and services for niche areas such as medical catheters and protective films for electronic devices. 

3. Cross-border Competition: Entering the Market from "Material Enterprises" to "Platform Enterprises" 

Cross-border competition is a "new variable" in the market of degradable plastics. Energy giants, tech upstarts and e-commerce platforms are accelerating their entry into the market, driving the reconfiguration of the industry landscape. Energy giants are integrating resources in oil and gas chemicals and bio-based materials to establish PLA and PBAT production capacities; tech newcomers are leveraging AI algorithms, big data and cloud computing technologies to enhance material research and production optimization; e-commerce platforms are establishing closed-loop recycling systems to promote the recycling of degradable plastics. 

|  Conclusion: Promoting green economy, China Research and Pragmatism helps enterprises achieve win-win results with capital. 

From 2025 to 2030, the market for biodegradable plastics in China will undergo a comprehensive rise from policy-driven to demand explosion, from technological breakthroughs to ecological competition. From the mainstream use of PLA/PBAT to the diversification of PHA/PBS, from the substitution of express packaging to the high-end application in the medical field, from high costs to economic breakthroughs - every step of the development of biodegradable plastics contains huge commercial value and social benefits.