Bioplastics production is expected to grow by over 50% within five years, despite current low oil prices, according to a market data update report published at the 11th European Bioplastics Conference in Berlin at the end of last year. Continued growth in the bioplastics sector represents another potential opportunity as momentum builds behind the idea of a New Plastics Economy – last week 40+ industry leaders backed a new global action plan on plastic packaging at the World Economic Forum’s annual meeting.
Packaging makes up the largest part of the global bioplastics market representing nearly 40% of total production, which will rise from four million tonnes in 2016 to over six million by 2021. Continued growth in capacity suggests that bioplastics could be part of the solution to the world’s current plastic challenges, where fossil-fuel based production could represent 20% of all oil consumption by 2050.
There is a distinction to be made between bio-based and biodegradable plastics, and it’s worth noting that the majority of the current growth is being driven by demand for bio-based, non-biodegradable plastics like polyurethanes (PUR) and drop-in bio-PE and bio-PET solutions. More resource efficient and decoupled from fossils, these products have some clear advantages over traditional sources, but still require effective design and better collection systems to capture longer term value and avoid leakage into environmental systems, and there are questions about the security of, and damaged caused by, some bioplastic feedstocks.
Production demand and capacity for PLA, PHA, starch blends and other kinds of biodegradable plastics also increased in 2016 and is expected to grow from 0.9 million tonnes per year in 2016 to close to 1.5 million by 2021. With the start-up of the first plant in Europe and ramp-up capacities globally, PHA in particular is expected to quadruple production capacity over the next five years.
The role of bioplastics in a more effective plastics system that can work in the long-term is not yet established, but the continued growth and innovation within the market suggests that it will be a part of the picture, and the fact that this is happening in a context of low oil prices is especially encouraging for those looking for evidence of the beginning of a shift.
Source: Global bioplastics production capacities continue to grow despite low oil price
Interested in bioplastics? Read our piece exploring Veolia’s work to convert wastewater into a valuable resource.
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