Although the Indian Bioplastics market is beset by challenges such as low awareness that are typical to emerging markets, the inadequate market response signifies huge potential for companies wishing to enter this market. Participants can overcome the awareness barrier by creating greater environmental awareness and promoting the long-term environmental benefits of using Bioplastics over petroleum-based plastics.
New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Bioplastics in India, finds that the market grew at 30 percent in 2008 and will grow at a compound annual growth rate (CAGR) of 44.8 percent between 2009 and 2015. Frost & Sullivan expects the market to be a high-growth one due to current low volumes but high existing potential.
“The need of certain end-user segments, such as the hospitality industry, to project themselves as eco friendly and for packagers to meet the requirements of export-oriented markets is currently the key driver for Bioplastics demand in India,” says Frost & Sullivan Principal Consultant Dominic Britto. “However, new applications and products have to be identified and developed as the Indian bioplastics market has far fewer applications than the global market.”
Manufacturers can make further inroads into the market by lobbying with the government for favorable laws and manufacturing incentives. Although there is currently no legislation supporting the use of bioplastics in India, market participants can request tax exemptions and regulations that mandate the use of bioplastics for certain applications.
Apart from possible government backing, Bioplastics manufacturers will feel encouraged by the availability of abundant feedstock in India and the country’s potential to become a major feedstock supplier for biopolymers. This could ensure their constant accessibility to Bioplastics resins, making the country a hot destination for Bioplastics companies.
“Meanwhile, it has become important for suppliers to have long-term contracts with the customers in order to increase the usage of Bioplastics,” notes Britto. “Until Bioplastics are available for prices at par with conventional plastics, suppliers need to focus on strengthening customer relations by providing additional support in terms of tailor-made products, technical support, shorter delivery times, and larger product offerings.”
If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an e-mail to Anish Charles/ Nimisha Iyer, Corporate Communications, at HYPERLINK "mailto:"HYPERLINK "mailto:anishc@frost.com"anishc@frost.com/ niyer@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.
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