New Material Intelligence NMT | What are the business opportunities in the biodegradable industry?

Recently, the news that “bio based degradation enterprises have completed nearly 100 million yuan of pre A round financing” shocked the entire industry.
It is reported that Zhongke Technology, established in 2021, is a bio-based materials and research and development company dedicated to creating a bio-based material industry chain.
But if it weren’t for the three years of the pandemic, financing might have reached a faster pace.
The industry may have become accustomed to such financing news. After all, these years have been affected by the epidemic. Leading manufacturers such as Meirui New Materials, Meilian New Materials, and Wanhua Chemical have reported good performance news. Among them, Meilian New Materials is particularly prominent, with the parent company’s net profit more than tripled.
Can we still create such achievements in this inferior market? What are the business opportunities in the industry?
New Materials Intelligent NMT | What are the business opportunities in the biodegradation industry?
In fact, the research on biodegradable technology has a long history. The earliest date can be traced back to the 1960s when DuPont began using indirect methods to prepare polylactic acid. After long-term research and development, it has gradually realized industrialization and put into practice. Currently, downstream biodegradable plastics are mainly used in packaging, agriculture, 3D printing, modern medicine, textile industries, etc. https://store.stoneitech.com/
In 2020, China proposed a “dual carbon” strategy, taking biological based materials as a key task in the “14th Five Year Plan”. China is vigorously developing a plastic recycling economy, establishing a plastic pollution control system, improving and innovating plastic raw materials, and striving to prevent and reduce possible plastic pollution from the source. Compared to alternatives to traditional plastics, biodegradable materials have plastic-like properties, a wider range of applications, and are more environmentally friendly. It can be seen that the domestic degradable plastics industry has a great development prospect. As the largest market leader in degradable plastics, biodegradable plastics have gradually become the focus of attention in the field of degradable plastics in China.
New Materials Intelligent NMT | What are the business opportunities in the biodegradation industry?
Due to the continuous expansion of the application range of biodegradable plastics and the steady development of downstream products such as biodegradable shopping bags and biodegradable disposable tableware, the domestic consumption of biodegradable plastics has continuously increased from 151000 tons in 2016 to 2.2 million tons in 2020, with a compound annual growth rate of 9.8%. In the future, with the growth of downstream market demand, the consumption of biodegradable plastics in China is expected to increase significantly, and it is expected that the consumption will reach 338000 tons in 2022.
The total sales revenue of domestic biodegradable plastic products increased from 3.39 billion yuan in 2016 to 6.06 billion yuan in 2020, with a compound annual growth rate of 15.7%. The sales revenue of express packaging, disposable tableware, disposable shopping bags, and other biodegradable plastic products increased at a compound annual growth rate of 13.4%, 15.8%, 16.0%, and 10.9%, respectively. It is estimated that the total sales revenue of biodegradable plastic products in China will reach 9.69 billion yuan in 2022.
In the category of biodegradable plastic products, the market share of disposable shopping bags reached 71.3%, followed by disposable tableware, with a market share of 21.5%. The market share of express packaging is 4.8%.
Biodegradable plastic sales revenue: The total sales revenue of domestic biodegradable plastic products increased from 3.39 billion yuan in 2016 to 6.06 billion yuan in 2020, with a compound annual growth rate of 15.7%. The sales revenue of express packaging, disposable tableware, disposable shopping bags, and other biodegradable plastic products increased at a compound annual growth rate of 13.4%, 15.8%, 16.0%, and 10.9%, respectively. It is estimated that the total sales revenue of biodegradable plastic products in China will reach 9.69 billion yuan in 2022.
In the category of biodegradable plastic products, the market share of disposable shopping bags reached 71.3%, followed by disposable tableware, with a market share of 21.5%. The market share of express packaging is 4.8%.
From the perspective of patent authorization, in 2016-2021, the number of patent applications for biodegradable materials in China increased year by year, from 357 to 637. The importance of this field has gradually deepened, and the innovation ability of enterprises has continuously improved.
From the results, in 2016-2020, the total domestic production of biodegradable plastics increased from 166000 tons to 241000 tons, with a compound annual growth rate of 9.7%. Due to the continuous expansion of production capacity and increasing utilization of production capacity, it is expected that the production of biodegradable plastics in China will reach 365000 tons in 2022. In the context of carbon neutrality, bio-based materials and degradable plastics have gradually taken the lead in technological innovation and economic development, occupying a place in the contemporary world with their green, environmentally friendly, and resource saving characteristics. At the same time, it can replace petroleum based polymer materials, thereby alleviating the current energy crisis and environmental crisis facing mankind.
New Materials Intelligent NMT | What are the business opportunities in the biodegradation industry?
With the awakening of environmental awareness in China, a new generation is beginning to reflect on the degradability of garbage. It is also beginning to realize that replacing petroleum based with bio-based will become a major trend in the future. Biodegradable plastics will be the main development direction of the degradable plastics industry in China and even the world in the future. In the context of tight oil resources, heavy dependence on imports for energy, and severe white pollution in China, promoting the application of biodegradable plastics and even promoting the emergence of new ecological plastic industries is a major direction for industrial transformation. Stimulated by the market, the downstream market will further open and production capacity will also increase,