Bioplastics Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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The Bioplastics Manufacturing industry has experienced steady growth in the five years to 2012 thanks to concerns over petroleum-based plastics and the rise of crude oil prices. Those concerns combined with a steady flow of government research assistance allowed the industry to thrive even through the recession. However, questions abound about the industry's use of food inputs and the biodegradability of its products. Despite these challenges, IBISWorld expects this industry to grow steadily through 2017. For these reasons, industry research firm IBISWorld has added a report on the Bioplastics Manufacturing industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Lacking a mainstream product, industry firms continue to invest in costly research and development

The Bioplastics Manufacturing industry has experienced steady growth in the five years to 2012. Concerns over the future of petroleum-based plastics have created a surge in demand for bioplastics that are more recyclable and sustainable. Furthermore, the rising price of crude oil has put plastics manufacturing firms at a disadvantage, as they must increase prices to maintain profit margins. All of these factors combined with a steady flow of government assistance in the form of research and development grants have allowed the industry to make substantial strides forward despite the recession. In the five years to 2012, IBISWorld expects industry revenue to grow at an annualized rate of 4.3% to $84.2 million, with 4.0% growth in 2012, according to IBISWorld industry analyst Eben Jose.

Despite these advantages, the Bioplastics Manufacturing industry has not been immune to roadblocks. Early bioplastics technology focused on the use of vegetables as the primary input in the production process. However, environmentalists have been quick to point out the flaws in this process, which include the large amount of petroleum used in the growing of genetically modified vegetables and the lack of a strict standard for biodegradability claims. Many firms claim their products are 100% biodegradable or compostable, when in fact the products do not biodegrade in a typical landfill and are manufactured using unsustainable inputs. As a result, there is still significant room for development, which has led to an influx of players.

The industry's inability to settle on a mainstream product has pushed profit margins down, as many firms must continue to invest revenue into research and development activity. While such investments will remain pivotal to the industry over the next five years, government regulation is expected to play the largest role in the industry's future. A tightening of biodegradable claims and enforcement of input requirements will narrow the industry's sightline, but it will also put pressure on industry participants to develop bioplastics that do not depend on food inputs. In the five years to 2017, IBISWorld forecasts industry revenue will grow, Jose says. Further globalization will occur as a result of a more defined definition of bioplastics as companies such as BASF enter the domestic market and bioplastics become better defined. The US Bioplastics Manufacturing industry has a low level of concentration. Concentration has edged down over the past few years, reflecting the entry of new industry participants that produce bioplastics from a range of renewable sources. For more information, visit IBISWorld’s Bioplastics Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

This industry manufactures bioplastics, organic plastics derived from renewable biomass sources. Designed to biodegrade, bioplastics are made from sources such as vegetable oil, cornstarch, pea starch or microbiota.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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