Bioplastics or organic plastics are derived from renewable biomass sources such as vegetable oil, potatoes, rice, pea starch and corn starch. While they sound nearly as edible as the food they’re typically used to package (the packaging and consumer goods segment controls a whopping 70 percent of the market share), they actually have applications in everything from healthcare to automotive and electronics to 3D printing.
Overall, bioplastics are being scooped up by companies across the board as an alternative to common petroleum-based plastics. Production of these plastics doesn’t rely on fossil fuels, they can help reduce C02 emissions by 30-70 percent and some iterations are even biodegradeable.
The numerous applications and environmental friendliness are two huge factors driving a 22.4 percent CAGR for the Global Bioplastics Market from now through 2018.
TechNavio analysts have broken down the main growth drivers set to impact the Global Bioplastics Market over the next few years.
Rising Costs of Petroleum
In the US alone, almost 250 million barrels of oil are consumed annually for plastic production. Globally, almost 10 percent of oil is converted into plastic. However, the price of petroleum products has been volatile for the past few years, as a result of political unrest in the Middle East and Africa, the major crude oil producing regions.
The rising dependence on oil has led many nations such as the US, the UK, Japan, Italy, Brazil, China, Canada, and Germany to invest in bioplastics as a responsible alternative. And since bioplastics can be created from a range of widely-available feedstocks—from vegetable oil to agricultural waste—the abundance of biomass sources for bioplastics is seriously encouraging their uptake in a variety of sectors.
Need to Reduce Non-biodegradable Plastic Waste
On top of depleting our petroleum, plastic is also filling our landfills. The dumping of plastic waste in landfills consumes space, and negatively affects the health of the people in surrounding areas, as the particles and acids that leach from unattended plastic waste acidify the surrounding land.
In addition, non-biodegradable plastics take hundreds of years to degrade, posing a major environmental threat. Most bioplastics are biodegradable and decompose faster than fossil fuel-based plastics. Thus, the usage of bioplastics prevents the accumulation of toxic wastes in landfills, consequently reducing environmental hazards.
Growing Eco-friendly Packaging Market
The increased need for eco-friendly or sustainable packaging is an important driver in the Global Bioplastics market. Widespread environmental concern and the need to reduce pollution have led manufacturers focus more on sustainability, and increase use of recyclable materials in packaging.
Packaging vendors are increasingly putting money into research and development of new materials that incorporate eco-friendly designs that encourage minimal use of non-biodegradable materials. Bioplastic packaging products consume less energy and natural resources, are lightweight in nature, and generate low CO2 emissions. In addition, they deliver the double whammy of helping manufacturers improve their brand image and reduce their carbon footprint.
