Consumer preference for improved product performance has contributed to the significant growth of bio plastics worldwide. Furthermore, demand for sustainable materials & price consistency with petroleum – based plastics have resulted in the increased share and size, value and growth of the industry. Study by Allied Market Research (AMR) on trends shows the sector stood at a proud 4,869.2 kilo tons in 2014. AMR’s analysis clearly indicates that requirements for such plastics have shifted from past; initial phase of launch & are now witnessing strong surge in demand in virtually every regions. US bioplastics market is expected to grow over 25 % annually by 2016, as per many industry experts.
Watch Prof. Hans-Josef Endres speak about the opportunities in the bio plastics in years to come .
Ultimately, however, price considerations would be the main determinant of revenues the market garners. Additionally it is expected that sudden rise in petroleum price would enable some resins to attain price consistency with bog –standard plastics by 2020. Sales figures of biodegradable plastics for 2013, 2014 and 2015 show the industry accounted for over 85 percent of the total bioplastics market. Remarkable surge in two fast expanding categories of biodegradable plastics like PLA and starch – based resins would see a double digit growth through 2016. Research analysts at AMR say the fastest returns for biodegradable plastics, would be offered by PHA resins. These resins would soon occupy a significant place in the commercial arena.
In addition, many bio – based PE and polypropylene plants are in their planning stages. They are expected to grow in number around 2016. Moreover, commercial production of completely bio –based PET is predicted to be true soon. As an outcome, the popularity of non biodegradable plastics would increase.
Production capabilities of plastics including PHA, starch blends and PLA are growing rapidly. They are likely to double from close to 0. 7 M tonne in 2014 to over 1. 1 M tones by 2019. Undoubtedly production of PHA is expected to double in 2019 as compare to the 2014 volume. Owing to the ramp – up of many traditional and new capacities mainly in the United States and Asia PHA production is expected to double by 2019. Research analysts indicated that there has been a dramatic shift in the compostable plastics segment as they have moved from niche to the mainstream. They add that several compostable plastics have finally identified their value applications.
Packaging stays the major area of applications for bioplastics with over 65 percent of the total market. Due to their attributes including excellent fit their demand in the packaging sector is rising every year. Industry experts believe that increasing consumer preference for eco-friendly products would create new opportunities for the sector.
The data produced by AMR confirms a decisive rise in the consumption of bioplastics material in an array of business verticals such as consumer products, textile and automotive sector. With a view to geographical capacity development, countries located in Asia would continue to expand their primary role as key producer. In 2019 more percentage of these plastics would be produced in Asian countries. Several studies reveal that the industry will register a CAGR of 19.6 percent by 2020. Europe would be left with a smaller percentage when it comes to production capacities. Countries like the United States have already started introducing close – to- market strategies to attract manufacturing hubs and ensure faster industrial development.
Observing the ongoing development in the industry Allied Market Research has published a report titled “World Bioplastics Market - Opportunities and Forecast, 2014 – 2020.” The study outlined that the sector had registered CAGR of 19.6 percent between 2014 to 2020. Industry is likely to grow at CAGR of 17.5 percent by 2020 say’s an AMR researcher. Business owner planning on expanding their research would find the report worth their time and investment.
