The bioplastics industry in Europe has experienced its first boom in market development during the year 2006. This result emerged from a recent survey conducted by the industry association European Bioplastics amongst its 66 members. The intention was to gather information on the state of the art in the bioplastics industry and the market development in Europe. The questions covered issues such as production, new products, converters, development of sales, and market highlights of the year 2006, as well as expectations for 2007. Growth in part of up to 100% on the previous year is anticipated by manufacturers, particularly in biopackaging. Numerous chains of stores throughout Europe are introducing biopackaging in response to the growing number of consumers who are concerned with depletion of fossil resources and climate change. According to the Association survey, companies in this sector expect continued strong positive growth in 2007.

In a preliminary review of the year 2006 the bioplastics industry reported a strong increase in demand. Us Users’ interest has grown across all product sectors. In bioplastics film packaging the very beginning of a boom is evidenced by the strong growth. Businesses attribute this largely to three aspects: raised consumer environmental awareness, companies being increasingly prepared to actively support sustainable development, and the sharp rise in raw material and energy prices. "Bioplastics are regarded as an innovative solution" concludes Harald Kaeb, Association Chairman. Similarly to organic food and bioenergy, the emergence of bioplastics is a result of changing attitudes in business and society.

Both the use of renewable resources as well as the biodegradability and compostability of many bioplastics products have become convincing sales and benefits arguments. Technical development of the special materials characteristics of bioplastics has progressed to the point where bioplastics are increasingly gaining a competitive edge. Material properties such as the excellent printability with no need for pre-treatment and the glossiness and barrier against gas, oils and fats, can be advantageous in specific applications, e.g. for fresh produce packaging. Products such as carrier bags which can subsequently be used in the home as biowaste bags, or catering articles and mulch films provide the benefit of a biological waste management option after use.

The positive trend is most evident in Great Britain, Europe’s pioneering country for biopackaging. In September a leading supermarket chain announced that it would change over 500 product lines to biopackaging. The objective is to save 4,000 tons of fossil-based plastics annually. Other British retailers also plan to increasingly adopt bioplastics. Biopackaging can now be found on supermarket shelves right across Europe.

European Bioplastics has published information based on its members' survey which outlines product development innovations and growth in production capacity. The number of products, producers and industrial users has increased in equal measure. As such, bioplastics are well on the way to achieving the leap from niche market presence to a broader introduction in the medium term.

Bioplastics market share of total plastics consumption in Europe currently accounts for less than one percent. Following extended development and trial phases, bioplastics products now have become fit for market in specific application sectors. This is a pre-condition for dynamic growth. Encouraged by rapidly growing demand, manufacturers have continued to expand production capacities. However to exploit the application potential that has become evident, further significant investments will be required in the future.

Given the high cost and a lead time of at least two years until a new manufacturing plant comes on stream, investors need to be wary of making decisions based on short- term criteria. The question arises as to whether measures should be created to support the market introduction of innovative renewable products in Europe. The established legal framework made it possible for the renewable energy and biofuels sector to become the growth and innovation powerhouse it is regarded as today. Renewable products lack such measures on a European level. Improved framework conditions for the renewable products sector would not only accelerate the desired sustainable development. It would also further strengthen the international competitiveness of Europe in important innovation areas such as bioplastics technology.

The results of the Association’s survey indicate that companies from this sector anticipate continued strong positive growth in 2007.