Monday, June 2, 2008

Bioplastic Market Set to Grow Rapidly

source: http://www.prw.com/homePBP_NADetail_UP.aspx?ID_Site=818&ID_Article=24777&mode=1&curpage=0

By Susan Gault

Driving force will be the non-toxicity of bioplastics.

2 June 2008 - The global market for bioplastics is set to grow by 8-10% annually, increasing its value from $1bn (€0.6bn) in 2007 to $10bn (€6.4bn) by 2020.

New applications in the automotive and electronics sectors will drive the growth, although packaging will remain the dominant market. This is despite its share forecast to fall from 65% in 2007 to 40% in 2025.

These are the key findings from a new report into the bioplastics market by the Helmut Kaiser Consultancy. It said that by 2025 Asia will be market leader with a 32% stake, followed by Europe with 31% and the USA with 28%.

Asia is forecast to gain a lead in the market due to the fact that genetically modified plants are easier to grow there. New outlets for agriculture are also quicker to establish and build-up in Asia.

Currently, bioplastics cover an estimated 10-15% of the total plastics market, but this will increase to 25-30% by 2020. This expansion will increase as the technical properties of bioplastic materials are improved and their innovation creates new applications in the automotive, medical and electronics industries.

The driving force in many applications will be the non-toxicity of bioplastics, which is seen as the major factor for promotion of sustainable and environmentally-friendly products to consumers.

The opening up of new markets and applications will also provide higher profitability for suppliers, the consultancy forecasts.

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