Ceresana revisits global bioplastics market, sees ‘tremendous' market potential

Publishing its bioplastics report now for the third time, Ceresana notes that, even though they still account for only a small share of the plastics market as a whole, bioplastics have become a real alternative to standard plastics manufactured from petrochemical feedstocks. Yet they still face a number of hurdles that continue to bar the way to wholesale acceptance by the market, says the report.

According to the market analysts at Ceresana, who see global demand increasing by an annual 18.9% in the future, bioplastics possess a tremendous market potential, even in troubled economic times. Global demand shows continued growth, albeit at a lower rate than in previous years thanks to factors such as improved technical properties, progress in production and the significant expansion of capacities, which have enabled manufacturers to lower prices and therefore to further increase the competitiveness of bioplastics in the face of conventional plastics. Moreover, the plastics industry is striving for increased environmental protection and sustainability, not least to improve their image among consumers. A global trend in that connection is the increased use of non-biodegradable "drop in" bioplastics, such as bio-PE or bio-PET, that are chemically identical to their petroleum-based equivalents, but are derived from biomass.

The most important sales market continues to be Europe, which accounted for more than one third of total global bioplastics consumption in 2013, followed by North America, Asia-Pacific, and the rest of the world. Europe is projected to remain leading in research and development and the largest market for bioplastics for several years to come. Asia-Pacific and a number of South American countries, however, offer an enormous potential for growth. In order to meet future demand for bioplastics, both regions, but South America in particular, are investing in a massive expansion and creation of production capacities. These regions can capitalize on the availability of a range of biological raw materials as well as propitious political and economic conditions.

However, even though the market for bioplastics is developing, as the report states at "highly dynamic growth rates," considerable room for improvement remains. The major factor impeding a notably more dynamic development of the bioplastics market, writes Ceresana, is the persistent skepticism of consumers regarding performance, processability, and their higher costs.

A sector in which the use of bioplastics has become relatively common is the packaging industry, especially in the sub segment food packaging. As Ceresana notes "the major advantage of cups, bottles, plates, bags, and sacks made from biodegradable bioplastics is the fact that they can be disposed of along with leftover food. Bioplastics are also the material of choice in agricultural films that are plowed in when no longer needed, flower pots, and trays for seedlings."

Bottles made from bioplastics are also fast gaining in popularity among manufacturers of beverages and detergents and it is for this application area that the report forecasts the highest growth rates. However, bioplastics will only become established in this segment, when the construction of the planned facilities has taken place and producers of bottles make the actual transition to biobased plastics.