logo
Exclusive Report by Towards Chemical and Materials Consulting

Exclusive Report by Towards Chemical and Materials Consulting

Yahoo4 days ago
According to Towards Chemical and Materials consultants, the bioplastics-market volume was valued at 1,140,000.0. tons in 2024, grew to 1,373,016.0 tons in 2025, and is expected to hit around 73,21,706.6 tons by 2034, growing at a compound annual growth rate (CAGR) of 20.44% over the forecast period from 2025 to 2034. North America dominated the bioplastics market with a market volume share of 35.62% in 2024.
Ottawa, Aug. 07, 2025 (GLOBE NEWSWIRE) -- The global bioplastics market volume was reached at 11,40,000.0 tons in 2024 and is expected to be worth around 73,21,706.6 tons by 2034, growing at a compound annual growth rate (CAGR) of 20.44% over the forecast period 2025 to 2034. A study published by Towards Chemical and Materials a sister firm of Precedence Research.
Get All the Details in Our Solutions –Download Sample: https://www.towardschemandmaterials.com/download-sample/5735
Bioplastics Market Overview
Bioplastics are bio-based or biodegradable polymers made from renewable resources like cellulose, sugarcane, or corn starch. They are environmentally friendly substitutes for traditional plastics in the consumer goods, automotive, packaging, and agricultural industries. Growing environmental concerns, strict laws governing single-use plastics, and rising demand for environmentally friendly packaging options are driving the bioplastics market. Wider industrial adoption is now possible due to improved material performance brought about by technological advancements. Asia Pacific is becoming a significant production hub, while Europe leads in both consumption and regulatory support. Growing consumer awareness and brand sustainability objectives continue to spur global market expansion and investment despite increased costs.
Bioplastics Market Trends ?
Adoption of Drop-In Bioplastics: Bio-based PET, PE, and PP are becoming increasingly popular because they have properties like those of conventional plastics and can be used with current manufacturing systems, which lowers the transition costs for businesses using sustainable alternatives.
Surge in compostable bioplastics: Growth in Bioplastics That Can Be Compiled: Due to their biodegradability, compliance with international single-use plastics bans, and expanding composting infrastructure, materials like PLA and PHA are being utilized more in packaging and agriculture.
Shift to Next-Gen Feedstocks: Producers are using agricultural waste, algae, and CO₂ to create bioplastics, which help to improve sustainability and enable more low-carbon and circular production models while lowering dependency on food crops.
Elevate your Chemical strategy with Towards Chemical and Materials. Enhance efficiency and achieve superior results - schedule a call today: https://www.towardschemandmaterials.com/schedule-meeting
Bioplastics Market Report Scope
Report Attribute
Details
Market Volume / size in 2025
13,73,016.0 Tons/ USD 18.40 billion
Expected Volume / Revenue by 2034
73,21,706.6 Tons/ USD 44.77 billion
Growth rate
CAGR of 8.68% from 2025 to 2034
Historical data
2019 - 2025
Base year
2024
Forecast period
2025 - 2030
Quantitative units
Revenue in USD million, volume in kilotons, and CAGR from 2025 to 2034
Report coverage
Revenue forecast, competitive landscape, growth factors and trends
Segments covered
By Product Type, By Feedstock Source, By Processing Technology, By End-Use Industry, By Region,
Key companies profiled
TEIJIN LIMITED; Toray Industries, Inc.; Toyota Tsusho Corporation; Avantium; PTT MCC Biochem Co., Ltd.; An Phat Holdings; NatureWorks LLC; SABIC; BASF; Futerro; Trinseo; Braskem S.A.; TotalEnergies Corbion; ECPlaza Network Inc.; Solvay
AI Sparks a Sustainable Shift in the Bioplastics Industry
Artificial intelligence is speeding up the green transition in the bioplastics industry by optimizing material discovery, improving production efficiency, and supporting circular design strategies. At the forefront, in January 2025, the Netherlands, TNO scientists launched polySCOUT, an AI-powered tool that designs compostable polymers. It aims to balance durability, biodegradability, and microplastic reduction.
AI also assists in analyzing feedstocks, identifying waste-derived raw materials more efficiently. Predictive analytics are now employed in bioplastic waste stream management to reduce contamination and boost recycling yields. These innovations not only lessen environmental impact but also significantly decrease development time and costs. As industries look for alternatives to fossil-based plastics, AI's ability to model, test, and scale sustainable materials provides a key advantage in meeting global sustainability goals and consumer demand.
Bioplastics Market Driving Factor
Is Concern Over Petrochemical Toxicity and Oil Scarcity Accelerating Biopolymer Adoption?
A key factor pushing the bioplastics market is the growing worry about toxic petrochemical plastics and decreasing crude oil supplies. A recent study in the journal eBioMedicine reported 356,238 deaths due to Di-2-ethylhexyphthalate (DEHP) exposure 98% of which were attributed to plastics.
This is related to chemicals like DEHP and PFAS found in everyday products, increasing the need for safer options. At the same time, researchers in March 2024 identified 16,000 different chemicals over which 4,200 around 26% of persistent and toxic chemicals in plastics, including bioplastics, highlighting industry risks and regulatory attention.
These health and environmental issues are driving policymakers and industry leaders to speed up the shift toward renewable, low-toxicity bio-based polymers. Production capacity is rising worldwide, with bio-based polymer output expected to grow significantly by 2029. This creates a major opportunity for suppliers to provide truly sustainable alternatives that reduce reliance on fossil fuels and lower public health risks.
Market Opportunity
Could Stricter Single-Use Plastic Laws Spark a Global Boom in Bioplastics?
A major opportunity in the bioplastics market comes from increasing rules on single-use plastics and recycling duties around the world. In the EU, the Single-Use Plastics Directive and new packaging waste regulations require 25 and 30% recycled content in bottles by 2025 and 2030 respectively.
They also ban many traditional single-use items, with no exemptions for bio-based plastics. This pushes companies toward certified compostables and bioplastics. These policy changes increase the demand for bioplastics and certified sustainable materials. This presents significant growth potential for compliant suppliers taking advantage of the required changes in packaging.
Limitations and Challenges in the Bioplastics Market
High Production Costs - Bioplastics cost more to produce than traditional plastics because of expensive raw materials and specialized processing methods. This price difference limits their use, especially in industries like packaging and consumer goods that are sensitive to costs.
Limited Industrial Composting Infrastructure- Many bioplastics need industrial composting conditions to break down properly, but these facilities are missing in most areas. Without the right disposal systems, bioplastics often go to landfills, reducing their environmental advantages.
Competition with Food Resources - Some bioplastics come from crops like corn and sugarcane, causing concerns about competition for land and resources with food production. This raises ethical and environmental issues that could slow market growth.
Invest in Premium Global Insights Immediate Delivery Available @ https://www.towardschemandmaterials.com/price/5735
Why Did Asia Pacific Region Dominated the Bioplastics Market in 2024?
The Asia Pacific bioplastic market volume was estimated at 406,068.00 tons in 2024 and is anticipated to reach 3,012,696.72 Tons by 2034, growing at a CAGR of 22.19% from 2025 to 2034.
Asia Pacific dominates the bioplastics market in 2024 because of its strong manufacturing base, supportive government policies, and growing environmental awareness. The region's rising demand for sustainable packaging, particularly in the food, beverage, and consumer goods sectors, encourages large-scale use of bioplastics. Local production of bio-based feedstocks, especially in agricultural economies, offers a cost advantage and increases supply. Additionally, several regional initiatives that focus on plastic bans and alternatives to single-use plastics have sped up the shift toward biodegradable materials in countries like India, China, and Thailand.
China Market Trends
China remains the main player in the Asia Pacific bioplastics market, fueled by its vast industrial ecosystem and government rules on plastic pollution control. In 2024, China continued its gradual bans on non-degradable plastics in e-commerce, postal services, and food delivery. This pushed companies to quickly adopt bioplastics. The country has made significant investments in research and development and pilot plants for producing PLA and PHA bioplastics. Notably, China exported 205 shipments of biodegradable plastic between November 2023 and October 2024. These exports, handled by 79 Chinese exporters to 79 buyers, showed an impressive 54% increase compared to the previous year. This highlights China's rapid growth in bioplastics trade and production.
Bioplastics Market Volume Share, By Region, 2024-2034 (%)
By Region
Volume Share, 2024 (%)
Market Volume Tons - 2024
Market Volume Tons - 2034
CAGR (2025 - 2034)
Volume Share, 2034 (%)
North America
21.14
%
240,996.0
1,633,472.7
23.69
%
22.31
%
Europe
30.41
%
346,674.0
2,152,581.7
22.49
%
29.40
%
Asia Pacific
35.62
%
406,068.0
2,465,950.8
22.19
%
33.68
%
Latin America
7.32
%
83,448.0
593,058.2
24.35
%
8.10
%
Middle East & Africa
5.51
%
62,814.0
476,643.1
25.25
%
6.51
%
Total
100.00
%
1,140,000.0
7,321,706.6
20.44
%
100.00
%
Why Is Europe the Fastest-Growing Region in the Bioplastics Market?
Europe expects the fastest growth in the bioplastics market during the forecast period, because more consumers prefer sustainable products and strict environmental policies, like the EU Single-Use Plastics Directive. Governments in the region are supporting the development of bio-based materials through subsidies, innovation funding, and partnerships between public and private sectors. Major retail and FMCG brands are also moving toward compostable and recyclable packaging to reach their climate goals. Increased investments in circular economy projects and bio-economy strategies are creating a favorable environment for bioplastics to succeed in both industrial and consumer sectors.
Germany Leading Europe's Growth in Bioplastics
Germany is a key growth driver in Europe due to its strong recycling infrastructure, significant research and development capabilities, and environmentally-friendly regulations. The German government's focus on reducing CO₂ emissions and its leadership in the European Green Deal initiatives have pushed industries to look at bioplastics as practical alternatives to fossil-based plastics. Universities and research centers are actively working on developing new biopolymers and improving the effectiveness of biodegradable plastics. In 2024, several German startups and packaging companies expanded their production lines for compostable films and containers to meet rising demand from both local and EU customers.
Bioplastics Market Segmentation
Product Type Insights
Which Product Type is Dominated the Bioplastics Market in 2024?
The bio-based non-biodegradable plastics segment dominated the bioplastics market in 2024, this was mainly because of their common use in packaging, automotive parts, and consumer goods. These plastics, such as bio-based PET and PE, have similar properties to regular plastics but come from renewable sources. This makes them appealing to industries that want to lessen their environmental impact. Their fit with current recycling systems has also encouraged widespread use, particularly in developed areas.
The biodegradable plastics segment is expected to grow the fastest during the forecast period. Rising consumer interest in eco-friendly options and stricter rules against single-use plastics are boosting their use in areas like food packaging, compost bags, and medical products.
Bioplastics Market Volume Share, By Product Type, 2024-2034 (%)
By Product Type
Volume Share, 2024 (%)
Market Volume Tons - 2024
Market Volume Tons - 2034
CAGR (2025 - 2034)
Volume Share, 2034 (%)
Bio-Based Non-Biodegradable Plastics
61.88
%
705,432.0
4,384,237.9
22.51
%
59.88
%
Biodegradable Plastics
38.12
%
434,568.0
2,937,468.7
23.66
%
40.12
%
Total
100.00
%
1,140,000.0
7,321,706.6
20.44
%
100.00
%
Feed Stock Source Insights
Which Feed Stock Source Segment Is Dominated The Bioplastics Market?
The starch-based feedstock segment dominated the bioplastics market in 2024, because it is widely available and cost-effective. Starch-based bioplastics are commonly used in packaging and agriculture because they break down naturally and fit well with current plastic production methods. Their increased use in the automotive and consumer goods industries for making lightweight, sustainable parts further strengthens their position in markets seeking eco-friendly options.
The algae-based segment is set to expand the quickest during the forecast period. This growth comes from more innovation in bio-refining technologies and a growing interest in materials that decompose naturally. Algae-based bioplastics offer benefits such as quick growth cycles, low resource use, and the ability to store carbon.
Processing Technology Insights
Which Processing Technology is Dominant in Bioplastics Market?
The injection moulding segment held the largest share in 2024. This was due to its flexibility and ability to produce complex, high-strength bioplastic parts at scale. Industries like packaging, automotive, and consumer goods widely use this technique because it allows for precise design and strong structures. Its ability to work with both biodegradable and non-biodegradable bioplastics also boosts its use in various sectors focused on sustainable manufacturing.
The 3D printing segment is likely to grow the fastest during the forecast period. The rising demand for customized, lightweight, and quickly produced bioplastic products in medical devices, prototyping, and consumer applications is fueling its rapid adoption.
End Use Insights
Why did the Packaging Segment Dominate the Bioplastics Market in 2024?
The packaging segment held the largest share in the bioplastics market in 2024, due to the increasing demand for sustainable options in food, beverage, and consumer goods packaging. Bioplastics are quickly being used to make eco-friendly containers, films, and wrappers that meet both functional and regulatory standards. Their smaller environmental impact compared to traditional plastics makes them a popular choice for manufacturers and retailers aiming for sustainability.
The medical and healthcare segment is expected to grow the fastest during the forecast period. This growth is linked to the rising use of bioplastics in surgical instruments, drug delivery systems, and medical implants. Their biocompatibility and ability to break down naturally make them suitable for healthcare applications.
For more information, visit the Towards Chemical and Materials website or email the team at sales@towardschemandmaterials.com| +1 804 441 9344
More Insights in Towards Chemical and Materials:
Bio-Based Polyurethane Market : The global bio-based polyurethane market volume was reached at 4.86 million tons in 2024 and is expected to be worth around 10.73 million tons by 2034, growing at a compound annual growth rate (CAGR) of 8.24% over the forecast period 2025 to 2034.
Polypropylene Market : The global polypropylene market volume was reached at 87.21 million tons in 2024 and is expected to be worth around 135.05 million tons by 2034, growing at a compound annual growth rate (CAGR) of 4.47% over the forecast period 2025 to 2034.
Biomaterials Market : The global biomaterials market volume was reached at 805.32 kilo tons in 2024 and is expected to be worth around 1850.43 kilo tons by 2034, growing at a compound annual growth rate (CAGR) of 8.68% over the forecast period 2025 to 2034.
PFAS Free Chemicals Market : The global PFAS free chemicals market volume was valued at 211.23 kilo tons in 2024 and is expected to reach around 905.32 kilo tons by 2034, growing at a CAGR of 15.67% from 2025 to 2034.
Sustainable EPDM Market : The global sustainable EPDM (ethylene propylene diene monomer) market volume was reached at 1,80,000.0 tons in 2024 and is expected to be worth around 2,61,364.2 tons by 2034, growing at a compound annual growth rate (CAGR) of 3.80% over the forecast period 2025 to 2034.
Bio-based Solvents Market : The global bio-based solvents market volume was reached at 13,00,000.0 tons in 2024 and is expected to be worth around 25,81,297.5 tons by 2034, growing at a compound annual growth rate (CAGR) of 7.10% over the forecast period 2025 to 2034.
Bio-based Surfactants Market : The global bio-based surfactants market volume is calculated at 5,96,016.3 tons in 2024, grew to 6,18,664.9 tons in 2025 and is predicted to hit around 8,65,429.5 tons by 2034, expanding at healthy CAGR of 3.80% between 2025 and 2034.
Oil & Gas Market : The global Oil & Gas-market size was valued at USD 6.10 Trillion in 2024, grew to USD 6.33 Trillion in 2025, and is expected to hit around USD 8.79 Trillion by 2034, growing at a compound annual growth rate (CAGR) of 3.72% over the forecast period from 2025 to 2034.
Oil & Gas Infrastructure Market : The global oil & gas infrastructure market size was reached at USD 752.19 billion in 2024 and is expected to be worth around USD 1,377.87 billion by 2034, growing at a compound annual growth rate (CAGR) of 6.24% over the forecast period 2025 to 2034.
U.S. Oil & Gas Market : The U.S. oil & gas market volume is calculated at USD 1.55 trillion in 2024, grew to USD 1.61 trillion in 2025, and is projected to reach around USD 2.24 trillion by 2034. The market is expanding at a CAGR of 3.75% between 2025 and 2034.
Europe Green Building Materials Market : The was reached at 169.9 million tons in 2024 and is expected to be worth around 406.7 million tons by 2034, growing at a compound annual growth rate (CAGR) of 9.12% over the forecast period 2025 to 2034.
Bioplastics Market Top Companies
NatureWorks LLC- Leading producer of Ingeo™ PLA bioplastics, derived from renewable plant sugars, widely used in packaging and fibers.
TotalEnergies Corbion- Joint venture producing PLA and lactic acid, focusing on renewable bioplastics for packaging and agriculture.
BASF SE- Offers biodegradable plastics like ecovio® and is advancing biopolymer research for various applications.
Novamont S.p.A.- Develops Mater-Bi®, a compostable bioplastic used in packaging, agriculture, and bags, promoting circular economy.
Biome Bioplastics- Specializes in biodegradable polymers for packaging, agriculture, and consumer goods, emphasizing compostability.
Mitsubishi Chemical Group- Produces bio-based polymers and focuses on sustainable materials for packaging and automotive industries.
Danimer Scientific- Manufactures PHA bioplastics from renewable resources, used in packaging and single-use products.
FKuR Kunststoff GmbH- Develops biodegradable and bio-based plastics, offering custom compounds for various industries.
Braskem S.A.- Produces bio-based polyethylene from sugarcane, a leading player in green polyolefins.
Toray Industries Inc.- Engaged in bio-based polymer production and R&D, focusing on fibers and films for diverse applications.
Evonik Industries AG- Produces bio-based building blocks and specialty chemicals, enabling bioplastic innovation and performance.
Bioplastics Market Top Key Companies:
NatureWorks LLC
TotalEnergies Corbion
BASF SE
Novamont S.p.A.
Biome Bioplastics
Mitsubishi Chemical Group
Danimer Scientific
FKuR Kunststoff GmbH
Braskem S.A.
Toray Industries Inc.
Evonik Industries AG
Green Dot Bioplastics
Plantic Technologies (Kuraray Co. Ltd.)
Teijin Limited
Tipa Corp. Ltd.
Biotec GmbH
Anellotech Inc.
Trifilon AB
Cardia Bioplastics
Synbra Technology BV
What is Going Around the Globe?
In November 2024, Fortum has created a fully biodegradable plastic made entirely from captured carbon dioxide. This innovation provides a fossil-free alternative to traditional plastics. It supports carbon recycling efforts and promotes sustainable packaging solutions in various industrial sectors.
In September 2024, CSIRO and Murdoch University have set up a Bioplastics Innovation Hub in Australia with US$8 million collaboration. The hub aims to speed up the development of sustainable, biodegradable plastic alternatives. Its goal is to reduce plastic waste and support the commercialization of eco-friendly materials through collaboration between industry and academia.
Bioplastics Market Report Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2034. For this study, Towards Chemical and Materials has segmented the global Bioplastics Market
By Product Type
Bio-Based Non-Biodegradable Plastics
Bio-Polyethylene (Bio-PE)
Bio-Polyethylene Terephthalate (Bio-PET)
Bio-Polyamides (Bio-PA)
Bio-Polypropylene (Bio-PP)
Biodegradable Plastics
Polylactic Acid (PLA)
Polyhydroxyalkanoates (PHA)
Starch Blends
Polybutylene Adipate Terephthalate (PBAT)
Polybutylene Succinate (PBS)
Cellulose-based Plastics
By Feedstock Source
Starch-based
Sugarcane-based
Cellulose-based
Vegetable Oils & Fats
Agricultural Waste
Algae-based
Others (e.g., wood chips, food waste)
By Processing Technology
Injection Molding
Extrusion
Blow Molding
Thermoforming
Others (e.g., 3D printing, rotational molding)
By End-Use Industry
Packaging
Rigid Packaging
Flexible Packaging
Consumer Goods
Electronics
Household Items
Toys
Automotive & Transportation
Interiors
Exterior Panels
Textiles
Apparel
Industrial Fabrics
Agriculture
Mulch Films
Plant Pots
Building & Construction
Insulation
Panels
Medical & Healthcare
Drug Delivery Systems
Sutures
Others
3D Printing
Coatings & Adhesives
By Regional
North America
Europe
Asia Pacific
Latin America
Middle East Africa
Immediate Delivery Available | Buy This Premium Research Report@ https://www.towardschemandmaterials.com/price/5735
About Us
Towards Chemical and Materials is a leading global consulting firm specializing in providing comprehensive and strategic research solutions across the chemical and materials industries. With a highly skilled and experienced consultant team, we offer a wide range of services designed to empower businesses with valuable insights and actionable recommendations.
Our Trusted Data Partners
Precedence Research | Statifacts | Towards Packaging | Towards Healthcare | Towards Food and Beverages | Towards Chemical and Materials | Towards Consumer Goods | Nova One Advisor |
For Latest Update Follow Us: https://www.linkedin.com/company/towards-chem-and-materials/
USA: +1 804 441 9344
APAC: +61 485 981 310 or +91 87933 22019
Europe: +44 7383 092 044
Email: sales@towardschemandmaterials.com
Web: https://www.towardschemandmaterials.com/
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Why Reddit Stock Skyrocketed This Week
Why Reddit Stock Skyrocketed This Week

Yahoo

time4 minutes ago

  • Yahoo

Why Reddit Stock Skyrocketed This Week

Key Points Reddit reported its second-quarter results on July 31, and the stock has been on a tear since then. Reddit's sales and earnings are rising rapidly. Data licensing for artificial intelligence models has turned into a powerful growth driver for Reddit. 10 stocks we like better than Reddit › Reddit (NYSE: RDDT) stock continued to rocket higher in this week's trading thanks to strong quarterly results. The social media player's price rose 14.2% over the last week of trading. Reddit published its second-quarter report on July 31, and the results spurred a surge in bullish momentum that extended into this week's trading. The company's share price is now up roughly 308% over the last year of trading. Reddit stock roars higher on big Q2 beats Reddit's second-quarter report arrived with results that caused investors to adopt a far more bullish stance on the company's outlook. In Q2, Reddit reported a profit of $0.45 per share on sales of $500 million. The performance came in far better than the average analyst estimate, which had targeted earnings per share of $0.19 and revenue of $426 million. The company's sales increased 78% year over year in the period, and the strong performance beats caused a wide range of Wall Street analysts to significantly increase their one-year price targets on the stock. With excitement surrounding Reddit's future growing, strong post-earnings valuation gains continued over the last week of trading. What's next for Reddit? For the current quarter, Reddit expects its sales to come in between $535 million and $545 million. Hitting the midpoint of that guidance range would mean posting year-over-year sales growth of roughly 55% in the third quarter. Reddit is seeing strong sales and earnings momentum in conjunction with data generated from its platform being a go-to resource for the training of artificial intelligence (AI) models. While the platform's user base has historically monetized at relatively low levels compared to other social sites, data licensing for AI models seems to have changed the game. Should you invest $1,000 in Reddit right now? Before you buy stock in Reddit, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Reddit wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Reddit Stock Skyrocketed This Week was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Rivian Faces a Dreaded Triple Whammy. Can the Stock Recover?
Rivian Faces a Dreaded Triple Whammy. Can the Stock Recover?

Yahoo

time4 minutes ago

  • Yahoo

Rivian Faces a Dreaded Triple Whammy. Can the Stock Recover?

Key Points Losing sales of regulatory credits is a blow to the bottom line. Tariffs have added costs and complexities to the supply chain. Removing the $7,500 federal EV tax credit will hurt demand late in 2025. 10 stocks we like better than Rivian Automotive › Rivian (NASDAQ: RIVN) just drove in its second quarter that certainly felt negative impacts from multiple angles. The company reported a 13% rise in revenue to $1.3 billion and a narrowing net loss of $1.1 billion compared to the prior year's $1.5 billion, and reaffirmed its delivery guidance of 40,000 to 46,000 vehicles. Rivian also reported its full-year adjusted EBITDA loss is expected to be between $2 billion and $2.25 billion, worse than the prior forecast of $1.7 billion to $1.9 billion. Let's take a quick look at the triple whammy sending speed bumps at the young electric vehicle (EV) maker. Goodbye easy money When it comes to easy money, it doesn't get much easier than EV makers selling zero-emission, or regulatory, credits. Essentially, automakers that produce EVs are given credit for meeting emissions standards, while vehicles that don't meet emissions standards are fined. One way to get out of the fine is to simply purchase regulatory credits from automakers such as Rivian that don't have an internal combustion vehicle portfolio to offset. However, the Trump administration recently did away with the penalty for not meeting emissions standards, and thus removed the incentive to buy these regulatory credits. That's a significant, and sudden, removal of a vital chunk of business for Rivian. Now Rivian expects to receive no more revenue for the credits and for regulatory credits to generate roughly $160 million in 2025, down from the prior expectation of $300 million. Tortuous tariffs You aren't to be blamed if you can't keep up on all the tariffs, reciprocal tariffs, retaliatory tariffs, trade policy changes, among other developments. But the simple truth is the introduction of these tariffs complicated the lives of automakers and their investors, and Rivian is no different. The tariffs set by the current administration hit imported auto parts, causing pain even for companies such as Rivian that manufacture vehicles inside the U.S. Not only is that raising costs and eroding margins, it's causing supply chain disruptions and constraints that contributed to Rivian producing under 6,000 vehicles during the quarter, compared to nearly 14,000 during the prior year. Unfortunately for investors, management expects changes in trade regulation and tariffs to have a negative impact on cash flow, which had been long trending in the right direction, as you can see in the graph below. Rivian also expects tariffs to negatively impact vehicles by a couple thousand dollars per unit for the remainder of 2025, which is a big deal for a company already losing tens of thousands per vehicle. But tariffs are only part of the problem, and it goes hand in hand with the administration's removal of the $7,500 federal EV tax credit. No longer a shock In the world's least kept secret, the $7,500 federal tax credit for EV purchases is set to go away at the end of September. It's apparent that long-term demand will be negatively impacted with the tax credit making every qualifying vehicle more expensive. But investors also need to be aware of the impact the knowledge of the credit's removal had on demand. First, it created a pull forward effect as consumers on the fence rushed to buy an EV before the credit disappeared. That coincided with a boost in OEM production as automakers rushed production ahead of tariffs, increasing costs on imported parts and vehicles. But that also means there's almost certainly going to be an equally powerful lull once that pull-through demand is worked through and the new reality of likely cost increases sets in, probably during the fourth quarter. That's important because for Rivian to hit its full-year delivery target it needs a strong second half for demand and deliveries. It currently expects the third quarter to post the strongest for deliveries, so it will be a key quarter for investors to watch after demand and deliveries have trended lower. What it all means A triple whammy of negative impacts from tariffs and trade regulation, removal of the federal tax credit, and lost revenue from regulatory credits amid slower than anticipated EV industry growth makes for a rough year for Rivian. For long-term investors, the thesis hasn't changed: It's all hands on deck until the R2, R3, and R3X are driving into consumer garages. Rivian can absolutely recover from these negative developments. However, it's becoming more and more clear how much Rivian's future depends on the R2, and that's why the company remains high risk, high reward. Invest accordingly. Should you invest $1,000 in Rivian Automotive right now? Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rivian Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rivian Faces a Dreaded Triple Whammy. Can the Stock Recover? was originally published by The Motley Fool Sign in to access your portfolio

B.C. man lied to steal brothers' A&W franchise, court rules
B.C. man lied to steal brothers' A&W franchise, court rules

Yahoo

time4 minutes ago

  • Yahoo

B.C. man lied to steal brothers' A&W franchise, court rules

A man who tried to steal a fast food franchise owned by his two brothers was excoriated by a B.C. Supreme Court judge, who called him 'dishonest, entitled, ungrateful and jealous.' Norman and Bradley Phaneuf sued their brother, Vern Phaneuf, for claiming 50 per cent ownership of A&W restaurants they operated in Maple Ridge and for trying to cut them out of any profits from the restaurants — all because of a paperwork error. 'The consequence of this error, if allowed to stand, is that Vern … would be entitled to receive 100 per cent of the profit which was created by Norman's and Bradley's successful entrepreneurial efforts,' the judge wrote in a decision made on Thursday. The case stems from a holding company the brothers created for several new franchise locations they were planning to open in 2010 thanks to an expansion opportunity offered by A&W. All four brothers were shareholders in the holding company. Norman and Bradley, who ran the restaurants, owned 80 per cent. They offered 10 per cent each to Vern and Terry (now deceased), in non-voting class B shares, as gifts. Vern had done accounting work for the family's previous franchises and Terry had provided loans. When the ownership documents were being amended, Norman and Bradley's shares were mistakenly listed as 'non-participating,' which means they are not entitled to profits from the restaurants, while Terry and Vern's shares were 'participating,' giving them access to dividends and sale proceeds, despite only making up 20 per cent of shares. Vern, a certified public accountant with a Bachelor's degree who works as an investment banker, drew up the paperwork. Norman and Bradley, neither of which had a post-secondary education, told the judge they did not understand or know what the terms 'participating' or 'non-participating' meant. As a result of the error, which was only discovered in 2020, Vern claimed that he and Terry owned 50 per cent each of the holding company that controlled the franchises as part of a 'de facto shareholders' agreement' that would see Norman and Bradley's shares redistributed. The judge rejected the claim as 'irrational and nonsensical.' 'It defies all logic and credulity to believe that Norman and Bradley would invest heavily and work tirelessly in businesses they had no ownership interest in,' Basran wrote, calling Vern's claim 'irrational, self-interested, and a seeming product of his imagination.' 'Vern fabricated this entire 'de facto shareholders' agreement' narrative to try to take advantage of the mistake in the articles of the companies that describes the class A shares as 'non-participating', in an attempt to benefit himself,' Basran wrote. Basran praised the evidence from Norman and Bradley as 'logical, forthright, straightforward, consistent, and coherent.' The judge had far harsher comments for Vern's testimony, noting that he 'lied repeatedly and unrelentingly,' and that 'virtually every element of his evidence lacked truth, clarity, and logic.' The judge pointed out that despite claiming he always knew how the shares were structured, Vern originally denied that he created the shareholder documents. Vern also claimed that his brothers lured him to B.C. from a partnership in a Saskatchewan accounting firm, with an offer of 25 per cent ownership of one of the franchises. The judge pointed out that in reality, Vern received a 50 per cent interest in the franchise and that he had never been a partner in the accounting firm. 'This evidence cannot be reconciled because it is a fiction unsupported by any documents or logic,' the judge wrote. @njgriffiths ngriffiths@ Related B.C. woman sues psychiatrist, says prescribed drug made her gamble away her home equity, shop excessively B.C. court overrules 'biased' will that left $2.9 million to son, $170,000 to daughter

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store