Download as pdf or txt
Download as pdf or txt
You are on page 1of 6

Industry Report

Biobased Building Blocks and Polymers in the World:


Capacities, Production, and Applications–Status Quo and Trends Towards 2020

Florence Aeschelmann and Michael Carus market study as its main data source for their recently published
market data. For European Bioplastics’s selection of biobased
nova-Institute, Hürth, Germany polymers, which differs from nova-Institute’s selection, bio-
based polymers production capacities are projected to grow by
more than 400% by 2018, from 1.6 million tonnes in 2013 to 6.7
Introduction million tonnes in 2018 in absolute terms. The market is clearly

T
he following report is an update of a market study of dominated by biobased and non-biodegradable polymers. Drop-
biobased polymers released 2 years ago by nova- in biobased polymers such as polyethylene terephthalate (PET)
Institute. This update expands the range of the initial and polyethylene (PE) lead this category. Drop-in biobased
market study and includes biobased building blocks as polymers are chemically identical to their petrochemical coun-
precursors of biobased polymers. Table 1 gives an overview on terparts but at least partially derived from biomass. European
the covered biobased polymers and the producing companies Bioplastics uses plastic as a synonym for polymer.
with their locations and production capacities in 2013. The global capacities in 2013 and 2018 have been split by
material type in Table 2. Biobased PET is the overall market
Share of Biobased Polymers leader and is expected to grow at a quick rate, from 37% in
in the Total Polymer Market 2013 to 74% in 2018. As a consequence, the biobased non-
The biobased share for structural polymers, which are the focus biodegradable polymers market is expected to grow strongly as
of the study, is 2%. For polymers overall, however, the biobased well since biobased PET is part of this category. In 2013 a
share is even higher (8.3%) because of the higher biobased shares distant second behind biobased PET was biobased PE, which
in rubber (natural rubber, 43%) and manmade fibers (mainly was closely followed by polylactic acid (PLA), starch blends,
cellulosic fibers, 11%). In 2011, these shares were 1.5% and and biodegradable polyesters such as polybutylene succinate
8.2%, respectively. The biobased share is clearly growing at a (PBS) and poly(butylene adipate-co-terephthalate) (PBAT).
faster rate than that of the global polymer market (Fig. 1). However, in 2018, PLA would be second, followed by biode-
This study focuses exclusively on biobased building block and gradable polyesters, starch blends, and biobased PE. This
polymer producers, and the market data therefore do not cover the means that PLA’s production capacity could increase more
biobased plastics branch. We must clearly differentiate between than biobased PE’s.
these two terms. A polymer is a chemical compound consisting of European Bioplastics’s selection of biobased polymers and
repeating structural units (monomers) synthesized through a po- time span differ from nova- Institute’s. nova-Institute decided to
lymerization or fermentation process, whereas a plastic material cover further biobased polymers by including biobased ther-
constitutes a blend of one or more polymers and additives. mosets (epoxies, polyurethanes [PUR], and ethylene propylene
diene monomer [EPDM] rubber) and cellulose acetate [CA] until
Biobased Polymers 2020. Production capacity of biobased polymers will triple from
In 2014, for the first time, the European Bioplastics associa- 5.2 million tonnes in 2013 to nearly 17 million tonnes by 2020.
tion (http://en.european-bioplastics.org) used nova-Institute’s The production capacity for biobased polymers boasts very im-
pressive development and annual growth rates, with a compound
annual growth rate (CAGR) of almost 20% in comparison to
EDITOR’S NOTE: This is a condensed version of a report petrochemical polymers, which have a CAGR between 3–4%.
developed by the authors together with ten international ex- Due to their broader scope, nova-Institute’s projected production
perts. The full market study is available at www.bio- capacities are much higher than those projected by European
based.eu/markets. The information and views contained in Bioplastics.
this Industry Report are those of the authors. They do not The 5.2 million tonnes represent a 2% share of overall
necessarily represent the views of Industrial Biotechnology structural polymer production at 256 million tonnes in 2013.
journal, Mary Ann Liebert, Inc., publishers, or their affiliates. This biobased share of overall polymer production has been
None of the above organizations or companies, and no per- growing over the years: it was 1.5% in 2011 (3.5 million tonnes
sons acting on their behalf are responsible for the use of the biobased for a global production of 235 million tonnes). With an
information contained in this publication. expected total polymer production of about 400 million tonnes
in 2020, the biobased share should increase from 2% in 2013 to

154 INDUSTRIAL BIOTECHNOLOGY J U N E 2 0 1 5 DOI: 10.1089/ind.2015.28999.fae


BIOBASED BUILDING BLOCKS AND POLYMERS

Table 1. Biobased Polymers, Short Names, Current Biobased Carbon Content, Producing Companies with Locations
and Production Capacities in 2013
PRODUCING PRODUCTION
SHORT CURRENT BIOBASED COMPANIES IN 2013 LOCATIONS IN 2013 CAPACITIES IN
BIOBASED POLYMERS NAME CARBON CONTENTa AND UNTIL 2020 AND UNTIL 2020 2013 (TONNES)
Cellulose acetate CA 50% 17 20 850,000

Epoxies – 30% – – 1,210,000

Ethylene propylene diene monomer rubber EPDM 50–70% 1 1 45,000

Polyamides PA 40–100% 9 11 85,000


b
Poly(butylene adipate-co-terephthalate) PBAT Up to 50% 4 5 75,000
b
Polybutylene succinate PBS Up to 100% 10 11 100,000

Polyethylene PE 100% 1 1 200,000

Polyethylene terephthalate PET 20% 5 5 600,000

Polyhydroxyalkanoates PHA 100% 14 16 32,000

Polylactic acid PLA 100% 28 34 195,000

Polytrimethylene terephthalate PTT 27% 1 2 110,000

Polyurethanes PUR 10–100% 7 7 1,200,000


c
Starch blends – 25–100% 15 16 430,000

Total – – 112 129 5,132,000


a
Biobased carbon content: fraction of carbon derived from biomass in a product (EN 16575 Bio-based products – Vocabulary).
b
Currently still mostly fossil-based with existing drop-in solutions and a steady upward trend.
c
Starch in plastic compound.

more than 4% in 2020, meaning that biobased production ca- Polyurethanes. PUR can be 10–100% biobased and are pro-
pacity will grow faster than overall production. duced from natural oil polyols (NOP). Biobased succinic acid
The most dynamic development is foreseen for drop-in bio- can be used to replace adipic acid. The global PUR market
based polymers, but this is closely followed by new biobased (including petro-based PUR) is continuously growing but the
polymers. Drop-in biobased polymers are spearheaded by partly biobased PUR market is expected to grow faster.
biobased PET, the production capacity of which was around
600,000 tonnes in 2013 and is projected to reach about 7 million Cellulose acetate. CA is 50% biobased. This market is similar
tonnes by 2020, using bioethanol from sugar cane. Biobased to that of epoxies: well established, for example cigarette filters
PET production is expanding at high rates worldwide, largely are made from CA, with small growth.
due to the Plant PET Technology Collaborative (PTC) initiative
launched by The Coca-Cola Company. The second most dy- Polyethylene terephthalate. PET is currently 20% biobased and
namic development is foreseen for polyhydroxyalkanoates produced out of biobased monoethylene glycol (MEG) and ter-
(PHA), which, contrary to biobased PET, are new polymers, but ephthalic acid (TPA) as a drop-in biobased polymer. TPA is cur-
still have similar growth rates to those of biobased PET. PLA rently still petro-based but subject to ongoing R&D. Biobased TPA
and biobased PUR are showing impressive growth as well: their can be produced at pilot scale. Most biobased PET and MEG are
production capacities are expected to almost quadruple between produced in Asia. Biobased PET is one of the leaders of the bio-
2013 and 2020. based polymers market and is slated to become the biobased
polymer with the biggest production capacity by far. This is largely
PRODUCTS WITH WELL-ESTABLISHED MARKETS due to the PTC initiative launched by The Coca Cola Company.
Epoxies. Epoxies are approximately 30% biobased (only
biobased carbon content, defined as fraction of carbon derived OTHER BIOBASED POLYMERS
from biomass, considered in this report) and are produced out of Biobased epoxies, PUR, CA and PET have huge production
biobased epichlorohydrin. The market is well established and is capacities with a well-established market in comparison with
not expected to grow much since epoxies have already long been other biobased polymers. However, other biobased polymers,
partly biobased. such as those listed below, show strong growth as well. Some

ª M A R Y A N N L I E B E R T , I N C .  VOL. 11 NO. 3  JUNE 2015 INDUSTRIAL BIOTECHNOLOGY 155


AESCHELMANN AND CARUS

Fig. 1. Polymers worldwide with biobased shares, 2013 (nova-Institute 2015).

of these polymers are brand new biobased polymers. That Ethylene propylene diene monomer rubber. EPDM is made out
is why their markets are smaller and need to be developed of biobased ethylene and can be 50–70% biobased. Specialty
correspondingly. chemicals company Lanxess is currently producing biobased
EPDM in Brazil. The market is small and is not expect to grow in
Polytrimethylene terephthalate (PTT). PTT is 27% biobased and the coming years.
made out of biobased 1,3-propanediol (1,3-PDO) and currently
petro-based TPA. PTT is similar to PET since both have TPA as Polyethylene. PE is a 100% biobased drop-in polymer. The
precursor. Biobased PTT and 1,3-PDO are produced by one biobased building block needed is ethylene, which is made out
leading company, DuPont. The market is well established and is of sugar cane. Brazilian petrochemical company Braskem pro-
not expected to grow much. duces biobased PE in Brazil. Biobased PE has been on the
market for a few years but its production capacity has hitherto
Polyethylene furanoate (PEF). PEF is 100% biobased and is remained the same. Further developments have been slowed
produced out of biobased 2,5-furandicarboxylic acid (2,5- down because of the shale gas boom.
FDCA) and MEG. PEF is a new polymer that is expected to enter
the market in 2017. Just as PTT, PEF is similar to PET. Both Polybutylene succinate. PBS is biodegradable and currently
PEF and PET are used in bottle production, however PEF is said mostly fossil-based but could in theory be 100% biobased. PBS
to have better properties, such as better barrier properties, than is produced from 1,4-butanediol (1,4-BDO) and succinic acid.
PET. Technology company Avantium is heavily involved in the Both building blocks are available biobased but 1,4-BDO is not
development of PEF and is planning a 2017 launch. commercially available yet; this is expected in 2015. PBS is

156 INDUSTRIAL BIOTECHNOLOGY J U N E 2 0 1 5


BIOBASED BUILDING BLOCKS AND POLYMERS

Table 2. Global Production Capacities of Bioplastics Evonik has recently developed a polyamide based on palm
by Material Type, 2013 and 2018a kernel oil. The market, which is expected to grow moderately, is
headed by one big player, Arkema.
MATERIAL TYPE 2013 (%) 2018 (%)
Biobased/Non-biodegradable 62.4 83.3 Polyhydroxyalkanoates (PHA). PHA are 100% biobased and
Bio-PET30 b
37.0 74.3 biodegradable even in cold sea water. PHA are produced
through a fermentation process mainly by specific bacteria.
Bio-PE 12.3 3.0
Many different companies are involved in the production of
PTT 6.8 1.6 PHA. The market is currently very small but is expected to grow
tremendously. The joint venture Telles, set by Metabolix and
Bio-PA 4.9 1.5
ADM in 2006, aimed at big capacity but hardly sold any PHA
Bio-PVC – 1.2 and subsequently collapsed in 2012. PHA are brand new poly-
Other 1.4 c
1.7d
mers, which means their market still needs time to fully develop.
Nevertheless PHA producers and several new players are opti-
Biodegradable 37.6 16.7 mistic and see potential in PHA. Therefore, production capacity
PLA 11.4 6.5
is expected to have grown 10-fold by 2020.

Starch blends 11.3 3.1 Starch blends. These are completely biodegradable and 25–
Polyesters e
10.8 5.5 100% biobased, with starch added to one or several biodegradable
polymers. Many players are involved in the production of starch
PHA 2.1 1.1 blends, but the Italian company Novamont is currently the market
Regenerated cellulose 1.7 – leader. The market is expected to keep on growing, with pro-
duction capacity projected to double between 2013 and 2020.
f
Other 0.3 0.5g

Total 1.62 million tonnes 6.73 million tonnes Polylactic acid. PLA is 100% biobased and biodegradable but
a
only under certain conditions. PLA is industrially compostable.
Source: European Bioplastics, Institute for Bioplastics and Biocomposites, nova-
Produced by numerous companies worldwide, with Nature-
Institute, 2014.
b
Works as market leader, PLA is the most well established new
Biobased content amounts to 30%, increase of volume subject to realization of
biobased polymer. However, the PLA market is still expected to
planned production facilities.
c
grow further, with a projected 4-fold growth between 2013 and
Contains durable starch blends, Bio-PC, Bio-TPE, Bio-PUR (except thermosets). 2020. PLA can already be found at near-comparable prices to
d
Contains durable starch blends, Bio-PC, Bio-TPE, Bio-PUR (except thermosets), fossil-based polymers.
Bio-PP, PEF.
e
Contains PBAT, PBS, PCL.
f
SUMMARY OF BIOBASED POLYMERS
Biodegradable cellulose ester.
g
In short, the most dynamic development is expected for biobased
Contains regenerated cellulose and biodegradable cellulose ester. PET, with a projected production capacity of about 7 million tonnes
by 2020. Second in the drop-in polymers group are biobased
polyurethanes. Regardless, new biobased polymers such as PLA
and PHA are showing impressive growth as well: PLA production
currently produced exclusively in Asia. It is expected to grow capacity is expected to almost quadruple and PHA production
and profit from the availability and lower cost of biobased capacity is expected to grow 10-fold between 2013 and 2020.
succinic acid.
Biobased Building Blocks as a Precursor
Poly(butylene adipate-co-terephthalate). PBAT is also currently of Biobased Polymers
mostly fossil-based. PBAT is produced from 1,4-BDO, TPA, and The total production capacity of the biobased building blocks
adipic acid. PBAT is biodegradable. PBAT can theoretically be up reviewed in this study was 2 million tonnes in 2013 and is ex-
to 50% biobased since biobased adipic acid is not available yet. It pected to reach 4.4 million tonnes in 2020, which means a CAGR
is still at the research stage. PBAT has mostly been produced by of almost 12%. Contrary to biobased polymers, most of which
one big company, BASF, but a new player, Jinhui Zhaolong High are still partly biobased, biobased building blocks are 100%
Technology, entered the market and another one, Samsung Fine biobased. This explains why the total production capacity of
Chemicals, which has a relatively small production capacity at the biobased building blocks is considerably lower than the total
moment, is planning to extend its production capacity. production capacity of biobased polymers. On the other hand, we
are currently witnessing the development of integrated bio-
Polyamides (PA). PA are a big family since there are many refinery facilities that produce both biobased building blocks and
different types of polyamides. This explains the wide range of polymers. This makes tracking production capacities a little more
biobased carbon content: from 40–100%. Polyamides are gen- complicated. The most dynamic developments are spearheaded
erally based on sebacic acid, which is produced from castor oil. by succinic acid and 1,4-BDO, with MEG as a distant runner-up.

ª M A R Y A N N L I E B E R T , I N C .  VOL. 11 NO. 3  JUNE 2015 INDUSTRIAL BIOTECHNOLOGY 157


AESCHELMANN AND CARUS

Biobased MEG, L-lactic acid (L-LA), ethylene, and epichlo- 2,3-BUTANEDIOL (2,3-BDO)
rohydrin are relatively well established on the market. These 2,3-BDO is another isomer of butanediol. Global Bio-Chem
biobased building blocks cover most of the total production ca- Technology Group, based in China, is currently producing 2,3-
pacity. They are expected to keep on growing, especially biobased BDO, which they obtain by processing corn.
MEG and ethylene, whereas L-LA and biobased epichlorohydrin
are projected to grow at a lower rate. Both are brand new drop-in 1,3-PROPANEDIOL
biobased building blocks on the market. The first facilities are 1,3-PDO is one of PTT’s building blocks. 1,3-PDO is mostly
currently running and more will be built in the coming years. produced from corn by DuPont. The market is well established
and is not expected to grow much.
MONOETHYLENE GLYCOL
MEG is one of PET’s building blocks. Biobased MEG is a 2,5-FURANDICARBOXYLIC ACID
drop-in that is mostly produced in Asia. The very fast increase in 2,5-FDCA can be combined with MEG to produce PEF. 2,5-
biobased PET production has had a considerable impact on the FDCA is a brand new building block that is expected to come to
production capacities of biobased MEG. the market in 2017. Avantium is deeply involved in 2,5-FDCA but
others are also showing interest.
L-LACTIC ACID
L-LA is PLA’s building block, together with D-lactic acid (D-
LA). Both are optical isomers of LA. L-LA is much more
Investment by Region
Most investment in new biobased polymer capacities will take
common than D-LA since D-LA is more complicated to pro-
place in Asia because of better access to feedstock and a favorable
duce. Lactide is an intermediate between LA and PLA. It can be
political framework. Table 3 shows the 2013 and 2018 global
bought as such to produce PLA. A lot of different companies are
production capacities for biobased polymers repartitioned by re-
involved in this business worldwide since most LA has long
gion. European Bioplastics published these market data, which
been used in the food industry as, among other things, a food
take into account fewer types of biobased polymers than nova-
preservative, pH regulator, and flavoring agent. The production
Institute. Due to the complexity of the manufacturing value chain
capacities do not only include LA used for polymer production,
structure of epoxies, PUR, and cellulose acetate, the breakdown by
but also for the food industry. It is estimated that more than half
region cannot be reliably determined for all biobased polymers.
of LA is used by the food industry.
Europe’s share is projected to decrease from 17.3–7.6%, and
North America’s share is set to fall from 18.4-4.3%, whereas
ETHYLENE Asia’s is predicted to increase from 51.4-75.8%. South America
Ethylene is PE’s building block. Biobased ethylene is cur- is likely to remain constant with a share at around 12%. In other
rently made from sugar cane in Brazil. Further developments words, world market shares are expected to shift dramatically.
have slowed down because of a sudden extreme price drop in Asia is predicted to experience most of the developments in the
petro-based ethylene due to the shale gas boom. field of biobased building block and polymer production, while
Europe and North America are slated to lose more than a half and
EPICHLOROHYDRIN just over three quarters of their shares, respectively.
Epichlorohydrin is one of the building blocks of epoxies.
Glycerin, which is a byproduct of the production of biodiesel, is Production Capacities in Europe
used as feedstock. Europe’s position in producing biobased polymers is limited
to just a few polymers. Europe has so far established a solid
SUCCINIC ACID position mainly in the field of starch blends and is expected to
Succinic acid is a very versatile building block. Biobased
polymers such as PBS can be made of succinic acid but also
other biobased building blocks such as 1,4-BDO. It can be used Table 3. Global Production Capacities of Bioplastics
as well in PUR to replace adipic acid. However, the market still by Region, 2013 and 2018a
has to be developed. Petro-based succinic acid is not a big REGION 2013 (%) 2018 (%)
market since petro-based succinic acid is relatively expensive. Asia 51.4 75.8
Biobased succinic acid is actually cheaper than its petro-based
counterpart. The first facilities have been running since 2013 South America 12.3 12.2
and the next ones are already in the pipeline. North America 18.4 4.3

Europe 17.3 7.6


1,4-BUTANEDIOL
1,4-BDO is also a versatile building block. At the moment no Australia/Oceania 0.6 0.1
facility able to produce commercial quantities is running but the Total 1.62 million tonnes 6.73 million tonnes
first one is expected in 2015. 1,4-BDO can directly be produced
a
from biomass or indirectly from succinic acid. Since biobased Source: European Bioplastics, Institute for Bioplastics and Biocomposites, nova-
succinic acid is relatively new to the market, this partly explains Institute, 2014.
why 1,4-BDO is still not commercially available.

158 INDUSTRIAL BIOTECHNOLOGY J U N E 2 0 1 5


BIOBASED BUILDING BLOCKS AND POLYMERS

remain strong in this sector for the next few years. Nevertheless,
Table 4. Worldwide Shares of Biobased Polymers Production
a number of developments and investments are foreseen in in Different Market Segments, 2013 and 2020
Europe. PLA production capacities, especially starch blend
production capacities, are predicted to grow. The growth of MARKET SEGMENT 2013 (%) 2020 (%)
these increased production capacities for starch blends can be Packaging—rigid Iincluding food serviceware 14 40
traced back to Italy’s Novamont, a leading company in this field.
Functional 2 2
One noteworthy finding of other studies is that Europe shows the
strongest demand for biobased polymers, while production tends Packaging—flexible 9 6
to take place elsewhere, namely in Asia. In Europe, biobased Automotive and transports 16 13
polymer production facilities for PLA are not only small in size
but also small in number. On the other hand, biobased PA and Textiles (including non-woven and fibers) 18 8
CA production is based in Europe and is likely to continue Electrical and electronics (including casing) 4 2
supplying for the growing markets of the building and con-
struction and automotive sectors. Agriculture and horticulture 3 2
Europe does have industrial production facilities for PBAT, Building and construction 15 11
which is still fully fossil-based. However, judging by industry
announcements and the ever-increasing capacity of its bio- Consumer goods 18 16
based precursors, PBAT is expected to be increasingly bio- Others 1 –
based, with a projected 50% share by 2020. Housing the
leading chemical corporations, Europe is particularly strong
and has great potential in the fields of high value fine chemicals
and building blocks for the production of inter alia biobased
PA, PUR, and thermosets. However, only few specific, large- The order of importance of the market segments is expected to
scale plans for biobased building blocks incorporating concrete stay approximately the same between 2013 and 2018, according
plans for the production of biobased polymers have been an- to European Bioplastics’ projections. Rigid packaging is sup-
nounced to date. posed to keep its first place by growing tremendously with an
The European Union’s relatively weak position in the pro- almost 7-fold growth in only 5 years. This is again due to the
duction of biobased polymers is largely the consequence of an very fast development of biobased PET. However, the auto-
unfavorable political framework. In contrast to bioenergy and motive sector is projected to gain faster importance than con-
biofuels, there is no European policy framework to support sumer goods and agriculture sectors. Automotive is actually
biobased polymers, whereas bioenergy and biofuels receive the second most dynamic after rigid packaging and is followed
strong and ongoing support during commercial production by electronics, a sector which is still very small, followed by
(quotas, tax incentives, green electricity regulations, market textiles, which is already well established on the global market.
introduction programs, etc.). Without comparable support, Table 4 shows the worldwide shares of biobased polymers
biobased chemicals and polymers will suffer further from un- production in different market segments in 2013 and 2020 for
derinvestment by the private sector. It is currently much safer nova-Institute’s scope of biobased polymers (with thermosets and
and much more attractive to invest in biobased polymers in Asia, cellulose acetate). The same statement can be made regarding the
South America, and even North America. packaging sector: packaging (rigid and flexible together) is the
leader, with a clear advantage for rigid packaging, which is slated
Market Segments to grow strongly. On the other hand, automotive, building
The packaging industry consumes most petro-based poly- and construction, textiles and consumer goods are much bigger
mers. For biobased polymers, the same trend can be observed: because biobased epoxies, polyurethanes, and cellulose acetate
the major part of this as rigid packaging (bottles, for example) are used in these sectors. The smallest market segments are ag-
and the rest as flexible packaging (films, for example). These riculture and functional. In agriculture, applications are mostly
uses cannot come as a surprise, since biobased PET is one of the limited to biodegradable polymers (mulch films), which are
biggest biobased polymers in terms of capacity and is mostly clearly not a market leader in terms of capacities–but depending
used for the production of bottles. On the other hand, the on future policy on plastic microparticles, mulch films and
packaging industry has a considerable interest in biodegrad- other biodegradable applications could grow strongly. Functional
ability since packaging is only needed for short times but in big polymers are used for coatings, adhesives, paint, and ink appli-
quantities, which contributes to the accumulation of waste. It cations, which require relatively small quantities of polymers.
should be understood that not all biobased polymers are bio-
degradable but some important ones are, e.g., PHA, PLA, and
starch blends. This feature is also interesting for agriculture and Florence Aeschelmann is a Staff Scientist in the Technology & Markets
horticulture applications (mulch films, for example). However, department and Michael Carus is Founder and Managing Director of
biobased polymers are also used in many different other market nova-Institute, Hürth, Germany.
segments, including textiles, automotive and transports, con- Contact: Florence Aeschelmann, Staff Scientist, nova-Institute, Chemiepark
sumer goods, building and construction, and electrical and Knapsack, Industriestrasse 300, 50354 Hürth, Germany. Phone: + 49 22 33-48-14-
electronics. 40; Fax: + 49 22 33-48-14-50; Email: florence.aeschelmann@nova-institut.de

ª M A R Y A N N L I E B E R T , I N C .  VOL. 11 NO. 3  JUNE 2015 INDUSTRIAL BIOTECHNOLOGY 159

You might also like