The extensive use of plastics has led to severe environmental contamination, with over 400 million tons produced globally each year—one-third of which is designed for single-use. Common plastics such as polyethylene (PE), polypropylene (PP), polystyrene (PS), polyvinyl chloride (PVC), polyamide (PA/nylon), polycarbonate (PC), and PET are highly persistent in the environment, causing long-term ecological harm. Plastic waste negatively affects marine and terrestrial ecosystems: animals are injured or killed through entanglement or ingestion, and microplastics enter the food chain, posing health risks to humans. Additionally, plastic decomposition releases greenhouse gases, exacerbating climate change.

PET (polyethylene terephthalate) is one of the most widely produced plastics and presents significant degradation challenges. Current approaches to PET waste management remain insufficient:

1. Physical recycling is effective for bulk plastics but unable to address microplastics.
2. Chemical degradation is energy-intensive, costly, and associated with high greenhouse gas emissions.
3. Biological degradation is eco-friendly but limited by the low efficiency of available enzymes, which operate within narrow temperature and pH ranges.

These limitations highlight a critical unmet need for scalable, sustainable, and efficient PET degradation solutions.

Our mission is to advance enzymatic PET degradation through innovative bioengineering. We utilize bioinformatics and genetic optimization to develop enhanced versions of key enzymes—PETase and MHETase—which break down PET into harmless components: terephthalic acid (TPA) and ethylene glycol (EG).

We have constructed multiple plasmid variants (e.g., pET28a-IsPETase, pET28a-dsPETase05, pET28a-MHETase) and applied site-directed mutagenesis to improve enzyme performance under diverse environmental conditions.

Our product is a powdered, genetically engineered enzyme derived from natural plastic-degrading microorganisms such as Ideonella sakaiensis. Priced between ¥500–¥1,000 per unit, it is designed for waste treatment plants, environmental agencies, recycling and packaging companies, and biotech firms. Our marketing strategy focuses on online channels complemented by direct business outreach, enabling broader adoption of sustainable plastic waste management.

2.1.1 Political

The Chinese government has ongoing planning and solutions for plastic pollution. For example, the 14th Five-Year Action Plan for Plastic Pollution Control issued by the National Development and Reform Commission of the People's Republic of China on September 21, 2021, aims to effectively curb white pollution. It seeks to significantly reduce the unreasonable use of disposable plastic products in key sectors such as retail, e-commerce, food delivery, express delivery, and accommodation. E-commerce packages should be basically free from secondary packaging, and the application scale of recyclable express packaging should reach 10 million units. The daily capacity of domestic urban household waste incineration should reach approximately 800,000 tons, with a substantial reduction in the direct landfilling of plastic waste. The agricultural film recycling rate should reach 85%, and the residual amount of plastic mulch nationwide should achieve zero growth.

Regarding plastic degradation, the Plan requires comprehensive consideration of the life-cycle resource and environmental impacts of various alternative products such as bamboo-wood products, paper products, and degradable plastic products, and improvement of quality and food safety standards for related products. It also emphasizes strengthening research and development of key core technologies for degradable plastics, accelerating the transformation of research achievements, continuously enhancing product quality and performance, and reducing application costs.

2.1.2 Economic

In 2025, the unemployment rate decreased to 5% from 5.2% in 2024, while the average annual nominal income increased by 1,000 RMB year-on-year. Coupled with a 0.1% decline in the inflation rate compared to 2024, the public's real income effectively grew, suggesting a potential rise in both consumption and investment. These factors point to a positive economic trajectory.

Furthermore, the Chinese yuan depreciated against the U.S. dollar, with the exchange rate shifting from 7.1812 RMB per USD in 2024 to 7.2770 RMB per USD in 2025. This depreciation is expected to enhance the competitiveness of Chinese exports, stimulate demand from U.S. importers, and further support economic growth.

However, the rise in the interest rate from 1.640% in 2024 to 1.729% in 2025 may encourage savings and could partially inhibit consumption and investment. Despite this, strong fundamentals—including rising real incomes, lower unemployment, and improved export conditions—are likely to sustain overall economic momentum.

Additionally, the global polylactic acid (PLA) market is projected to expand from approximately $3 billion in 2025 to between $4.5–5 billion by 2028, representing a compound annual growth rate (CAGR) of about 15%–18%. This growth is largely driven by stringent environmental policies and increasing demand for sustainable biobased materials.

2.1.3 Social

1. Enhanced Environmental Awareness

Consumers are paying increasing attention to environmental protection and have a deep understanding of the “White Pollution” caused by traditional plastics. As a result, they are more willing to see the development and availability of plastic-degradable products. This shift in societal environmental awareness provides a solid social foundation for the growth of the plastic degradation industry.

2. Changing Consumption Concepts

With the improvement of people’s living standards, consumers have growing demands for the additional value of products, such as environmental performance. Degradable plastic products meet consumers’ needs for green and eco-friendly products, and are expected to gain greater recognition and preference in the market.

2.1.4 Technological

The technological landscape is significantly shaped by ongoing R&D advances in biodegradable materials, particularly in enzymatic plastic degradation. Key developments include:

Innovation in enzyme technology: Recent research has led to the discovery and optimization of high-efficiency plastic-degrading enzymes, enhancing the breakdown efficiency of polymers such as PET. Studies highlight improved enzyme properties and functional effectiveness, supporting more scalable and sustainable waste management solutions.

R&D momentum: Both academic and industrial sectors are actively advancing enzyme stability, catalytic efficiency, and application methodologies. Current efforts focus on using bioengineering and computational tools to overcome limitations in reaction conditions and degradation rates.

Technical challenges and responses: Critical bottlenecks—including enzyme stability under diverse environmental conditions and insufficient degradation speeds—are being addressed through protein engineering and immobilization techniques. International collaborations and conferences continue to facilitate knowledge exchange and accelerate technological solutions.

These advancements are not only expanding technical feasibility but are also aligned with global sustainability goals, suggesting stronger regulatory and market acceptance in the future.

2.2.1 Bargaining Power of Suppliers (high)

Suppliers are primarily biotechnology companies. For instance, PET MHET used in experiments is supplied by biological material companies such as Merck. Additionally, software required in production (e.g., Clustal Omega, Clustal, AlphaFold) is mainly provided by artificial intelligence/software industry companies like DeepMind. Suppliers may monopolize their technologies.

2.2.2 Bargaining Power of Buyers (medium)

Buyers are mainly waste degradation plants, plastic recycling companies, plastic manufacturers and packaging companies and biotechnology companies.

Although there are many waste degradation plants, plastic recycling companies, and plastic manufacturers and packaging companies, due to the cost issues of plastic-degrading enzymes, it is estimated that only a small portion of them will choose to purchase enzyme-related products. Since plastic-degrading enzymes enable non-hazardous treatment of plastics and represent an emerging biotechnology, the bargaining power of biotechnology companies is estimated to be medium.

2.2.3 Threat of New Entrants (low)

The research, development, and mass production of plastic-degrading enzymes involve high costs. R&D requires complex biotechnologies and high-precision equipment, which further increases costs. Effective degradation of PET plastics requires enzymes with high-temperature tolerance and stability for prolonged redox reactions. Currently discovered natural enzymes with some PET-degrading capabilities, such as laccase and manganese peroxidase, do not exhibit significant or specific degradation effects. Therefore, to enter the market, companies need to develop metalloenzymes with good stability and metal-binding capabilities, which increases R&D costs. Moreover, many PET-degrading enzymes can only function at 70°C, so improving their stability for degradation at room temperature while maintaining degradation rates is necessary for market entry. In conclusion, it is difficult for other companies to enter this market.

2.2.4 Threat of Substitutes (low to medium)

Existing alternative solutions include chemical degradation methods, such as using strong acids, strong alkalis, or catalysts. These methods have low costs but cause severe pollution, and policies regarding hazardous chemicals are becoming stricter (e.g., REACH Regulation Annex XVII restrictions on dangerous/toxic chemicals).

Another method is mechanical recycling and physical treatment, which mainly relies on sorting efficiency. It performs poorly with complex plastics (e.g., multi-layer composite packaging) and cannot address microplastic issues.

Direct substitution with biodegradable plastics: Examples include bio-based plastics like PLA and PBAT. However, these require supporting composting facilities, have long degradation cycles (several months to years), and are 30%–50% more expensive than conventional plastics.

Advantages of enzymatic preparations: Biodegrading enzymes can precisely degrade specific chemical bonds (e.g., ester bonds in PET, cellulose bonds in straw), offering high efficiency (degradation time reduced to a few days) and no pollution, aligning with the trends of reduction and harmless treatment.

Substitutes are competitive in specific scenarios (e.g., simple plastic recycling), but enzymatic preparations have significant advantages in complex pollution treatment.

2.2.5 Competitive Rivalry Among Existing Competitors (low)

Competition among existing players is currently low to moderate. The market remains specialized, with few companies possessing the advanced R&D capabilities and technological expertise required to develop efficient plastic-degrading enzymes. High barriers to entry, including substantial R&D costs and technical complexity, limit the number of competitors.

Rivalry is primarily technology-driven, focusing on enzyme performance, stability, and degradation efficiency rather than price. The emerging nature of the industry and growing demand for sustainable solutions allow room for multiple participants without intense competition.

2.3.1 Strengths

Our company is small in scale and has no complex levels. Employees can directly put forward their ideas, and the decision-making is fast. What’s more, everyone joins our company with the goal of solving plastic pollution, so our team atmosphere is more united. Unlike some large companies where there may be a situation of everyone do what they want, our company’s team can work together to solve problems quickly.

2.3.2 Weaknesses

1. Financial Constraints

The company operates with limited financial resources and restricted financing channels, which constrains investment in R&D, production scaling, and market expansion.

2. Limited Product Portfolio and Market Presence

There is a narrow range of products and insufficient sales channels, coupled with limited customer resources. Additionally, low brand awareness and inadequate investment in brand building hinder market penetration and promotional effectiveness.

2.3.3 Opportunities

Supportive Policies and Social Trends: Governments worldwide are actively promoting the development of environmental protection technologies to reduce plastic pollution, making non-hazardous plastic waste treatment a major social focus. This offers significant growth potential and a favorable external environment for the plastic-degrading enzyme industry.

Broad Target Customer Base: Many companies are capable of adopting biodegradable enzymes, resulting in a large pool of potential customers and ample market coverage opportunities.

Technological Substitution and Breakthrough Potential: Existing recycling systems struggle to effectively process multi-layered composite plastics (such as snack packaging), while specific enzyme combinations (e.g., PE/PET dual-function enzymes) can achieve efficient degradation, potentially addressing a critical gap in the market.

2.3.4 Threats

1. Low Market Awareness and Acceptance

Biological plastic degradation methods, particularly enzymatic approaches, suffer from limited popularity and public recognition. Consumer and industrial preferences remain inclined toward traditional degradation techniques.

2. Unfair Competition and Market Disruption

Some traditional plastic enterprises engage in misleading practices by blending low proportions of degradable materials (e.g., starch-based additives) to falsely market products as fully biodegradable. This distorts pricing mechanisms and undermines fair competition.

3. Regulatory Divergence and High Compliance Costs

Significant variations in degradability standards across different countries increase the complexity and cost of compliance, posing challenges for market entry and international expansion.

3.1.1 Product

Our product is a plastic degradation enzyme specifically a PETase/MHETase complex: a genetically engineered enzyme derived from natural degradation microorganisms (e.g. Ideonella sakaiensis) that efficiently cleaves PET plastic ester bonds into terephthalic acid (TPA) and ethylene glycol (EG).

3.1.2 Price

1. Cost Structure

In the future, when our technology matures, a single bacterial strain will be capable of producing two enzymes simultaneously. These two enzymes will combine to form our final product. Therefore, the cost of our final product will only include the cost of the bacterial strain itself and the cost of cultivating the strain.

2. Pricing Strategy

The cost of raw material (cost per gram) of the platic degration enzyme is 150 yuan per gram. This cost mainly includes the 1L of LB medium costing 20 yuan, the 1mL of IPTG costing 50 yuan, the 1L of Lysis buffer costing 20 yuan, and other relatively cheap materials costing 50 yuan in total. After including the cost of machines and other costs, we could get the unit cost of each gram of about 400 yuan per gram. Therefore, we decide to price per gram of plastic degration enzyme for 550 yuan.

3.1.3 Promotion

1. Targeted Advertisement

Place ads in professional media such as environmental industry publications agricultural technology magazines and industrial technical journals to enhance product awareness among target customer groups. Create promotional videos brochures and other materials for dissemination through online and offline channels showcasing product functions advantages and application outcomes.

2. Sales Promotion Activities

For first-time cooperating clients offer trial samples or preferential packages to reduce trial costs and enhance purchase intent. For repeat customers develop loyalty programs like points redemption and exclusive membership discounts to encourage continued purchases and product recommendations.

3. Personal Selling

Strengthen sales team development to elevate the professionalism and sales capabilities of sales personnel. Sales staff deeply understand product technology market demands and client pain points to provide professional solutions and high-quality services. Regular training and performance evaluations motivate sales teams to aggressively expand market presence and enhance sales performance.

3.1.4 Place

Our primary clients include waste treatment facilities, national environmental agencies, plastic recyclers, packaging manufacturers, and biotech firms.

1. Online Promotion

Products are marketed through digital platforms to reach business clients efficiently and broaden exposure.

2. Direct Sales Engagement

We conduct one-on-one visits to key clients to facilitate detailed collaboration discussions and negotiate customized solutions.

3. Strategic Co-Branding Partnerships

Collaborations with mineral water brands have been established to develop and promote “100% Enzyme-Degraded Bottles”. As the technology provider, our branding will be visibly displayed on product packaging—similar to the endorsement model used in PlantBottle® technology, enhancing credibility and market recognition.

Our potential customers come from a wide range of industries that are directly or indirectly affected by plastic waste. Waste treatment plants can use our enzyme products to improve the efficiency of large-scale plastic degradation. Environmental agencies and government departments may apply them in national or regional projects aimed at reducing “white pollution.” Recycling companies can integrate our enzymes to achieve more thorough processing of PET and microplastics that cannot be handled by traditional recycling. Packaging manufacturers and consumer goods companies, especially those producing bottled beverages or fast-moving consumer goods, can use our technology to create a more sustainable brand image and meet growing consumer demand for eco-friendly products. In addition, biotech firms may partner with us to further develop applications of plastic-degrading enzymes, while universities and research institutions may adopt our product for academic exploration.

Figure 1 Business Model Canvas

4.2.1 0-6 Months

For the first six months, we expect to establish a company and go through the formalities required. We would also rent factories, machines and offices. At the same time, we would continue to development our product and adjust our product. Then we would try to get a patent on our product with some other authentications. This includes authentity on aspects such as environmental safety and biodegradability. Additionally, we would try to produce some of our products, and test it’s quality. Additionally, we would try to let the factory and products meet the test of some safety standards.

4.2.2 6-12 Months

At 6-12 months, we would try to find some supplier of materials. Then, we would try to get some initial investments and hire some workers working in factory, technicians and managers. Additionally, we would market survey and find a suitable maketing plan. With all preparation finished, we would start to produce some of our products and put them into sales. We would spend some money for promotion.

4.2.3 1-2 Years

At this time, we would produce more of our products and put them into sales. We would try to attract customers, and to establish stable sales channels. Additionally, we would spend money on promotion to help our company being known to more people. We would also try to attract more investment on our company. It is also important to find potential problems in our company and adjust them.

4.2.4 2-3 Years

At 2-3 years, we would try to lower the costs of production in order to start to gain profit. We would also try to expand our market to other places in the country. We would hire more workers to produce more and spend more on promotion to make our company known to more people. We would also establish some stable customer base to ensure basic profits.

4.2.5 3-5 Years

At this time, we would continue to lower costs of production for more profit. We would spend more on promotion to make our company relatively famous in this area. Additionally, we would gain more investment and stable customer base. We would also expand our markets in our countries but also start to expand it in international markets. At the same time, we would prepare to go public.

4.3.1 Fixed Cost

1. Long-Term Fixed Cost

The cost of equipment is included the long-term fixed cost. We expect to purchase all equipments needed in the first year for production. We expect to pay about 830 thousands for equipment, including a 10 thousands yuan ultra-clean bench, 30 thousands shaker, 5 hundred thousands protein purification instrument, 70 thousands protein concentration instrument, 30 thousands ultrasonic disruption instrument, and some other relatively cheap equipments.

Expense	1st Year	2nd Year	3rd Year	4th Year	5th Year
Equipment	830,000
Long-term Fixed Cost	830,000	0	0	0	0

2. Annual Fixed Cost

The cost of factory is included in the annual fixed cost. We expect to rent 2 factories in relatively remote cities. The cost of each factory per day is 4 thousands yuan. Annual fixed cost also includes the cost for office. We decide to rent 5 offices that costs for 120 yuan each day at a relatively remote area.

Expense:	1st Year	2nd Year	3rd Year	4th Year	5th Year
Factory	2,880,000	2,880,000	2,880,000	2,880,000	2,880,000
Office	216,000	216,000	216,000	216,000	216,000
Annual Fixed Cost	3,096,000	3,096,000	3,096,000	3,096,000	3,096,000

4.3.2 Annual Variable Cost

The cost of labor working in the factories, the first line of labor, is included in the annual variable cost. We decide not to hire workers working in the factory in the first year for time to test our product. We expect to hire 40 workers for the first three years and hire 50 workers in the fourth year and 70 workers in the fifth year as sales volume increases. The salary for all workers are constant at 5 thousands yuan per month. Annual variable cost includes the labor cost of the salaries of technicians and managers. The second line of labor is the salary of techinicians, each person getting 20 thousands yuan salaries for the first year. The expected number of technicians hired is 10 technicians. For each of the following years, the salary of technicians increases by six percent each year. The third line of labor is the salary of managers, each person getting 20 thousands salaries for the first year. The expected number of managers hired is 5 managers. For each of the following years, the salary of technicians increases by seven percent each year.

Annual fixed cost also includes the charge for utility, which is the cost of power. We expect to spend 10000 yuan each month in the first two years, 15 . Additionally, we will put money in advertisement (cost of promotion) 50000 per month for first two year to publish our company. As our company becomes more famous and as we earn more, we expect to spend more on promotion, which is 10 thousands yuan per month.

The total cost of producing our product is also calculated in annual variable cost. It is equal to the cost of raw material of producing each gram of product times the sales volume. (The specific menu cost of raw material could be seen in pricing strategy.) We expect the unit cost to present a decreasing trend as years pass.

4.3.3 Total Cost

The total cost per year equals to the long-term fixed cost, the annual fixed cost, and the annual variable cost.

4.3.4 Revenue

We would sell the product in grams, and we expect to increase our sales volume from 20 thousands to 40 thousands from the first year to the fifth year. The price would be 550 per gram and we will have the growth rate oc the sales compared to the previous year.

4.3.5 Net Income

The net Income per year is the revenue per year minus the total cost per year. We expect to lose in the first three years and earn in fourth year. This is because in the first three year, we expect to buy a lot of equipment and our sales are not that desirable, so we would probably lose money. However, as the revenue incresed in the fourth year and exceeds the cost, we expect to eventually gain profit in the third year and start to pay off the debts.

4.4.1 Market Risks

Public awareness of enzymatic degradation is still limited, and some companies may prefer cheaper traditional methods despite their environmental drawbacks. To address this, we need strong marketing, education, and partnerships with trusted organizations.

4.4.2 Technical Risks

Our enzymes may perform well in the lab but show reduced efficiency in real industrial or outdoor environments due to temperature or pH variation. This risk requires continuous optimization and pilot-scale testing.

4.4.3 Financial Risks

In the early years, large investments in R&D, equipment, and promotion may exceed revenue, leading to temporary losses. Attracting long-term investors and securing grants will be crucial to managing this.

4.4.4 Operational Risks

Production depends on stable raw material supply and reliable equipment. Unexpected supply chain issues, power failures, or lab safety incidents may slow down progress. We plan to establish safety protocols and backup supply channels.

4.4.5 Regulatory Risks

Different countries have varying standards for biodegradability and genetically engineered products. Obtaining certifications may take time, which could delay international expansion.

Our team is composed of passionate high school students who share a strong interest in synthetic biology and environmental sustainability. Although we are young, we bring fresh perspectives and creativity to problem-solving. Some members focus on research and laboratory experiments, such as designing plasmids, mutating enzymes, and measuring degradation efficiency. We also have members who enjoy business and marketing, responsible for drafting business models, conducting surveys, and analyzing costs. Finally, some members focus on communication and outreach, aiming to share our mission with the public and raise awareness about plastic pollution. Together, we combine our skills to create a balanced team that is both scientific and socially engaged.

Recycling Companies and Waste Treatment Plants

These organizations are the main users of our enzymes. By integrating our products, they can improve efficiency in processing PET bottles, packaging waste, and microplastics that traditional recycling cannot handle.

Packaging and Consumer Goods Manufacturers

Beverage companies, food delivery services, and e-commerce packaging suppliers face strong pressure to reduce plastic pollution. They could adopt our solutions to build greener supply chains and strengthen their sustainability image.

Government and Environmental Agencies

Institutions such as the Ministry of Ecology and Environment and local environmental bureaus play a critical role in setting standards, providing certifications, and offering policy support that directly affects our market entry.

General Public

Citizens are both the beneficiaries of reduced plastic pollution and the ultimate driving force behind market demand, as their choices push industries to adopt sustainable solutions.

Environmental: Our enzymes offer a cleaner way to handle plastic waste, reducing landfill usage, ocean pollution, and greenhouse gas emissions. Microplastic degradation will also protect marine life and reduce health risks for humans.

Economic: By opening new markets for green technology, our project has the potential to create jobs in biotechnology, waste management, and sustainable manufacturing. Companies that adopt our enzymes may also improve their competitiveness through eco-friendly branding.

Environmental: If not properly contained, engineered enzymes could interact with natural ecosystems in unpredictable ways, though strict containment protocols can minimize this risk.

Economic: The relatively high cost of enzyme production may prevent small companies or developing regions from adopting the technology in the short term.

Social: Some communities may express concern or skepticism about genetically modified organisms, potentially slowing public acceptance.

Technical: Incomplete degradation might generate by-products that require additional treatment. Continuous research and monitoring will be needed to ensure safety.