28. Mar 2018

GreenPremium price practices explored within scope of BIOFOREVER project

A new survey conducted by nova-Institute within the framework of the European BIOFOREVER project (www.bioforever.org), explores the practice of GreenPremium pricing along the biobased value chain.

The survey asked about differences along the value chain; differences between the various applications and sectors, whether the issue of whether second or third generation feedstock is used is at all relevant; and what market participants expect in terms of how long GreenPremium prices for their products are going to last.

All 50 respondents were active in the biobased field, either producing or trading in bio-based products (or intermediates), or as consultants.
Almost 70% of these experts report GreenPremium prices for bio-based products. Most of the participants (42%) considered the GreenPremium to range between 10-20%, 22% indicated a price premium of 20-40%. About 4% of the respondents see a willingness to pay even more than 50%. 32% of the participants report no GreenPremium prices.
These results differ little from previous surveys conducted on this issue.

The most important driver for paying GreenPremium prices according to 41% of respondents was the positive green image associated with these. Other relevant drivers were: the touch of innovation (23%), enhanced attention in the media from using bio-based materials instead of standard materials (18%) and an expectation of higher prices (18%). 

xSingle value-adding factors were also mentioned. The highest ranked factor determining the GreenPremium price was the “higher bio-based share of the product” (64%), a factor particularly dominant in construction (71%). “Lower greenhouse gas emissions” (46%) and “Biodegradability” (46%) were the next important single value-adding factors for GreenPremium prices. “Biodegradability” was less important (22%) in consumer goods, but important in packaging (45%).

The importance of “Sustainability certification of the biomass feedstock” (24%) was ranked differently throughout the application groups, being more important to packaging (36%) than for consumer goods (11%). “2nd generation biomass” and “GMO-free biomass” were the lowest ranked factors.

The results have been published in a paper which can be downloaded at no charge at https://is.gd/xHIOqI and www.bio-based.eu/markets. The study will be presented by Michael Carus, Managing Director of nova-Institute, at the 11th International Conference on Bio-based Materials 15-16 May in Cologne, Germany (http://www.bio-based-conference.com).

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