4.1 Introduction

In 2005, there were very few biodegradable polymer production plants operating on a fully commercial scale. NatureWorks LLC, Novamont, Rodenburg Biopolymers and BASF are currently the only major operators with significant production capacity. Nevertheless, the world biopolymers market has shown significant growth during the last five years or so, albeit from a very small base.

The major classes of biopolymer, starch and starch blends, polylactic acid (PLA) and aliphatic-aromatic co-polyesters, are now being used in a wide variety of niche applications, particularly for manufacture of rigid and flexible packaging, bags and sacks and foodservice products. However, market volumes for biopolymers remain extremely low compared with standard petrochemical-based plastics. For example, biopolymer consumption accounted for just 0.14% of total thermoplastics consumption in Western Europe for 2005.

This section reviews the major factors that are driving demand for biodegradable polymers in Western Europe and other major world regions. These include increasing concern for environmental protection, the encouragement of recycling and packaging waste reduction and the development of composting infrastructures in a growing number of countries. There has also been a narrowing in the price differential between biopolymers and standard thermoplastics in recent years, which has encouraged some brand owners to switch in favour of biopolymers.

The section also provides an analysis of biodegradable polymer market size and growth over the last five years for the three major world regions (Western Europe, North America and Asia Pacific), plus forecasts to 2010.

4.2 Market Drivers