By 2022, global bioplastics production is forecast to increase 50%, according to Berlin’s European Bioplastics Association (EUBP). Companies such as BASF and Stora Enso Oyj have entered the bioplastics business due to the growing demand from companies such as Coca-Cola and Lego. The biochemical and bioplastic industries intend to impact oil demand, giving bio-based products a greater share of the supply.

The desire to shift to more environmentally friendly plastic products is shared by both activists and companies that use plastics the most. According to the Ellen MacArthur Foundation, by 2050, there will be more plastic in the world’s oceans than fish. Moreover, the plastics pollution in the oceans threatens the food chain.

The EUBP stated that currently, bioplastics make up 1% of the plastics industry. Made by processing the sugars from plants, they produce a much smaller carbon footprint compared to traditional plastics. According to the International Energy Agency, accelerated growth in the bioplastics industry will likely increase petroleum demand, which is why oil company giants, such as Saudi Arabian Oil, Exxon Mobil, Royal Dutch Shell and Total, are focusing on incorporating petrochemicals into their businesses, with the industry expected to grow 4% annually.

Leading companies in the bioplastics industry include Brazil’s Braskem, the US’ NatureWorks and Italy’s Novamont.

Source: Bloomberg