US Degradable Plastics Demand to Reach 370 Million Pounds in 2008

Degradable plastic demand in the US is projected to grow 13.7 percent annually to 370 million pounds in 2008, valued at $490 million, according to a new report by the Freedonia Group.

Gains will be stimulated by widening applications brought about by a more competitive pricing structure, improved performance characteristics, the continued development of degradability standards, and consumer education as to the benefits of these materials. Prospects will continue to improve as markets emerge and the prices and properties of degradable plastics begin to approximate those of conventional polymers.

Demand for biodegradable/compostable plastics is expected to grow more than 16 percent annually to over 290 million pounds in 2008 as a result of lower prices and property enhancements. Best opportunities are anticipated for polylactic acid (PLA). Additional capacity and processing efficiencies have lowered PLA pricing to where it is now competitive with petroleum-based polyethylene terephthalate. PLA will continue to make inroads in packaging markets such as compostable yard bags and foodservice items, with burgeoning uses expected in fiber and fiberfill markets such as bedding, apparel and nonwovens.

Starch-based plastic demand is projected to expand 11.6 percent yearly to 83 million pounds in 2008 due to the availability of more competitively priced and improved resin grades. Film products such as compost bags will remain dominant and provide good opportunities. Polyester-based degradable demand is expected to rise rapidly as a result of price reductions, wider availability and nascent applications in film and fiber uses such as apparel and fiberfill.

Demand for photodegradable plastics will increase at a significantly below average 5.2 percent annual pace to 63 million pounds in 2008. Although photodegradable plastics can have a positive impact on plastic litter in both land and marine environments -- depending on exposure intensity and other variables such as geography -- slow growth will be attributable to maturing ring carrier uses and limited opportunities in other areas such as agricultural mulch.