The South America bioplastics market is expected to witness a CAGR of 25.5% during the forecasted period and is estimated to be home to 45% of global bioplastic production capacity. Brazil accounts for more than 50% share of the total production capacity in South America market. The markets in Colombia, Chile, and Argentina are also witnessing a high growth rate.
The environmental dilemma caused on reaching a high emission level of greenhouse gases in the atmosphere is one of the major drivers for the bioplastics market. Additionally, the fluctuation in oil prices and the change of laws in the usage of petroleum-based plastics helped accelerate the demand for the bioplastics. Globally, the production of bioplastics is the highest in South America. Bioplastics have moved from the initial phase of market introduction to increasing demand in the market. Owing to this change, the South America manufacturing companies have been introducing environment-friendly bioplastics in their product line. These companies are expected to offer up to 50% of bio-based products by the year 2020, which will also subsequently result in the new applications of bioplastics.
Bio-based plastics are based, partially or completely, on natural resources, such as industrial cane sugar, sugar beet, corn, potatoes, natural rubber, and cassava. These raw materials are readily available, especially in the developing countries, such as Brazil, Mexico, and Argentina, which leads to high bioplastic production in South American countries. The high plastic production of South America market adds to the growing market. Volatile prices coupled with limited availability of crude oil are expected to force polymer manufacturers in South America to develop bio-based alternatives including bio-based PE. In addition, renewable nature of bio-based PE makes it an eco-friendly substitute to chemical counterparts, which are expected to grow the production of bio-based market in South America Market.
Brazil is the largest market for Bioplastic market in South America. With the explosion of industries in Brazil, along with increasing environmental concerns, the demand for bioplastics and the production of bioplastics has multiplied manifolds. Brazil has seen the largest industrial growth and leads in South America in the production of bioplastic. Mutsui and Dow have planned to build bioplastic plant in Brazil. This development in Brazil is seen as a trend among other market players as well. The soaring demand for flexible packaging in the Brazil market is also a reason to push the market growth of Bioplastics. Thus, Brazil is a high potential market in South America region.
Major Players: The Dow Chemical Co., Arkema Sa, Bioamber Inc, Basf Ag-Bio Plastics market, Braskem, Corbion, Green day Eco Friendly Material Co. Ltd, Meridian Holdings Group Inc(MHG), Metbolix Inc, Mitsubishi Chemical Corporation, Natureworks LLC, Novamont S.P.A., Plantic Technologies Ltd, Showaenko KK, and Solvay SA, among others
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