Global Polylactic Acid Market Forecast 2015–2021

Occams Business Research & Consulting

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Table of contents

•Introduction•PLA Market Segmentationo By applicationo By 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.

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

GeographyNorth 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-BiodegradablePLA

PHA

Regenerated CelluloseRegenerated Starch BlendBiodegradable poysterOther Biodegradable

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 .505 corn1.5 .426 .639 Sugar 1.7  .270  .460 Cassava

Comparative price of raw material for 1Kg PLA production

Sugar content Byproduct in sugar manufacturing  Waste Raw material

46% Cane Molasses Molasses48% Beet Molasses  45% Citrus Molasses  43% Starch Molasses   NA Waste in Sugar manufacturing from

Sugar beet Beet root pulp

NA  Waste in Sugar manufacturing from Cane

Bagasse

 NA Waste material from harvested Wheat Wheat straw

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

Market Determinants – Favorable Government Policies Across The Globe

Source: OBRC Analysis

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Cumulative Change in price of Corn, Sugar and Crude oil

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

Fluctuating petroleum prices Key Driving Force

Source: OBRC Analysis

-50

0

50

100

150

200

Cum

ilativ

e ch

ange

in p

rice

%

Years

crude oilsugar

corn

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Raw Material Availability Influences PLA Production Destinations

Current PLA Market

Opportunity Market

USA

ChinaBrazil

Eu27

Argentina

IndiamexicoUkraineCanada

South Africa Others

Corn Production-2013

Brazil

IndiaChina

Thailand

Pakisatan

Mexico

Philipines

USAOthers

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 COMPOSTINGFEEDSTOCK RECYCLING RECYCLINGINCINERATIONLANDFILL

New technology enabled PLA competing with traditional polymers.

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

“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

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 Market3D printingNon-woven textile Medical implants Electronics

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

How to Overcome Market Challenges?

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

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 AmericaAsia Pacific

Europe

ROW

2020

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

•APAC is fastest growing region for PLA market- Raw material cost and mass population is driving the PLA market in the region. Low Awareness and price sensitive consumer are biggest restraint of Asian Market.

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

Increase in Awareness Levels Will Enable Quick Growth in Opportunity Markets

Source: OBRC Analysis

Application 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Packaging xxx xxx xxx xxx xxx xxx xxx xxx xxx xxxCatering xxx xxx xxx xxx xxx xxx xxx xxx xxx xxxTechnical materialxxx xxx xxx xxx xxx xxx xxx xxx xxx xxxAgriculturexxx xxx xxx xxx xxx xxx xxx xxx xxx xxxConsumer goodsxxx xxx xxx xxx xxx xxx xxx xxx xxx xxxConstruction materialsxxx xxx xxx xxx xxx xxx xxx xxx xxx xxxothers xxx xxx xxx xxx xxx xxx xxx xxx xxx xxxTotal xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Region 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGRNorth America xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxxAsia Pacific xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxxEurope xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxxROW xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxxTotal 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

Market Estimation contd…

Global PLA Market by Applications

Source: OBRC Analysis

2013

Packaging

Catering

Technical materialAgriculture

Consumer goodsConstruction materialsothers

2020

22

Market Estimation contd…

•Packaging is largest segment of PLA market

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

•Agriculture material (mulch film) segment is growing at considerable 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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