Bio-based Polyethylene (PE) market is expected to witness growth owing to volatile prices and limited supply of crude oil. Growing green packaging has promoted sustainable packaging market, which is expected to fuel bio-based PE demand over the next six years.
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Bio-based Polyethylene (PE) Market Outlook, Demand Forecast To 2020: Grand View Research, Inc.
1. Bio-based Polyethylene (PE) Market Analysis, Market Size, Application Analysis, Regional Outlook, Competitive Strategies And Forecasts, 2014 To 2020
Bio-based Polyethylene (PE) market is expected to witness growth owing to volatile prices and limited supply of crude oil. Growing green packaging has promoted sustainable packaging market, which is expected to fuel bio-based PE demand over the next six years. European Commission has framed strategy, Europe 2020, intended for factors affecting climate change with a focus on reducing GHG emission. Under this, the commission passed Directive 2003/87/EC for GHG emission reduction. U.S. and Canada have adopted Montreal Protocol for reducing GHG emission, which in turn is expected to promote bio-based PE demand over the next six years.
2. The Japanese government has set a goal of 20% bio-based plastics consumption by 2020, replacing synthetic plastics, which is expected to promote bioplastics demand such as bio- PE over the next six years. The Thailand government announced a soft loan program of USD 3.1 billion for promoting domestic production for bioplastics in August 2014. This is expected to attract new investments in bioplastics production and open new avenues in the near future.
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Braskem, one of the largest bio-based PE manufacturers, accounted for over 25% of the global production capacity in 2012. Braskem markets its product under the brand name Green PE and has signed supply agreements with packaging manufacturers such Proctor & Gamble and Tetra pack. The company was planning on capacity expansion but reportedly discontinued plans due to cost pressures. In July 2011, Dow Chemicals and Mitsui Co. & ltd. had announced a joint venture for the establishment of bio-based PE manufacturing plant of worth USD 1.5 million at Santa Vitoria, Minas Gerais state in Brazil.
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