Asia Pacific Polylactic Acid (PLA) Market Demand & Forecast Analysis, 2016-2032

Asia-Pacific recorded the largest demand for Polylactic Acid (PLA) in 2021 on the back of China, which accounted for around 70% of the regional demand. The region accounted for around 60% of global PLA demand and is projected to reach cross 1600 kilo tons by 2032 witnessing a CAGR of 18% in the long-term forecast. PLA demand is expected to grow strongly especially in countries with large population such as China, Japan, Taiwan, India, Indonesia, Thailand, Philippines, and Vietnam. Further the increase in living standards and increasing purchasing power among consumers due to economic growth will keep the regional biodegradable plastics demand high. Asia has historically witnessed healthy growth rates in demand mainly driven by the burgeoning economy of China, Taiwan, Japan, South Korea, and others. With increasing demand of PLA from China and other South-East Asian countries owing to various incentives, stimuli as well as higher demand from China, Taiwan, and Japan. In the long-term forecast, the demand growth for PLA in the region is estimated to grow on accounts of increased growth from packaging and other consumer good applications. 

India is acknowledged for its high potential in PLA demand due to the very low penetration, while China has already attracted significant capital investments. China alone accounts for 70% of the regional demand. PLA demand in China has grown significantly owing to high growth in domestic demand. The PLA market in China is fragmented with more than 20 players which include smaller to big-size companies. The larger companies have only set up manufacturing plants in the last five years to cater to the growing domestic demand. Growth of PLA market in India is dependent on implementation of government policies and awareness about sustainable products. In 2021, India accounted for 0.3% of Asia Pacific’s PLA demand which translates to 0.75 kilo tons. The market is still in its very initial phase and is expected to witness a growth at a CAGR of 44.3% during forecast period. With no domestic producers, India is a net importer of Polylactic acid. PLA imports of the country stood at 924.3 tons in 2021, down 356.6 tons or nearly 28% compared to the previous year. Shipments are primarily sourced from Thailand and the USA, each accounting for 69.6% and 25.7% share respectively of the total imports in 2021. Owing to increased demand, Indian imports saw a nearly six times jump in 2018 compared to the previous year to reach 668 tons; doubling further to reach 1,450 tons in 2019. Majority of the supplies in 2018 were sourced from NatureWorks’ 150,000 tons/annum plant at Blair, Nebraska in the USA, while Thailand started exporting shipments from 2019. Overall, imports of the country witnessed a consistent increase from 2016 to until 2019, before falling 11.7% in 2020 and nearly 28% the next year.

Japanese PLA producers are Teijin and Toyobo. Teijin operates a 10 kilo tons plant while Toyobo’s PLA production capacity is around 5 kilo tons. The average operating rate in last 5 years in the region has averaged around 63%. The operating rates are expected to decline during the forecast period as new world-scale plants are added on the back of growing demand in the region. The region is a net importer and imports small volume of PLA however with addition of capacities, the region will turn into a net exporter during the forecast period. Strict restrictions on use of single use plastics have been imposed in China in its 14th 5-Year Plan. Also, various incentives are given for production of biodegradable plastics. Owning to anti single use plastic policies and incentives for bio-degradable plastics from China, Japan and other south Asian key players like Thailand, demand for PLA is expected to surge both in production and demand in the region during forecast period.