Study: Biopackaging holds promise for eco-friendly bottles

Compostable bottles present an increasingly attractive alternative to recycled PET for beverage companies, according to a new Drinks Biopackaging report from Zenith International.

Biopackaging use in the combined markets of West Europe and North America rose by 47% in 2010 to over 100 million liters, but volumes remain small as a proportion of total volume.

There is a clear need for government incentives if the market is to make a real step change, particularly in drinks packaging.

"While the environmental credentials of compostable bottles sit well with increasingly green-minded consumers, challenges such as price, separation from PET, and composting facilities persist," said senior analyst Jenny Foulds.

The report found:

- Biopackaging does have potential to improve sustainability in beverage packaging.

- Increased retailer acceptance has helped compostable packaging become a mainstream opportunity.

- Whilst the economic downturn may have affected demand, interest in added value, convenience and eco-friendly products will return.

- Larger formats, such as 1.5 and 2 liter sizes or above, represent a relatively untapped segment.

Growing interest in locally-available renewable crops may bring additional scope.

"The use of recycled PET, however, continues to gain momentum and has overtaken compostable bottle formats," added Foulds.

"Biopackaging also has to satisfy concerns about the use of food sources for non-food products."

"Despite the difficulties, we foresee continuing strong growth in development projects. If the challenges can be answered, then volume can gain serious market share."