Poly Butylene Succinate (PBS) Market Trends

Poly Butylene Succinate (PBS) Market Overview

The Poly Butylene Succinate (PBS) Market size was valued at USD 51.15 million in 2024 and is expected to reach USD 63.52 million by 2033, growing at a CAGR of 2.3% from 2025 to 2033.

Poly Butylene Succinate (PBS) is a biodegradable aliphatic polyester synthesized through the polycondensation of succinic acid and 1,4-butanediol. Its biodegradability and thermal stability make it suitable for various applications, including packaging, agriculture, textiles, and automotive components. In 2023, the global PBS market was valued at approximately USD 1.23 billion, with projections indicating a rise to USD 2.9 billion by 2032. The Asia-Pacific region accounted for 40% of the market share in 2023, followed by North America at 30% and Europe at 20%. Bio-based PBS constituted 65% of the market, while petroleum-based PBS made up the remaining 35%.

Key Findings

Top Driver Reason: The primary driver is the increasing environmental awareness and demand for biodegradable plastics.

Top Country/Region: Asia-Pacific leads the market, contributing 40% of the global share in 2023.

Top Segment: Packaging is the dominant application, representing 40% of the market in 2023.

Poly Butylene Succinate (PBS) Market Trends

The Poly Butylene Succinate (PBS) market is experiencing robust momentum driven by rising demand for biodegradable plastics, favorable regulatory frameworks, and technological innovations that support cost-effective production. In 2023, packaging was the leading application, accounting for nearly 40% of the global PBS usage due to its superior barrier properties and ease of processing with existing plastic-forming machinery. Furthermore, the market has witnessed a strong shift toward bio-based PBS, which accounted for approximately 65% of total production in 2023, fueled by growing awareness of climate change and sustainability goals. Manufacturers are developing PBS grades with enhanced heat resistance and strength, enabling their use in more demanding applications such as agricultural films, which held a 25% share, and industrial containers. The textile sector has also seen a notable uptick in PBS adoption for non-woven fabrics, especially in Asia-Pacific, where environmental compliance in textile exports is becoming stricter. The increased focus on plastic alternatives in e-commerce and food packaging, along with global bans on single-use plastics, is creating additional demand traction. Furthermore, PBS blends with other biopolymers, such as PLA and starch-based resins, are helping reduce overall material costs by 18–22%, allowing producers to remain competitive with traditional plastics like polyethylene and polypropylene.

Poly Butylene Succinate (PBS) Market Dynamics

The PBS market is shaped by multiple dynamic forces that are influencing the trajectory of its development globally. These dynamics include environmental regulations, production cost structures, consumer awareness, and innovation in material science. Increasing governmental regulations around plastic usage and non-biodegradable waste have significantly accelerated the demand for bio-based and compostable alternatives such as PBS. Countries across the European Union have implemented strict legislation requiring 70% of plastic packaging to be recyclable or biodegradable by 2030, thereby opening considerable opportunities for PBS-based packaging solutions. Similarly, China’s plastic ban plan, which restricts single-use plastic consumption in major cities since 2022, is encouraging domestic manufacturers to switch to compostable materials, with PBS being a prime choice due to its performance parity with petroleum-based plastics.

DRIVER

Rising Demand for Biodegradable Plastics

PBS is increasingly being seen as a solution to global plastic pollution, with more than 8 million tons of plastic entering oceans annually. The ability of PBS to decompose under industrial composting conditions within 180 days has made it attractive for regulatory authorities and eco-conscious consumers. In 2023 alone, over 70% of packaging innovation in Europe included at least one compostable material, and PBS-based products accounted for 27% of this innovation. The material’s versatility enables its usage in multiple verticals ranging from agricultural mulch films and seedling pots to disposable cutlery, electronics casings, and automotive trim parts.

RESTRAINT

High Production Costs

One of the primary constraints facing the PBS market is its higher production cost compared to conventional thermoplastics. As of 2023, the cost to produce a metric ton of PBS averaged $2,800, nearly 35% more than polyethylene alternatives. This cost premium arises from the still-developing infrastructure for bio-based succinic acid and 1,4-butanediol — the two primary monomers for PBS. Additionally, the high cost of feedstock and dependency on fermentation techniques for bio-based alternatives further inflates the final product cost, limiting large-scale adoption in price-sensitive markets such as South Asia and Africa.

OPPORTUNITY

Rising Adoption in Emerging Economies

Emerging markets such as India, Vietnam, Brazil, and Indonesia are presenting massive growth opportunities for the PBS industry. These regions are undergoing rapid urbanization and witnessing a growing middle class that is increasingly favoring sustainable and eco-friendly products. For instance, India’s Compostable Plastic Order mandates the use of biodegradable plastics in several applications, and PBS is one of the few materials compliant with BIS standards. Moreover, rising retail expansion and e-commerce packaging requirements in these economies are stimulating the use of PBS-based flexible packaging materials, trays, and films. The total volume of PBS consumed in emerging Asia is expected to grow by over 250,000 tons between 2023 and 2027, signaling aggressive expansion potential.

CHALLENGE

Limited Consumer Awareness and Fragmented Regulations

Despite growing interest, there remains a significant lack of awareness among end-users about the availability and benefits of PBS-based materials. In many developing markets, consumer understanding of compostable vs recyclable plastics remains low. Additionally, fragmented regulations across regions — where one country supports bio-based materials while another mandates mechanical recycling — create a complex compliance landscape for manufacturers. As a result, several multinational companies face challenges in establishing unified supply chains and marketing strategies for PBS products, delaying mass commercialization in multiple global regions.

Poly Butylene Succinate (PBS) Market Segmentation

By Type

Packaging: In 2023, packaging was the leading application, holding a 40% market share. PBS's biodegradability and compatibility with existing machinery make it ideal for food wrappers, trays, and bottles.
Agriculture: Accounting for 25% of the market, PBS is used in mulch films and plant pots. Its biodegradability aligns with sustainable farming practices.
Textile: The textile industry utilizes PBS for fibers and fabrics, especially in Asia-Pacific, where eco-friendly materials are in demand.
Consumer Goods: PBS is incorporated into products like disposable cutlery and containers, contributing to 15% of the market.
Electronics and Electrical: PBS's thermal stability makes it suitable for electronic components, although this segment is still emerging.
Automotive: The automotive sector uses PBS in interior components, benefiting from its lightweight and durable properties.
Others: Includes medical devices and other niche applications.

By Application

Conventional PBS: Derived from petrochemical sources, it accounted for 35% of the market in 2023. While less eco-friendly, it offers cost advantages.
Bio-Based PBS: Made from renewable resources, it dominated the market with a 65% share in 2023. Its environmental benefits drive its popularity.

Poly Butylene Succinate (PBS) Market Regional Outlook

North America

In North America, the PBS market accounted for approximately 30% of global demand in 2023. The U.S. leads the regional growth due to increased adoption of bio-plastics in agriculture, packaging, and consumer goods. California’s mandatory compostable packaging legislation and Canada’s nationwide single-use plastic ban have increased PBS's relevance as an alternative to PLA and other biodegradable polymers. Several municipalities in the U.S. now mandate the use of compostable materials in food-service applications, creating consistent market pull.

Europe

In Europe, the market represented about 20% of global demand in 2023. The European Union’s Circular Economy Action Plan, which targets 100% recyclable or compostable plastic packaging by 2030, is fueling demand for PBS across Germany, France, Italy, and the Netherlands. PBS is increasingly used in compostable garbage bags and produce packaging in supermarkets. Moreover, initiatives such as Horizon Europe have earmarked funding for PBS research to improve compostability and reduce costs, ensuring that PBS adoption will accelerate further.

Asia-Pacific

The regional outlook of the Poly Butylene Succinate market highlights clear dominance by Asia-Pacific, which is also expected to maintain its lead due to the presence of key manufacturers and high adoption across end-use industries. In Asia-Pacific, the PBS market commanded around 40% of global consumption in 2023. China alone accounted for 25% of the market share due to its vast packaging and textile industries. Japan and South Korea are also significant contributors, with aggressive investments in bio-based chemical manufacturing. India’s push toward biodegradable plastics under the Extended Producer Responsibility (EPR) policy is supporting robust demand for PBS in the agriculture and retail packaging sectors.

Middle East & Africa

In the Middle East & Africa, PBS adoption is still in the early stages but is gaining ground, with the region accounting for about 5% of global consumption in 2023. South Africa’s National Environmental Management Act and the UAE’s move toward sustainable packaging in hospitality and retail are encouraging local players to shift toward compostable alternatives. The market in this region is also benefiting from a growing awareness of marine pollution and international pressure to adopt eco-friendly materials in tourism-heavy economies.

List of Top Poly Butylene Succinate (PBS) Market Companies

Eastman
Showa Denko
Mitsubishi
DowDuPont
BASF
Reverdia
BioAmber
Sinoven Biopolymers
PTT MCC Biochem
Yifan Xinfu Pharmaceutical
Anqing Hexing Chemical

Top Two Companies with Highest Market Shares

Mitsubishi Chemical Corporation is recognized as the global leader in the Poly Butylene Succinate market. Its brand BioPBS™ is manufactured at a large-scale facility in Thailand in partnership with PTT MCC Biochem. With a production capacity of over 20,000 tons per year, Mitsubishi has not only scaled PBS production but also received marine biodegradability certification in December 2023. The company has integrated BioPBS into various applications such as thermoformed packaging, coffee capsules, and agriculture films.
Anqing Hexing Chemical Co., Ltd. is China’s largest PBS manufacturer, with a production capacity of 10,000 tons annually and expansion projects underway to scale up by another 15,000 tons. The company is backed by strong government support under China’s bio-economy initiatives and supplies to major domestic industries including agriculture and food packaging. Its R&D center is focused on improving thermal resistance of PBS materials to expand into the electronics and automotive sectors.

Investment Analysis and Opportunities

Investments in the PBS industry have surged as both public and private sectors aim to reduce environmental waste and increase biodegradable material usage. In 2023, over $150 million was allocated globally toward expanding PBS production capacity. The most significant investment came from the European Circular Bioeconomy Fund, which allocated €82 million toward composting infrastructure in seven EU countries, facilitating wider PBS use in food-service and consumer packaging. In Asia, Mitsubishi Chemical and PTT Group invested in expanding their Thai joint venture's capacity by 50%, targeting both the Asian and European export markets. Emerging economies are witnessing direct foreign investment in biodegradable polymer facilities. In India, the government-approved National Bioplastics Strategy has prompted Japanese and South Korean players to explore joint ventures with Indian firms. At the same time, research funding from universities is focused on improving fermentation processes to reduce the cost of bio-based monomers like succinic acid by 25%. In terms of opportunities, automotive applications are emerging as high-growth segments due to ongoing efforts to reduce vehicle weight. PBS, with its biodegradability and thermal properties, is being tested in dashboard panels, door trims, and seat cushions. Additionally, electronics companies are exploring PBS as a casing material to meet green compliance mandates in the EU and U.S. The development of enhanced PBS grades compatible with high-performance manufacturing processes is expected to unlock these opportunities further.

New Product Development

Innovation in PBS production and application is playing a critical role in market expansion. In December 2023, Mitsubishi Chemical Group’s BioPBS™ became one of the first biopolymers to receive marine biodegradability certification under ISO 23977 standards, validating its use in marine-sensitive applications. Similarly, new blends of PBS with polyhydroxyalkanoates (PHAs) have demonstrated a 28% increase in composting efficiency and shelf-life stability, expanding usage in food-service packaging. Research institutions in Germany and the Netherlands are collaborating with private manufacturers to develop high-barrier PBS films for industrial packaging. These films demonstrated 35% higher oxygen resistance than traditional PLA films. In South Korea, POSCO Chemical is piloting the development of PBS-based coating materials for paper cups and take-away food containers, aiming to replace polyethylene-coated variants. In automotive interiors, a joint development between Mercedes-Benz and UPM Biochemicals is leveraging wood-based succinic acid for PBS polymers, making them fully renewable and compostable. These interior materials have passed safety and heat-resistance benchmarks, opening doors for commercial-scale deployment by 2025.

Five Recent Developments

Mitsubishi Chemical's BioPBS Certification: In December 2023, BioPBS received marine biodegradability certification, broadening its market applications.
Bluepha Co. and Tsinghua University Collaboration: Achieved a 22% reduction in raw material costs and scaled annual PBS output to 50,000 metric tons.
UPM Biochemicals and Mercedes-Benz Partnership: Developing car interior components from wood-based PBS composites, showcasing PBS's versatility.
PTT Global Chemical and Miyoshi Oil & Fat Company Joint Venture: Secured annual production of 30,000 tons of palm-oil-derived succinic acid, stabilizing PBS supply chains.
European Circular Bioeconomy Fund Investment: Allocated €82 million in 2023 for PBS composting infrastructure across seven EU member states, enhancing biodegradable waste management.

Report Coverage of the Poly Butylene Succinate (PBS) Market

This comprehensive market report offers in-depth analysis and segmented insights into the global Poly Butylene Succinate market. It covers key aspects such as material type, application areas, and regional performance with numeric details for strategic assessment. The scope includes segmentation by type — covering both conventional and bio-based PBS — and by end-use industries such as packaging, agriculture, textiles, electronics, automotive, and consumer goods. Each segment is quantified in terms of consumption share, application trend, and technological adoption. The report offers an elaborate regional assessment across North America, Europe, Asia-Pacific, and Middle East & Africa, presenting granular figures on market dynamics, infrastructure developments, and policy incentives. It further profiles leading companies, production capacities, R&D milestones, and investment footprints that shape competitive dynamics. Additionally, the report delves into market drivers, restraints, opportunities, and challenges that influence PBS adoption across multiple sectors. It also outlines key recent developments and innovations — such as marine-biodegradable PBS, automotive-grade biopolymers, and food-safe PBS coatings — giving readers a futuristic view of product pipelines and commercialization timelines. With 3000 words of detailed coverage, this report serves as a foundational resource for decision-makers, investors, and stakeholders in the PBS ecosystem.