Demand for bio-based chemicals has been increasing due to the rise in consumption of these chemicals in various industries. Additionally, increase in need to lower greenhouse gas (GHG) emissions and rise in demand for bio-derived products due to environment concerns are projected to propel the demand for bio-based chemicals during the forecast period. Growth in initiatives to minimize carbon emissions and increase in investments in R&D activities to develop bio-based chemicals are also anticipated to fuel the market in the next few years. However, significant availability of substitute products, including polylactic acid and bio-based PET, is estimated to restrain the market in the near future. Furthermore, rise in demand for sugarcane, soya, and corn in the food & beverages industry impacts the availability of raw materials required in the manufacture of bio-based chemicals since these are derived from respective plants. High cost of manufacturing and developing bio-based chemicals is also inhibiting the market growth. Increase in demand for bio-based chemicals in various end-users and technological advancements in bio-based chemical refineries are projected to boost the demand for bio-based chemicals during the forecast period.
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Bio-based Chemicals Market: Segmentation
The bio-based chemicals market can be classified based on product and application. In terms of product, the bio-based chemicals market can be bifurcated into bioplastics, and biofuels. The bioplastics segment can be further sub-segmented into biodegradable bioplastics such as regenerated cellulose, bio-degradable polyesters, and non-biodegradable bioplastics such as Bio-PET and Bio-PE. Plastics are made from petrochemicals. Increase in focus on the usage of renewable resources is driving the demand for bioplastics. Polylactides (PLAs) and Polyhydroxyalkonates (PHAs) are bio-derived polymers, which are made from lactic acid in green plants, bacterial fermentation of sugar, and lipids. Plant oils are triacylglycerides, which are used to manufacture polymers. Plant oils are extracted from soybeans and castor oil plants. The biofuels segment can be segregated into bio-diesel, biogas, and solid biomass. Bio-based lubricants are synthetic esters made from mineral oil-based products. These are further used in automotive, aviation, and marine applications.
In terms of application, the bio-based chemicals market can be divided into industrial chemicals, pharmaceuticals, agriculture, food & beverages, and others. Rise in demand for bio-based chemicals in industrial chemicals in anticipated to boost the market in the near future. Increase in trend of using biofuels in the automotive industry to lower crude oil consumption is also propelling the demand for bio-based chemicals. Bio-based chemicals based bioplastics are widely used in packaging of food products such as vegetables, meat, and confectionery products. Bio-based chemicals are also employed as building blocks for the synthesis of bio-based plastics and other materials such as coatings, paints, and adhesives. Furthermore, bio-based chemicals can be used as substitutes for highly concentrated toxic chemicals such as phthalate-based plasticizers and toluene. Bio-based polypropylene is manufactured from bio-based raw materials such as corn, sugarcane, and beet.
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Based on region, the global bio-based chemicals market can be segregated into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. The bio-based chemicals market in North America is anticipated to expand at a rapid pace, as the U.S. EPA has imposed supportive regulations on the adoption of bio-based chemicals. The market in Europe market is anticipated to expand at a rapid pace due to the government initiatives toward adoption of bio-based chemicals and depletion of petroleum-based products in the region. Asia Pacific is estimated to be a rapidly growing region of the global bio-based chemicals market. Rise in population and increase in need for bio-based solutions due to the growth in pollution is the key factor driving the market in major economies of Asia Pacific such as China, India, and Japan. The bio-based chemicals market in Middle East & Africa and Latin America is projected to expand at a moderate pace in the near future, owing to the high production cost of bio-based chemicals in these regions.
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Global Bio-based Chemicals Market: Key Players
Key players operating in the global bio-based chemicals market are BASF SE, ABENGOA, S.A., Braskem, Cargill, Incorporated, Eastman Chemical Company, Corbion, and UPM Biochemicals.