By: Tomas Ronolski - AllPennyStocks.com News

Monday, June 20, 2016

According to a report by Infiniti Research Ltd., the worldwide green packaging market is expected to grow rapidly until 2020. Infiniti expects the global green packaging market to grow at a compound annual growth rate or CAGR of 7% between now and 2020. Infiniti notes in its report that the demand for eco-friendly and sustainable packaging materials by consumers is on the rise. As a result, vendors are increasingly focusing on developing materials that can be recycled.

In terms of geography, Europe is the leading market for green packaging products. In 2015, Europe accounted for 31% of the market. However, Infiniti notes that the global market for green packaging products is well diversified in terms of geography. The leading countries for green packaging products include Germany, the United Kingdom and Italy.

One of the key drivers for the market is demand for bioplastic packaging, according to Infiniti. These products are considered more sustainable than conventional plastic packaging products as they consume less energy and natural resources.

According to Infiniti Research, the recyclable packaging segment accounted for more than 76% of the global green packaging market in 2015.

The robust outlook for green packaging products augurs well for Solegear Bioplastic Technologies Inc. (TSX-Venture:SGB). Based in Vancouver, Canada, Solegear Bioplastic is an innovator in the field of next generation bioplastics made from annually renewable plant-based sources. The company is committed to the principles of Green Chemistry and is driven by its mission to create healthier, safer and stronger communities by fundamentally changing the way plastics are made.

SGB shares gained in trading on Friday after the company announced financial results for fiscal year 2016. For the 12-month period ended February 29, 2016, SGB reported net and comprehensive of $4.2 million, compared to a loss of $2.5 million reported for the previous fiscal year. The increase in loss is understandable as SGB remains in the early stages of commercialization. At the end of the fiscal year, SGB had $0.7 million in cash reserves.

Paul Antoniadis, CEO at Solegear Bioplastics, said that the SGM team successfully commenced commercialization in 2016, and looks forward with high expectations for the future. Antoniadis further said that demand for the company’s plant-based packaging and products continues to gain traction, and SGB remains committed to being a leader in the industry.

SGB shares rose in trading on Friday to the tune of 3.23% at $0.160 on volume of 16,000. Even with the rise, the stock continues to trade in a narrow trading range between $0.15 and $0.20 over the last 52 weeks.

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