Biodegradable Plastic Demand to Rise 15% Annually

CLEAVELAND, OH | A new Freedonia Group study, titled “Biodegradable Plastic,” presents trends projecting US demand to rise more than 15% annually to 720 million lb in 2012, valued at $845 million. While this represents less than half of 1% of all thermoplastic resin demand in 2007, the research firm predicts biodegradable plastic will have substantial growth opportunities.

Escalating crude oil price, says the company, have made biodegradable plastics—which are sourced from renewable resources such as corn—more cost competitive with petroleum-based conventional resin. But their research suggests continued price declines are necessary for anticipated biodegradables’ growth, and among the threats to further declines in biodegradable prices are rapidly rising prices for corn.

Other findings reveal that demand for starch-based plastic will increase 16.8% annually to 293 million lb in 2012 as a result of improved resin blends and opportunities in such areas as compostable yard and kitchen bags, as well as foodservice items such as plates, bowls, and cutlery. Also, demand for polyester-based biodegradables will grow almost 25% annually through 2012 with gains reflecting significant capacity advances, a more competitive pricing structure, and opportunities in film and fiber products such as compostable yard bags and pallet wrap, and fibers for apparel and nonwovens fabrics. For more information, visit:

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