Innovation and Product Development Drive Bio-based Plastics Toward New Applications, Finds Frost & Sullivan

LONDON, April 29, 2010 - Improvements in product performance and an expanding product range
continue to propel the bio-based plastics into new and high-growth
applications despite the challenges posed by the economic downturn and
resulting price sensitivity of customers. The global bioplastics market has
reached a critical juncture in its growth phase, with a large number of
companies now focusing on transitioning from laboratory and pilot scale to
full-fledged commercialisation.

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New analysis from Frost & Sullivan (www.chemicals.frost.com),
Global Bio-based Plastics Market, finds that the market earned revenues of
euro 570.6 million in 2008, and estimates this to reach euro 1.1 billion in
2015.

"The move towards sustainability in key end user markets for plastics
will continue to drive the demand for sustainable bio-based plastics," notes
Frost & Sullivan's Performance Materials Industry Principal, Dr. Brian
Balmer. "The ever increasing product mix in bio-based plastics will ensure
that a wide range of applications is made available for bio-based plastics to
capitalise upon."

Plastics are expanding into newer areas that were traditionally catered
to by engineering plastics like polybutylene terephthalate (PBT) and
acrylonitrile-butadiene-styrene (ABS). This was made possible by significant
improvements in the production methods and additives in bio-based plastics,
opening up new avenues of growth for bio-based plastics.

The development in bio-based commodity and technical plastics will pave
the way for bioplastics to expand into two different ends of the performance
scale. While bio-based commodity plastics will accelerate the growth of
bioplastics in packaging and similar applications, the growth in technical
bio-based plastics will enable expansion into automotive, electronic and
consumer goods applications.

The main challenges facing the bio-based plastics market in the short
term stem from the impact of the economic slump, which will make funding of
major project expansions complex. However, in the long term, the challenges
are more structural such as enhancing the recycling infrastructure as well as
technical properties for bioplastics.

"The recession has seen some of the major expansion and market entry
projects suffer setbacks," explains Dr. Balmer. "Although, sufficient
capacity is currently available for most of the bio-based plastic types,
future market growth will mainly depend on crucial capacity additions taking
place according to schedule."

Partnership with key market participants will be critical to long-term
success in the rapidly growing bio-based plastics market. For example,
partnership with major chemical companies will ensure that bio-based plastic
producers with a predominantly agricultural background will gain rapid access
to critical technology and market development capabilities.

"Bio-plastic suppliers should focus on improving product performance and
the depth of their product range if they are to succeed in the rapidly
evolving markets for bio-based plastics," concludes Dr. Balmer. "End users
need to be made aware of the various alternatives available in bio-based
plastics, with a clear definition of the performance and end-of-life
characteristics of each of these bio-based plastics."

If you are interested more information on this study, please e-mail
Monika Kwiecinska, Corporate Communications, at monika.kwiecinska@frost.com,
with your full name, company name, title, telephone number, company e-mail
address, company website, city, state and country.

Global Bio-based Plastics Market is part of the Chemicals & Materials
Growth Partnership Services programme, which also includes research in the
following markets: European Markets for Plastics in Medical Devices, 2009,
European Markets for Plastics in Passenger Vehicles, 2009, Latin American
Engineering Plastics Market, 2009, and European Markets for Natural Fibre
Composites, 2008. All research services included in subscriptions provide
detailed market opportunities and industry trends that have been evaluated
following extensive interviews with market participants.

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    Global Bio-based Plastics Market
    M4A1

    Contact:
    Monika Kwiecinska
    Corporate Communications - Europe
    P: +48-22-390-4127
    F: +48-22-390-4160
    E: monika.kwiecinska@frost.com

Monika Kwiecinska, Corporate Communications - Europe, Frost & Sullivan, +48-22-390-4127, fax, +48-22-390-4160, monika.kwiecinska at frost.com