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Global Polylactic Acid Market Forecast 2015–2021

Occams Business Research & Consulting

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Table of contents

•Introduction

•PLA Market Segmentation

oBy application

oBy Raw material

•Packaging Market overview

•Bioplastic Industry (Sector Analysis)

•Drivers of PLA Market

•Restraints of PLA Market

•Challenges of PLA Market

•Opportunities of PLA Market

•Market share Analysis

•Key Strategies of Market Leaders

•Geography Analysis

•Market Estimation

PLA is a Biodegradable material with rigidity and clarity similar to

polystyrene (PS) or poly(ethylene terephthalate) (PET). Polylactic

Acid is one of the best product in emerging Bioplastics market

because of its availability and cost Structure. Natural polymers,

biopolymers, and synthetic polymers based on annually

renewable resources are the basis for the twenty-first-century

portfolio of sustainable, eco-efficient plastics these materials will

replace the petroleum based polymer which are Used for similar

purpose.

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INTRODUCTION

Applications

-Packaging-Catering-Agriculture-Technical materials-Consumer Goods-Construction Materials

Polylactic Acid Market Segmentation

Raw materials

-Corn(Maize)-Sugar(Cane sugar,

Beet root sugar etc.)-Molasses - Cassava Starch-Food waste

PLA Market

Bioplastics Market

Geography

North America-USA-CanadaEurope-UK-Spain-Germany-Italy-France

Sector analysis to enable holistic

analysis of PLA market.

Exhaustive segmentation &

estimations.

APAC-China-Japan-India-Thailand

Source: OBRC Analysis

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PLA Contributes To Above 35% of the Bio-Degradable Bio-Plastics Market

Bio-plastic Market

Bio-degradable Bio-plastics

Bio-plastic market

Source: OBRC Analysis

Bio-PET

Bio-PE

Bio-PA

Other non-

Biodegradable

PLA

PHA

Regenerated

Cellulose

Regenerated Starch

Blend

Biodegradable

poyster

Other Biodegradable

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Packaging is largest segment of PLA

Over 75% of PLA packaging material is used for Film\plastic bag packaging

Source: OBRC Analysis

Global PLA Application Market, 2013 Packaging(Incl.

Bottles)Catering

Agriculture

Technical Materials

Consumer Goods

Construction

Others

Quantity(kg)Price(per kg)Total raw material

cost

Raw Material

2.5.202.505corn

1.5.426.639Sugar

1.7.270.460Cassava

Comparative price of raw material for 1Kg PLA production

Sugar contentByproduct in sugar manufacturingWaste Raw material

46%Cane MolassesMolasses

48%Beet Molasses

45%Citrus Molasses

43%Starch Molasses

NAWaste in Sugar manufacturing from

Sugar beet

Beet root pulp

NAWaste in Sugar manufacturing from

Cane

Bagasse

NAWaste material from harvested WheatWheat straw 7

Raw Material and Different alternative (waste) for PLA production

Different types of waste materials used in PLA production

Source: OBRC Analysis

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Packaging- Remains the Key Opportunity Market

The global consumer packaging market-2013, plastic packaging (flexible & rigid) dominates the packaging industry

Source: OBRC Analysis

Global packaging by Type, 2013

Paper and board

Rigid Plastics

Glass

Flexible plastics

Metal packaging

Other

Brazil-“Saco é um Saco” (‘Bag is bag”)

China-Special fund for Biomass

Germany- Recycling fee levied on plastic bag provider

Japan-Biotechnology Strategic Scheme and the Biomass Nippon

Strategy. 20% (2.5 to 3 million tons per year) of conventional plastics will be replaced by plastics from renewable resources by 2020.

Taiwan and Korea- Ban of Plastics and huge quantity of electronic

waste

Thailand- Government encouraging Bioplastic companies, resulting

Natureworks and PURAC are setting their plant in Thailand

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Market Determinants – Favorable Government Policies Across The Globe

Source: OBRC Analysis

Cumulative Change in price of Corn, Sugar and Crude oil

Cumulative Change in PricesCrude oil -150%Sugar -124%Corn -79%

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Fluctuating petroleum prices Key Driving Force

Source: OBRC Analysis

-50

0

50

100

150

200

Cu

mil

ati

ve c

han

ge in

pri

ce %

Years

crude oil

sugar

corn

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Raw Material Availability Influences PLA Production Destinations

Current PLA Market

Opportunity Market

USA

China

Brazil

Eu27

Argentina

India

mexico

Ukraine

Canada

South Africa

Others

Corn Production-2013

Brazil

India

ChinaThailan

d

Pakisatan

Mexico

Philipines

USA

Others

Sugar cane Production-2013

Eco-friendly products are making their way into the market.PLA is marketed as Eco-Friendly ProductsPlastic pollution is a global issueSome plastics leach hazardous Chemicals in Food streamComposting/Bio-degradation

PLA has more End of Life option than other Plastics COMPOSTING

FEEDSTOCK RECYCLING RECYCLINGINCINERATIONLANDFILL

New technology enabled PLA competing with traditional polymers.

High heat resistance PLA (up to 200’C)Durable PLA

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“Eco-friendly” The Key Strategy

PLA is only compostable in industrial composting facilities.

Inflated price for raw material as the same raw materials are used in various industries such as Biofuel and other bioplastics (PHA, Bio-PET, Bio-PE, Regenerated cellulose)

Availability of Effective substitutes (Plastics and Bioplastics)

Lack of Awareness in developing countries

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Key Restraints of PLA Market – What is the Business Impact?

Opportunity of new business line for existing companies

Well established chemical market may adopt Green products

Wide range of new applications are huge opportunity for PLA Market

3D printingNon-woven textileMedical implants Electronics

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Opportunity Analysis & More….

Identification of Bioplastic products in waste stream

Reducing production cost is a big challenge in the Industry

Change in existing infrastructure

Durable PLA production is a challenge Penetration in developing countries

Industrial scale production from waste materialsMolassesBeet root pulpWheat strawBagasseFood waste 15

How to Overcome Market Challenges?

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Market Share & Key Company Analysis

Source: OBRC Analysis

Market Share: based on Production capacity of Top Market

Players, 2013

Natureworks-IngeoBASF-EcovioMitsubishi-Ecoloju and PLAbioTeijin-Biofront

1. Innovation And New launches-Innovative new products and process making PLA even better and stronger

2. Targeting Asia Pacific: new Destination For bioplastic Industry

3. Reducing Cost of Production: Brazilian Sugarcane is attracting Bioplastic companies

4. Large consumer group in Europe driving bioplastic market

5. Companies are developing new products by collaborating R&D 17

Step by Step Strategic Analysis & Business Implications of Market Participants

PLA is marketed as Eco-Friendly Product

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Geographic Analysis……1

PLA market by geography

Source: OBRC Analysis

2013

North America

Asia Pacific

Europe

ROW

2020

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•Europe is the largest consumer market for PLA – High demand andenvironmental awareness driving the market in the region however theproduction cost of PLA is high due to raw material price

•APAC is fastest growing region for PLA market- Raw material cost andmass population is driving the PLA market in the region. LowAwareness and price sensitive consumer are biggest restraint of AsianMarket.

•North America- North America is the second largest market for thePLA, Raw material availability such as Corn is a driver for PLA marketin the region.

Increase in Awareness Levels Will Enable Quick Growth in Opportunity Markets

Source: OBRC Analysis

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Application 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Packaging xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Catering xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Technical materialxxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Agriculturexxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Consumer goodsxxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Construction materialsxxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

others xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Total xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR

North

America xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Asia

Pacific xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Europe xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

ROW xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Total xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Global PLA Market by Geographies

Market Estimation – Sample Tables

Global PLA Market by Applications

Source: OBRC Analysis

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Market Estimation contd…

Global PLA Market by Applications

Source: OBRC Analysis

2013

Packaging

Catering

Technical

materialAgriculture

Consumer

goodsConstruction

materialsothers

2020

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Market Estimation contd…

•Packaging is largest segment of PLA market

•3D printing material is the fastest growing segment in allgeography with over 25% CAGR from the year 2014 to 2020.

•Agriculture material (mulch film) segment is growing atconsiderable high CAGR

For More Information Please Click Global Polylactic Acid Market

Applications(Packaging, Agriculture, Automobile, Construction,Electronics)-Products, Biodegradable Polymers, PLA Compostable,Global Industry Size, Growth, Trends, Strategy Forecasts 2015-2021

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