Consumption of biodegradable and compostable polymers for packaging will continue growing at a faster rate than petrochemical-based thermoplastic materials, according to new research from Smithers. Forecasts cite a compound annual growth rate of 8.8 percent for each of the next five years, with production reaching 11.7 million tons at period’s end.
David Platt, author of “The Future of Biodegradable and Compostable Packaging to 2029,” offers thoughts on key trends and opportunities. “The global biodegradable and compostable packaging market is forecast to grow through to 2029 at more than twice the rate of growth for the packaging market as a whole,” he begins.
“Demand is driven by the growing desire of consumers, brand owners and governments to replace single-use, fossil-based plastics with materials that do not contribute to plastic waste or landfill volumes.”
Platt maintains, “Biodegradable and compostable consumption growth will be fueled by a rapid rise in production capacity.” In fact, he notes, “Share for biodegradable and compostable polymers is set to rise at a faster rate than non-biodegradable, bio-based polymers through to 2029.”
According to the market analyst, “Many brand owners and converters are becoming more skeptical about the true value of biodegradable and compostable packaging. They are expressing growing concern that these materials do not fully contribute to a circular economy, given the lack of a separate industrial composting infrastructure for compostable packaging in most countries at end-of-life.” Today, he observes, “Most commonly, biodegradable and compostable packaging is either sent to landfill or it is incinerated”
Driving Forces
Platt contends, “Innovation is driving growth across all biodegradable and compostable packaging product types. For thermoplastic starch and starch blends, product developments include the introduction of starch blends for extrusion coating and lamination, as well as introduction of a degradable bioplastic film with tapioca starch, and a technology that creates 100 percent bio-based plastics from renewable sources of carbohydrates.”
“In the polylactic acid (PLA) sector, work is being undertaken to make PLA much more degradable in a shorter period of time by adding plasticizers and other additives or blending PLA with more hydrophilic polymers,” Platt reports. “Plastics and additive manufacturers are also examining ways to improve the mechanical properties of PLA, which in its natural state can lack melt strength, impact strength, barrier strength and heat resistance.”
He continues, “Scientists have now coupled plasticizers directly with the PLA polymer chain to make the material more flexible over the longer term. A family of recycled PLA grades produced from chemically recycled feedstock has now been launched.”
Directives & Regulations
Regulations will have their impact, according to Platt. “There are bans on plastic bags in several EU countries, China and some US states. By 2030 the Packaging and Packaging Waste Regulations (PPWR) will ban single-use plastic bags in all EU states.”
He indicates, “Industry standards, regulatory, certification and labelling systems designed to encourage biodegradable polymer market development, have been established in all major world regions.”
Platt believes, “Regulatory support for biodegradable and compostable packaging is rather limited in Europe and North America. While the PPWR in Europe gives some space for compostable plastics, recycling, and to a lesser extent, reuse, are the preferred options for recovery of post-consumer plastic packaging waste, rather than biodegradable and compostable packaging. The EU’s Single-use Plastics Directive makes no specific differentiation between petroleum and bio-derived polymers.”
Cost & Competition
“Biodegradable and compostable packaging is also under threat from the growing availability of competitively priced and higher quality recycled plastics,” Platt explains. “Brand owners are using higher volumes of recycled plastics, such as polyethylene terephthalate (PET) to meet their sustainable packaging and regulatory goals, sometimes at the expense of bioplastics.”
“Polyhydroxyalkanoates (PHA) is forecast to grow consumption at the fastest rate, followed by PLA,” Platt projects. “PHA market growth is driven by a large build-up in production capacity and new product development. PLA consumption will be driven primarily by an expansion in production capacity by existing producers, new market entrants and product innovation and development.”
In terms of end-use markets, Platt specifies that non-food is the largest market, accounting for 57.5 percent of global consumption in 2023. Beverage bottles represent a very small fraction of biodegradable and compostable packaging demand at present; yet the beverages sector is forecast to grow at the fastest rate, from a very low base level. “Coffee capsules and caps and closures are forecast to grow at rapid rates, particularly in Europe and North America.”
“High relative cost compared with petrochemical-based thermoplastics remains one of the most important reasons for the relatively slow adoption of biodegradable and compostable packaging,” Platt admits.
“From a material perspective, most biodegradable and compostable polymers cannot compete in the market with commodity plastics in terms of performance and durability,” he points out. “While it is necessary to lower the cost of bioplastics, they must also provide superior barrier and mechanical properties if intended to function as food packaging materials.”
About David Platt & Smithers: David Platt has a broad range of experience in the plastics and packaging industry. He has authored over 50 market reports for Smithers on subjects including global packaging, rigid plastic packaging, PET packaging, flexible packaging, bioplastics, specialty plastics, high-performance packaging films, pouches, and caps & closures.
Smithers is a multi-national provider of testing, consulting, information, and compliance services that delivers accurate data, on time, with high touch, by integrating science, technology, and business expertise, so customers can innovate with confidence.
The Future of Biodegradable and Compostable Packaging to 2029 provides expert analysis of current and future market trends in this sector of the print industry. The market report is available from Smithers, priced at $6,750. For more information, visit www.smithers.com