Market Overview

Global Bio-Based Chemicals Market, according to MRFR, is slated to rise at a CAGR of 10.47% to acquire around USD 141,881.66 million by the end of 2028. 

Market Dynamics

Due to the increasing usage and demand for biochemicals, the industry has seen substantial growth. As well, the need to minimize emissions of greenhouse gases (GHGs) and to increase demand for bio-based products is expected to fuel demand for bio-based chemicals market. The fossil fuel depletion is expected to lead to a rise in commodity demand throughout the forecast period. The rising use of bio-based consumer goods drives the global market for bio-based chemicals. Also, the production of bio-based lubricants in the automotive and transportation industries is driving the growth of the bio-based product industry. An exponential growth in the green chemistry industry would contribute to higher demand for the products.

The nutritional demand in the ongoing pandemic has prompted a rise in the need for essential staples and canned foods. With increasingly stringent lockdowns and curfews around the globe, countries have been stockpiling long-lasting foods in anticipation of a future catastrophe. As demand for different agricultural products increases, the amount of agricultural raw materials used to manufacture bio-based chemicals is projected to decrease.

Strong raw material costs are expected to stunt the economic growth of the planet. In the near term, a lack of availability of polylactic acid is expected to restrict the market. 

Segmental Analysis

By Type, the market has been segmented into bioplastics, bio-lubricants, bio-solvents, bio-based acids, bio-surfactants, bio-alcohols, and others. Due to the large-scale implementation of bioethanol in both industrial and potable uses, the bio-alcohols segment accounted for the largest share of 41.7 percent by volume in 2018 and is forecast to report a 9.89 percent CAGR to surpass USD 39.50 billion by the end of 2028.

By Application, the market has been segmented into food & beverages, pharmaceuticals, detergents & cleaners, personal care, agriculture, packaging, paints & coating, automotive, adhesives & sealants, paint dispersion,and others. During the forecast period, the food and beverage segment is predicted to record a CAGR of 8.79 percent. However, during the forecast period, the pharmaceutical application segment is expected to report the highest CAGR.

Regional Analysis

Due to the strict environmental policies in the region, the EU was the largest market in 2018 accounting for 33.75% of all sales in the region. Due to the growth of the value chains of bio-refineries and biochemicals, Europe occupies the largest share of the global market for bio-based chemical products. The primary factors causing the demand for this material are the declining natural resources and rising oil prices.

As a result of fast industrial development and supportive regulatory policies, the Asia-Pacific market was the second-largest regional market in 2018. Additionally, Asia Pacific is projected to rise for its production and consumption of the highest in the world. As a consequence of government policies to encourage efficiency, to avoid price fluctuations of petroleum-based goods, and to increase the use of eco-friendly products, Japan, China, and India are major contributors to growth in the global market. Overall, the regional market is projected to enjoy the highest annual growth rate of 11.32%. It is expected that advances in materials and production technologies will boost demand for the region’s resources.

Due to the prevalence of low-cost feedstock, the shift of emphasis on environmentally-sustainable goods, and the advent of many government policies, North America is projected to expand at a higher CAGR. Demand for bio-based chemicals in the United States is expected to continue growing rapidly. Regulations such as the Clean Air Act supported the use of bio-based chemicals.

Due to strong demand in Latin America and exports to Europe, bio-based chemicals are expected to experience substantial growth. As bio-based chemicals in the Middle East and Africa grow and become more expensive, growth in these countries is expected to remain moderate in the near future.

Competitive Landscape

To garner the maximum share of the global bio-based chemicals market, several key players are focused on growth strategies such as expansion, acquisitions, joint ventures and product launches.

Major players in the market are  Mitsubishi Chemical Corporation (Japan), AGAE Technologies, LLC (US), BASF SE (Germany), Vertec BioSolvents (US), TOTAL (France), BioAmber Inc (US), DowDuPont (US), Braskem SA (Brazil), Evonik Industries (Germany), Toray Industries Inc (Japan), Archer Daniels Midland Company (US), Cargill, Incorporated (US), Itaconix PLC (UK), GFBiochemicals Ltd (UK), and Royal DSM NV (The Netherlands).

Industry Updates

January 2021: Rudolf Group, a German textile chemical business, currently offers the first water repellent products that are safe and biodegradable. By designing goods using natural sources as the key components, the Rudolf Group has pushed the boundaries of science.

Market Research Future (MRFR) is a global market research company that takes pride in its services, offering a complete and accurate analysis with regard to diverse markets and consumers worldwide. MRFR’s approach combines the proprietary information with various data sources to give an extensive understanding to the client about the latest key developments, expected events and also about what action to take based on these aspects.

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