Biodegradable polymers have been in demand for quite some time, but higher costs and lack of common standards in the industry have restricted their usage. Biodegradable resins reached a global consumption level of about 350 KT/year in 2005. They are expected to grow at about 20% and reach a level of 600 KT/year by 2008, as per IBAW - an international trade organization of bio based plastics manufacturers and users.

PLA is produced by first harvesting starch stored in corn and then fermenting the natural sugars into lactic acid. The first company that tried to introduce PLA based fiber was Kanebo, a Japanese company. American companies like NatureWorks and Cereplast are major players in developing PLA to its present (2005) commercial usage. NatureWorks now belongs to Cargill since Dow sold off its share to Cargill and has a capacity to produce 180 KT of Lactic Acid and 140 KT of PLA. Cereplast plans to expand its existing plant by end of 2006.

A world-renowned German chemical company - BASF has recently introduced a new biodegradable polymer called Ecovio; a combination of 45% PLA and 55% Ecoflex, a copolyester. BASF has embarked upon marketing Ecovio in Europe and later plans to introduce the product to North America and Asia. BASF will source PLA from NatureWorks. It will set up a new plant of 6000 tpa capacity that will increases its capacity to 14000 tpa, since it already has 8000 tpa capacity plant at Ludwigshafen in Germany.
One of the major reasons for growth of PLA is reduction in its price due to increased capacity. The price stability of maize versus volatility in oil prices has also helped in controlling the price of PLA.

Europe and USA have imposed strict regulations about biodegradability as well as its capability of compostable. Products that are proved as being compostable are required to carry a label. They are expected to break down with in 90-110 days without releasing any residue in the air other than water and carbon dioxide. The three major standards are defining methods of testing. They are:
•  ISODIS 17088
•  EN 13432
•  ASTM 6400

NatureWorks believes that it will assist customers to achieve compliance with the greenhouse gas emission reduction requirements of the Kyoto Protocol that came into effect from February 2005.

Packaging obviously is the major application of PLA. Almost 35% of the total biodegradable products go into packaging application. The increasing awareness of customers and increasing oil prices are the two key reasons for greater acceptance of biodegradable polymeric products in packaging. PLA products offer clarity and hence compete with PET and Polystyrene rigid packaging products. Wal Mart is one of the major players in North America that converted to packaging from NatureWorks because of its price stability compared to oil and hence conventional plastic. Wal Mart is not only the major department store switching to PLA but the leading Belgian Delhaize, French Auchan & UK's Belu are slowly moving to such biodegradable products.

In addition to packaging applications the biodegradable products have found use in wrapping of gift items replacing PVC. Mitsui has developed their applications in electronic packaging. Interestingly Mitsui has also developed applications in automobile interior. Biomaterials are finding increasing usage in European medical device market. Some of the products that find usage of bio degradable polymers are screws and rods for pinning and repairing of ligaments, drug deposition devices, wound sutures, cardiovascular and intestinal supports etc.