Plant-Based Plastics Gain Favour as Companies Pursue Sustainability Goals

The future is more plastic. Plant-based plastic, that is.

Plant-based plastics, or bioplastics, have accounted for just 1% of the world’s plastic production for well over a decade, according to a review of more than 100 companies by research organisation nova-Institute. Bioplastics haven’t taken off largely because they are typically 50% to 80% more expensive than traditional fossil-fuel-based plastics, but their production is now growing 14% a year, putting them on track to reach up to 3% of the plastics market in the next five years.

Bioplastics are expanding faster than recycled plastic in some cases, such as in Asian countries like China and Japan that are mandating more ecologically friendly materials, nova-Institute founder Michael Carus said. Even if global plastic recycling rates someday reach 70% compared with around 9% today, bioplastics alongside materials made from captured carbon dioxide will have a big role to play asthe world transitions away from fossil-fuel-based materials, he said.

“Not one of them can do it alone,” Carus said, referring to the sustainable materials that will drive the green transition.

Bioplastics’ benefits

Bioplastics are usually derived from plants rich in starch, sugar or pulp, such as corn, wheat, sugar cane, wood and cotton, which makes them costlier than plastics made from fossil fuels because crops need fertiliser and other resources such as water. However, the environmental benefits of plant-based plastics are increasingly appealing to companies promising to use more sustainable materials by the end of the decade.

Plants absorb the atmosphere’s carbon dioxide, which cuts the greenhouse-gas emissions from making bioplastics to at least half that of fossil-fuel-based plastics. Bioplastics can also sometimes cause less pollution when they degrade in the environment.

Broadly, there are two types of bioplastics: Materials that have similar performance to plastic, such as pulp-derived cellulose acetate found in eyeglasses and textiles, and bioplastics that are chemically identical to conventional plastics, such as a polyethylene, polyester and nylon. Around half of today’s bioplastics are biodegradable, according to nova-Institute, meaning they break down more naturally and are less harmful to habitats. Still, many of these bioplastics require industrial composting facilities to degrade and aren’t designed to be thrown away in a home garden.

Some of the earliest adopters of bioplastics are fashion companies, including Lululemon, which has a goal to replace the majority of oil-based nylon with plant-based nylon by 2030. A big selling point for the sportswear company is using plants to make chemically identical nylon that can be easily switched in, but still cuts emissions by nearly half.

The strongest demand for bioplastics is currently from fashion and food-packaging companies, but interest is also rising from companies in cosmetics, electronics and more durable goods such as tools, Eastman Chemical’s Chief Technology Officer Chris Killian said.

Eastman, formerly a division of Kodak, earns more than $1 billion of its $10 billion or so in yearly sales from bioplastics made from cellulose acetate, a material it has produced for more than 70 years. Cellulose acetate, which Eastman makes from cotton linters and wood pulp, was first used in Kodak film in the company’s early days, but it is now expanding into packaging, textiles and other applications. In 2022, Eastman signed an agreement with Warby Parker for the material to be used in eyewear.

“It has a great deal of legs,” he said of the cellulose acetate-derived plastics.

Challenges ahead

Plant-based plastics remain a tough sell because fossil-fuel-based plastics are much cheaper, but prices could fall if companies continue to buy more bioplastics and governments encourage their use. This year, the Biden administration called on the federal government to assess the potential for biomaterials, including for plastics, fuels and medicines. And last year, the U.S. Defense Department said it would invest $1.2 billion in bio manufacturing. The European Union is also considering mandating bioplastics under packaging rules that are being discussed.

In the U.S., there is government support at the state and federal level to convert biological raw materials into fuels such as ethanol, but that level of support doesn’t yet exist for plant-based plastics, said Manav Lahoti, chemical giant Dow’s global sustainability director, olefins, aromatics and alternatives.

“The market is ready to take off on the demand side,” he said. “But to make the economics work, there is some regulatory support that is required.”

Another hurdle to scaling up bioplastics is what happens at their end of life. Only plant-based plastics that are chemically identical to fossil-fuel–based versions can enter the existing and growing recycling infrastructure. The world’s limited amount of feedstock, which often goes to feeding cattle and other livestock, also presents challenges to using more bioplastics.

One answer: turning agricultural waste into recyclable plastics.

This year, Dow struck an agreement with biomass refinery startup New Energy Blue to buy bioethylene made from the stalks and leaves of corn grown in Iowa. Dow will then make conventional and recyclable plastics from the material and sell to companies in transportation, footwear, and packaging.

Dow is already providing bioplastics for Crocs shoes and LVMH Moët Hennessy Louis Vuitton’s perfume packaging, and sees demand outstripping supply, said Haley Lowry, Dow’s global sustainability director for packaging and specialty plastics.

“We are trying to find more sources,” she said. “The demand from our customers is there; it’s really finding the sources of biofeed that makes sense.”

Australia’s wealthiest donors are becoming more strategic, more ambitious and increasingly focused on creating measurable impact, according to Sydney Children’s Hospitals Foundation chief executive Kristina Keneally.

Speaking after the 2026 Gold Dinner, held last week in Sydney, Keneally said Australia was experiencing a significant shift in how major philanthropy is viewed, with large-scale giving increasingly part of conversations about leadership, legacy and social impact.

The annual Gold Dinner, now in its 29th year, brought together some of the country’s most influential business leaders, philanthropists and cultural figures, raising $75.5 million and counting in support of the Sydney Children’s Hospitals Network.

While the event has become one of Australia’s most prestigious fundraising gatherings, Keneally said its significance extends far beyond a single evening.

“Gold Dinner, the flagship event of Sydney Children’s Hospitals Foundation, represents far more than a single evening. It is a powerful demonstration of what a committed community can achieve together over 12 months,” she said.

“The strength of that community, and the trust built over nearly three decades, means people return not just for the event, but for the impact they know it delivers.”

A NEW ERA OF PHILANTHROPY

Large-scale philanthropy has long been a feature of American society, where charitable foundations and major donors often play a prominent role in funding medical research, education and social programs.

Keneally believes Australia is moving in a similar direction.

“Australia is building a stronger culture of large-scale philanthropy, but it is still evolving compared to the United States, where giving at scale is more deeply embedded and widely recognised,” she said.

She said the country’s philanthropic landscape was becoming more sophisticated as successful business leaders increasingly sought opportunities to create meaningful change through their giving.

“In Australia, while generosity has always been strong, large-scale giving has historically been less visible, but that is changing rapidly as more leaders embrace philanthropy as a powerful way to drive meaningful outcomes.”

According to Keneally, events such as the Gold Dinner are helping reshape public perceptions of philanthropy by demonstrating the tangible outcomes that major donations can achieve.

“Gold Dinner is helping to reshape how philanthropy is perceived in Australia, making it more visible, more aspirational and more connected to real-world outcomes,” she said.

WHERE THE MONEY GOES

The funds raised through Gold Dinner support clinical care, research and innovation across the Sydney Children’s Hospitals Network.

Over the past 12 months, more than $75.5 million has been raised to help fund advanced medical equipment, innovative care models and world-leading medical research. Areas of focus include precision medicine and early diagnosis, where emerging technologies are already changing how childhood illnesses are detected and treated.

Keneally said the impact is felt directly by children and families facing some of the most difficult moments of their lives.

“For children and families, this translates into very real and immediate impact. It means faster diagnoses, earlier access to life-saving treatments, and care that is more personalised and effective,” she said.

“It also ensures hospitals are equipped not just to respond to illness, but to reimagine what care can look like, giving children the best possible chance not only to survive, but to live full, healthy lives.”

BUSINESS LEADERS BACKING CHANGE

One of the defining characteristics of Gold Dinner is the calibre of its supporters.

The event has evolved into a meeting point for influential leaders from business, culture and philanthropy, many of whom see charitable giving as an extension of their professional and personal legacy.

“It speaks to a community that is not only generous, but increasingly ambitious in how it gives, combining influence, expertise and purpose to achieve outcomes at scale,” Keneally said.

Among the major supporters of this year’s event were Presenting Partner, John-Paul Nassif Foundation; Major Partners, ABC Bullion, Shaw and Partners Financial Services and One Circular Quay by Lendlease; and Premier Partner, Range Rover, whose ongoing support reflects a shared philosophy of legacy and long-term impact.

The evening also featured performances, premium hospitality experiences and fundraising initiatives designed to encourage further support for children’s health services and research.

LOOKING BEYOND NEW HOSPITALS

With major new children’s hospital developments at Randwick and Westmead progressing, Keneally said the focus is increasingly turning towards what comes next.

“The long-term vision is to ensure every child has access to world-leading healthcare, care that continues to evolve through innovation, research and global collaboration,” she said.

The foundation’s future priorities include accelerating medical discovery, expanding access to cutting-edge treatments and helping position New South Wales as a global leader in children’s health.

Keneally said the Gold Dinner remains central to achieving those ambitions because it does more than raise money.

“Gold Dinner is critical to making that vision possible. It not only provides significant funding, but also unites a powerful network of supporters who are driving the future of philanthropy in Australia,” she said.

As Australia’s culture of philanthropy continues to mature, Keneally believes that the network will play an increasingly important role in shaping the future of healthcare for generations to come.

“The result is a community that is helping to shape the future of paediatric care, not just for today’s patients, but for generations to come.”