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Bioplastics Market Entry Strategy Consulting

In association with Bioplastics Guide

Bioplastics – A Global Opportunity

Opportunities for bioplastics are present across a variety of industrial sectors that include packaging, water, beverages, insulation materials, specialty materials and more.

With increasing concerns over the use of plastics, sustainable alternatives to plastics are increasingly in demand. Biopolymers in general and bioplastics in particular, present one such sustainable alternative.

Bioplastics still constitute a very small percentage of the total plastics market. Of the total 300 million tons of plastics consumed in 2015, only about 2.1 million tons (0.7%) was bioplastics. Of this, only about 0.8 million tons (0.3% of total) was biodegradable bioplastics – that is, bioplastics which degrade naturally within a short period of time.

The above share however is expected to rise significantly owing to some key drivers.

Drivers & Challenges for Bioplastics Market Growth


A number of key drivers are accelerating the growth of the bioplastics market

– Increasing eco-awareness among consumers
– Corporates becoming more focused on sustainability
– Mandates & regulations
– Technology stabilization
– Cost reduction


At the same time, bioplastics face critical challenges before they achieve large scale market penetration.

– They are much more costly than conventional plastics (could be 2-4 times as costly, depending on product)
– Substitutes – some of them authentic and some not-so authentic substitutes – also present competitive challenges to the adoption of bioplastics in many mainstream markets
– Customer awareness – a number of misconceptions result in a poor and sometime faulty understanding of the market, resulting in delays in investment decision-making
– Upstream technology is still evolving, and hence there are uncertainties in technologies and processes
– Uncertainties present in post-use processing and end of life options for bioplastics

Interested in taking up EAI’s consulting assistance for your entry into Bio-based business sectors?

Reach us at – consult@eai.in with Bio-biz in the subject line or call Narsi 7358263274

Strategic Market Approach

Given the Opportunity and Challenges, how does an entrepreneur approach the bioplastics business opportunity?

Hence, our recommended steps for the way forward are as follows:

First: Select the market you wish to enter. Then –

– Identify the products that are most attractive for the market segments selected

– Identify the business model that will be the best for you

– Identify technical and marketing partners required for the product and the business model

– Firm up business plans and start the business

We are providing insights for the three key stages in the approach mentioned above:

– Identify the Right Market/s
– Identify the Right Product/s
– Identify the Right Business Model

Identify the Right Market

– In order to decide which of the business models and products to go with, an entrepreneur first needs to have a good idea of which market he will be targeting.- Here again, one can consider four types of market segments

Currently Available Emerging Market
Commodity Unsophisticated, Low risk, Low margins Unsophisticated, Low Risk, Medium margins
Premium Sophisticated, Medium Risk, Medium-high margins Uncertain, Sophisticated, Medium-high risk, High margins

Let us look at each of the four combinations in brief

Currently Available – Commodity – this cell represents the most obvious market segments for bioplastic products; one can readily imagine what comes in this – disposable carry bags, for instance. These market segments already exist with some amount of competition.

Currently Available – Premium – this cell represents more premium bioplastic market segments. Similar to the cell above, these markets are already being catered to with varying levels of competition, but these are more specialized than the commodity segment, and could hence provide good margins to the producer. An example of a product in this cell could biodegradable medical implants.

Emerging – Commodity – this cell represents those market segments that are fairly new or are just emerging, but would be most likely requiring relatively commoditized and unsophisticated products. An example of a product that belongs to this category could be punnets/small boxes used for take-aways and for shipping specific food products. Currently made of plastic, these are currently used by a number of premium hotels as well as by online shopping firms, and there is a reasonable need for them to switch over to biodegradable plastics.

Emerging – Premium – this cell represents an exciting, though relatively uncertain set of market segments. These are segments in which the needs require fairly specialized bioplastic products, and these segments could also be willing to pay top dollar prices for these. An example of a product in this segment could be bioplastic, biodegradable microbeads to be used in cosmetics, now that some developed countries have started banning use of plastics microbeads in cosmetics.

– The matrix above provides a perspective of the type of market segment opportunities present for an entrepreneur.
– Each of the four combinations presents a specific Opportunity-Challenge profile.
– It is highly recommended that an entrepreneur starts with a clear understanding of each of the four combinations, and based on the combination that is best aligned to his aspirations and constraints, select the optimal combination.

Identify the Right Product

Bioplastics Product Categories

At first sight, bioplastics appears to be a rather homogeneous product category, but it is not.

For one, all bioplastics are not biodegradable. This comes as a surprise to many, as they thought that the whole point of going for bioplastics is to have a biodegradable product. Not so. Some bioplastics are not biodegradable, and they are used as a renewably sourced substitute for durable plastics.

In addition to bioplastics being biodegradable or not, a bioplastic product can come in the following categories:

– Homogeneous bioplastics – these are bioplastics made with a single, homogeneous resin (PLA, for instance)
– Bioplastic blends/compounds – these are pure bioplastics too, but having more than one rein. An example is PLA/PHA blend.
– Bioplastic blends with petro-plastics – a variation of the above, these are blends that contain both bioplastic and petro-plastic resins. An example of this is PLA/PBAT.
– Bioplastic laminates with metal/paper – Typically for films, these are bioplastic films that are laminated with thin layers of metallic foil or paper.
– Composites of bioplastics with wood and fiber – Finally, bioplastc products can also be in the form of composites, where they are blended with wood or fiber.

Identify the Right Business Models

An entrepreneur has the choice of starting at different levels on the bioplastics value chain. Here are the business models available for an entrepreneur in this context.

– Starting upstream with the biomass
– Starting with an intermediate product (such as Lactic Acid)
– Starting with resins but doing the compounding of multiple resins
– Starting with the compounded resins and doing only the moulding of end product
– Purchasing the end product and only involved in trading

Taking it Forward

Given the above combinations and the opportunity-challenge canvas, how does an entrepreneur or startup decide which way to go while investing in the bioplastics opportunity?

The right or optimal strategy should start with identifying who will be the customer (market segment) and what needs would be satisfied for the customer. This would determine the product categories. The right business model depends to a large extent on the profile of the entrepreneur, his/her current business assets and also the capital that can be brought in for the venture.

How Can Oilgae Help?

Oilgae has teamed up with Bioplastics Guide, a strategic expert on the bioplastics and biopolymers industry. With our combined expertise and background, we offer entrepreneurs and businesses worldwide in making the optimal decisions for their bioplastics market entry strategy.

Interested in taking up EAI’s consulting assistance for your entry into Bio-based business sectors?

Reach us at – consult@eai.in with Bio-biz in the subject line or call Narsi 7358263274

Partial List of Clients

About Us

Our specialized consulting division provides assistance in market research & business intelligence, market potential analysis, strategy consulting, technology vendor/supplier finder, technology & business due diligence, M&A assistance and more for the complete clean energy, environment and sustainability value chain.

We have assisted a range of stakeholders, small businesses/SMEs, startups, large corporations, state and central government, venture capital companies, private equity firms, investment banks, NGOs and more. Send a note to consult@eai.in if you wish to take our consulting help.

Our specialized consulting has benefitted clients all across India and select countries outside:

We has provided consulting & industry research assistance across India, having clients who have benefitted from our consulting or research from the following cities:

Ahmedabad | Amravati | Amritsar | Asansol | Aurangabad | Bangalore (Bengaluru) | Belgaum | Bhavnagar | Bhopal | Bhubaneswar | Bikaner | Chandigarh | Chennai (Madras) | Coimbatore | Cuttack | Dehradun | Delhi | Dhanbad | Durgapur | Faridabad | Firozabad | Gandhinagar | Gangtok | Ghaziabad | Guntur | Gurgaon | Guwahati | Gwalior | Hyderabad | Indore | Jabalpur | Jaipur | Jalandhar | Jalgaon | Jammu | Jamnagar | Jamshedpur | Jodhpur | Kalyan | Kanpur | Kochi (Cochin) | Kolhapur | Kolkata (Calcutta) | Kota | Kozhikode | Lucknow | Ludhiana | Madurai | Mangalore | Meerut | Mumbai (Bombay) | Mysore (Mysuru)| Nagpur | Nashik | Navi Mumbai | Nellore | Noida | Patna | Pimpri & Chinchwad | Pune | Raipur | Rajkot | Ranchi | Salem | Sangli | Solapur | Surat | Thane | Thiruvananthapuram (Trivandrum) | Tiruchirapally (Trichy) | Udaipur | Vadodara (Baroda) | Vijayawada | Vishakapatnam | Warangal

Countries worldwide where we have assisted clients through research reports or consulting

Australia | Austria | Bahrain | Belgium | Brazil | Canada | Chile | China | Croatia | Czech Republic | Denmark | Estonia | Finland | France | Germany | Hong Kong | Hungary | Greece | Iceland | India | Indonesia | Ireland | Israel | Italy | Japan | Kuwait | Latvia | Lithuania | Luxembourg | Malaysia | Malta | Mexico | Netherlands | New Zealand | Norway | Portugal | Republic of Korea (South Korea) | Russia | Saudi Arabia | Singapore | Slovakia | Slovenia | South Africa | Spain | Sweden | Switzerland | Thailand | Tunisia | Turkey | United Kingdom (UK) | United States of America (USA)

Specific Domains We Operate in

Solar Energy

Solar PV– Rooftop Solar | Residential Rooftop Solar | Commercial & Industrial Rooftop Solar | Ground Mounted Solar Farms | Solar Farm Operations & Maintenance | Solar Farm Monitoring & Control | Solar Power Integration with Grid | Offgrid Solar | Solar Water Pumps | Solar Street Lights | Off-grid Solar Homes ||| Solar PV Components – Solar Trackers | Single Axis Solar Trackers | Dual Axis Solar Trackers | Solar Inverters | Solar Power Plant Central Inverter | Solar Power Plant String Inverter | Solar Power Plant Micro-Inverter | Solar PV Mounting Structures | Solar Power Plant Monitoring & Control Systems | Solar PV Wafers | Solar PV Cells | Monocrystalline Solar Cells | Polycrystalline Solar Cells | Thin Film Solar Cells | Bifacial Solar Cells | Solar Modules/Panels | Solar Panel Backsheets | Solar Panel Aluminium Frames | Solar Panel Encapsulants | Building Integrated Solar PV | Solar PV Storage | Concentrating Solar PV |

Solar Thermal – Low-Temperature Solar Thermal | Solar Water Heating | Solar Cooking | Solar Drying | Medium & High Temperature Solar Thermal | Medium Temperature Commercial & Industrial Heating Using Solar Thermal | High Temperature Industrial Heating Using Concentrated Solar Thermal | Concentrating Solar Power | Storage for Concentrating Solar Power | Fresnel Lens based Concentrating Solar Power | Power Tower based Concentrating Solar Power | Parabolic Trough based Concentrating Solar Power | Dish based Concentrating Solar Power | Hybrid Solar Energy | Solar Wind Hybrid | Solar Biomass Hybrid | Solar PV / Thermal Hybrid


Bio-energy for Heating – Combustion-based Biomass Heating | Gasification-based Biomass Heating | Anaerobic Digestion based Biomass Heating

Bio-energy for Power – Combustion-based Biomass Power | Gasification-based Biomass Power | Anaerobic Digestion based Biomass Power | Biomass Combined Heating & Power | CHP Boilers for Biomass | Operations & Maintenance for Biomass-based Energy Plants | Biomass Storage | Biomass Pre-processing | Biomass Ash Management,

Bio-energy for Transportation – Ethanol | First Generation Ethanol | Second Generation Cellulosic Ethanol | Biodiesel | Biodiesel through Transesterification | Hydrogenated Vegetable Oil – HVO | Bio-butanol | Bio-methanol | Bio-CNG | Aviation Biofuels

Other Bio-energy – Biogas | Syngas

Bio-Energy Crops – First Generation Bio-energy Feedstock | Agricultural Waste Feedstock | Dedicated Energy Crops | Perennial Biomass Bio-energy Feedstock | Prominent Biomass Feedstock for Heating & Power | Sawdust for Heating & Power Generation | Rice Husk for Heating & Power Generation | Paddy Straw for Heating & Power Generation | Bagasse for Heating & Power Generation | Julieflora for Heating & Power Generation | Bamboo for Heating & Power Generation

Energy Storage

Electrical Storage – Capacitors | Superconducting Magnetic Energy Storage | Chemical Storage | Hydrogen Storage | Fuel Cells

Electrochemical Storage – Battery | Lead Acid Battery | Lithium Ion Battery | Emerging Battery Types | Sodium Sulfur Battery | Solid State Batteries | Battery Management Systems

Mechanical Storage – Pumped Hydro Energy Storage | Flywheel Energy Storage | Compressed Air Energy Storage

Sustainable Transportation

Sustainable Transport – Two Wheelers | Bicycles | Electric Bicycles | Electric Motorbikes | Electric Scooters | Electric Three Wheelers | Sustainable Car Transport | Electric & Hybrid Electric Cars | Battery-based Electric Cars | Hybrid Electric Cars | Plug-in Hybrid Electric Cars | Fuel Cell Electric Cars | Electric Light Commercial Vehicles | Electric Mini Trucks & Vans | Electric Buses | Fuel Cell Buses | Electric Heavy Commercial Vehicles | Electric Trucks | Sustainable Rail Transport | Sustainable Aviation | Fuel Cell Vehicles | Sustainable Transport Infrastructure | EV Charging Infrastructure | DC Charging for Electric Vehicles | AC Charging for Electric Vehicles | Battery Swap Stations for Electric Vehicles | Hydrogen Fueling Infrastructure | Sustainable Transport Fuels and Fuel Standards

Sustainable Transport Fuels – Biodiesel | Ethanol | Bio-CNG | Other Biomass-based Liquid Fuels | Hydrogenated Vegetable Oil – HVO

Talk to us

Email: consult@eai.in


Call Narsi 7358263274

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