US Demand for Degradable Plastics to Grow Over 16% Annually

 The degradable plastic industry has been on the verge of commercial success for decades.  However, demand growth was limited because most degradable plastics were too expensive, were unavailable in large enough quantities or had performance drawbacks that limited them to niche markets.  This situation began to change in the early 2000s, as interest in environmentally friendly products gained strength, boosted by the efforts of major users like Wal-Mart.  At the same time, the availability of biodegradable plastics increased significantly due to expansions by key producers.  These and other trends, including market share and product segmentation, are presented in Degradable Plastics, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

These positive trends are expected to continue.  US demand for degradable plastics is forecast to rise 16.6 percent per year to 325 million pounds in 2014, valued at $380 million.  Opportunities will reflect continued capacity growth, efforts to reduce pollution and US reliance on petroleum products, and consumer demand for sustainable, environmentally friendly packaging and manufactured goods. 

Polylactic acid (PLA) and starch-based plastics currently dominate the market and both products are expected to see strong growth.  PLA will register the faster gains, over 20 percent per year through 2014, due to increased availability, greater processor familiarity and performance enhancements that will expand potential applications.  Starch-based resins will benefit from the introduction of improved resin grades, blending with other biopolymers and an increasing number of suppliers.  Opportunities are expected in compostable yard and kitchen bags, foodservice disposables and various types of packaging. 

The strong outlook for degradable plastics is prompting the development of new products.  One of these is polyhydroxyalkanoate (PHA). While sales of PHA were negligible in 2009, rapid growth over the next ten years should boost the product up among the leading types of degradable plastics.  Growth is predicated on significant capacity increases, competitive pricing and the development of grades capable of replacing polyolefins in higher performance injection molded articles as well as in foodservice disposables, nonwovens, containers and bottles.  

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.