1.1 Background

Biodegradable polymers have been around for almost a decade, but it has only been in the last two to three years that they have started to be produced on a commercial scale. Biodegradable polymers have already found acceptance in application areas such as food packaging, bags and sacks, loose-fill packaging agricultural film and many niche market applications. However, while they remain very much a niche product at the moment, there are signs that biodegradable polymers are ready to attack mass markets with a number of major suppliers such as NatureWorks LLC, Novamont and BASF, gearing up for large-scale production.

Biodegradable polymer demand is being driven by a number of important trends. In developed countries of the Western world, particularly in Western Europe, governments have implemented legislation to reduce the amount of municipal waste packaging being sent to landfill. Other options being pursued include mechanical recycling, incineration with energy recovery and composting. As these trends gather momentum, more favourable framework conditions for biodegradable plastics market development are slowly coming into place.

There is also a growing trend for brand owners and retailers to recognise the potential marketing benefits of green or sustainable packaging as consumers become more concerned about the development of sustainable technologies, reduction in CO ₂ emissions and the conservation of the earth s fossil resources. Several major world brands including Wal-Mart have been persuaded to switch from petrochemical-based plastics to biodegradable plastics in recent years.

Demand for biodegradable polymers is also benefiting from a narrowing in...