Cost and infrastructure improvements mean the sector is finally poised to boom

Until now, bioplastics have lingered at the margins of the plastics market. But not for much longer. The sector is about to explode. Global production capacity for bioplastics is set to quadruple by 2011, unleashing roughly 1 million tonnes of products onto the market, according to the European Bioplastics Association.

The term bioplastic is applied to plastics that are either derived from renewable resources, or that are biodegradable, or as was the case originally both. Renewable bioplastics are derived from starchy cereals like corn, rice, potatoes and sugarcane, or from hemp and soy oils, while bioplastics classified as biodegradable must meet rigorous standards on biodegradability and compostability.

Double jeopardy

The reason the bioplastics market has taken so long to find its legs is twofold. Firstly, bioplastics have been uncompetitive. Secondly, a lack of infrastructure has meant that its trump card "waste free" plastic has not yet been given full play.

Bioplastics have received a lukewarm reception in the past from buyers on the basis of cost. This is because, as packaging, it usually costs around 20% to 100% more than conventional plastic.

But a combination of packaging taxes and rising oil prices is significantly narrowing the price differential between petroleum-based plastics and bioplastics.

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