‘Biodegradable plastics have become more cost-competitive with petroleum-based plastics and the demand is growing significantly, particularly in Western Europe, where environmental regulations are the strictest,’ says Marifaith Hackett, director of specialty chemicals research at analysts IHS Markit. The current market value of biodegradable plastics is set to exceed $1.1bn in 2018, but could reach $1.7bn by 2023, according to IHS Markit’s new report.
In 2018, the report finds that global demand for these polymers is 360,000t, but forecasts an average annual growth rate of 9% for the five years to 2023 – equivalent to a volume increase of more than 50%. Western Europe holds the largest share (55%) of the global market, followed by Asia, and Australia and New Zealand (25%), then North America (19%).
Here’s how much plastic trash Is littering the Earth. Video: National Geographic
In another report released in May 2018, the US Plastics Industry Association (PLASTICS) was similarly optimistic, finding that the bioplastics sector (biodegradables made from biological substances) is at ‘a growth cycle stage’. It predicts the US sector will outpace the US economy as a whole by attracting new investments and entrants, while also bringing new products and manufacturing technologies to make bioplastics ‘more competitive and dynamic’.
As bioplastics product applications continue to expand, the dynamics of industry growth will continue to shift, the report notes. Presently, packaging is the largest market segment at 37%, followed by bottles at 32%. Changes in consumer behaviour are expected to be a significant driver.
Many countries, including China and the UK, have introduced plastic waste bans to tackle the problem. Image: Pixabay
Changes in US tax policy, particularly the full expensing of capital expenditure, should support R&D in bioplastics,’ says Perc Pineda, chief economist at PLASTICS. ‘The overall low cost of energy in the US complements nicely with R&D activities and manufacturing, which generates a stable supply of innovative bioplastic products.’ He points, for example, to efforts by companies and collaborations to develop and launch, at commercial scale, a 100% bio-based polyethylene terephthalate (PET) bottle as a case in point. Most PET bottles currently contain around 30% bio-based material.