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Large Replacement Market in Packaging Boosts Demand for Biorenewable Materials in Asia-Pacific, Finds Frost & Sullivan

- Bioplastics expected to replace conventional plastics in many packaging applications

SINGAPORE, Dec. 6, 2012 /PRNewswire/ -- The Asia-Pacific biorenewable materials market is estimated to grow at a rate of over 19 percent per annum till 2018, as application development and technology licensing costs come down, and customer awareness grows. With biorenewable materials likely to replace common plastics in various packaging applications, the large replacement demand presents the market in the region with added growth opportunities.

New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Strategic Analysis of the Asia-Pacific Biorenewable Materials Market, finds that the market earned revenues of $46.8 million in 2011 and estimates this to reach $167.0 million in 2018. The study covers poly-lactic acid (PLA), polyhydroxyalkanoates (PHA), and starch-based polymers, which are bioplastics derived from renewable sources.

Asia Pacific's plastic packaging market, which comprises of both rigid and flexible packaging, accounts for over 1,200 kilo tonnes of plastics a year. It is expected to grow rapidly, boosting the demand for bioplastics particularly in flexible packaging applications. PLA is likely to experience the highest growth rate, owing to substantial capacity additions locally.

"Rising oil prices have increased the price parity between bioplastics and fossil fuel-based plastics, which are used on a large scale in the packaging industry," said Frost & Sullivan Industry Analyst Sandeepan Mondal. "This closing gap in price difference further enhances the prospects of the bioplastics market."

Moreover, the use of bio-based plastics offers several potential benefits, including reduced dependence on fossil fuels and lower greenhouse gas emissions during manufacturing. Taking advantage of this, brand owners are eager to switch to bio-based plastic packaging that highlights their environmental responsibility and appeals to the green consciousness of customers.

However, several factors can hold back the potential of biorenewable materials in Asia Pacific. Prices remain high, since application and technology development is an ongoing process. The low scale-up of manufacturing capacity also increase per unit costs.

In addition, bioplastics' inferior performance attributes, such as moisture absorption, low heat deflection temperature, and reduced resistance against chemical attacks, limit their application range. The poor execution of eco-labeling policies and insufficient composting facilities in Asia-Pacific countries also restrict the potential applications of bioplastics.

"Manufacturers must innovate technology, develop better products, and scale-up capacity to bring per unit costs down," concluded Mondal. "To encourage companies to enter the market, local governments should introduce codification for composting and biodegradability, and implement national standard certifications. This will enable the bioplastics market in Asia-Pacific to attract investments and grow steadily."

If you are interested in more information on this research, please send an email to Jessie Loh, Corporate Communications, at jessie.loh@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Strategic Analysis of the Asia-Pacific Biorenewable Materials Market is part of the Chemicals & Materials Growth Partnership Services program, which also includes research in the following markets: Bioplastics Markets in Southeast Asia, European Bioplastics Packaging Market, Strategic Assessment of the Bioplastics Market in Brazil and Mexico, Strategic Analysis of Southeast Asian Automotive Biofuels Market . All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Contact:
Donna Jeremiah
Corporate Communications – Asia Pacific
P: +61-(02)-8247-8927
F: +61-(02)-9252-8066
E: djeremiah@frost.com

Jessie Loh
Corporate Communications – Asia Pacific
P: +65-6890-0942
F: +65-6890-0988
E: jessie.loh@frost.com

http://www.frost.com

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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