US expects boom in degradable plastics

Research suggests a growth of more than 13% in the next three years.

US demand for degradable plastics is expected to grow by 13.7% per annum over the next three years, says Freedonia Group. The US research company forecasts demand to reach 168.000 tonnes in 2008, valued at $490 million (€372 million).

A widening of applications will come from more competitive pricing structure, improved performance characteristics, development of degradeability standards and consumer education on the benefits of such materials.

Freedonia says in its study, called Degradeable Plastics, that other environmentally friendly plastics will also see growth. Demand for biodegradable/compostable plastics is expected to grow by 16% per annum to more than 132.000 tonnes in 2008.

Freedonia predicts the best opportunities for polylactic acid, particularly in packaging but also in fibre markets.
Starch-based plastics demand is projected to expand 11.6% annually to 38.000 tonnes in 2008 as prices become more competitive and resin grades improve. Film products such as compost bags will be the dominant sector.

Source, news of 2005-01-12.