Biodegradable packaging market expands

Amidst analyst projections that the biodegradable packaging market could grow by as much as 20 percent a year, several new players have entered the space in the last several months.

In late September 2007 DuPont (NYSE: DFT) announced a partnership with Australian company Plantic to develop a line of biodegradable, starch-based polymers for use in various applications including packaging. A week later, Cargill announced a partnership with Japan-based Teijin to produce polylactic acid (PLA), a biodegradable biopolymer made from plant materials, and Floridabased Meredian announced it had purchased rights to Procter & Gamble’s (NYSE: PG) polyhydroxyalkanoate (PHA) technology, which it plans to use in biodegradable packaging materials by 2008. Meanwhile the London-based Instone Group officially announced the existence of its Durango-based subsidiary New Ice Products, which had been operating in stealth mode for six years. New Ice is specifically targeting the food industry with compostable packaging products suitable for meat and produce.