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Europe: Bioplastic market to grow despite low oil price, report

The global bioplastics industry is slated to “grow by 50% over the coming years despite the low oil price”, according to the chairman of European Bioplastics François de Bie. 

The global bioplastics production capacity is set to increase from 4.2 million tons in 2016 to 6.1 million tons in 2021.

Packaging remains the largest fields of application for bioplastics with almost 40% (1.6 million tons) of the total bioplastics market in 2016.

European Bioplastics’ annual market data confirms an increase in the uptake of bioplastics materials in many other sectors, including consumer goods (22%, 0.9 million tons) and applications in the automotive and transport sector (14%, 0.6 million tons) and the construction and building sector (13%, 0.5 million tons), where technical performance polymers are being used. 

“The data illustrates an important trend, driven by changing consumer demands, to make plastic products more resource efficient and to reduce greenhouse gas emissions and the dependency on fossil resources,” explains de Bie.

“This trend is the result of substantial investments in research and development by the many innovative small and large companies that concentrate their strengths on the development of bio-based products designed with the circular economy in mind.” 

Bio-based, non-biodegradable plastics, such as polyurethanes (PUR) and drop-in solutions, such as bio-based polyethylene (PE) and bio-based polyethylene terephthalate (PET), are the main drivers of this growth.

PUR makes up around 40% and PET over 20% percent of the global bioplastics production capacities.

More than 75% of the bioplastics production capacity worldwide in 2016 was bio-based, durable plastics.

This share will increase to almost 80% in 2021.

Production capacities of biodegradable plastics, such as polylactic acid (PLA), polyhydroxyalkanoates (PHA), and starch blends, are also growing steadily from around 0.9 million tons in 2016 to almost 1.3 million tons in 2021.

PHA production will almost quadruple by 2021 compared to 2016, due to a ramp-up of capacities in Asia and the US, as well as the start-up of the first PHA plant in Europe.

With a view to regional capacity development, Asia will further expand its role as major production hub.

In 2021, more than 45% of bioplastics will be produced in Asia.

Around a quarter of the global bioplastics production capacity will be located in Europe.

Bioplastics are a growing, innovative industry that offers solutions for a sustainable plastics economy and that plays a key role in the transformation to a bio-based circular economy.

However, the data shows that the overall growth of the global bioplastics industry is currently being slowed down by the low oil prices and a lack of political support for the bio-based economy. 

The market data update 2016 has been compiled in cooperation with the research institute nova-Institute (Hürth, Germany).