The Expense Of Bioplastics: Cost Analysis And Comparison

Bioplastics are a more environmentally friendly alternative to traditional plastics, but they are also more expensive to produce. The cost of bioplastics is influenced by the price of oil, which has been low in recent years, making it difficult for bioplastics to compete with fossil-based plastics on price. However, as more companies switch to bioplastics and production capacities increase, prices are coming down.

The cost of bioplastics is impacted by the price of oil

Bioplastics are made from corn or sugarcane, which are converted into building blocks for PLA. This complex process can be 20-50% more costly than comparable materials. However, prices are coming down as researchers and companies develop more efficient and eco-friendly strategies for producing bioplastics.

The cost of research and development also impacts the price of bioplastics. Additionally, low oil prices are making it difficult for bioplastics to achieve competitive pricing levels compared to conventional plastics. However, as more companies switch to bio-based plastics, production capacities are rising, supply chains and processes are becoming more efficient, and prices are coming down. With rising demand and more efficient production processes, the costs for bioplastics will soon be comparable with those for conventional plastic prices.

Bioplastics are more expensive than conventional plastics

The cost of research and development also makes up a share of investment in bioplastics, which impacts the material and product prices. However, prices have been decreasing over the past decade as more companies and brands are switching to bio-based plastics. As production capacities are rising, supply chains and processes are becoming more efficient, and prices have come down significantly.

PLA, a type of bioplastic, can be 20 to 50 percent more costly than comparable materials because of the complex process used to convert corn or sugarcane into the building blocks for PLA. However, prices are coming down as researchers and companies develop more efficient and eco-friendly strategies for producing bioplastics. For example, Kartik Chandran and Columbia students are developing systems to produce biodegradable bioplastic from wastewater and solid waste.

Despite the higher cost of bioplastics, consumers are generally willing to pay a bit extra for a green product. According to IDTechEX, "consumers are willing to pay a bit extra for a green product, but only up to a point — the majority are happy to pay 5% extra for a green product, but this drops rapidly if the price difference grows any further."

Bioplastics are costly to produce

Bioplastics can only compete on price with fossil-based plastics if oil prices are high. However, oil prices are currently low, making it difficult for bioplastics to achieve competitive pricing levels compared to conventional plastics. The cost of research and development also makes up a share of investment in bioplastics and impacts material and product prices.

The demand for bioplastics is increasing, and more companies and brands are switching to bio-based plastics. As production capacities rise, supply chains and processes are becoming more efficient, and prices have come down significantly. With rising demand and more efficient production processes, increasing volumes of bioplastics on the market, and oil prices expected to rise again, the costs for bioplastics will soon be comparable to those for conventional plastic prices.

Despite the high cost of production, consumers are willing to pay a bit extra for a green product. However, this willingness to pay more only goes so far. According to IDTechEX, consumers are happy to pay around 5% extra for a green product, but this drops rapidly if the price difference grows any further. This was demonstrated in 2014 when oil prices crashed, throwing the bioplastics industry into turmoil. Many major bioplastics companies went out of business or rebranded.

Bioplastics companies have gone out of business due to high costs

Bioplastics can only compete on price with fossil-based plastics when oil prices are high. However, oil prices have been low in recent years, making it difficult for bioplastics to achieve competitive pricing. For example, after spending over $300 million on a bioplastics production plant, Metabolix abandoned the project and changed its focus to agritech.

While prices for bioplastics have been decreasing over the past decade as production capacities rise and supply chains and processes become more efficient, the current low oil prices are still a challenge for the industry. As a result, some bioplastics companies have struggled to remain in business due to the high costs of production and the difficulty in competing with fossil-based plastics on price.

The price of bioplastics is decreasing

Bioplastics can only compete on price with fossil-based plastics if oil prices are high. Unfortunately, oil prices are currently low, making it difficult for bioplastics to achieve competitive pricing levels compared to conventional plastics. However, as more companies and brands switch to bio-based plastics, production capacities are rising, supply chains and processes are becoming more efficient, and prices have come down significantly.

With rising demand and more efficient production processes, increasing volumes of bioplastics on the market and oil prices expected to rise again, the costs for bioplastics will soon be comparable with those for conventional plastic prices. For example, Kartik Chandran and Columbia students are developing systems to produce biodegradable bioplastic from wastewater and solid waste. Chandran uses a mixed microbe community that feeds on carbon in the form of volatile fatty acids, such as acetic acid found in vinegar.

Despite the decreasing prices, bioplastics will still cost the consumer. IDTechEX has stated that "in general, consumers are willing to pay a bit extra for a green product, but only up to a point — the majority are happy to pay 5% extra for a green product, but this drops rapidly if the price difference grows any further".

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