Released on = April 20, 2007, 11:46 pm

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = Demand to register double-digit advances through 2010

Degradable plastic demand in the US is projected to grow 12 percent annually to 335
million pounds in 2010, valued at $480 million.

Press Release Body = Degradable Plastics forecasts to 2010 & 2015

Demand to register double-digit advances through 2010

Degradable plastic demand in the US is projected to grow 12 percent annually to 335
million pounds in 2010, valued at $480 million. Gains will reflect broader
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 such as polyethylene
terephthalate, polypropylene and polystyrene. However, composting networks must also
be expanded since degradability, while being an environmental benefit, is not a
superior value in a predominantly discard-tolandfill scenario.

PLA, starch-based plastic to offer best prospects
Polylactic acid (PLA) will present the best opportunities due to lower prices,
brought about by capacity expansion and processing efficiencies, as well as property
enhancements. Rapidly rising petroleum feedstock costs have also significantly
raised prices of conventional resins such as polyethylene terephthalate and
polystyrene. Continued PLA inroads are anticipated in packaging markets, including
bottles, containers, foodservice and film products, as well as fiber uses such as
bedding, apparel and nonwovens. Demand for starch-based plastic will grow at a near
double-digit pace through 2010 based on the availability of more competitively
priced and improved resin blends. Film products such as compost bags will remain
dominant and provide good opportunities. Degradable loose-fill packaging
applications will grow at a comparatively slow pace due to competition from expanded
polystyrene, as well as bubble packaging and inflatable bags. Polyester-based
degradable demand is expected to triple through 2010 as a result of price
reductions, wider availability and nascent applications in film and fiber uses such
as apparel and fiberfill.

Packaging applications to retain dominance
Packaging will present the best opportunities for degradable plastics, accounting
for 76 percent of the total in 2010. Film and ring carriers will remain the dominant
packaging uses, with foodservice products such as cutlery, plates and dishes
exhibiting the best growth prospects. More rapid growth, however, is expected in
significantly smaller fiber and other applications. Increased use is anticipated for
degradable fibers in uses such as fiberfill and apparel. Bedding and apparel will
remain the leading applications, with fastest growth expected for nonwovens. Other
applications include carpet, and products such as erosion control blankets.

Industry structure
The degradable plastic industry consists of resin and additive producers, as well as
product manufacturers. Most firms are small and specialized. However, the industry
is dominated by large, multinational firms with a global reach. Industry expansion
will depend on raising resin capacity and process efficiencies, and continued
proliferation of licensing and other cooperative agreements.

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