Reducing plastic use and production is emerging as a priority among businesses intending to lower their environmental footprint, but this can be challenging given limited alternatives to plastic’s widespread availability and relatively low cost.
In recent years, bioplastic — plastic made from natural materials such as plants — has increasingly gained popularity as a greener choice among eco-conscious businesses. However, business decisions ultimately must make good business sense. Is it really smarter for your bottom line to partner with a bioplastic manufacturer for your needs?
In this article, we break down what brands need to know about the financial realities of transitioning to bioplastic manufacturing and how to assess whether the shift is right for your business.
Table of Contents
Considering the Pure Cost Factor
Raw Material Costs
Bioplastics do tend to cost more than traditional plastics. In some cases, you might be looking at prices that are 20% to even double what you’d pay for petroleum-based options. That’s mainly because production is still scaling up, the raw materials come from agricultural sources, and the infrastructure behind it is relatively new.
That said, as more manufacturers get on board and production becomes more efficient, prices for materials such as polylactic acid (PLA) bioplastic will get lower as time goes on.
Production Adjustments
Shifting to bioplastics might require adjustments to your current setup, especially if your processes involve injection moulding or heat-sensitive materials. That said, manufacturers now provide bioplastic options designed to work with standard equipment, so the change isn’t always as disruptive as it sounds.
There can be some initial setup costs, but these are typically one-off investments, not ongoing expenses.
Storage and Shelf Life
Bioplastic storage isn’t the same as traditional plastics. Some bioplastics can be more sensitive to elements such as heat or light. So, in order to properly store them, you may have to modify your current warehouse setup or review storage timelines to factor in these extra conditions.
This won’t apply to all types of bioplastics, but it is a cost worth considering to avoid issues in the future.
Lead Times and Supply Chain Variability
Due to their relatively new introduction, bioplastic supply chains aren’t quite as robust as traditional plastics just yet. Lead times can be longer, and availability may shift depending on the supplier, especially if they’re a smaller producer or you’re importing materials.
It’s not necessarily a deal breaker, but it does mean you’ll need to plan ahead to avoid unexpected delays.
Accounting for Economic Benefit
Compliance and Risk Reduction
With more governments introducing stricter rules and regulations around single-use plastics, switching to a biodegradable products manufacturer early can help businesses avoid sudden rug-pulls due to changing circumstances.
By acting now, you’ll be less likely to be caught off guard by sudden regulation changes or rushed transitions, which will help you avoid later fines and prevent unforeseen expenses brought on by last-minute compliance efforts to meet new sustainability standards.
Customer Perception
Research consistently shows that many consumers are now willing to spend more on products with sustainable packaging. It’s a crowded market, so using certified biodegradable or compostable materials can set your brand apart and even support a higher price point without turning customers away.
This is especially important for direct-to-consumer businesses, where packaging isn’t just a protective layer – it’s part of the overall brand experience and what customers remember.
Access to New Markets and Buyers
Sustainability is key in how retailers and procurement teams choose their suppliers. More often, buyers are looking for partners who align with their environmental goals.
Using verified biodegradable materials can give your products an edge — whether you’re aiming to get on shelves, into new markets, or be included in corporate procurement programmes that prioritise greener options.
Investing in Long-Term Value
Transitioning to bioplastics also carries long-term financial and strategic benefits, such as:
Brand Differentiation
As sustainability becomes more commonplace, your material choices will come under scrutiny as they reflect your brand’s stance on the fight for environmental preservation.
Companies that show themselves to be proactive about reducing their environmental footprint, such as by working with a bioplastics manufacturer, can build a reputation for leadership — not just compliance.
Investor Appeal
ESG (Environmental, Social, and Governance) metrics are now a key consideration for investors. Businesses that embed sustainability into their operations—right down to the materials they use—are better positioned to meet ESG benchmarks and attract funding.
Resilience to Volatility
Fossil fuel prices are volatile and geopolitically sensitive. While not immune to market swings, bioplastic feedstocks offer diversification and a pathway to more predictable long-term costs.
Key Considerations Before Making the Switch
Switching to bioplastic manufacturing isn’t just about choosing a different material. It takes planning and getting the right people on board. Here are a few things worth thinking through:
- Certifications
Not all “biodegradable” claims for bioplastic hold up. Stick with materials with proper certification to ensure you’re using the real thing. Be sure to check with your manufacturing partner.
- End Use and Disposal Fit
Some bioplastics need industrial composting to break down, while others can go in a home compost. Make sure what you’re using matches how and where your product will be discarded.
- Customer Education
Bioplastics won’t do much good if they end up in regular bins. Think about whether your customers will know how (and where) to dispose of the packaging properly, and whether you’re willing to make the effort to educate them.
- Supplier Experience
Getting the right bioplastic manufacturer makes a big difference. You want someone who’s done this before, understands the details, and can help guide you through the process to minimise any chances of mistakes or wasted investment.
- Supplier Scalability
If your orders for bioplastic products grow, will your supplier be able to keep up? It’s worth checking lead times and production capacity early so you’re not caught out later.
The Business Case For Bioplastics
People often hesitate to make the bioplastics switch because they assume it’s more expensive than standard plastic. On a per-unit basis, that can be true. But when you’re thinking about the economics of changing to a bioplastics manufacturer, you also need to factor in the indirect financial implications arising from the ways it could impact other areas of your business — often positively more than not.
For businesses looking to future-proof their products and reduce their environmental footprint, it’s worth exploring what’s possible with bioplastic manufacturing. The transition might take some adjustment, but with the proper planning and partners, it can also open brand-new doors for your business without turning your operations upside down.
