The concept of recyclability and biodegradation of packaging materials has opened up several exciting paradigms in the global packaging industry. The vast interest in bioplastics across the globe has stemmed from this. Bioplastics are either bio-based or biodegradable or both and their popularity stems from the characteristic that they are primarily biodegradable. Retailers from various industries world over who have recently jumped into the bandwagon of sustainability consider bioplastic packaging as a lucrative proposition. Manufacturers and end users tending to dissociate the negative effects of plastic packaging are switching to novel bioplastics not made from fossil-based feedstock.
Factors Influencing Demand Dynamics
- Low-Carbon Footprint and Higher Stability of Bioplastics over Conventional Plastics Attractive Propositions
The spiraling adverse repercussion of using conventional plastics on the overall ecology, notably in contributing to the mounting problem of plastic pollution across the globe, has led various countries to shift to bio-based options. Retail industry in particular are increasingly adopting bioplastic packaging for food packaging applications. They pitch the attractiveness on the vast ecological benefits bioplastics brings in, of which low-carbon footprint and greater suitability and stability over other packaging materials are the key ones. The market has also been exploring several new options in bio-plastic intermediates to meet the requirements of end users.
- Rising Awareness of Mounting Problem of Plastic Pollution key Impetus
Various curbs on the use of conventional plastics, notably non-degradable plastic bags, in several developing and developed nations have provided a robust impetus to the demand for bioplastics for packaging applications in various end-use industries. Governments in several countries grappling with the adverse ecological effects of plastic pollution from the indiscriminate disposal of conventional plastics are promoting the use. This is fueling the global uptake of bioplastic packaging among retailers. The industry efforts to reduce the reliance on petrochemicals in the making of plastics is another crucial trend making the demand for bioplastics a compelling proposition.
- Eco-friendliness of Bioplastics key Proposition
The attractive, rising adoption of sustainable packaging in various end-use industries, including agriculture, pharmaceutical, and agriculture, is a key factor underpinning the demand for bioplastics. Some of the key bioplastics materials are Bio-PET and polylactic acid (PLA). The rising awareness of environmental-friendliness in various parts of the globe is also stoking the demand for bioplastic packaging. In the food packaging applications, packaging materials frequently end up in food waste, where non-compositibility can been a key concern. However, bioplastics may be an enticing answer to this problem.
- R&D Activities and Innovations to Lead the Way
The high production cost of bioplastics materials and its limited biodegradability are key concerns that still hold the bioplastic market back in the way to realize its full potential. Nevertheless, these concerns are expected to be addressed with continued innovations in the market. Furthermore, government initiatives to enhance the cost-performance of bioplastic also augurs well for the retail industry capitalizing on the bioplastic packaging.
Constant research are being done to see the feasibility of bioplastics for packaging applications. Researchers at the University of Otago, New Zealand, announced in June 2018 that they are developing a flexible food wrap made of bioplastics. The plastics packaging is made from polymers from corn and shellfish and is claimed to be readily compostable. This packaging will be used primarily in ready to eat meals. Such efforts go a long way to alleviate the problem of plastic pollution.
- Europe witnessing Lucrative Demand
The high pricing of bioplastics-packaged products may hinder its wider adoption among price-sensitive consumers, notably in countries of Asia Pacific. However, developed regions such as Europe and North America are lucrative markets for bioplastic packaging. In particular, Europe is adding attractive revenue share to the global market. A factor attributing the growth is substantial efforts by governments to incentivize bioplastic packaging. Furthermore, the stricter implementation of environmental protection initiatives in its several economies discouraging the use of conventional plastics has also bolstered the demand for bioplastic packaging.
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