Cereplast, a manufacturer of bio-based, sustainable plastics, expects the U.S. bio-plastics market to top $10 billion in sales by 2020. As of 2007, the U.S. bio-plastics market accounted for approximately $1 billion in sales. Some estimates point to bio-plastics capturing up to 30% of the total plastics market within 10 years.
Cereplast founder and CEO Frederic Scheer said green initiatives by the Obama administration and increasing consumer demand for compostable and renewable plastics are pushing the market.
“American consumers are pushing major manufacturers and retailers to make the switch to environmentally conscious solutions,” Scheer said. “Many of the largest retailers have already made in-roads with programs designed to adopt alternative packaging, including Walmart and Coca-Cola.”
Cereplast has been developing technology to transform algae into bio-plastics and intends to launch a new family of algae-based resins. The algae-based resins could replace 50% or more of the petroleum content used in traditional plastic resins. Currently, Cereplast is using renewable material such as starches from corn, tapioca, wheat and potatoes.
According to a study by Helmut Kaiser Consultancy, by 2025 Europe will account for 31%, the U.S. 28% and Asia 32% of the total market for bio-plastics. New applications and innovations in the automotive and electronics industries are helping fuel the boom; however, consumer packaging still garners the most attention.