Global Bio-Polyethylene (Bio-PE) Market Demand & Forecast Analysis, 2016-2032

Bio-polyethylene commonly known as Bio-PE or bio-based PE, is produced from renewable sources. Bio-PE is non-biodegradable however it can be recycled and has similar properties to that of  polyethylene. In 2021, the global polyethylene market was estimated to be more than 100,000 Kilo tons whereas demand for polyethylene is estimated to grow by 3000 Kilo tons per year. Currently, Bio-polyethylene demand is estimated to be around 300 Kilo tons, indicating a significant opportunity for it to supplant a portion of the rising demand for fossil-based polyethylene.

To produce the bio based polymer, procuring raw materials from a natural or renewable source is the primary objective. In case of bio-polyethylene, renewable ethylene is produced by dehydrating bioethanol. Bioethanol is produced from agricultural feedstocks or biomass like corn, sugarcane, bagasse, sugar beet, molasses, cassava, and other grains, plants, fruits & flowers. Sugar or carbohydrate contents of this biomass are fermented and later distillate to produce high-quality bioethanol. In 2021, ethanol market was estimated to be more than 99,000 Kilo tons, and the majority of ethanol is consumed for fuel application.  The U.S and Brazil are the major producers of ethanol accounting for 75% of global production. According to Braskem, UNICA and NIPE, 1 hectare of arable land can produce 77 tons of sugarcane. Further these 77 tons of sugarcane produces 5 tons of ethanol. And from these 5 tons of ethanol, 3 tons of ethylene is produced and polymerized to give 3 tons of bio-polyethylene. The consumption of ethanol as feedstock for bio-polyethylene or for direct fuel consumption will depend on the margins available in each application. 

Bio-polyethylene market is mainly driven by growing attention to sustainable development and circular economy. Sustainable development in the polymer industry is mainly centred on using renewable & available carbon based waste resources. Or reducing the overall consumption and recycling the waste generated. Whereas circular economy looks at bigger picture with efforts on building a closed loop material flow. According to The SustainAbility Institute by ERM, the circular economy for polymer industry will involve promoting reuse, enhancing recycling and developing markets for recycling materials and restructuring the markets with awareness of products life cycle. Due to this biopolymers like bio-polyethylene are expected to have growing demand from assertive markets present in developed economies like Europe. Bio-polyethylene is mainly used for flexible films production which are further used in flexible packaging. Trends like increasing public awareness and willingness to buy sustainable products even with high pricing has bolster bio-polyethylene demand in European and North American region. Bio-polyethylene is recyclable not biodegradable; collection and separation of bio-polyethylene waste will act as hinderance in growth of bio-polyethylene market. Scalability of bio-polyethylene production is also major restraint faced by the producers. As mentioned earlier almost 77 tons of sugarcane will be required to produce 3 tons of bio-polyethylene translating to the conversion of 4%. In recent times, an average fossil-based polyethylene plant capacity is around 600 kilo tons per annum, which means almost 154,00 kilo tons of bio-mass and 2 million hector of arable land will be required to produce similar amount of Bio-PE

Braskem is a key player in bio-polyethylene market with total capacity of 200 kilo tons in 2021. The company is planning to expand its capacity by 30% to reach total capacity of 260 kilo tons by 2022. SCG Chemicals Thailand and Braskem together are planning to produce bio-based ethylene and polyethylene. SCG Chemical’s bio polyethylene capacity is expected to come online in 2025. The nameplate capacity is yet to be announced, however company is planning to achieve green polymer sales of 200 Kilo tons by 2025.