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Demand for Biodegradable Plastic to Expand 16% by 2012 |
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Packaging Component will Offer Good Opportunities for Foodservice
CLEVELAND – Domestic demand for types of biodegradable plastic is forecast to expand 15.5% per year to 720 million pounds in 2012, valued at $845 million, according to a new report by market research firm The Freedonia Group here.
According to the report, titled “Biodegradable Plastics,” released last month, “Polylactic acid (PLA) demand will present good opportunities through 2012, reflecting price declines, improved product performance and greater processor familiarity.”
The study forecast good opportunities for PLA in packaging areas such as film, thermoformed products, and foodservice products, Freedonia pointed out in the announcement. Starch-based plastic demand will present good growth through 2012 due to the availability of lower priced and improved resin blends. Film products such as yard and kitchen bags will remain dominant. Rapid advances are also expected in areas such as plates, bowls and foodservice items.
When asked what the drivers of the growth are in the foodservice industry, industry analyst Bill Weizer told ID: “The rise in biodegradable plastics is definitely due to both consumer interest in environmental friendliness and the marketing advantages of being green. Notwithstanding, rapid biodegradable plastic growth would not have occurred if biodegradable prices had not become competitive with conventional plastics.
“Biodegradable plastics are now price competitive with many conventional plastics in packaging and other uses due to high petroleum and natural gas prices (which have significantly increased plastic prices), advances in fermentation and other production technologies, and greater biodegradable plastic capacity.”
The study pointed out that rising oil prices provided the tipping point for biodegradable plastic advances, and greater price declines will be a necessary adjunct for additional market expansion. Significant capacity additions and production efficiencies are expected to increase the price competitiveness of biodegradable resins.
Opportunities will reflect growing environmental, governmental and consumer initiatives for greater use of sustainable resources, the study said. Biodegradable plastic demand is also being broadened by enhanced performance properties brought about by more sophisticated polymerization and blending techniques.
| “The rise in biodegradable plastics is definitely due to both consumer interest in environmental friendliness and the marketing advantages of being green.” |
Testing and certification standards have also been established for many types of biodegradable plastics, with growing pressures to limit packaging waste and further develop a composting infrastructure Polylactic acid (PLA) will provide the best opportunities, although more rapid growth will be exhibited by polyester-based biodegradables. PLA demand will expand nearly 20% per annum to 225 million pounds in 2012 due to lower prices, capacity additions and broadened applications brought about by resin improvements, as well as greater processor familiarity. Good opportunities are expected for PLA in areas such as thermoformed food packaging (e.g., clamshells and round containers) and bedding and apparel fibers.
Demand for polyester-based biodegradables will exhibit rapid annual growth of nearly 25 percent to 60 million pounds in 2012. Advances will reflect significant capacity advances, a more competitive pricing structure and opportunities in film and fiber products, such as compostable yard bags and pallet wrap (important in foodservice), as well as fibers for apparel, upholstery and nonwoven fabrics.
Polyester-based biodegradables also have good synergy in blends with PLA and starch-based resins. Polyhydroxyalkanoates and polycaprolactone are the leading polyester-based biodegradables. Demand for starch-based plastic will increase 16.8% per year to 293 million pounds in 2012 as a result of improved resin blends and opportunities in such areas as compostable yard and kitchen bags, as well as foodservice items such as plates, bowls and cutlery.
Photodegradable plastic demand will expand at a slower pace to 72 million pounds in 2012 as a result of maturing ring carrier uses and competition from paperboard cartons and shrink film packaging. Biodegradable loose-fill packaging demand will be restrained by competition from bubble packaging and inflatable bags, which are cleaner packaging methods.
Packaging, which accounted for 71% of all biodegradable plastic use in 2007, will present the best opportunities through 2012 due to good growth in areas such as foodservice products, film and other molded goods.
The four leading producers of biodegradable plastic – Innovia Films, NatureWorks (Cargill), ITW Hi-Cone (Illinois Tool Works) and Novamont – supplied 59% of the total U.S. market in 2007. Innovia Films is the world’s leading producer of cellophane film. NatureWorks is the world’s largest polylactic acid producer, with a 300 million pound-per-year PLA plant.
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