Bioplastics Market Trends

Growth Drivers

• High R&D scope in material development: Presently, bioplastic alternatives exist for all types of conventional plastic materials. Polyhydroxyalkanoates (PHA), polylactic acid (PLA), and biobased polyethylene (PE), and a steady growth of biobased polypropylene (PP) bio-based polymers have witnessed robust R&D, fostering production capacities to surge in the next five years. In October 2024, the Woods Hole Oceanographic Institution (WHOI) scientists developed a new version of cellulose diacetate (CDA)- the fastest degrading bioplastic material.
  
  CDA foam has the potential to replace single-use plastic packaging. The foam’s properties make it suited for several insulation and packaging applications, and the WHOI research showcases that the CDA foam can be prepared from biodegradable materials and can easily degrade in marine bodies, should they inadvertently end up there. Furthermore, such foam- and petroleum-based bioplastics, including polyhydroxyalkanoates (PHAs) and CDAs, help mitigate economic and environmental costs. As per a September 2024 report by the U.S. National Science Foundation (NSF), purple bacteria from Rhodomicrobium udaipurense and Rhodomicrobium vannielii can produce PHA using eco-friendly carbon sources, light energy, and minimal nutrients.
  
  Similarly, in October 2024, the Shapiro Administration announced research funding of USD 2.2 million across 27 projects to help Pennsylvania adapt to novel technologies and marketplace trends. During the same period, the Pennsylvania State University was granted USD 100,000 for converting low-value trees and mushroom substrate to agricultural sprayable bioplastics. In July 2024, the U.S. DOE granted up to USD 206,500 each for this Phase I FY 2024 SBIR award to Capro-X, Inc. for converting organic waste-based fatty acids to cellulose ester bioplastics.
   
• Standardizing in labeling helps streamline packaging and market adoption: The EU in 2023 mentioned that roughly 73% of customers are inclined toward purchasing sustainable products. Biobased plastics offer clear advantages over single-use plastics, and this makes them a viable choice for environmentally conscious consumers. This has impelled the need for voluntary commitment to certify compostable items and packaging complying with the EU EN 13432 / EN 14995 standards to gain commercial advertising rights. The European Committee for Standardization (CEN) has rolled out the EN 16785-1 and EN 16640 to highlight biobased elements. The EN 16640 categorizes biobased products based on the carbon content using the radiocarbon method. Depending on the results, products are certified as OK biobased by TÜV Austria,NEN biobased, and DIN geprüft biobased by DIN Certco.

Challenges

• Exorbitant manufacturing cost of bioplastics: The high production cost is one of the major factors predicted to slow down market growth. Owing to economies of scale, cost of research & development, varying cost of raw materials, and high cost of polymer plant construction, most bioplastics are now more expensive to create than fossil-based plastics, and there is also not enough production. For instance, the cost of PET or PE made from sugar cane or bio-ethanol is over 10% higher than that of traditional plastics. As a result of the high costs required, the manufacture of bioplastics is still very limited.