Using organic materials, the startup produces bags and packaging for multinational retailers and grocery companies in seven countries in the region.
In August 2014, Chile marked a turning point in environmental conservation policies in Latin America: Michelle Bachelet's government approved the ban on plastic bags in Patagonia. It was a measure that sought to cut the problem at its roots, although it did not make clear what alternatives Chileans should take to replace plastic in their routines.
In order to fill this gap, lawyer Ignacio Parada and his partner Juan Eduardo Joannon founded Bioelements: a startup specialized in the production of biodegradable packaging with the aim of reducing environmental pollution and the carbon footprint. To manufacture them, biopolymers are used, plastic materials obtained from renewable and natural sources. It is common for these to come from agricultural waste, cellulose or starch, which facilitates their decomposition in the future.
“They are basically materials that serve to obtain products that have the same physical qualities as conventional plastic. But at the same time, they have the benefits of paper, such as the fact that they do not last forever in the environment. So we were born as a response to local legislation to expand into Chile, Latin America and finally, the United States,” Ignacio Parada , CEO of Bioelements, told AméricaEconomía .
PROPERTIES OF BIODEGRADABLE PLASTIC
While biopolymers are not suited to bottle manufacturing, they can be used to produce a wide range of flexible accessories. For example, shopping bags, toilet paper packaging, diapers, as well as food packaging such as salmon and meat. In this regard, Bioelements offers three types of biodegradable plastics: Bio Retail (shopping), Bio Food (food storage) and Bio Non Food (non-food). The company estimates that these products decompose between three and 20 months on average.
Currently, Bioelements operates in seven countries: Chile, Peru, Colombia, Argentina, Brazil, Mexico and the United States. Its expansion strategy was based on alliances with important players in the retail and food sector such as Gloria, Pepsico, Walmart, Falabella, Oxxo, Mercado Libre, Sodimac, among others. In parallel, the startup achieved certifications from institutions such as the Pontifical Catholic University of Chile, the Federal University of Rio de Janeiro (Brazil) and the National Agrarian University La Molina (Peru).
“Our idea is to grow where there are laws that encourage the use of biodegradable products to the detriment of conventional plastic. On the other hand, we have other types of products that may or may not be regulated, such as toilet paper and food packaging. In this area, we are seeing a strong movement in Chile and Mexico that extends the responsibility of companies regarding the quality of their products and therefore encourages the use of sustainable packaging,” explains Parada, who mentions Kimberly Clark as one of the multinationals that has adhered to this policy in the Aztec country.
It is worth noting that a key boost in Bioelements' growth came at the beginning of 2023. At that time, the startup obtained US$30 million in a financing round with BTG Pactual, the largest Brazilian investment bank. The funds allowed it to enter the South American giant and the US, where it has offices in New York.
“Another part of the resources was invested in science and technology. Basically, in continuing to develop new formulations and catalyzing the launch of our artificial intelligence program with the aim of delivering much more accurate data and predicting results, both in terms of biodegradation and greenhouse gas measurement,” added the founder of the company.
THE RESPONSE TO TRUMP'S ORDER
On the other hand, on February 10, US President Donald Trump surprised everyone by signing an executive order that ended the ban on plastic straws nationwide. At the time, it was a measure by Joe Biden's administration to replace them with paper straws, a measure that caused divided opinions. Parada points out that Trump's decision is an opportunity for producers of biodegradable plastics.
“We all know that paper straws work very poorly. So it didn’t make sense to replace products with worse ones. So we believe that biodegradable materials can be a solution, since they are environmentally friendly and economically, they fulfill the function of conventional plastic. Here we are not talking about a war against plastic, but against the misuse of plastic and bad regulations,” said Parada.
The CEO assures that Bioelements' proposal is bearing fruit at a regional level: the State of Washington recently authorized its bags for all supermarkets and deliveries that take place in the State. Currently, they also comply with the laws of California, Colorado and the city of Boston. Although if we return to South America and take into account that in 2050, global plastic production could reach 1.5 billion tons, it is clear that long-term measures must be taken.
“It is not enough to simply copy a regulation that works in Switzerland, because we know that Latin America lives a very different reality. Another important issue is that new regulations must always seek innovative technologies, because if we continue using the same tools of the last 40 years, called mechanical recycling, we are not going to solve the problem we have with plastics. In other words, more than just prohibiting, new laws must innovate,” Parada emphasizes.
