February 13, 2025 – PLA Price Trends Diverge in Europe and US Amid Demand Shifts and Logistical Hurdles
In the first half of January 2025, the price trends of polylactic acid (PLA), a bioplastic, diverged significantly between the European and US markets. While European prices saw an upward trajectory, the US market remained steady. This disparity can be attributed to key factors such as demand growth, sustainability policies, and logistical challenges.
In Europe, particularly in Germany, the rise in PLA prices was primarily fueled by robust demand from the packaging and 3D printing industries. PLA’s biodegradability and similar performance to conventional plastics have made it a favorite in food packaging and other applications. Moreover, the packaging industry’s pursuit of sustainable materials has further stimulated demand for PLA. Supply chain disruptions, including congestion at ports like Rotterdam in the Netherlands and tight production capacity in Europe, led to delays in PLA supply, exacerbating shortages and pushing prices higher.
According to the Color Masterbatch Industry Network, the EU’s increasing focus on sustainability is also a significant driver of the PLA price hike. New regulations introduced in December 2024 raised recycling targets and restricted harmful substances, accelerating the adoption of biodegradable materials like PLA. In agriculture, driven by sustainable farming practices and the EU’s Fertiliser Products Regulation, the use of PLA in biodegradable mulching films for soil is on the rise.
In contrast, PLA prices in the US market remained stable, thanks to a balanced supply-demand dynamic and ample production capacity coupled with steady raw material costs. Although demand from the packaging, 3D printing, and textile industries dipped slightly after the holidays, the overall market was largely unaffected. Despite logistical challenges posed by congestion at ports along the US East Coast and the Gulf of Mexico, the impact on prices was minimal.
Looking ahead, European PLA prices are likely to continue facing upward pressure due to strong demand for sustainable packaging solutions and regulatory support for biodegradable materials. The US market, however, is expected to maintain price stability, despite potential persistent logistical challenges and port congestion. As industries increasingly turn to eco-friendly alternatives, demand for PLA is projected to grow in both regions, particularly in the packaging, automotive, and textile sectors.