In 2012, Europe was the dominant market for biodegradable polymers consuming 147 KMT or about 55 percent of world consumption; North America accounted for 29 percent and Asia approximately 16 percent. Landfill waste disposal and stringent legislation are key market drivers in Europe and include a packaging waste directive to set recovering and recycling targets, a number of plastic bag bans, and other collection and waste disposal laws to avoid landfill.
The most acceptable disposal method for biodegradable polymers is composting. However, composting requires an infrastructure, including collection systems and composting facilities. Composting has been a growing component of most European countries' municipal solid waste management strategies for some time, and the continent has an established and growing network of facilities, while the U.S. network of composting facilities is smaller, but expanding.
North American consumption of biodegradable polymers has grown significantly in recent years primarily due to the following factors - biodegradable polymers have become more cost competitive with petroleum-based products, and there has been growing support at the local, state and federal levels for these products (for example, legislation defining biodegradability, and plastic bag bans).
In Asia, there has been some growth of biodegradable polymers use due to government and industry promoting their use. This also includes plastic bag bans and global warming initiatives. However, Asian consumption of biodegradable polymers has not increased as much as expected. Current market prices of biodegradable polymers continue to be higher than conventional, petroleum-based resins. However, the Chinese market is expected to grow rapidly due to new capacity and government legislation supporting the environment. Future growth will also depend on price reductions, Malveda said.
In 2012, the two most important commercial, biodegradable polymers were polylactic acid (PLA) and starch-based polymers, accounting for about 47 percent and 41 percent, respectively, of total biodegradable polymers consumption. Starch sources vary worldwide, but include corn, potatoes, cassava and sugar beets. In Europe, starch-based biodegradable polymers are the major type consumed, accounting for 62 percent of the market, due to Europe’s large, starch-based capacity and their use in many applications. This is followed by PLA, with 24 percent and other biodegradable polymer types with 14 percent.
Demand for biodegradable polymers will double until 2017