EU bio-packaging will remain niche despite massive growth
Pira International said that, despite increased sales and revenues generated in the European bioplastics industry, bio-derived plastics will struggle to compete with more financially viable and established conventional plastic packaging.
European bioplastic firms, which account for around 73% of the world market, have announced impressive sales and revenue growth in recent years.
For instance, UK-based Biome Bioplastics announced sales growth of 131% in the last half year compared to the same period in 2010 – with revenue up from £1.5m to £3.6m.
And industry experts expect global revenue growth in the bioplastics industry of around 20% per annum, with annual revenue exceeding $1bn by 2012.
Hindering commercial use
But a spokesperson for Pira International told FoodProductionDaily.com that despite sales and revenue growth in the bioplastics industry, “cost, availability and functionality of biopolymer materials are still hindering the commercial usage of bioplastics.”
“These materials do not always provide the required strength and heat resistance for the packaged item.”
“Bioplastics are likely to remain a niche product,” the spokesperson said, “but bio-derived polyethylene (PE) could challenge conventional polymers in the future as production is ramped-up and unit costs fall.”
In a Biome white paper, Bioplastics: an important component of global sustainability, the firm agreed that while bioplastics are more expensive than conventional plastics, this disadvantage will lessen as bioplastics manufacturing plants grow and benefit from better economies of scale
“When the local biological feedstock is particularly cheap, as it is in Brazil, large biopolyethylene plants may already be close to being cost-competitive with oil-based alternatives,” the paper added.
Investment
Bioplastic packaging investment has been substantial in recent years, with large petrochemical companies such as Brazil-based Braskem working to produce bio-derived PE on an industrial scale.
The adoption of bioplastics by large food firms such as Coca Cola, Danone and Heinz has given the sector a boost both in revenue and promotion.
European bioplastic packaging demand has also benefited from favourable environmental attitudes towards sustainable packaging from consumers, retailers and governments.
But Pira said environmental concerns “take a backseat compared with on-going issues around using land for renewables which might otherwise be used for food production,”
Biome’s bioplastics paper argued that “even if half the world’s plastics were made from crops grown on food land, the industry would only require 3% of the world’s cultivated acreage.”
“As with liquid biofuels, the bioplastics industry has to deal with the vitally important question of whether the growth of bioplastics will tend to decrease the land available for food production, or increase the incentive to cut down forested areas to create more arable land.”
