Market data and market development of biobased and biodegradable plastics

Market data and market development of biobased and biodegradable plastics Issue from IfBB webinar series: Biomaterials in focus! under the direction of Prof. Dr.-Ing. Hans-Josef Endres and Dr. Andrea Siebert-Raths Christian Schulz, 15.02.2018 China Hopson Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Page 1

1. BACKGROUND 2. METHODOLOGY 3. MARKET OVERVIEW 4. PRICES AND TRENDS 5. CURRENT DEVELOPMENTS 6. SUMMARY 7. EVENT NOTES AND LINKS

Motivation No official statistical collection of data on the bioplastics market available annual updates needed (Time frame: European Bioplastics Conference) Need for transparent and comprehensible data development of a methodical approach emerges from the cooperation with European Bioplastics (industry association) Basis for further argumentation for example to estimate land use for bioplastics and strategic considerations IfBB market data is continuosly being updated: Suggestions, critics and all other feedback are welcome in the context of continuous improvement. Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Page 3

What are bioplastics? Not a novel material group, but part of plastics Bioplastics can be classified as: Biodegradable petro-based biopolymers Biodegradable (mainly) biobased biopolymers Non-biodegradable, durable biobased biopolymers Advantages of bioplastics: Covered materials: Blend components: PBAT, PBS, PCL PLA & PLA-blends, Starch-blends, PHA, Regenerated Cellulose (CH-films), Cellulose derivatives (only biodegradable types) Bio-PET 30, Bio-PE, PTT, Bio-PA, PEF, Bio-PC, Bio-TPE/PUR Renewable raw material base Feedstock production for bioplastics requires less energy Novel material properties Manifold disposal possibilities (mechanical recycling, composting, climate-neutral energy recovery) Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Page 4

Methodology How does the data collection work, where do the numbers come from? Publicly available data and reporting Information from manufacturers, e.g. press releases In specific cases: Interviews Approach and challenges Full methodology document Only materials of "new economy" (e.g. biodegradable CA films) up to 2021 considered Depending on the amount of growth, time adjustment of production capacity Cleanup of double counting (blends, e.g. PBAT, PBS, PCL,...) Plant utilization and production quantity (e.g. Bio-PA, Bio-PUR/TPE in large conventional production facilities) Market segments (fixed key over the time horizon considered) All results are graphics that represent the production capacity this does not necessarily correspond to the quantities sold. Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Page 6

Generation comparison Bioplastics Old Economy New Economy Natural rubber Regenerated cellulose Cellulose acetate Linoleum etc. Novel chemistry PLA PHA PEF Starch blends etc. Drop-Ins Bio-PA Bio-PE Bio-PET Bio-PP etc. Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Page 7

Old vs. New Economy Production capacity Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Page 9

Market overview Results are available free of charge at : https://www.ifbb-hannover.de/de/facts-and-statistics.html Additionally contains process routes, feedstock and water requirements... Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Page 10

Market overview Bioplastics production capacity New Economy 2016 2021 Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Page 11

Trends: Geographical shift of production capacities Bioplastics production capacity New Economy 2016 2021 Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Page 13

Trends: Market segments Bioplastics production capacity New Economy 2016 Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Page 14

Trends: Market segments Bioplastics production capacity New Economy 2021 Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Page 15

New Economy Update on production capacities 2016-2021 1. PHA 75 kt > 200 kt 2. PLA 220 kt > 605 kt 3. Biodegradable polyester (PBAT, PBS, PCL) 240 kt > 505 kt 4. Starch blends 190 kt > 295 kt 5. PTT 120 kt > 165 kt 6. Bio-PA 95 kt > 110 kt 7. Bio-PET 30 850 kt > 7 MT (but expected max. 1 MT)** 8. Bio-PE 200 kt ~ identical ** Deviations possible by changes in Coca-Cola s Bio-PET strategy. Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Page 16

Prices and trends Seite 17

Feedstock for bioplastics Seite 18

Process routes and land use Seite 19

Old vs. New Economy Land use 2016 Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Page 20

Global land use Figures: IfBB Data sources: FAO, IfBB 2013 2017 IfBB Biopolymers, facts and statistics 2017, ISSN 2510-3431 Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Page 21

Where does responsibility begin? WASTE Germans throwing away ridiculous amount of food German households throw away 3.5 million tonnes of food every year. This was shared by the federal government on a request by the Green Party. A further 1.7 million tonnes are being disposed by agricultural industry, although it would be avoidable, and another 1.5 million tonnes are lost in the production sector. The Green Party accused the government of inaction. Especially canteens were in the spotlight: Case studies at eleven all-day schools showed that around a quarter of the amount of produced food was disposed. German newspaper: Welt am Sonntag, 11.06.2017 Source: Heinrich-Böll- Stiftung, BUND and Le Monde Diplomatique With less waste, areas in Germany would be set free to possibly grow feedstocks for up to 7 million tonnes of bioplastics. Webinar Land use (German), 15.06.2017 Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Page 22

Current developments To provide some context: So far mankind has produced around 8.3 billion tonnes of plastics. Every year, almost 26 million tonnes of plastic waste are produced in Europe: 30 % >>>>> Recycling 70 % >>>>> Export, landfill, incinceration (with or without energy recovery) and littering Germany annually exports 1.5 million tonnes of plastic waste to China. EU Waste Directive + Plastic Strategy 2030 of the European Commission Aims EU-wide packaging recycling rates up to 2025: 65% and up to 2030: 70% All packaging material should be recyclable up to 2030 Promotion of biodegradable substitute products through EU programmes Establishment of waste collection facilities for ships in ports (prevention of waste disposal at sea) Combating micro-plastic particles e.g. in cosmetic preparations and against oxodegradable plastics German Packaging Act ( Verpackungsgesetz ) come into power at 01.01.2019 and replaces previous packaging ordinance ( Verpackungsverordnung ) Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Page 24

Summary Average growth of more than 350 %, mostly in Asia (> 80 % until 2021)*: 2.0 million tonnes 9.2 million tonnes Driver: Biobased, non-biodegradable (Bio-PE, Bio-PET 30 etc.)*: 63 % (2016) 82 % (2021) Biodegradables (PLA, PHA, starch blends etc.) growing steadily: 0.7 Mio. t. (2016) 1.6 Mio. t. (2021) Packaging still most important application sector: 70 % (2016) ~ 83 % (2021)* Land use doubles, but is overall low: 670,000 ha (2016) 1,320,000 ha (2021)* * Deviations possible by changes in Coca-Cola s Bio-PET strategy. Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Page 26

Links IfBB Institute for Bioplastics and Biocomposites Link Events Link Frequently asked questions on bioplastics (FAQ) Link Biopolymers - Facts & statistics 2017 Link Research projects at IfBB Link Webinar recordings and slides Link (available free of charge) Sign up to IfBB-Newsletter Link Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Page 28

Contact Christian Schulz Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe Heisterbergallee 10A 30453 Hannover Tel +49 5 11 / 9296 22 68 Fax +49 5 11 / 9296 99 22 68 E-Mail christian.schulz@hs-hannover.de www.ifbb-hannover.de Hochschule Hannover IfBB Institut für Biokunststoffe und Bioverbundwerkstoffe www.ifbb-hannover.de Seite 29