EU’s single-use plastic rules boost bioplastics

Charging for plastic bags, banning plastic straws: In Western Europe, legislators are set to curb the ubiquitousness of single-use plastics. The increasing regulation is having its effect on the bioplastics market, says London-based information provider IHS Markit. The IHS Markit Chemical Economics Handbook: Biodegradable Polymers Report sets the current market value of biodegradable plastics at more than US$1.1bn in 2018, largely driven by Western Europe, with the world’s strictest and increasingly stringent regulations for single-use plastics. The region commands 55 percent of the global market value in 2018 for biodegradable polymers. According to the IHS report, global demand could reach US$1.7bn by 2023.

The food packaging, disposable tableware and bags sector is the largest end-use segment for bioplastics, with compost bags in second place. Both segments are set to grow considerably. “Biodegradable plastics, which are largely starch-based compounds or polylactic acid (PLA)-based materials, have become more cost-competitive with petroleum-based plastics and the demand is growing significantly, particularly in Western Europe, where environmental regulations are the strictest,” said Marifaith Hackett, director, specialty chemicals research at IHS Markit and the report’s lead author. “However, the demand for these biodegradable polymers is still a drop in the bucket when you compare it to demand for traditional plastics such as polyethylene (PE).”

“More legislation is likely coming in Europe or at the EU level, and if that occurs, we could see major changes in this industry and pushback from producers of traditional plastic products,” Hackett continued. “The last time we at IHS Markit assessed the global demand for biodegradable polymers, we noted the U.S. was the largest driver of demand growth for this segment, but due to legislation, Europe is by far the leading demand center. Europe is the place to watch, as Europeans are particularly motivated to reduce marine litter.”

In May, the European Commission proposed new EU-wide rules to target the ten single-use plastic products most often found on Europe’s beaches and seas.