Global bioplastics production is increasing, but utilization rates remain low, according to an update at the 2024 European Bioplastics Conference that started Dec. 10 in Berlin.
Managing Director of European Bioplastics Hasso von Pogrell gave the traditional update of the bioplastics market alongside some of the key figures. Global bioplastics production hit 1.44 million metric tons in 2024. During last year's conference, the 2023 global production levels were announced to be 1.79 million tonnes but they have since been updated to 1.37 million tonnes.
Given those updated figures, global bioplastics production in 2024 saw a small increase in comparison with the previous year, he said.
Asked about the updates, and the overall comparability of the previous years' forecasts with current figures, Pia Skoczinski, senior expert technology and markets at Nova-Institute, said that "unfortunately, the forecast and actual data is not comparable."
"It's a forecast, we have to be cautious about it. For many of the capacity additions announced last year, we now know now they were actually lower. So, yes, unfortunately, it is not comparable," Skoczinski said.
Of the total production in 2024, the top materials were: polylactic acid (PLA) accounted for 22 percent, nylon 20 percent, and polytrimethylene terephthalate (PTT) made up 17 percent.
Installed production capacity reached 2.47 million tonnes in 2024, up from 2.18 million tonnes in 2023. It set to grow to 5.73 million tonnes by 2029, according to the latest EUBP figures, compiled in collaboration with the Germany-based Nova Institute.
That is a more "conservative" forecast compared with 2023 when the groups expected production capacity could reach 7.43 million tonnes by 2028. Skoczinski explained that the nova-institute was more 'conservative' in its forecast for this year's market update.
Managing Director of European Bioplastics Hasso von Pogrell noted that capacity for biodegradable plastics is expected to grow "disproportionally," with bioplastics increasingly taking up a larger market share than non-biodegradable polymers.
The comparison between production capacities and actual production in 2024 shows that the bioplastics industry is producing at about 60 percent of its capacity. Although varying from one polymer to another — ranging from 35 percent to 100 percent — the average utilization rate in 2024 was 58 percent.
In comparison, non-biodegradable plastics PET, PP, and PEF showed utilization rates of 100 percent in 2024. Rates for biodegradable plastics were lower, with PLA, for example, reaching only 35 percent.
During her keynote speech, Kristin Schreiber, director at the European Commission DG Grow said the bioeconomy and circular economy are "high on the political agenda" of the EC group.
While bioplastics are increasingly finding applications in a range of end markets, the main application is still packaging, which accounted for 45 percent of the market capacity in 2024 and is forecast to grow to 53 percent in 2029. The fiber market is estimated to shrink from 20 percent in 2024 to 13 percent in 2029, with applications in industries such as automotive and transport, agriculture and horticulture, and electrics and electronics expected to retain a relatively stable share of the market in the next five years.
In terms of materials, PLA is expected to account for 42.3 percent of production capacity in 2029, followed by PHA with 17 percent, PE with 8.9 percent, and polypropylene with 8.5 percent.
The growth in bioplastics is also shifting globally.
In 2024, Europe had 13.4% percent of global production capacity, up from 12.8 percent in 2023. However, this figure is expected to contract to 10.4 percent in 2029, according to EUBP. Asia's share, on the other hand, will increase from 58.9 percent this year to 63.3 percent in five years. Capacity in North America is now forecast to increase, from 16.2 percent in 2024 to 20.9 percent in 2029.
"The growth in bioplastics production capacity should be seen against the backdrop of increasing consumer awareness of the environmental impact associated with the overall plastic consumption, underscoring not only the resilience but also the significance of our industry to contribute to sustainable solutions," von Pogrell said.