Materials News

Bioplastics going for growth
Despite the economic downturn, the bio-based plastics market has been growing from EUR570.6 million in 2008 with a prediction to reach EUR1.1 billion in 2015, says a new report from Frost and Sullivan, while the European Bioplastics Association says sales from its members were up by 5% last year though the materials only command 1% market share.

A large number of companies are focusing on transitioning from laboratory and pilot-scale to full-fledged commercialisation and sales have been sky high, according to the Frost and Sullivan analysis.

These materials are expanding into newer areas that were traditionally monopolised by engineering plastics like PBT and ABS, made possible by significant improvements in the production methods and additives.

Development in bio-based commodity and technical plastics will enable bioplastics to expand to the packaging, automotive, electronic and consumer goods applications.

While short term development may be affected by the economic downturn making funding of major projects difficult, long term challenges are more structural like enhancing the recycling infrastructure as well as technical properties for bioplastics. Nevertheless, some resolutions like partnerships with major chemical companies will ensure bio-based plastic manufacturers with a predominantly agricultural background will gain access to crucial technology and market development capabilities. Suppliers of bioplastics must be willing to improve product performance and the depth of their product range while customers must be made aware of the alternatives available in the market with product detailing, says Frost and Sullivan.

Meanwhile, the European Bioplastics Association says a summary of the findings of a poll conducted of its members reported healthy growth figures for 2009, in some cases considerably more than 5% up on the previous year.

It says that 47% of companies recorded growth in turnover, while another 32% managed to at least draw level and only 10% of companies posted losses. Companies see a positive trend overall for both this year and the year to come.

This, the association says, is because bioplastics are also increasingly used in durable products, providing the material for mobile phone housings, car parts and many other products. The advantages of biodegradability are particularly evident in products with a short life-span.

“This is a clear indication of the strength of green innovation and the companies driving it forward,” says Andy Sweetman, Chairman of the European Bioplastics board. “With a market share of less than 1%, bioplastics still represent a niche product, despite generally high rates of growth.”

He goes on to say that what are missing are incentives from an effective stimulus programme to boost the market. This would allow companies to finance their innovations and the necessary expansion in capacity as well as give a strong signal to both large plastics users and consumers.