Frost & Sullivan finds accelerated demand for bioplastics in Asia-Pacific

Demand for packaging applications of the biorenewable materials market in Asia-Pacific is estimated to grow by 19% per annum through 2018, as application development technology and licensing costs decrease, and customer awareness grows. It is likely that biorenewable materials will replace common plastics in various packaging applications, providing added growth market opportunities in the region.
A new analysis has been made by Frost & Sullivan on the Strategic Analysis of the Asia-Pacific Biorenewable Materials Market covering poly-lactic acid (PLA), polyhydroxyalkanoates (PHA), and starch-based polymers, which are bioplastics derived from renewable sources. The business-consulting firm concluded that market revenue earnings, which reached US$46.8 million in 2011, are estimated to grow to US$167 million in 2018. The Asia-Pacific packaging market includes both rigid and flexible packaging which accounts for more than 1,200 kilo tons of plastics a year. The study reveals that due to this market’s potential for rapid growth, the demand for bioplastics will rise, particularly in flexible packaging applications, and that PLA is likely to experience the highest growth rate.
One of the factors that favor the switch to bioplastics is lower gas emissions during manufacturing, an obvious boon for the environment. This would enhance environment consciousness of brand manufacturers, thus presenting a good image to their green-conscious customers. Another factor is that the use of bioplastics will decrease dependence on fossil fuels, which have been subject to price volatility.
There are, however, factors that can hinder the growth of biorenewable materials in Asia-Pacific, one of which is that prices remain high. Since application and technology development is an ongoing process, the low scale of manufacturing capacity tends to increase cost per unit. Furthermore, bioplastics’ moisture absorption, low heat deflection temperature, and reduced resistance against chemical attacks, still show its inferior performance. Additionally, because of poor eco-labeling policies and insufficient composting facilities in Asia-Pacific countries, the potential applications of bioplastics in the region are also restricted.
“Manufacturers must innovate technology, develop better products, and scale-up capacity to bring per unit costs down. To encourage companies to enter the market, local governments should introduce codification for composting and biodegradability, and implement national standard certifications. This will enable the bioplastics market in Asia-Pacific to attract investments and grow steadily,” Frost & Sullivan Industry Analyst Sandeepan Mondal concluded. (December 6, 2012)