Demand for degradable plastics in USA forecast to grow at 17% pa

09-Nov-06

Demand for degradable plastic in USA is forecast to grow by 17% pa to 500 million pounds in 2010, as per a report by The Freedonia Group, Inc.. The total output is estimated to be valued at US$610 million, despite expectations that average prices will continue to decline as capacities expand and production efficiencies increase. Price mixes will reflect fastest growth for the lowest priced resins. Once a competitive pricing structure is achieved vis-à-vis rising conventional materials, degradable polymers are expected to find application in a range of sectors. Growing environmental, governmental and consumer initiatives for greater use of sustainable resources will also contribute to the growth of these plastics. Degradable plastic applications are also being expanded by enhanced performance properties made possible because of more sophisticated polymerization and blending techniques. Demand for biodegradable/compostable plastic is expected to increase nearly 20% pa to 420 million pounds. Polylactic acid (PLA) demand will present the best opportunities and rise over 30% annually through 2010. Starch-based plastic demand will grow nearly 18% pa to 180 million pounds in 2010 due to the availability of lower priced and improved resin blends. Demand for polyester-based degradables will increase 24% pa through 2010.