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Key trends driving bioplastics for packaging

Among the trends driving the market for bioplastic packaging materials, the competitive cost and availability of fossil fuels will have the largest impact and their commercial production and use.

Pw 71412 Smithers

With packaging markets consuming more than 60% of all global bioplastics production, the packaging industry has become the most important end-use sector for bioplastics.

The growth in consumption of bioplastics for packaging is very much linked to the relative competitive prices for traditional polymers, based on fossil fuel products such as oil, natural gas, and derivatives. Therefore, the acceptance and growth of bioplastics in packaging is driven by the dynamics and economics of the fossil-fuel industry on a global basis.

In a new report, “The Future of Bioplastics for Packaging to 2023,” Smithers Pira identifies the key trends driving the market for bioplastics for packaging:

Fossil fuel costs: The increasing cost for oil, gas and coal is not new, but what is new is the potential for “economic de-linkage” of fossil fuel costs as was seen in 2008. In July of 2008, oil prices spiked to over $135/barrel for the first time. Although prices have declined since, a steady state of $100/barrel as seen in much of 2013 is not considered an attractive price range by consumers. Furthermore, the fear of higher prices is now branded in public memory; most consumers and industries believe that costs will escalate again in the future. Bioplastics demand is directly affected by the relative competitive cost of petroleum-based polymers, which is strongly influenced by the cost of fossil fuel feedstocks.

Although bioplastics by definition do not rely on fossil fuel raw materials, the competitive price point for bioplastics is still very much influenced by the cost-performance of the incumbent fossil fuel-derived polymers.

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