Early 2026 Biobased Materials: Policy Push & PHA/PLA Dual-Driven Advancement

Summary:

From late 2025 to early 2026, the biobased materials industry witnesses strong domestic and international policy support, benefiting PLA and PHA directly. Domestic enterprises achieved PHA mass supply; multiple companies completed financing and advanced project EIA. Synthetic biology boosts PHA cost reduction, with applications expanding to high-value fields like 5G and automotive. The non-grain raw material route has become an inevitable industry trend.

I. Major Domestic Policies

Nine Ministries Jointly Issue Document to Mandatorily Promote Degradable Materials (2026.1.4) The Ministry of Commerce and 8 other ministries released the Notice on Implementing the Green Consumption Promotion Action, focusing on four key areas: catering, accommodation, express delivery, and agriculture.

It explicitly requires the mandatory promotion of degradable packaging and cleaning products, elevating the substitution of disposable plastics with biobased materials to a national initiative, which directly benefits the application expansion of products such as PLA and PHA.

Biobased Materials Added to Encouraged Categories in Industrial Catalog (2026.1.6) The National Bureau of Statistics revised the Industrial Classification for National Economic Activities, clearly listing encouraged categories in the chemical fiber manufacturing industry, including degradable fibers like PHA and PLA. This provides clear guidance for industrial policy support and capital investment.

UAE Launches Full Implementation of Phase II "Plastic Ban" (2026.1.1) The UAE has expanded the scope of its plastic ban to prohibit the import, manufacture, and trade of more disposable plastic products. This creates new opportunities for biobased materials to enter the Middle Eastern market, with PLA tableware and packaging set to become the main substitutes.

EU Announces €10 Billion Biobased Materials Procurement Plan (2025.12.29) The EU Bioeconomy Strategy outlines a 2040 vision for the widespread application of sustainable biobased materials in Europe, supported by a €10 billion procurement fund.

It focuses on biobased substitution solutions in construction materials, chemicals, textiles, and plastics. PHA has gained significant attention due to its universal degradability.

II. Updates on Core Domestic Enterprise Dynamics

Milestone in PHA Commercialization (2025.12.25) Hengxin Life announced mass supply of PHA materials, marking the large-scale application of microbially synthesized biobased materials (previously constrained by technical and cost barriers). PHA’s full natural degradation property gives it unique advantages in high-end packaging and medical implants.

Longyan Zhuoyue New Energy’s Q3 2025 Financial Results (Oct 27, 2025) The company’s Q1-Q3 revenue dropped 21.24% YoY, while net profit surged 81.24% YoY; Q3 net profit turned positive from a year-ago loss.

Profit growth stemmed from profitability-oriented operations, controlled raw material costs, and commissioned natural fatty alcohol production line. Specializing in waste oil-based biodiesel and biobased materials, its scale advantage in biobased materials will strengthen as capacity ramps up.

Zhejiang Sugar Energy Technology’s Financing (Oct 15, 2025) The company completed over USD200 million equity and debt financing (led by SDIC and others) for its 12,000 t/a HMF pilot project in Zhoushan (world’s first 10k-tonne-class HMF line upon completion).

A leader in biobased furan materials with core technology from CAS Ningbo Institute, it has broken over 120 key HMF production technologies and achieved large-scale continuous production.

Shandong Enterprises’ Project EIA Acceptance (Late Oct 2025) On Oct 29, Shandong Qingda Xiangchi Biotechnology’s (subsidiary of Xiangchi Jianyuan) 20,000 t/a PDO project (adopting Tsinghua’s 4th-gen fermentation tech, 20-month construction) had its EI report accepted.

On Oct 30, Shandong Shuguang New Material’s 7,000 t/a biobased piperonyl butyl ether project (Weifang, 12-month construction) had its EI report accepted; the company focuses on eco-environmental materials.

III. Directions of Technological Innovation

Synthetic Biology Boosts PHA Yield (2026.1.12) Breakthroughs in strain improvement and fermentation processes have significantly increased PHA yield. Core technologies such as lactide purification and non-grain raw material conversion have gradually broken international monopolies, providing support for large-scale industrial cost reduction and promoting the penetration of PHA into the general plastic market.

Continuous Expansion of Biobased Materials Application Boundaries (2026.1) Applications have extended from traditional packaging/tableware to high-value-added fields such as 5G communications, automotive, and medical care: Kingfa Sci. & Tech. Co., Ltd. launched biobased LCP materials, breaking the technological monopoly of Japan and the United States, which is expected to significantly reduce the import dependence of LCP antenna materials for 5G base stations; the biobased elastomer material project was launched, helping to break the "chokepoint" bottleneck in strategic fields such as new energy vehicle seals.

Core Conclusion

In early 2026, the biobased materials industry ushered in dual benefits of strong policy drive and real market breakthroughs. PLA leads the market with its compliance advantages and mature applications, while PHA opens up high-end scenarios with its full natural degradation characteristics. The non-grain raw material route has become an inevitable choice for sustainable industrial development. Technological innovation and application expansion will continue to reshape the industry pattern.

Source: Ministry of Commerce / National Bureau of Statistics of China / CCM-Cnchemicals

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