One of the best alternatives for plastics, PLA is increasingly getting adopted. Made out of cornstarch- renewable source of energy, It is a plastic like material. Polylactic acid being biodegradable is its best part. Many environmentalists see PLA as best replacement for plastics to cut down the environmental hazards by plastic,
As per the report prepared by Allied Market Research market for Polylactic Acid will reach $5.2 billion by 2020 with a of CAGR 19.5%. Analysts stated that ban on plastic products by government and its incentive plans chalked out for PLA production are two key factors that factors for its growth. They further estimated that research on reinforcing PLA with other materials for a better product will act as a catalyst for PLA market.
It cost-effectiveness is credited to its low cost and easy availability of raw material as per experts. They estimated that the cost will further dip with research of better alternative source of raw materials. Analysts anticipated that need for an industrial degradation system to degrade PLA will deter its growth..
According to AMR’s analysts, global Polylactic acid market is segmented on the basis of its Application and Raw material. Application segment is further divided as Electronics, Biomedical, Agriculture, Textile, Packaging and others. Among all the above market, Packaging has the highest share and is expected to lead the market in forecasted span of time. However, they studied that Textile and Electronics market will quickly adopt.
In terms of geographical locations, Europe, Asia Pacific, North America and rest of the world are its market. Asia Pacific is studied to have the highest CAGR of 21.6% from 2013-2020 due to abundance feedstock availability and government incentives plan. Analysts further projected that Europe will lead the market in term of revenue during same span.
key firms dealing in PLA market are Dow Chemical, Eastman Chemical, Bayer AG, Exxon Mobil Chemical, China Petroleum & Chemical Corporation (Sinopec), Braskem, Mitsubishi Chemical Corporation (MCC) and Nova Chemicals Corporation.
