The world polylactic acid market was worth $305.6 million in 2014 and is projected to grow at a CAGR of 15.9% during 2015-2020 owing to the rising environmental awareness, increasing popularity of newer applications and the favorable government policies. The new report by Allied Market Research titled, “World Polylactic Acid – Market Opportunities and Forecast, 2014 – 2020”, notes that packaging application segment would continue to dominate the world polylactic acid market during 2014-2020.
Polylactic acid (PLA) is a biodegradable and compostable thermoplastic produced from fermentable sugar available in various renewable sources, such as corn starch, sugarcane, tapioca roots and wheat. Easy availability of low cost raw material would drive the market growth. Furthermore, increasing popularity of newer applications (like coated cellophane, agricultural mulching, non-woven fibers, and active packaging among others) across various end user industries such as food and beverage packaging, agriculture, electronics, textiles, Bio medical and others would open new growth avenues in the world polylactic acid market. However, factors such as high production cost, need for industrial composting, popularity of competing alternatives for renewable packaging such as Bio- PE, PHA, and Bio-PET would impede the PLA market growth.
Packaging is the most prominent end use and accounted for about half of the PLA revenues in 2014. The eco-friendly properties of PLA based material and its great potential for short-lifespan packaging majorly supplements the uptake of polylactic acid. Governments imposing ban on conventional fossil fuel-based plastic bags and providing incentives for bio-based PLA production are also providing additional growth thrusts.
Key findings of the study:
- Bio-medical application segment would register the highest CAGR of 22.4%, in terms of volume, from 2015-2020.
- In terms of revenue, Asia Pacific market is expected to resister the highest CAGR during the forecast period
- China is projected to be one of the most lucrative markets in the Asia Pacific region during 2014-2020.
The North America consumed about half of the total PLA production in 2014 and would continue to have increased consumption over the forecast period with over 85% of the PLA production facilities currently located in North America. Europe is estimated to be the second largest market in terms of consumption largely due to supportive legal framework and consumer awareness towards sustainability.
The major players in the market are adopting expansion as the most preferred strategic approach to penetrate into untapped markets. The report provides a comprehensive analysis of the key companies operating in the market such as NatureWorks LLC, Synbra Technology BV, Corbion Purac, Zhejiang Hisun Biomaterials Co., Ltd, Nantong Jiuding Biological Engineering Co., Ltd, Chongqing Bofei Biochemical Products Co.,Ltd., and Futerro among others.
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