European Bioplastics: Global bioplastics demonstrate dynamic growth despite “unfavorable EU legislation”

09 Dec 2019 --- European Bioplastics (EUBP) has announced “dynamic growth” in the global bioplastics industry, in which packaging remains the largest field of application with almost 53 percent (1.14 million metric tons) of the total bioplastics market in 2019. “In an increasingly environmentally conscious environment, the global market for bioplastics is predicted to grow by more than 15 percent over the next five years,” reports Hasso von Pogrell, Managing Director for EUBP. Von Pogrell tells PackagingInsights that brand owner and consumer demand for conventional plastic-alternatives is driving bioplastic packaging adoptions, while a more favorable EU legislative environment would see market growth accelerated further.

Last year, von Pogrell expressed concern the EU does not provide bioplastics with an equal platform to conventional plastics and biofuels. “We want a level playing field for bioplastics when competing for markets and raw materials,” he said at the time. “Currently, both the oil industry and biofuels are greatly subsidized and, whereas we do not seek subsidies ourselves, it is time for the EU to phase out those existing oil subsidies.”

A year on, is EU bioplastic legislation looking more favorable? “No, unfortunately, not at all - actually you could even say the EU is putting even more obstacles in our way and making our life even more difficult,” von Pogrell tells PackagingInsights. “We always have to justify everything for bioplastics while the conventional fuels and plastics seem to be taken for granted, and nobody really deals with their environmental issues.”Hasso von Pogrell, Managing
Director of EUBP. 

“Despite the problems we are facing in Brussels, the global bioplastic market is still growing, which leads you to think that if we were to have a better legislative environment, the market would be growing much faster than it does.”

Global bioplastic growth is possible thanks to the steadily increasing demand for sustainable products by both consumers and brands alike and the continuous efforts of the bioplastics industry to develop innovative materials with improved properties and new functionalities, von Pogrell explains.

PP and PHA drive bioplastic growth
Innovative biopolymers such as PP (polypropylene) and PHAs (polyhydroxyalkanoates) are driving the global bioplastic market, EUBP notes. PHAs are an “important polymer family” that entered the market at a larger commercial scale, which continues to increase. Production capacities are set to more than triple in the next five years. These polyesters are bio-based, biodegradable and feature a wide array of physical and mechanical properties.

Meanwhile, production capacities of PP are set to almost sextuple by 2024. This is due to the widespread application of PP in a wide range of sectors. PP is a very versatile material that features excellent barrier properties. High-performance PP grades are an ideal replacement for several conventional fossil-based plastics, especially PE (polyethylene), EUBP notes.

“PP and PHA are not necessarily superior to other biopolymers, but they are showing the strongest relative growth in the biopolymer market. PP is starting this year at a very low scale and it's going to grow six-fold by 2024. PHA is also standing out for its relative growth,” von Pogrell reiterates.

Packaging remains the largest field of application with almost 53 percent (1.14 million metric tons) of the total bioplastics market in 2019. Bio-based, non-biodegradable plastics, including the drop-in solutions bio-based PE and bio-based PET (polyethylene terephthalate), as well as bio-based PA (polyamides), currently make up for around 44 percent (almost 1 million metric tons) of the global bioplastics production capacities, EUBP reports.

PEF to make market entry in 2023
The production of bio-based PE is predicted to continue to grow as new capacities are planned to come on line in Europe in the coming years. Intentions to increase production capacities for bio-based PET, however, have not been realized nearly at the rate predicted in previous years, but declined over the years, EUBP says. Instead, the focus has shifted to the development of PEF (polyethylene furanoate), a new polymer that is expected to enter the market in 2023. PEF is comparable to PET, but is fully bio-based and furthermore features superior barrier and thermal properties, making it an ideal material for beverage bottles.

With a view to regional capacity development, Asia remains a major production hub with over 45 percent of bioplastics currently being produced there. Presently, one-fifth of the production capacity is located in Europe. This share is predicted to grow to up to 30 percent by 2024.

The land used to grow the renewable feedstock for the production of bioplastics is estimated to be 0.7 million hectares in 2019 and continues to account for only around 0.02 percent of the global agricultural area of 4.8 billion hectares. Despite the market growth predicted in the next five years, the land use share for bioplastics will remain at only around 0.02 percent, EUBP estimates.

“The data shows once more that there is no competition between renewable feedstock for food and feed, and the use for bioplastics, as 94 percent of all arable land is used for pasture, feed and food,” adds Francois de Bie, Chairman of EUBP. 

The market data update 2019 was compiled in cooperation with the research institute nova-Institute, Hürth, Germany. The data for the global production capacities of bioplastics is based on the market study “Bio-based Building Blocks and Polymers” by nova-Institute (2020).

By Joshua Poole