The Green Chemicals Blog extends warm wishes for a joyful holiday season! As we conclude 2024, we reflect on the highlights and insights of this year’s coverage of the European Bioplastics Conference held earlier this month in Berlin, Germany. The conference featured the trade organization’s annual global bioplastics market update, which highlighted a notable discrepancy between announced production capacities and actual production volumes for 2024. According to the data, the average utilization rate is 58% of the 2.47 million tons of global bioplastics capacity, with significant variation observed among different polymers.
Polylactic acid (PLA) led the market in 2024 with the largest capacity share of 37.1%, followed by polyamides at 14.4% and polytrimethylene terephthalate (PTT) at 13.2%. Despite their large capacity shares, biopolymers such as PLA, polyethylene (PE), and PTT recorded some of the lowest utilization rates this year.
Looking ahead, global bioplastics capacity is projected to reach 5.73 million tons by 2029, reflecting a compound annual growth rate (CAGR) of 18.3% from 2024. PLA is expected to maintain its dominance with a 42.3% share of the global capacity by 2029, followed by polyhydroxyalkanoates (PHA) at 17%. Bio-based and non-biodegradable polymers, including PE (8.9%), polypropylene (PP) (8.5%), and polyamide (7.5%), will also account for significant shares of global bioplastics capacity.
Bioplastics constitute approximately 0.5% of the nearly 414 million tons of plastics produced globally each year. Their applications continue to diversify, spanning packaging, fibers, consumer goods, automotive components, and agricultural products. Packaging remains the largest segment, representing 45% (1.12 million tons) of the total bioplastics market in 2024.
The market data shared by European Bioplastics is derived from the comprehensive report Bio-based Building Blocks and Polymers – Global Capacities, Production, and Trends, authored by the international biopolymer expert group at the nova-Institute. Doris de Guzman, principal of Green D Market Analytics, is a proud member of this expert group.
Some of our key takeaways from the conference:
🗝️ Belgium-based Futerro has confirmed its commitment to establishing Europe’s first large-scale production facility for lactic acid (125 ktpa) and polylactic acid (PLA) (75 ktpa) in Normandy, France. Despite speculation in mid-2024 about potential delays due to challenges in securing funding for commercial biopolymer projects in Europe, the company successfully completed its initial fundraising round in December, securing €12 million for the biorefinery’s construction. Alongside its longstanding shareholders, Finasucre and Compagnie du Bois Sauvage, Futerro has welcomed a new investor, Cybelle. Cybelle is backed by the Cedap group, a key player in the food packaging sector. The biorefinery is projected to commence operations by 2028. A mechanical and chemical recycling system will be integrated into the biorefinery, which can produce up to 20 ktpa of recycled PLA.
🗝️ Several presenters, including Futerro, mentioned the importance of the Packaging and Packaging Waste Regulation (PPWR), an EU legislative initiative to reform current packaging and waste management rules. The PPWR was approved on 16 December 2024 by the European Council and is set to come into force in January 2025. Legislators for this policy recently included several key measures that acknowledged the importance of bio-based plastics. Within three years of PPWR’s implementation, it will establish criteria for the use of bio-based feedstocks in plastic packaging, set ambitious targets to increase the use of bio-based feedstocks in plastic packaging, and use bio-based plastic when suitable recycling technologies for food-contact packaging are not available.
🗝️ Emirates Biotech, formerly known as Gulf Biopolymers Industries and a newcomer in the field of PLA production, announced this month specific details about its planned PLA project in the United Arab Emirates (UAE). The 160 ktpa biopolymer facility will be the first PLA production plant in the Middle East. Emirates Biotech chose Sulzer as the technology provider for the facility, which will be constructed in two phases, each with an annual capacity of 80 kt.
Construction for the first PLA plant is set to commence in 2026, with the plant expected to be operational by early 2028. The facility will use lactic acid as its feedstock. According to the new CEO of Emirates Biotech, Marc Verbruggen, formerly from NatureWorks, more details for the second 80 ktpa PLA plant, including the timeline and location, will be announced in the near future. The PLA facility intends to position the Middle East as a key player in the bioplastics industry. Verbruggen presented several drivers for PLA growth in the Middle East, including increasing demand for sustainable packaging, favorable regulatory support and policies, and innovative applications creating new markets for PLA.
🗝️ The Plastics Industry Association has shared insights on trends and regulatory developments shaping the U.S. bioplastics market. In 2022, U.S. bioplastics production, including mass balance-derived plastics, represented 0.6% of the nation’s total plastics output. The United States ranked as the world’s second-largest producer of bioplastics, contributing 19% of global production that year. By 2028, U.S. bioplastics production capacity is projected to expand by 17%.
From a raw materials perspective, the Federal Trade Commission (FTC) continues to deliberate on bio-based and bio-attributed claims and labeling through its Green Guides, which could significantly impact industry practices. Additionally, there is growing advocacy for including bio-attributed plastics in the Department of Agriculture’s (USDA) BioPreferred Program. The trade association also highlighted potential policy shifts with the incoming Trump administration, noting the likelihood of an “America First” stance and trade policy adjustments, which may influence the trajectory of the US bioplastics industry.
🗝️ A presentation by Zhongke Gosheng (Hangzhou) Technology, also known as GS Biomats, offered valuable insights into the Chinese bioplastics market. Since 2020, China has significantly advanced its biodegradable and compostable plastics production, driven by supportive government policies and strategic action plans. Prominent chemical companies such as Yibin Grace Group, Wanhua Chemical, Huafon, Kingfa, Eppen Biotech, and Cathay Industrial Biotech have announced substantial investments in bio-based monomer and polymer projects over the past two years. Chinese brand owners, including Xiaomi, COFCO Group, Mengniu, Xtep, and Anta Group, are increasingly participating in biopolymer capacity investments.
Established in 2021, GS Biomats is constructing its first commercial plant for the production of 5-HMF (hydroxymethylfurfural) and furandicarboxylic acid (FDCA) in Taixing, with a total planned capacity of 10 ktpa. The first phase of the project will deliver 1,500 tpa of 5-HMF and 1,000 tpa of FDCA, with operations expected to commence next year. The company also operates a 600 tpa pilot plant in Lishui, supporting its ongoing technological development.
Green D Market Analytics can provide a special report highlighting the market for renewable chemicals and biopolymers such as PLA, PHA, PBAT, and PBS. We provide our clients with confidential reports on the current renewable chemicals market landscape, including new and planned projects. Please contact us for more information about our customized client services, detailed market data, and special reports.
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