A new market research, published by Frost & Sullivan, entitled “Strategic Assessment of the Bioplastics Market in Brazil and Mexico” analyzes production plans, main resins sold and applications currently in use in both countries. The study also aims at providing a look into the future for bioplastics in the region, with regards to future demand and prospective feedstocks.
Brazil
At the moment, production in Brazil is constraint to pilot scale. In 2009, the Bioplastics market in Brazil was composed mostly by the resins PLA, Starch-based, and PHB, representing revenues of US$ 4.4 million.However, large production scales in Brazil are expected to give a new shape to this market in the region, as for 2015, large scale production units are expected to be producing bioplastics, such as Braskem biobased polyethylene and Solvay bio-based PVC. Braskem bioplastics plant will be the largest in the world, providing to Brazil an expected CAGR of 140.7% in the period 2009-2015.
Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan
Brazil has easy access to cheap bio-based feedstock that can then be utilized to produce low cost bio-based plastics, such as sugarcane. This gives Brazilian companies an advantage in the commodity plastics market, where cost is one of the main deciding criteria for end users. The Brazilian Association of Compostable Biodegradable Polymers (ABICOM) is being built in order to promote new legislation and government policies to support research and development of this market. This association was created in 2009, and it has still to gain strength to influence market movements.
Note: All figures are rounded; the base year is 2009.
Source: Frost & Sullivan
Mexico
According to Frost & Sullivan‘s research, the Mexican bioplastics market represented 1,200 MT in 2009, it is in the growth stage in the product life cycle and the expected average annual growth rate for this market is higher than 20%. The growing environmental awareness and concern in Latin America is a driver for the market. Mexico’s bioplastics market is composed of 100% of PLA, different products from other companies are in a testing stage. At the moment PLA is imported from United States.
Corn based plastic is the most known resource in Mexico, but major problems arise since the country is the fourth world producer, and it still needs to import from 5% to 10% for local food demand. This is an important restraint, as bioplastics could be directly competing with a food resource and their image could be harmed if food prices increase due to corn’s industrial uses. Initiatives are being taken by research institutes to find different and productive sources to produce bioplastics.
About Frost & Sullivan
Founded in 1961, Frost & Sullivan has over 45 years of assisting clients with their decision-making and growth issues. Over 1,700 Growth Consultants and Industry Analysts across 32 global locations. Over 10,000 clients worldwide – emerging companies, the global 1000 and the investment community. Developers of the Growth Excellence Matrix – industry leading growth positioning tool for corporate executives. Developers of T.E.A.M. Methodology, proprietary process to ensure that clients receive a 360 perspective of technology, markets and growth opportunities. Three core services: Growth Partnership Services, Growth Consulting and Career Best Practices.
Also, I started my professional career as a consultant a few years back with Frost & Sullivan, in one of their UK offices.
More info:
Strategic Assessment of the Bioplastics Market in Brazil and Mexico, Frost & Sullivan
Bioplastics in Brazil: Beyond the Green Speech, by Alessandra Lancellotti, Frost & Sullivan
Search for Bioplastics, Frost & Sullivan
