Plastic is an inescapable element in modern society, used in the packaging of food and beverages, as well as in the production of tubes, clothing, vehicles and aircraft. Its use is essentially based on fossil fuel sources. Although its recycling is possible, the cumulative effect of the uses inevitably proves destructive, leading to accumulations of garbage and microplastic contamination, which represent more than 80% of the total use of plastic. Even the burning of plastic, like any other fossil fuel, results in the emission of CO2. In spite of everything, nothing is lost. Considering that plastic essentially consists of carbon chains aggregated in a specific way, the use of organic materials can provide the essential components
for its production.
Bioplastic companies 2023
The growing concern for the production of plastic has led to the development of bioplastics, made with plant materials such as leftovers from other industries such as paper mills or agriculture. According to forecasts, the bioplastics sector should reach 25 billion dollars by 2027, with an expected growth of 14.9% (some estimates even speak of +17%). However, bioplastics currently constitute only 1% of the total market, which continues to be dominated by fossil fuel plastics, leaving a large market space available. In this context, biodegradable bioplastics turn out to be a particularly interesting subsection for the protection of the environment. Most bioplastics are in fact much easier to degrade than normal plastics. At the same time, research is being carried out on the use of microbes capable of digesting plastic to solve the problem of microplastic pollution. It has also been found that more and more people are willing to pay more for eco-friendly products, with a growing trend, especially among young people. For more information on the subject, please consult the Bioplastic Feedstock Alliance website
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The bioplastic production process, despite the reference to the “bio” component, is actually closely linked to chemical engineering. Therefore, it is not surprising that the main players in the sector are often leaders in chemistry or spin-offs of major chemical industries. However, investors interested in this field may prefer not to invest directly in giants such as BASF, since the production of bioplastics represents only a small fraction of their overall activity. On the contrary, the following list focuses on smaller publicly traded companies, with a particular focus on bioplastics and ecological solutions. The evaluation of the actions below therefore presents a professional tone of voice and aims to offer an accurate analysis of market prospects
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The best
First, Corbion N.V. (CRBN.AS) stands out for its decades of experience in bio-based products and bioplastics. Through serial acquisitions such as that of TerraVia Holdings and Granotec do Brazil, the company has developed a wide range of bio-based ingredients. In addition, the 50/50 joint venture with Total has contributed to the production of bioplastics used in various sectors. While Corbion isn’t entirely focused on bioplastics, it remains a solid choice for conservative investors seeking exposure
to organic materials and ingredients.
Danimer Scientific, Inc. (DNMR) is a pioneer in the field of bioplastics and biodegradable/compostable polymers. The company has collaborated with important brands such as Nestlé, Bacardi and Mars to develop new products. However, at the moment, Danimer is not yet profitable, with numerous losses recorded in recent years. The investment in a new factory could represent an opportunity for the company to gain in scale and become competitive. Investors will need to keep an eye on the company’s balance sheet and cash reserves, as well as its growth and partnership relationships
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Avantium N.V. (AVTX.AS) was founded in 2000 as a spin-off of Shell. Its YXY® plants-to-plastics technology has helped convert plant-based sugars into bioplastic materials such as the FDCA. More recently, Volta technology aims to transform CO2 into a useful material for bioplastic chemistry. The company has established partnerships with many large companies in the sector, in particular LVMH, Carlsberg, ABInBev, Henkel, LEGO and Salomon. In addition, Avantium raised another 45 million dollars in April 2022 and started the production of production facilities in 2021 and 2022. Investors will need to monitor the company’s profitability and the success of its products on the market
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Good Natured Products Inc. (GDNP.V) develops plant-based plastic products, in particular food containers and plastic bags, for a total of 400 products. The company aims to rely on organic growth and strategic acquisitions. Although revenues grew significantly in 2022, the company is still experiencing losses. Investors will need to pay attention to revenue growth and economies of scale to improve the company’s profitability
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Finally, Biome Technologies plc (BIOM.L) consists of two divisions, Biome Bioplastic and Stanelco RF. The company’s main product is a compostable coffee pod. Even if Biome’s product mix is a bit surprising and does not focus entirely on bioplastics, the company has shown that it has an increasing focus on this subject. Although RF revenue has fallen, Biome’s bioplastics division continues to grow. Finally, investors will need to monitor the company’s profitability and the success of its products on the market
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In summary, all 5 companies are committed to developing sustainable products and promoting a circular economy. Investors will need to monitor the profitability and growth of companies, as well as the success of their products in the market
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