Currently, the price of biodegradable plastics is higher than that of traditional plastics, approximately 20-30% higher. The reason for this is that biodegradable plastics are made from natural raw materials, which require higher production costs. Moreover, there are worldwide policies encouraging the use of biodegradable plastics, which also contribute to the growth of this market. Let's explore this article to understand the current situation and the factors related to "How much does biodegradable plastic cost?"
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1. Development of biodegradable plastics in Vietnam and some proposals
In recent times, Vietnam's plastic industry has demonstrated robust growth, with a remarkable 17.5% increase during the 2011-2020 period, trailing only behind the telecommunications and textile sectors. The plastic production in our country reached 8.9 million tons in 2019, with an average plastic consumption of 41 kg per person in the same year, a figure more than tenfold higher than the 3.8 kg per person consumed in 1990.
According to statistics from the Ministry of Natural Resources and Environment, out of over 30 billion plastic bags disposed of, only 17% are recycled. Plastic bags constitute one-third of plastic waste in Vietnam, placing Vietnam among the leading Asian countries contributing to ocean plastic pollution.
Aligned with the global trend in the plastics industry, the research and utilization of biodegradable plastics and bio-based plastics have become focal points for domestic plastic enterprises. Vietnam's perspective on plastic industry development emphasizes high efficiency and sustainability, closely tied to environmental conservation.
Some companies have undertaken research and successfully produced biodegradable plastic products. For instance, An Phat Bioplastics has achieved success in developing fully compostable biodegradable plastics under the AnEco brand. These products include nylon bags, gloves, utensils, straws, agricultural films, and are utilized both domestically and for export.
Currently, the proportion of biodegradable plastics compared to the total plastic consumption in Vietnam remains low. In the future, if this proportion is increased closer to the global average, Vietnam's total demand for biodegradable plastics is estimated to reach approximately 80,000 tons annually by 2025. Consequently, the potential for development in the biodegradable plastics sector is significantly promising.
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Development of Biodegradable Plastics in Vietnam and Some Proposals
2. What is the price of biodegradable plastic?
The price of biodegradable plastic can vary depending on several factors, including the type of plastic, raw materials, thickness, size, manufacturer, and so on. However, in general, biodegradable plastics tend to be more expensive than traditional plastics.
According to a study by the Vietnam Biodegradable Plastics Association (VBPA), the current price of biodegradable plastic is 2-3 times higher than traditional plastics. The main reason for this price difference is the cost of raw materials used in biodegradable plastics, such as cornstarch, potatoes, and cassava, which tend to be higher than the cost of petroleum-based plastics. Additionally, the production cost of biodegradable plastics is also higher due to the complex technology and production processes required.
Here are some examples of the prices of biodegradable plastics:
- PLA Plastic: 2.2 - 2.8 USD/kg
- PBS Plastic: 3.0 - 3.8 USD/kg
- PBAT Plastic: 2.5 - 3.2 USD/kg
- PLA + PBAT blend: 2.4 - 2.9 USD/kg
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What is the Price of Biodegradable Plastic?
3. Why is biodegradable plastic expensive?
Biodegradable plastic is expensive for several reasons:
- Expensive Raw Materials: Biodegradable plastic is made from natural raw materials such as cornstarch, cassava starch, potato starch, vegetable oils, or cellulose. These raw materials are often more expensive than the raw materials used to produce traditional plastics, such as petroleum.
- Complex Production Process: The production process of biodegradable plastic is more complex than that of traditional plastics. This requires the use of costly technologies and equipment.
- Limited Production Capacity: The ability to produce biodegradable plastic is still limited compared to demand. This results in higher product costs.
- Environmental Benefits: Biodegradable plastics offer significant environmental benefits as they do not contribute to pollution when disposed of in landfills or incinerated. They can also be broken down into organic nutrients, aiding soil improvement.
Additionally, the cost of handling biodegradable plastics is higher compared to traditional plastics because biodegradable plastics often require specialized facilities for processing.
With the advancement of technology and increasing demand, the cost of biodegradable plastics may decrease in the future.
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Why is Biodegradable Plastic Expensive?
4. Factors affecting the price of biodegradable plastic
4.1. Raw material sources
Many biodegradable plastics, such as PLA and PBS, are derived from renewable sources like corn starch, sugarcane, or palm oil. Seasonal price changes and fluctuations in agricultural commodity markets directly impact the cost of these raw materials.
For instance, a spike in U.S. corn prices often drives up the cost of PLA as a result.
4.2. Global supply capacity
The number of large-scale biodegradable plastic manufacturers is still limited. Global supply is concentrated in regions like China, Germany, the U.S., and Japan. Disruptions in the supply chain—such as container shortages or export restrictions—can push prices higher.
4.3. Environmental regulations
Countries like those in the EU, India, and several U.S. states have implemented bans or restrictions on single-use plastic, thereby increasing demand for biodegradable plastic. As demand outpaces supply, prices tend to rise. On the other hand, markets with fewer regulations are slower to adopt biodegradable alternatives due to cost sensitivity.
4.4. Production scale and technology
Biodegradable plastics require more advanced production technology and equipment, which contributes to their higher price. However, as major global players continue expanding production capacity, unit costs are expected to decrease over time.
For example, companies like NatureWorks (USA) and Total Corbion PLA (Netherlands) are investing in new production lines that could lower the cost of PLA to around 1,800 USD/ton in the near future.
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Factors Affecting the Price of Biodegradable Plastic
5. EuroPlas - leading biodegradable plastic pellet manufacturer in Vietnam
EuroPlas produces BiONext biodegradable plastic pellets, which are divided into two main types:
5.1. BiONext 102 and 152 biodegradable plastic pellets
BioNext 102 and BioNext 152 are made from biodegradable plastic and CaCO3 limestone powder. Both types of pellets share the common feature of biodegrading within 12 months after use, minimizing environmental impact. However, BiONext 102 has higher hardness and durability compared to BiONext 152.
5.2. BiONext 400, 500, 600, and 700 biodegradable plastic pellets
BiONext 400, BiONext 500, BiONext 600, and BiONext 700 are made from biodegradable plastic and various other additives. Each type of pellet has its own characteristics and applications:
- BioNext 400: Biodegradable plastic pellets made from biodegradable plastic and modified starch, capable of degrading within 12 months after use.
- BioNext 500: Biodegradable plastic pellets made from biodegradable plastic and reinforced CaCO3 limestone powder, capable of degrading within 12 months after use.
- BioNext 600: Biodegradable plastic pellets made from biodegradable plastic, talc powder, and specific additives, possessing the full functionality of a final material.
- BioNext 700: Biodegradable plastic pellets made from specific plastic and biodegradable plastic, capable of degrading within 12 months after use.
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EuroPlas - leading biodegradable plastic pellet manufacturer in Vietnam