Bioplastic capacity is predicted to surpass the one million ton mark in 2011, and global bioplastics production capacity will more than double from 2010 to 2015, according to a study presented by European Bioplastics in cooperation with the University of Applied Sciences and Arts of Hanover. From approximately 700,000 tons in 2010, the production capacity for bioplastics will increase to a predicted 1.7 mln tons by 2015. The current year will see capacity pass an important threshold of one million tons: H1-2011 already shows production capacity exceeding 900,000 tons. A further change is evident in the composition of global production volume. In 2010, the bio-plastics branch primarily produced biodegradable materials, totaling around 400,000 tons (compared to 300,000 tons of biobased commodity plastics). This ratio will be reversed in the coming years – despite overall growth. The study shows that biobased commodity plastics, with a total of around 1 million tons, will make up the majority of production capacity in 2015. Biodegradable materials will, however, also grow substantially and will reach about 700,000 tons by then. Essential to this rapid growth is the swift expansion of bioplastics into an ever-increasing number of applications. From packaging to car manufacture to toys, carpets and electronic components, bioplastics are in demand as never before. The strongly growing group of durable biobased bioplastics appeals strongly to the packaging market, for example. Several large brand producers such as Danone and Coca-Cola have brought products to market. Europe is the world’s largest and most interesting market for bioplastics and is the leader in research and development. The number of production facilities, in contrast, is growing most markedly in Asia and South America. The competitiveness of European industrial sites must therefore be improved through better frameworks and regulations. According to European Bioplastics, external factors make bioplastics the attractive choice, as can be derived from the high consumer acceptance, the extensively publicised effects of climate change, drastic price increases of fossil materials, and the increasing dependence on fossil resources. Bioplastics are technological innovations able to improve the balance between the environmental benefits and the environmental impact of plastics. Life cycle analyses show that bioplastics can reduce CO2 emissions by 30-70 percent compared to conventional plastics (depending on material and application). What is more, the increasing utilisation of biomass in bioplastic applications has a clear advantage: renewability and availability. The limited crude oil reserves can be saved and additional crude oil imports from unstable regions can be reduced. Within the industry, bioplastics simply make sense because of their advanced technical properties and functionality, the potential for cost reduction through economies of scale, and the new recycling option they represent. Bioplastics market is predicted to grow at a 5 year CAGR of 22%, despite current drawbacks of high prices and lack of composting infrastructure. The global market for biodegradable polymers will amount to an estimated 932 mln lbs in 2011 and is expected to increase to more than 2.5 bln lbs in 2016, for a five-year compound annual growth rate (CAGR) of 22%, as per a report by BCC Research. According to the report, the largest segment of the market, packaging, is expected to reach nearly 1.7 bln lbs in 2016. The market in 2011 is estimated at 656 mln lbs, making the five-year CAGR 20.5%. The second-largest segment, made up of fibers/fabrics, is expected to increase in volume from an estimated 134 mln lbs in 2011 to 435 mln lbs in 2016, for a five-year CAGR of 26.6%. The food service segment is estimated to be 25 mln lbs in 2011 and will increase to 40 mln lbs in 2016 at a CAGR of 9.9%. Other markets expected to experience growth include agriculture, automotive, medical and electronic/electrical. The biodegradable polymer market, although commercial for more than 20 years, is still very early in its product life cycle, says the report. The market is still beset with several major problems, the most important of which are relatively high prices and lack of an infrastructure for effective composting - an extremely critical aspect for biodegradable polymer market success. New biodegradable polymers are being introduced, accompanied by a continuing withdrawal of other products. In addition, key companies are entering and leaving the market, with more of the former rather than the latter. The industry has been characterized by new technologies, tightening environmental restraints and very unstable oil prices, among other issues. This combination of factors necessitates a realistic appraisal of the impact of these polymers over the next five years. High oil prices are said to be a major driver for biodegradable polymers.