Global Bio-based Polyolefin Market Projected to Grow by Factor of 20+ over Next 10 Years

 

 

The global market for bio-based polyolefins is forecast to multiply by a factor of more than 20 between 2022 and 2032, reaching a volume of more than 4.7 million tonnes, according to a report released by business intelligence firm MLT Analytics. This impressive growth is set to be fueled by a variety of end uses, including existing mainstream bio-polyethylene applications such as extrusion coating, shopping bags, and blow-molded containers, and emerging bio- polypropylene applications such as hygiene, housewares, and rigid and flexible packaging.

 

 

Most global polyolefin suppliers have announced sustainable polyolefin targets, typically to be achieved by 2030, that involve a mixed slate of polymers derived from bio-based, chemically-recycled, and mechanically- recycled feedstocks. And while the latter two routes may be preferred by some resin producers, pressure from brand owners and consumers will ensure that bio-based polyolefins play a notable role in achieving sustainability targets.

 

 

The European Commission’s Packaging and Packaging Waste Directive (PPWD) in its current form is a potential complicating factor to market growth for bio-polyolefins, according to Moore. “The Commission has essentially signaled its preference for C14 assay over mass balance as the preferred means of measuring bio content, and added that bio-based plastics should target durable applications such as pipe and automotive, thereby functioning as carbon sinks. I don’t believethis is a stance that will be acceptable to bio-polyolefin suppliers given their investment in the mass balance approach.”

 

 

On the bio-polyolefin supply side, the main incumbent supplier  Braskem  is being joined by a stable of European, Japanese, and Korean companies, with Dow Chemical also increasing its presence via production assets in Europe. “Biopolyolefins are major components of Korean and Japanese suppliers’ sustainability strategies, and they will have ready access to export-oriented markets in Asia Pacific.” “In fact, by 2032, we expect the Asia-Pacific region to overtake Europe in consumption of bio-polyolefins.”