Group 1: Industry Overview - Europe is adjusting its sustainable chemicals and polymers development strategy, prioritizing the development of biofuels, which may lead to a stagnation in the growth of renewable raw materials in the chemical industry [1] - Major renewable product companies had announced several bio-based raw material project development plans due to anticipated rapid growth in biofuel and chemical demand, but some have abandoned these commitments in 2023 to ensure profitability and operational sustainability [1][2] Group 2: Company Actions - Neste has postponed the expansion of its biofuel and biorefinery plant in Rotterdam, originally set to increase capacity to 2.7 million tons per year, to 2027, and has put its renewable and circular polymer and chemical projects on hold for at least two years [1] - Stora Enso canceled plans for a 500,000 tons per year biomass fuel and chemical production plant in Rotterdam, despite having completed design and groundwork, but continues with its biomass chemicals plant in Germany, expected to start production later this year [1] Group 3: Market Dynamics - The bio-based polymer currently accounts for less than 1% of global annual plastic production, highlighting the challenges in the market [3] - Neste is focusing on more mature renewable fuel businesses due to uncertainties in the sustainable chemicals and polymers market, with CEO Heikki Malinen citing a lack of clear regulatory frameworks and demand uncertainties [2][3] Group 4: Future Prospects - Neste aims to process over 1 million tons of waste plastics annually by 2030 and is actively seeking new renewable raw materials [3] - Stora Enso's biomass chemicals project in Germany is expected to begin commercial production in the second half of 2025, with high commercial interest noted [4]

Core Insights - The report by Nova Institute highlights the significant growth potential of the biobased polymer industry, with a projected compound annual growth rate (CAGR) of 13% from 2024 to 2029 [2] - Biodegradable biobased polymers are expected to grow at a CAGR of 17%, while non-biodegradable biobased polymers will see a more moderate growth rate of 10% [2] - Asia and North America are set to dominate the global biobased polymer supply, collectively accounting for over 80% of the market by 2029, while Europe’s market share is projected to decline from 13% to 10% [2] Market Growth Potential - The biobased polymer market is anticipated to perform well in 2024, with strong growth expected in the coming years [2] - The average capacity utilization for biodegradable biobased polymers is currently at 65%, indicating significant room for capacity expansion and market development [2] - Non-biodegradable biobased polymers have a high capacity utilization rate of 90%, reflecting strong market demand [2] Product Differentiation - In 2024, a total of 4.2 million tons of biobased polymers are expected to be produced, with cellulose acetate (CA) and epoxy resins leading the market, accounting for 26% and 32% of total production, respectively [3] - 100% biobased PLA is widely used in packaging and medical applications, representing 8% of the total production [3] - The production capacity growth from 2023 to 2024 is primarily driven by the expansion of PLA and epoxy resin capacities in Asia, along with increased polyurethane production globally [3] Industry Challenges and Responses - Global brands are key drivers in the biobased polymer market, actively shifting strategies towards sustainable and climate-friendly solutions [4] - Europe faces significant challenges due to a lack of cohesive policy frameworks, which hampers the full realization of biobased polymers' advantages [4] - The industry also contends with technical bottlenecks and high production costs, making it difficult to compete with traditional fossil-based polymers [4] Future Outlook - The biobased polymer industry is poised for unprecedented growth opportunities, particularly led by Asia's capacity expansion and technological innovations [5] - With ongoing technological advancements, improved policies, and sustained market demand, biobased polymers are expected to capture a larger market share in the future [5] - Collaboration among regions is essential to overcome industry development bottlenecks and elevate the biobased polymer sector to new heights [5]