Biobased & Circular economy
Market research makes accelerating the 'go to market' of PHAs transparent
Approach
Market developmentDate
April 18, 2025Reading time
3 minutesPHA’s (Polyhydroxyalkanoates), a family of biobased and biodegradable materials, have long been considered a highly promising alternative to conventional fossil-based plastics. However, producers of microbially produced polyesters seem to find it difficult to achieve scalable industrial production at cost-competitive levels.
Considering the impact promise and the increasing market demand for PHA’s, the question arises: how can you ensure that these materials come to market (as quickly as possible)?
Against this backdrop, five water boards, Paques Biomaterials, and waste processor HVC are pioneering the construction of a pilot plant that produces PHA based on treatment sludge, industrial wastewater, and food residues. Partly as a result of this initiative, Invest-NL has commissioned a market study into the valorisation of the PHA market potential. The study provides insight into the market opportunities for the different types of PHA materials and what is needed to accelerate market introduction(s).
Sustainable and renewable materials as a pillar in the development of a circular economy
Making the transition to a circular economy financially feasible is a top priority for Invest-NL. The development, introduction, and use of sustainable and renewable materials play an important role in this. It requires innovation, entrepreneurship, and active involvement from many different parties, both in the biobased materials market and in the markets where these new materials are applied. To accelerate this transition, Invest-NL has already financed and/or made several companies and projects financially feasible.
Read more about what we are doing for the transition to a circular economy.
Many innovations in biobased materials to replace fossil plastics
With its large agricultural and chemical industries, the Netherlands has a strong position to take a leading role in developing the new market for PHAs and other biobased materials through innovation. And there are no shortage of ambitions. By 2030, the Netherlands aims for 15% of the plastic used to be produced using biobased materials, such as sugar beet or corn. However, the reality is challenging. Replacing fossil plastics on a large scale with PHAs is so innovative—and therefore risky—that growth and funding prove difficult. To accelerate market acceptance of PHAs, it is crucial to identify which markets, given the specific advantages of PHAs, can serve as ‘early adopters’.
Where Invest-NL makes a difference in this case
In the market study commissioned by Invest-NL from Wageningen Food & Biobased Research (WFBR), the focus was on comparing the specific material properties of some (industrially produced) PHAs with the main characteristics of various plastic product applications. The roadmaps developed provide insight into the market opportunities for different types of PHA materials and identify which applications both financiers and PHA producers should focus on first.
This study shows what opportunities there are for PHA to enter the market for biobased plastics. It thus provides an important basis for unlocking the market potential of PHA. Thanks to the roadmaps, PHA producers know what developments their material (still) needs to undergo, plastic manufacturers know which biobased materials can be used in their products, and investors can better identify the growth opportunities for PHA-based materials.
Guy de SévauxTeam Lead Biobased & Circular Economy Invest-NL
Questions about this topic? Guy is happy to help!
Guy de Sévaux
teamlead Biobased and Circular economy
