An interview with Ken Hu, Mitsubishi International Corporation

The US market has been identified as GAIAs main priority for the international expansion, and as such, GAIA works closely together with Mitsubishi International Corporation in the US. GAIA had the opportunity and privilege to sit down with Mr. Ken Hu, Senior Sales & Marketing Manager with Mitsubishi international corporation, to ask him about the US market, the cooperation between the two companies, and the customer response to Biodolomer.

GBM: What are your views on the US market for compostable bioplastics?

KH: The whole market for biodegradable and compostable bioplastics really took off with the introduction of PLA, which was produced locally in the US and marketed as compostable and biodegradable.

Back then, the introduction of compostable bioplastics was largely driven by brand owners, as they wanted to have something sustainable within their offering. There was also an understanding that since these new materials were expensive, the first products were marketed as a niche offering.

Since then, the market has developed considerably, with more materials being introduced, and with that a greater public attention and interest in compostable bioplastics.

As people started to take an interest, three distinct sustainable plastic solutions started to appear:

-        Compostable

-        Biobased

-        Recycled (post-consumer-recycled (PCR) plastics)

Each of these categories have their pro’s and cons, and based upon them they will find their own preferred market categories where they offer the most value for money.

GBM: Have you experienced a shift in the way customers view compostable bioplastics over time?

KH: Yes, definitely. As I mentioned, PLA was the starting point for compostable plastics in the US but, as you know, PLA has its limitations. As these limitations became more commonly known, people began to take an interest in other materials, that could offer new properties and, not the least, that didn’t require industrial composting. There was an interest in the market to upgrade from industrial composting to home composting, or backyard composting, as it is sometimes referred to in the US.

Biodolomer was introduced to the American market just in time to benefit from this increased interest in home composting.

Since COVID, there has been a distinct shift in the market, with price starting to play a much bigger role, as the interest for sustainable solutions have outgrown its original market niches. This has favoured the post-consumer-recycled plastics in the short term. That being said, all three solutions are growing in the market, as the difficulty to recycle some plastics has encouraged the market to opt for biobased and/or compostable bioplastics.

GBM: Speaking of the US market, Has the US government introduced any mandate on biodegradable plastics?

KH: The United States does not have a federal mandate specifically requiring the use of biodegradable plastics. However, there are several initiatives and regulations at both the federal and state levels aimed at reducing plastic pollution and promoting sustainable alternatives. For example, The Biden-Harris Administration has set ambitious goals to reduce plastic pollution, including a draft “National Strategy to Prevent Plastic Pollution” by the Environmental Protection Agency (EPA). This strategy aims to eliminate the release of plastic waste into the environment by 2040. There have also been efforts to phase out single-use plastics in federal agencies by 2035, through the “Mobilizing federal action on plastic pollution: progress, principles, and priorities.” interagency initiative.

Some states have implemented their own regulations. For example, California’s AB 1201 requires compostable products to be certified by third-party organizations and prohibits the use of misleading terms like “biodegradable” on plastic products.

These measures reflect a growing commitment to addressing plastic pollution and promoting more sustainable materials.

GBM: What have been the customer reactions to Biodolomer bioplastics?

KH: The strategy for the US market was to start with the film blowing customers, as both we and GAIA believed that there were some very interesting prospects already using compostable bioplastics in their production that could be enticed to try out Biodolomer® bioplastics, which was introduced as an alternative and/or second material to what they are already using. So far, the market response have been surprisingly positive; customers are very impressed with how easy it is to use the Biodolomer® F bioplastics in the machines, as compared with their incumbent compostable material.

Another thing that has greatly impressed customers is the level of customization and support that GAIA offers. With competing grades, the customization options are limited and customers will have to make do with the material in the best way they can, whilst with GAIA’s grades, the fine-tuning opportunities means that the production and end product properties can be optimized at a whole different level.

To summarize, the quality of the material, and the technical support and customization offered has had the customers pleasantly surprised.

GBM: Describe, in your own words, how you think the cooperation with GAIA is working so far:

KH: I think that we (Mitsubishi) and the team from GAIA have established a very good relationship, based on mutual respect for each other’s experience and expertise, and a willingness to work for the common good of the cooperation.

What have made the biggest impression on me is the innovative technology that GAIA has managed to develop, and the market-oriented approach where adjustments to customer feedback and requirements are dealt with quickly and efficiently. The commitment to the US market and the customers have been excellent, and it’s something that customers feels and appreciates.

GBM: Thank you, Ken for taking time out of your busy schedule to speak with us, and to share your insights into the US market.

For those interested in learning more about the US market for plastics, the below links can help with a better understanding of the ambitions laid out by the current administration:

Sustainable Management of Plastics | US EPA

Mobilizing-Federal-Action-on-Plastic-Pollution-Progress-Principles-and-Priorities-July-2024.pdf (whitehouse.gov)