Bioplastics Investment Soars as Market Expands

Kevin Welsh holds up PHA pellets at the Danimer Scientific plant, on Aug. 3, 2022, in Winchester, Ky. Companies are investing billions of dollars to ramp up production of plastics made from natural, renewable materials that can be safely composted or can biodegrade under the right conditions. Danimer Scientific is one of the companies making a big bet on bioplastic with its expansion of a plant. AP Photo/Jeff Dean

Investors are pouring billions into the bioplastics industry, foreseeing a massive business opportunity in a sector at a time when plastic pollution has become a major global concern.

Bioplastics are biodegradable plastics derived from sources such as sugars and starches, rather than petrochemicals. Investment in bioplastic manufacturing jumped to $500 million in the first quarter of 2022, from $350 million in the previous quarter, according to data from market intelligence provider i3 Connect.