The Economics of Bioplastic 7/10/2009 8:42:44 AM



Bioplastics (also called organic plastics) are a form of plastics derived from renewable biomass sources, such as vegetable oil, corn starch, pea starch or microorganisms, rather than fossil fuel plastics which are derived from petroleum. Because of their biological degradability, their use is especially popular for disposable items, such as packaging and catering items (crockery, cutlery, pots, bowls, straws).

These materials have been sprouting up in various applications, but a recent study puts the total market of green packaging at $43.9Billion by 2013. The highest growth gains in this market will be in bio plastics for reasons of price stability and increased capacity the report said. Bio plastics will, it is reported, perform at an annual growth rate of thirteen percent. This spells big news for an industry which currently holds only about 0.1% percent market share.

Part of the reason for this growth will be due to policy changes which restrict the use of some of the most environmentally damaging materials, but the largest effect seems to be coming from packaging producers themselves. Corporate social responsibility leader Coca Cola has developed a new bottle which is composed of around thirty percent bio plastics with the intended goal of developing a one hundred percent renewable option in the future. Likewise, Wal-Mart has begun sourcing toys and children’s goods made from bio plastics.

A company coming out of Cornell has decided to make biodegradable plastic out of carbon dioxide. This would eliminate carbon dioxide while creating a biodegradable product (two birds one stone). Another application is for ocean-going container ships which could replace current plastics with ones that breakdown via hydrolysis, thus allowing much more cargo room aboard after plastics are used and jettisoned. The U.S. military is introducing bio plastics in order to reduce trash transport on the battlefield. There are also hopes to dissolve these plastics into bio-diesel thus adding to the fuel tanks. Finally, for those of us who are not planning to be in battle soon, two Japanese firms have developed bio plastics for demanding applications, one is mixed with fibers of natural plants in order to make the historically weaker bio plastics stronger and another company has found a way to make these materials more heat resistant. In all this seems to be a moment when the technology is overcoming previous hurdles, potentially launching it into new applications as yet unknown for biological materials.

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