World bio-plastics demand to reach $2.9b by 2015 – US firm

02 December 2011 19:35  [Source: ICIS news]

HOUSTON (ICIS)--Global demand for bio-degradables and bio-based plastics will more than triple to over 1m tonnes in 2015, valued at $2.9bn (€2.1bn), according to a market research study released on Friday.

Price consideration will be the primary factor for market success of bio-plastics, and rising petroleum costs will allow some bio-plastic resins to reach price parity with conventional plastics by the end of the decade, according to Cleveland-based industry research firm, The Freedonia Group.

Consumer preferences for environmentally sustainable materials, improved performance of bio-plastic resins when compared with traditional plastics, and commodity plastics produced from bio-based sources will additionally foster rising demand.

Excellent growth is projected for the two leading bio-degradable plastics, starch-based resins and polylactic acid (PLA), expected to more than double in demand through 2015. Polyhydroxy-alkanoate (PHA) resins, which are now entering the commercial market, are expected to show the greatest gains, according to Freedonia.

However, demand for non bio-degradable bio-based resin will be the primary driver of bio-plastics demand through 2015 and beyond, driven by increasing availability of commercial volumes of bio-based polyethylene (PE), said Freedonia.

A bio-based polypropylene (PP) facility is in the planning stages, and industrial production of bio-based polyethylene terephthalate (PET) is projected to become a reality by the end of the decade.

As a result, Freedonia projects demand for non bio-degradable bio-plastics to increase from 30,000 tonnes in 2010 to 1.3m tonnes in 2020.

($1 = €0.74)

By: Ron Coifman
+1 713 525 2653

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