BIOPLASTICS
Brazilian demand to grow rapidly as new plants start up / Braskem to overtake NatureWorks as world's largest producer / Mexican consumption to grow by more than 20%
Brazil’s bioplastics consumption is expected to grow rapidly over the next five years as large-scale production plants come onstream in the country, according to Frost & Sullivan (London / UK; www.chemical.frost.com). The Brazilian market for bioplastics is forecast to reach USD 618m in 2015, compared with just USD 4.4m in 2009, the international market research company said. By volume, the market is expected to expand to 250,086 t/y from 1,286 t/y in the period.
Brazil had a small bioplastics market in 2009, composed by spot imported volumes and pilot local production, remarked Frost & Sullivan research analyst Alessandra Lancellotti. This scenario will change considerably when Braskem (São Paulo / Brazil; www.braskem.com.br) starts up its 200,000 t/y ethanol-based PE production plant in Brazil in October/November 2010, she said – see also Plasteurope.com of 08.01.2010. Braskem will then overtake NatureWorks (Minnetonka, Minnesota / USA; www.natureworksllc.com) as the world’s largest bioplastics producer.
“Even considering that a significant volume will be exported, the local demand in Brazil is likely to increase at impressive growth rates,” Lancellotti continued. “We know that Braskem already has contracts with major local green PE end users in Brazil.” In addition, Solvay (Brussels / Belgium; www.solvay.com) plans to start up a 120,000 t/y ethanol-based PVC plant in Brazil, noted Frost & Sullivan in its new study, "Strategic assessment of the bioplastics market in Brazil and Mexico".
The availability of sugarcane-based ethanol is a key growth driver for the Brazilian market. Brazil is the world’s leading producer of sugarcane, and rising production of sugarcane and ethanol provides a competitive advantage for the country to expand its ethanol-based plastics production. From 2004 to 2009, sugarcane production in Brazil increased at an average annual rate of 9.8%, Frost & Sullivan said. Constraints to growth in the Brazilian bioplastics market include crude oil price fluctuations and higher prices compared with conventional plastics, Lancellotti said.
Mexico is also a nascent market for bioplastics. Consumption is expected to grow by more than 20% per year, from 1,200 t in 2009, driven by growing environmental awareness, according to the study. Corn is the most common bioplastic feedstock in Mexico, but availability is a problem because, although the country is the world’s fourth largest corn producer, it needs to import 5-10% for local food demand, the study said. "Conventional plastic production companies in Mexico are reluctant to start production, since they are afraid the demand will be low," observed Lancellotti. "Bioplastics in Mexico is still an emerging market."
e-Service:
Executive summary of the report "Strategic assessment of the bioplastics market in Brazil and Mexico" report as a PDF document
Brazil had a small bioplastics market in 2009, composed by spot imported volumes and pilot local production, remarked Frost & Sullivan research analyst Alessandra Lancellotti. This scenario will change considerably when Braskem (São Paulo / Brazil; www.braskem.com.br) starts up its 200,000 t/y ethanol-based PE production plant in Brazil in October/November 2010, she said – see also Plasteurope.com of 08.01.2010. Braskem will then overtake NatureWorks (Minnetonka, Minnesota / USA; www.natureworksllc.com) as the world’s largest bioplastics producer.
“Even considering that a significant volume will be exported, the local demand in Brazil is likely to increase at impressive growth rates,” Lancellotti continued. “We know that Braskem already has contracts with major local green PE end users in Brazil.” In addition, Solvay (Brussels / Belgium; www.solvay.com) plans to start up a 120,000 t/y ethanol-based PVC plant in Brazil, noted Frost & Sullivan in its new study, "Strategic assessment of the bioplastics market in Brazil and Mexico".
The availability of sugarcane-based ethanol is a key growth driver for the Brazilian market. Brazil is the world’s leading producer of sugarcane, and rising production of sugarcane and ethanol provides a competitive advantage for the country to expand its ethanol-based plastics production. From 2004 to 2009, sugarcane production in Brazil increased at an average annual rate of 9.8%, Frost & Sullivan said. Constraints to growth in the Brazilian bioplastics market include crude oil price fluctuations and higher prices compared with conventional plastics, Lancellotti said.
Mexico is also a nascent market for bioplastics. Consumption is expected to grow by more than 20% per year, from 1,200 t in 2009, driven by growing environmental awareness, according to the study. Corn is the most common bioplastic feedstock in Mexico, but availability is a problem because, although the country is the world’s fourth largest corn producer, it needs to import 5-10% for local food demand, the study said. "Conventional plastic production companies in Mexico are reluctant to start production, since they are afraid the demand will be low," observed Lancellotti. "Bioplastics in Mexico is still an emerging market."
e-Service:
Executive summary of the report "Strategic assessment of the bioplastics market in Brazil and Mexico" report as a PDF document
15.06.2010 Plasteurope.com [216489]
Published on 15.06.2010