Biodegradable Plastics Expected to Grow Amid Environmental Regulations
New Driving Force for Petrochemical Industry in Prolonged Recession
Growing Need to Shift Toward High-Value-Added Product Development
As the petrochemical industry faces a prolonged downturn, biodegradable plastics are emerging as a new growth engine for the sector.
On the 28th, Samil PwC presented the potential of biodegradable plastics as an alternative to overcome the crisis in the petrochemical industry through its report titled "Future Growth Drivers of the Petrochemical Industry: Biodegradable Plastics." Samil PwC identified the causes of the petrochemical industry's downturn as ▲ oversupply originating from China ▲ global demand slowdown ▲ high raw material costs. In particular, it analyzed that the refining and petrochemical integrated plants (COTC) under construction in the Middle East will pose a long-term threat to domestic petroleum companies, diagnosing that the industry is unlikely to naturally rebound as it did in the past.
Biodegradable plastics are emerging as an alternative to solve the environmental pollution problems caused by conventional plastics. According to the report, the production volume of biodegradable plastics is expected to grow at an average annual rate of 32%, increasing from 860,000 tons in 2022 to 4.61 million tons in 2028. Strengthened plastic regulations by various countries and consumers' preference for eco-friendly products are driving market growth. The report emphasized the need for national-level support, including tax benefits for research and development and the formation of research consortia through cooperation among companies, to foster the development of the biodegradable plastics industry.
Kim Seunghoon, leader of the petrochemical industry at Samil PwC, stated, “Cost efficiency should be pursued through the development of specialty products such as biodegradable plastics and the restructuring of low-profit business sectors.”
Detailed information on "Future Growth Drivers of the Petrochemical Industry: Biodegradable Plastics" can be found on the Samil PwC website.
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