BASF, the German chemical company, is determined to establish a bio-polymer market in Thailand within two years.

BASF wants to make bioplastic, and for this it needs bio-polymers as raw material, so it has extended its efforts to build up demand in Thailand, said Stefan Dreher, Asia-Pacific senior manager.

"The plastic items manufacturing industry in Thailand is well-established and bioplastic production is applicable to this process, so for us, the market is here when compared to other ASEAN members," said Mr Dreher, who oversees the global polymer and foam business.

BASF offers two brands of bio-polymers essential for making bioplastic items. One is Ecoflex, a crude-based bio-polymer produced from biodegradable material. Another called Ecovio is made from renewable materials with biodegradable features.

Given that its products are ingredients in making bioplastic items, its customers are not end users but rather converters in an industry established in Thailand.

Within two years, BASF hopes to penetrate the market and build demand by tackling two factors. The first is pushing for supportive regulations to promote the market and the second factor is increasing public awareness of the benefits of bioplastic products.

Mr Dreher explained that bioplastic products were either biodegradable or made from bio-materials or had both of these qualities. They became popular when crude became more expensive and waste management was a costly burden.

He believes that once the public realises these complications and the benefits of bioplastics, demand for the industry will grow. If its benefits are taken seriously by the government, important regulations will be introduced to push the market forward.

"Japan is our chief Asian customer with China displaying a rising growth rate. The Chinese government introduced a regulation in June that only biodegradable plastic bags are permissible.".

Industry growth is promising. Mr Dreher noted that conventional plastic is only growing at a single-digit rate while bioplastics are growing at 20-25% per year globally. World consumption of bioplastics stands at 60,000 tonnes annually, compared to several billion tonnes of conventional plastics. But in five years, Mr Dreher predicts bio-polymer materials will be the basis for supermarket bags and food packaging.

"For other sophisticated applications such as civil engineering, it will take a longer time to make a presence," he added. "BASF does not think that bioplastic will fully substitute for conventional plastic use, but we think its special features will enhance the use of resources more efficiently in a sustainable manner."

Another material essential for bioplastics is polylactic acid, and US-based NatureWorks has a monopoly on supply. He believes that monopoly will end soon as more research and development pour in to establish the industry.