Market research firm, Ceresna Research has analyzed the global bioplastics market and concluded that the bioplastics market will achieve revenues of $2.8 billion and above by the year 2018 with an annual growth rate of 17.8%.
According to the report, Europe had the largest share of 48% of the global bioplastics market during the year 2010 with North America and Asia-Pacific taking the remaining shares. Over the next eight years, this spread of demand is likely to change to South America and Asia-Pacific since these locations are growing dynamically in production and consumption. South America particularly is expected to see solid growth due to substantial production increase in Brazil.
For the year 2010, starch based plastics achieved the highest demand, which was followed by polylactic acid. Other bioplastics including fossil based biodegradable plastics were responsible for 17% of the total demand. The bioplastics market is currently dominated by biodegradable plastics with 92% market share. Plastics that are non-biodegradable are expected to increase their market share to 47% by the 2018 from 8% in 2010. The report states that technological advances and increase in production capacities will enable manufacturers to lower prices and increase competition in the bioplastics market. The report also talks about governmental regulations and environmental factors that will impact the market. Major applications of bioplastics include packaging, films, sacks and bags, leisure products, automotive and electronic industries and sports products.