Demand for biodegradable plastics is expected to expand 16% annually to 720 million pounds in 2012, valued at $845 million, according to a new forecast report.
Biodegradable Plastics Forecasts for 2012 & 2017 says average prices will continue to decline as a result of higher capacity and greater production efficiencies, as well as price mixes reflecting fastest growth for the lower priced resins.
Myriad opportunities are anticipated based on a more competitive pricing structure, increased competitiveness with petroleum-based polymers, and growing environmental, governmental and consumer initiatives for greater use of sustainable resources, according to Bharatbook.com, which published the report.
The use of polyester-based biodegradable plastics is expected to grow fastest. Poly lactic acid (PLA) demand will present good opportunities through 2012, reflecting price declines, improved product performance and greater processor familiarity.
Good opportunities are expected in packaging areas such as film, thermoformed products, and foodservice products.
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. Slow growth is expected for biodegradable loose-fill packaging based on competition from bubble packaging and inflatable bags.
In July, the City Council of Seattle voted to ban foam and petroleum-based plastic at businesses serving food by 2010.
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