Asia-Pacific Polylactic Acid

Asia-Pacific Polylactic Acid Market Research Report: Forecast (2021-2026)

By Product Form (Films and Sheets, Coatings, Fibers, Other), By Application (Agriculture, Electronics, Packaging, Textiles, Transport, Others), By Raw-Material (Corn, Sugarcane & Sugar Beet, Cassava, Read more

  • Chemicals
  • Jan 2022
  • 196
  • CM10248

Market Definition

Owing to the rising environmental concerns, scarcity of natural resources, and volatility in fossil fuel prices, governments & companies across Asia-Pacific are taking several initiatives to find & adopt substitutes of oil-based products. Bio-based products have great potential to minimize the consumption of petroleum-derived materials, which can further help reduce the adverse impact of increasing carbon footprints on the environment.

Polylactic acid, a bio-based product, is a thermoplastic aliphatic polyester formed using renewable resources like corn, sugarcane, beetroot, cassava, plant feed, etc. It is used for making various sustainable plastic-based products like poly bags, films, fiber cables, etc. Across Asia-Pacific, it is utilized extensively to minimize pollution levels & the dependency on petroleum-based plastic products.

Market insights

The Asia-Pacific Polylactic Acid Market is anticipated to grow at a CAGR of around 16% during the forecast period, i.e., 2021-26. The major factors attributing to the polylactic acid market growth are rising adoption of biodegradable products and surging price competitiveness compared to petrochemical-based plastic. In addition, polylactic acid is lightweight & extensively used in manufacturing a wide range of additives that can be blended with other materials, which, in turn, propels the overall market growth.

Polylactic acid is derived using corn, plant feed, sugarcane, etc. Since Asia-Pacific has a huge potential to grow sugarcane & corn, it further supports the growth of the polylactic acid market in the region. Moreover, the extensive manufacturing capabilities of China and surging investments in developing new polylactic acid production plants in Thailand are also projected to boost the market. Asia-Pacific Polylactic Acid Market growth. According to the Chinese government's Jilin Provincial Commercial Information Center, the country's PLA demand stood at around 160,000-180,000 tons in 2019, which is expected to rise by 15% to 25% in the upcoming years.

Moreover, the biodegradable property of polylactic acid makes it an eco-friendly material. Thus, rising awareness regarding the need to reduce environmental pollution is encouraging the adoption of polylactic acid across Asia-Pacific. It has a wide range of applications across several fields, including plastic household products, packaging materials, internal fixation of bone fracture, surgical sutures, textile fabrics, carpets, and household decorations.

 

Report Coverage Details
Study Period Historical Data: 2016-19
Base Year: 2020
Forecast Period: 2021-26
CAGR 16%
Countries Covered China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Vietnam
Key Companies Profiled Natureworks Llc., BASF, Mitsubishi Chemical Holding Corporation, Zhejiang Hisun Biomaterials Co Ltd, Futerro Sa, BEWiSynbra, Teijin Limited, Thyssenkrupp Ag, Green Dot Bioplastics, Good Natured Products Inc, Total Corbion Pla
Unit Denominations USD Million/Billion

 

Impact of the Covid-19 on the Asia-Pacific Polylactic Acid Market

  • The Covid-19 pandemic in 2020 led to macroeconomic uncertainty and affected several business activities. China, the epicenter of the outbreak, adversely impacted the economic activities across the Asia-Pacific region.
  • The government of countries like India, China, Japan, South Korea, etc., imposed nationwide lockdowns, including stringent restrictions in social gatherings & travel.
  • However, amidst the pandemic, the demand for personal protective equipment registered an increased momentum, which, in turn, propelled the need for polylactic acid-based products.
  • Additionally, the increasing demand for face protection masks & shields also led to the surging usage of polylactic acid. 
  • Due to the lockdown measures & movement restrictions, the food packaging services and online food deliveries witnessed astronomical growth, which accelerated the demand for polylactic acid.
  • With an environment-friendly & bio-degradable nature, Polylactic Acid-based material witnessed increased adoption.
  • One of the key players in the Polylactic Acid Market, ‘Corbion,’ experienced significant growth opportunities amidst the pandemic. The company’s growth in 2020 was beyond expectations than initially forecasted.
  • The prime reason behind this was a reduction in transportation/travel costs. Along with this, the leader reported a 6.2% organic increase in net sales of Lactic Acid & Specialties in 2020.

Market Segmentation

By Product Form:

  • Films & Sheets
  • Coatings
  • Fibers

Based on the product form, films & sheets acquired the largest share of the Asia-Pacific Polylactic Acid Market in the historical period and are expected to maintain their leading position during 2021-26. The packaging industry is considered the major end-user of polylactic acid, where the demand for sheets & films is significantly high. With the benefit of the low permeability of film derived from starch, Polylactic Acid acts as a suitable material for food packaging applications.

Similarly, in the agriculture sector, polylactic acids are used in the form of mulch films, i.e., considered a perfect substitute for oil-based plastics like polypropylene, polyester, or polyethylene. It provides significant environmental benefits, including bio-based origin & compostability. Hence, with these benefits, the adoption of polylactic acid-based films & sheets is expected to propel during the forthcoming period.

Further, the demand for polylactic acid-based coatings is also expecting substantial growth in the coming years since they are widely used as additives in the packaging industry for transparent or opaque thermoformed packagings. Besides, they are also used for blow & injection molding of complex parts in the industrial sector. Moreover, Polylactic Acid-based coatings help reduce pathogenic adulterations on the surface of fruits, thereby declining the risk of developing food-related diseases. Hence, the burgeoning demand for polylactic acid coatings is well-contributing to the overall market growth.

By Application:

  • Agriculture
  • Electronics
  • Packaging
  • Textiles
  • Transport

Amongst all applications, the Packaging industry has accounted for the largest share of the Asia-Pacific Polylactic Acid Market. The rising awareness regarding the harmful impact of traditional plastics on the environment and mounting demand for affordable, recyclable, & eco-friendly materials in the packaging industry is driving the demand for polylactic acid for packaging applications. 

Further, the ban imposed by governments of Asian countries, including India, China, Japan, Australia, etc., on using conventional plastics is another crucial aspect contributing to the burgeoning demand for biodegradable plastic. For instance:

  • In 2021, the government of India announced the ban on the manufacturing, sales, and use of single-use plastic items, including plates, cups, straws, trays, & polystyrene. This ban is likely to come into effect from July 2022.

Hence, these aspects are projected to drive manufacturers’ attention towards using sustainable alternatives to plastic, which, in turn, would boost the market across the packaging sector. 

On the other hand, in the transport industry, polylactic acid is used mainly to engineer automotive parts like seat covers, bumpers, interior components, body panels, seat covers, etc. Currently, thermoplastics like Polycarbonate (PC), Polybutylene Terephthalate (PBT), Polyethylene terephthalate (PET), polyamide, Acrylonitrile Butadiene Styrene (ABS), etc., are used widely in the automotive engine compartments & interiors.

Moreover, in the agriculture sector, polylactic acid is used in the form of mulch films, which help modify soil temperatures, reduce moisture loss, limit weed growth, and enhance crop yield. Polylactic acid helps improve the growth of food & vegetable crops. However, due to the lack of awareness, the adoption of polylactic acid is slow across the agriculture sector.

Recent Trends in the Asia-Pacific Polylactic Acid Market

Increasing Inclination of Governments of India & Bangladesh towards Green Packaging

The rising awareness regarding the surging levels of carbon emissions from the packaging industry has inclined several governments across Asia-Pacific towards promoting the usage of eco-friendly & sustainable packaging. Besides, there is an increasing demand for biodegradable & recyclable materials in the packaging industry to minimize their contribution to carbon footprints. Moreover, the governments of Bangladesh & India have also banned the usage of single-use plastic and are shifting towards Green Packaging.

  • In 2020, ThyssenKrupp’s plant engineering business won a contract to establish a bioplastics plant based on the patented PLAneo® technology in South China, which is expected to produce 30,000 tons of Polylactic Acid (PLA) annually.

Likewise, several efforts are being made to use polylactic acid-based plastic in various applications. Hence, the increasing government initiatives to promote using environment-friendly packaging is projected to boost the demand for Polylactic Acid across Asia-Pacific in the years to come.

Country Landscape:

  • China
  • India
  • Japan
  • South Korea
  • Australia & New Zealand
  • Indonesia
  • Vietnam

Amongst all countries, China is significantly contributing to the growth of the Asia-Pacific Polylactic Acid Market. In 2017, the Chinese government announced a ban on importing most plastic waste since non-biodegradable plastic waste pollutes waterways & harms agricultural fields. Besides, in 2020, the government also announced to restrict & ban the utilization of non-biodegradable plastic goods. Consequently, rising initiatives by the Chinese government to control pollution by promoting the usage of biodegradable products that can be recycled are leading to the increasing demand for polylactic acid in China.

China's textile industry is also experiencing considerable growth, owing to the easy availability of raw materials, low-cost labor, & fewer commercial barriers. Thus, the demand for textile products, including clothes, shoes, other accessories, is increasing, which, in turn, is fueling the growth of the Polylactic Acid Market in Asia-Pacific

Further, the market is expected to experience the fastest growth in India over the forecast years. It is due to the rising awareness among people regarding sustainable environmental concerns and the harmful impact of consuming conventional plastic products. In addition, stringent government regulations have led to the surging usage of biodegradable plastic products to replace non-recyclable plastic, thereby boosting the market. For instance:

  • In 2021, the central government of India issued a draft Notification Plastic Waste Management (Amendment) Rules, 2021 nationwide, to mandate certain requirements for plastic carry-out bags & ban single-use plastics by 2022.

Market Dynamics:

Key Driver: Easy Availability of Raw Materials

Corn, sugarcane, wheat, etc., are the most prominent crops required for manufacturing polylactic acid. These are renewable crops & easily available in countries like India, Indonesia, Thailand, etc., where India & China are amongst the major producers, owing to the massive production of these crops. It results in their easy availability & access for the polylactic acid manufacturers. Due to this, many companies are taking several initiatives toward establishing their manufacturing plants across Asia-Pacific and, in turn, driving the market.

Possible Challenge: High Costs of Polylactic Acid Compared to Conventional Plastics

The costs of Polylactic Acid-based products are relatively higher than conventional plastics. The development of polymerization & processing technologies, various government regulations, and variations in raw material supply are the major factors that impact the prices of polylactic acid. The production of polylactic acid, which surpasses the expenses of producing fossil-based plastics, generally involves raw material extraction, glucose extraction, fermentation, and polymerization. Since these different production steps & inputs are highly essential, it affects the overall cost structure of polylactic acid. Hence, these high costs might restrain the growth of the Polylactic Acid Market across Asia-Pacific in the coming years.

Asia-Pacific Polylactic Acid Market Research Report: Forecast (2021-2026)

Competitive Landscape

According to the MarkNtel Advisors, the major leading players in the Asia-Pacific Polylactic Acid market are Natureworks LLC, BASF, Mitsubishi Chemical Holding Corporation, Futerro Sa, Green Dot Bioplastics, Total Corbion PLA, etc.

Key Questions Answered in the Market Research Report:

  1. What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Forecast Numbers, Market Segmentation, Market Shares) of the Asia-Pacific Polylactic Acid Market?
  2. What is the country-wise industry size, growth drivers and challenges key market trends?
  3. What are the key innovations, opportunities, current and future trends and regulations in the Asia-Pacific Polylactic Acid Market?  
  4. Who are the key competitors, what are their key strength and weakness and how they perform in Asia-Pacific Polylactic Acid Market based on the competitive benchmarking matrix?
  5. What are the key results derived from the market surveys conducted during the course of the Asia-Pacific Polylactic Acid Market study?   

Market Outlook, Segmentation and Statistics 

  • Impact of COVID-19 on Asia-Pacific Polylactic Acid Market
  • Market Size & Analysis
    • By Revenue
  • Market Share & Analysis
    • By Product Form
      • Films and Sheets
      • Coatings
      • Fibres
      • Other Product Forms
    • By Application
      • Agriculture
      • Electronics
      • Packaging
      • Textiles
      • Transport
      • Others
    • By Raw-Material
      • Corn
      • Sugarcane & Sugar Beet
      • Cassava
      • Other Raw Material
    • By Country
      • China 
      • Japan
      • India 
      • South Korea 
      • Australia & New Zealand 
      • Indonesia 
      • Vietnam 
    • By Competitors
      • Competition Characteristics
      • Market Share & Analysis
      • Competitive Metrix
  • Asia-Pacific Polylactic Acid Market Hotspots & Opportunities
  • Asia-Pacific Polylactic Acid Market Regulations & Policy
  • Key Strategic Imperatives for Success and Growth
  • Asia-Pacific Competition Outlook
    • Competition Matrix
    • Company Profile

Frequently Asked Questions

A. The Asia-Pacific Polylactic Acid Market is forecast to grow at a CAGR of around 16% during 2021-26.

A. The Packaging industry holds the largest share of the Asia-Pacific Polylactic Acid Market, which shall create lucrative growth opportunities for the leading industry players during 2021-26.

A. Mounting awareness regarding the harmful impact of conventional plastics, coupled with the increasing adoption of bio-degradable products, are the key factors projected to drive the Asia-Pacific Polylactic Acid Market during 2021-26.

A. In the coming years, the Asia-Pacific Polylactic Acid Market expects significant expansion, owing to the increasing demand for polylactic acid for manufacturing PPE kits & face masks.

  1. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
    4. Market Definition
  2. Preface
  3. Executive Summary
  4. Impact of COVID-19 on Asia-Pacific Polylactic Acid Market
  5. Asia-Pacific Polylactic Acid Market Outlook 2016-2026F
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Product Form
        1. Films and Sheets
        2. Coatings
        3. Fibers
        4. Other Product Forms
      2. By Application
        1. Agriculture
        2. Electronics
        3. Packaging
        4. Textiles
        5. Transport
        6. Others
      3. By Raw-Material
        1. Corn
        2. Sugarcane & Sugar Beet
        3. Cassava
        4. Other Raw Material
      4. By Country
        1. China
        2. Japan
        3. India
        4. South Korea
        5. Australia & New Zealand
        6. Indonesia
        7. Vietnam
        8. Others
      5. By Company
        1. Revenue Shares
        2. Strategic Factorial Indexing
        3. Competitor Placement in MarkNtel Quadrant
  6. China Polylactic Acid Market Outlook 2016-2026F
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Product Form
      2. By Application
      3. By Raw Material
  7. Japan Polylactic Acid Market Outlook 2016-2026F
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Product Form
      2. By Application
      3. By Raw Material
  8. India Polylactic Acid Market Outlook 2016-2026F
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Product Form
      2. By Application
      3. By Raw Material
  9. South Korea Polylactic Acid Market Outlook 2016-2026F
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Product Form
      2. By Application
      3. By Raw Material
  10. Australia & New Zealand Polylactic Acid Market Outlook 2016-2026F
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Product Form
      2. By Application
      3. By Raw Material
  11. Indonesia Polylactic Acid Market Outlook 2016-2026F
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Product Form
      2. By Application
      3. By Raw Material
  12. Vietnam Polylactic Acid Market Outlook 2016-2026F
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Product Form
      2. By Application
      3. By Raw Material
  13. Asia-Pacific Polylactic Acid Market Regulations  
  14. Asia-Pacific Polylactic Acid Market Trends & Insights
  15. Asia-Pacific Polylactic Acid Market Dynamics
    1. Growth Drivers
    2. Challenges
    3. Impact Analysis
  16. Asia-Pacific Polylactic Acid Market Hotspot and Opportunities
  17. Asia-Pacific Polylactic Acid Market Key Strategic Imperatives for Success and Growth
  18. Competition Outlook
    1. Competition Matrix
      1. Target Markets
      2. Target End Users
      3. Research & Development
      4. Strategic Alliances
      5. Strategic Initiatives
    2. Company Profiles (Business Description, Product Segments, Business Segments, Financials, Strategic Alliances/ Partnerships, Future Plans)
      1. Natureworks Llc
      2. BASF
      3. Mitsubishi Chemical Holding Corporation
      4. Futerro Sa
      5. Green Dot Bioplastics
      6. Total Corbion Pla
  19.  Disclaimer
Asia-Pacific Polylactic Acid Market Segmentation