Demand for Bioplastics and Plant-Based Bioresins Set to Quadruple by 2013

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Researched by Industrial Info Resources (Sugar Land, Texas)--The global demand for bioplastics, including bioresins derived from plant-based sources, is set to rise by a factor of four to 890,000 tons by 2013 and become a $2.6 billion market, says a study from ReportLinker.

A major contributing factor to the unusual rise in demand is the requirement by consumers for sustainable, environmentally friendly products and increased restrictions on the use of plastic products, such as plastic bags. Further, the continuing high prices of oil and natural gas have improved the cost competitiveness of bio-based plastic products, in comparison with petroleum-based commodities.

The trend in the bioplastics industry is expected to continue its growth beyond 2013. The global demand for bioplastics is expected to reach 2 million tons by 2018, with a market value of $5 billion. Biodegradable products, including degradable polyesters and starch-based resins, were the dominant bioplastics in 2008--accounting for almost 90%--and strong demand is expected to continue with the introduction of polyhydroxy-alkanoates (PHAs). The MIREL resins produced by Metabolix Incorporated (NASDAQ:MBLX) (Cambridge, Massachusetts) in a joint venture with the Archer Daniels Midland Company (NYSE:ADM) (Decatur, Illinois) is an example. However, the interest is now expected to shift to non-biodegradable plant based plastics over the next few years.

Brazil is set to dramatically increase the production of such materials with the completion of two new plants that will constructed by the U.S.-based Dow Chemical Company (NYSE:DOW) (Midland, Michigan) and the Brazilian Braskem S.A (NYSE:BAK) (Camacari, Brazil). The plants will produce polyethylene from ethanol derived from sugar cane. In another likely move, the Belgium-based Solvay S.A. (OTC:SVYSY) (Brussels, Belgium) is expected to open a bio-based polyvinyl chloride plant, says the study.

The new production facilities are expected to increase the demand for plant-based, non-biodegradable plastics from a relatively low figure of 23,000 tons in 2008 to a likely 600,000 tons in 2013.

With about 40% of the global demand coming from Western Europe, the region was the largest global market in 2008. A strong regulatory environment in the region favors bioplastics over petroleum-based products, and emphasis on recycling and composting has led to consumers demanding biodegradable products wherever possible.

However, demand in the Asia Pacific region is expected to grow considerably and is set to become the equal of Western Europe by 2013, driven largely by Japan, which is focusing on the replacement of petroleum-based products. Other regions expected to experience significant increases in consumer demand include Latin America and Eastern Europe.

Currently, North America, Japan and Western Europe dominate the production of bioplastics. However, China is expected to become a major player in the industry by 2013, by which time it will have an estimated production capacity of 100,000 tons per year. However, the new plants to be opened in Brazil will lead to Brazil becoming a clear global leader in the production of bio-based polyethylene and polyvinyl chloride plastics.

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