08 November 2006 00:26 [Source: ICIS news]
HOUSTON (ICIS news)--Demand for degradable plastic in the US will increase nearly 17%/year to 500m lbs (227,000 tonnes) in 2010 and will be valued at $610m (€477m), an industry market research firm said on Tuesday.
The Freedonia Group predicted that average prices for degradable plastics would continue to decline on higher capacity and greater production efficiencies.
Opportunities will increase for degradable plastics as they become more competitive with petroleum-based plastics, said the ?xml:namespace>
Environmental, governmental and consumer initiatives for greater use of sustainable resources and increasing consumer familiarity would support rising demand, according to Freedonia.
Demand for biodegradable/compostable plastic will increase nearly 20%/year to 420m lbs. Polylactic acid (PLA) demand will present the best opportunities and would rise over 30%/year through 2010, according to Freedonia.
Opportunities are anticipated in packaging such as film, bottles and foodservice products and in rigid packaging for produce.
Starch-based plastic demand will grow nearly 18%/year to 180m lbs through 2010 due to the availability of lower-priced and improved resin blends. Film products such as yard and kitchen bags will remain dominant but rapid advances are also expected in areas such as plates, bowls and foodservice items.
Demand for polyester-based degradables will increase 24%/year 2010 due to continued price declines and opportunities in film and fibre products, Freedonia said.
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