Bio Based Chemicals Market Size, Share, Opportunities, And Trends By Type (Bioplastics, Polylactic Acid, Plant Oils, Biosolvents, Others), By End-User (Energy and Power, Chemicals, Packaging, Others), And By Geography - Forecasts From 2024 To 2029

The bio-based chemicals market is projected to witness a CAGR of 10.94% during the forecast period to reach a total market size of US$170.644 billion by 2029, up from US$82.486 billion in 2022. 

Bio-based chemicals are characterized as those classes of chemicals that are created by utilizing natural feedstock and have negligible effects on the environment. In the past, bio-based chemical items were seldom able to compete with traditional petrochemical items. However, with the progression in strategies and technologies, the bio-based chemical industry has ended up positively beneficial and is presently poised to dominate a large share of the market globally.

Bioplastics holds a significant share of the market owing to its expanded utilization in a variety of products including packaging, customer electronics coating, and construction and biomedical materials.

Packaging takes a critical share of the market owing to the larger part of bio-based items being utilized in this industry. Government activities to empower sustainable items and processes across different businesses to reduce carbon dioxide outflows play a fundamental part in the development of bio-based chemicals.

The market is expected to grow at a steady pace over the forecasted period owing to the increasing R&D activities in this field by diverse companies, institutes, and supportive government investments and regulatory measures. The major benefit of utilizing bio-based chemicals is that the feedstock utilized is available in large amounts in the environment and is recyclable in nature.

The rising issue of Climate change and the depletion of fossil feedstocks are the major driving factors that are propelling the requirement for bio-based chemicals globally. Growing worldwide environmental mindfulness and a sharp rise in oil costs are compelling producers in this industry to search for alternative sources to replace traditional petroleum in developing different items.

What are the bio-based chemicals market growth drivers?

• Rising Government regulations and initiatives are expected to boost the demand for bio-based chemicals globally.

Governments globally are focusing on handling environmental issues like climate change and plastic pollution, with bio-based chemicals developing as a sustainable elective. Directions to diminish greenhouse gas emissions can incentivize companies to switch to bio-based choices with lower carbon impressions. Bans on single-use plastics can make demand for bioplastics, a major application of bio-based chemicals.

Besides, governments are adjusting to yearning for sustainability objectives, making bio-based chemicals alluring. Government financing can quicken the progression of bio-based chemicals, whereas motivating forces like tax breaks or endowments can make them more cost-competitive. The The European Union's Green Deal focuses on attaining climate neutrality by 2050 which incorporates promoting the utilization of bio-based chemical items.

• Rising research and development are anticipated to propel the bio-based chemical market expansion.

R&D endeavors are aimed at making bio-based chemicals that can beat conventional fossil fuel-derived choices. This incorporates improving quality and strength, heat resistance, and functional differing qualities. R&D is pivotal for optimizing production forms, leading to more effective feedstock utilization, progressed transformation processes, and economies of scale. By decreasing waste and bringing down costs, bio-based chemicals can become more cost-competitive with traditional alternatives.

Moreover, R&D is key to creating new items with special functionalities, opening entryways to innovative applications in different segments, and making new market openings. By focusing on these ranges, R&D can lead to more proficient feedstock utilization, quicker production times, and decreased vitality utilization. For instance, in June 2024, BASF collaborated with universities in Saarland, Marburg, and Kaiserslautern to develop a CO2-neutral bio-based fumarate utilizing bacteria present in cow stomachs. The bacteria, which use sugar and CO2 to produce fumarate, are essential for the chemical industry. The project aims to convert sugar and carbon dioxide into fumaric acid, a crucial intermediate for chemical production.

Major challenges hindering the growth of the bio-based chemicals market:

• High cost of production could hinder the bio-based chemicals market growth.

Often the cost of producing bio-based chemicals is much higher than conventional petroleum-derived ones due to variables such as high feedstock costs, economical scale, and processing inefficiencies. Sustainable feedstock is expensive, especially when competing with food production. The traditional chemical industry benefits from economies of scale due to its long-established infrastructure. These restraints are being addressed through research in feedstock optimization and development of infrastructure as well as process efficiency improvements.

What are the emerging markets for bio-based chemicals globally?

• Asia Pacific region is predicted to dominate the major bio-based chemical market share.

Asia Pacific holds a significant size of the market due to initiatives and measures taken by the countries such as Japan, and China to encourage the production of bio-based chemicals in their respective nations. Air and water pollution are major issues in the Asia Pacific region, leading to increased demand for bio-based chemicals.

Furthermore, the region's strong manufacturing base and skilled workforce make it a viable market for bio-based chemicals. For instance, in August 2023, Braskem and SCG Chemicals signed a joint venture agreement to develop Braskem Siam Company Limited, a bio-based Ethylene project in Thailand. The joint venture aims to produce bio-ethylene from bio-ethanol dehydration and commercialize I'm green TM bio-based polyethylene (PE) using the EtE Ever Green TM technology, developed from a partnership corporation amid Braskem B.V. and Lummus Technology LLC.

The Asia Pacific region has large sustainability goals which can be completed by decreasing reliance on fossil fuels as well as emissions from greenhouse gasses. By aligning existing production facilities and utilizing a skilled workforce, the bio-based chemicals industry can develop and contribute to a more sustainable future in the region. The chemical industry in the region is also taking strides towards bio-based options. For example, Tata Chemicals aims at new sustainable chemistries as well as developing bio-based surfactants. This represents that established companies present in Asia Pacific regions are incorporating bio-based solutions into their product portfolios.

Recent developments in the bio-based chemicals market:

• June 2024- Godavari Biorefineries Limited opened a new chemical plant with a capacity of 4,000 tons per annum in Sakarwadi, Maharashtra. The biorefining company produces biofuels, chemicals, power, sugar, compost, waxes, and related items utilizing sugarcane as the essential feedstock. It moreover has manufacturing plants in 2 regions namely, Karnataka and Maharashtra.
• June 2023- Asahi Kasei and Mitsui partnered to establish a supply and procurement system for bio-methanol produced in the United States. The system's objective is to utilize the bio-methanol from Mitsui to create engineering plastics in Japan with a lower carbon impression, subsequently diminishing the company's carbon footprint compared to its current product portfolios.
• May 2023- Dow and New Energy Blue signed a long-term supply agreement in North America, aiming to reduce plastic production emissions and use bio-based ethylene in recyclable applications like transportation, footwear, and packaging, sourced from renewable agricultural residues.

Bio Based Chemicals Market is analyzed into the following segments:

• By Type
  • Bioplastics
  • Polylactic Acid (PLA)
  • Plant Oils
  • Biosolvents
  • Others
• By End-User
  • Energy and Power
  • Chemicals
  • Packaging
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
    • Others
  • South America
    • Brazil
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Others
  • Middle East and Africa
    • Israel
    • Saudi Arabia
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

1.8. Key Benefits for the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. BIO BASED CHEMICALS MARKET, BY TYPE

5.1. Introduction

5.2. Bioplastics

5.3. Polylactic Acid (PLA)

5.4. Plant Oils

5.5. Biosolvents

5.6. Others

6. BIO BASED CHEMICALS MARKET, BY END-USER

6.1. Introduction

6.2. Energy and Power

6.3. Chemicals

6.4. Packaging

6.5. Others

7. BIO BASED CHEMICALS MARKET, BY GEOGRAPHY

7.1. Introduction

7.2. North America

7.2.1. By Type

7.2.2. By End-User

7.2.2.1. United States

7.2.2.2. Canada

7.2.2.3. Mexico

7.2.2.4. Others

7.3. South America

7.3.1. By Type

7.3.2. By End-User

7.3.3. By Country 

7.3.3.1. Brazil

7.3.3.2. Others

7.4. Europe

7.4.1. By Type

7.4.2. By End-User

7.4.3. By Country

7.4.3.1. United Kingdom

7.4.3.2. Germany

7.4.3.3. France

7.4.3.4. Others

7.5. Middle East and Africa

7.5.1. By Type

7.5.2. By End-User

7.5.3. By Country

7.5.3.1. Israel

7.5.3.2. Saudi Arabia

7.5.3.3. Others

7.6. Asia Pacific

7.6.1. By Type

7.6.2. By End-User

7.6.3. By Country

7.6.3.1. Japan

7.6.3.2. China

7.6.3.3. India

7.6.3.4. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. BASF SE

9.2. Eastmen Chemical Company

9.3. Corbion

9.4. BioAmber Inc.

9.5. Mitsubishi Chemical Corporation

9.6. Mitsui & Co., Inc.

9.7. Gevo

9.8. POET, LLC

9.9. DSM

BASF SE

Eastmen Chemical Company

Corbion

BioAmber Inc.

Mitsubishi Chemical Corporation

Mitsui & Co., Inc.

Gevo

POET, LLC

DSM