Plastics are one of the biggest culprits of environmental pollution. They take hundreds of years to decompose, contributing to the accumulation of waste in landfills and oceans. Due to this real threat, the world is increasingly considering a more sustainable solution for plastics, with bioplastics now being a fully-fledged industry. 

Bioplastics are made from renewable biological sources such as corn starch, sugarcane or potato starch.

And there’s real growth potential and money to be made in this niche. The global market for bioplastics was valued at $7.49 billion in 2023 and is projected to expand from $7.41 to $56.99 billion in 2024 through 2032. 

If you’re looking to bet your money on bioplastics, you’re on the right track. Here are three top picks for bioplastic stocks to buy now.

BASF SE (BASFY)

BASF SE (OTCMKTS:BASFY) is a multinational company and the world’s largest chemical producer. The German-headquartered firm’s products include chemicals, materials, industrial solutions and bioplastics. 

It has two flagship lines of bioplastic products: Ecovio and Ecoflex. These products are compostable and are used in packaging, agriculture and more industrial applications.

The company’s adjusted first-quarter EBITDA dropped 5.3% to 2.7 billion EUR compared to the year prior. That was partly due to declines in sales for its agrochemicals, surface treatment and catalyst portfolios. 

But even with the drop, its performance exceeded analysts’ average forecast of 2.57 billion EUR, making it an interesting choice for bioplastic stocks.

BASF’s share price has been trading largely sideways this year. That phenomenon signals market indecision — but it’s, in fact, a positive sign. Investors are in a holding pattern to see if the company’s structural overhauls, especially its massive cost-cutting endeavor it began in February, will help steer it into the black once more. 

Dow (DOW)

Dow (NYSE:DOW) is an American company that’s also one of the biggest chemical producers worldwide. It produces bio-based products, including bioplastics.

Though the company posted disappointing results, such as a slump in earnings per share (EPS) and a 10% drop in net sales compared to the year prior, several stock analysis publications believe its shares are undervalued.

For instance, Alpha Spread believes that at its current going price of $53.90, the stock is undervalued by 22%. And Simply Wall St notes earnings are projected to double in the coming years. That suggests a highly promising outlook. According to the site, this growth is likely to result in increased cash flows, which should boost the share value. Analysts also recommend holding the stock. 

Dow is one of the best picks for investors looking to dip their toes in bioplastics stocks.

Eastman Chemical (EMN)

Eastman Chemical (NYSE:EMN) is a leading chemical and bio-solutions firm that manufactures sustainable plastics, coatings and adhesives for brands, including in agriculture, consumer goods and personal care.

The firm topped EPS and revenue projections for its first quarter this year, with revenues 0.87% higher than projected estimates. And its shares have returned 12% in the past year, signaling a healthy growth trajectory.

This positive trend will likely continue for Eastman in the foreseeable future. The company is slated to receive a cash injection of $375 million from the Department of Energy to build a molecular recycling facility at its Longview, Texas location. 

While this investment may not immediately translate into profit for its balance sheet, it will help Eastman further cement its dominance in the bioplastics and sustainability niche and also potentially open up new revenue opportunities. 

These fundamentals make Eastman an interesting pick if you’re looking to bump up your portfolio with bioplastic stocks. 

On the date of publication, Hope Mutie did not have (either directly or indirectly) any positions in the stocks mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com’s Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.