Bioplastic profits and production expanding

The bioplastic industry was largely unphased by the credit-crunch that plagued much of the chemical and packaging industry. While some expansion projects were delayed from credit's decline, no major bioplastics manufacturer or developer was forced to declare bankruptcy-with the economy slowly on the rise and bioplastic interest peaking in Europe and expanding in the United States and much of the world, bioplastic companies are hiring new employees, building business partnerships and upping manufacturing.

To name a few expamples, many food-chain suppliers, Coca-Cola, Pepsi-Cola, Nestle, and consumer companies such as Mazda and Newell Rubbermaid are already pushing for a greater percentage of the storage, plastic films, and materials to come from renewable sources. The current bioplastic consumption sits around 300,000 tonnes annually. However, Freedonia, a US market-research company, believes that bioplastic demands will more than triple to over 900,000 tonnes by 2013. This industry has vast potential to re-shape the economy.

Yet concerns over the bioplastics industry remain: many are similar to criticism faced by the biofuel industry. Conversion of land to produce biofuels and bioplastics will drive up food costs and lead to deforestation-thereby offsetting many benefits-the bioeconomy will face careful regulation. The bioplastic industry would also force the recycling industry to adapt. While bioplastics are considered 100% recyclable and can easily be broken down into the constituent parts (Polylactic acid, or PLA), they must be separated from petroleum-based plastics (PETs). Consumers would not able to distinguish the PLA's from PET's easily. The result would not only hamper the now-expanding recycling industry, but also cripple bioplastic's potential for renewability and sustainability.

Products designated "bioplastics" or "biodegradable plastics" can also be vague-new standards are being imposed. As of now, many products that are biodegradable are not truly environmentally friendly-biodegradable can mean that in proper conditions the product can be degraded by microbes with no set time table. New standards will limit degradation time from 90 to 180 days.

Major bioplastic companies like NatureWorks are in rapid expansion and is doubling its PLA production. Europe holds the largest markets for the industry, while the US is catching up and South America's bioplastic industry is establishing a foundation due to its vast sugar cane resources. The US lags slightly behind Europe because many of its food-packaging companies favour hard-plastic versus the plastic-films seen in most European food markets. But the demand for hard plastics appears to be in decline. Bioplastic industries also have a strong foothold in Asia-particularly in Japan and China.

Production and bioplastic technologies are certainly expanding as the market increases its demand. The industry will have to battle to make their prices as low or at least competitive to petrol-based plastics in order to be successful. What may give bioplastics an edge is that while oil prices tend to fluctuate and will more-than-likely increase, production methods in bioplastics will likely become more cost-effective as distribution and new technologies will begin to drive the cost down.

Michael Good | Climate Action

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Kabelfresser | Flickr