The Global Bio-based Polyvinyl Chloride (PVC) market is forecast to grow at a CAGR of 4.6%, reaching USD 0.5 billion in 2031 from USD 0.4 billion in 2026.
Bio-based polyvinyl chloride comes from renewable biological resources, it is a type of bio-based plastic. Polyvinyl chloride (PVC) is one of the most common polymers in the world, used in numerous industries. In building and construction, PVC piping systems offer high ring stiffness, excellent corrosion and chemical resistance, and a long service life. The non-plastic alternatives of PVC pipes are optimized for product design, transportation, and manufacturing.
The applications for bio-based polyvinyl chloride have been increasing from sports and footwear to automotive, packaging, agriculture, non-wovens, and fiber applications. The demand for plastics use is projected to reach 1230.627 million tonnes (Mt) by 2060 from 459.7459 million tonnes (Mt) in 2019, nearly a three times growth. Global plastic waste is expected to rise from 353.2911 Mt in 2019 to 1014.144 Mt in 2060. This wastage has been creating a huge problem for the environmental crisis. This uncontrolled consumption of plastic has led to a challenge for waste management systems.
Overall, the carbon footprint of the material can be brought down by sourcing. PVC products are sourced from renewable plant-based derivatives. Such as non-food-based biomass sources used in PVC production are sugar cane, wood pulp, or used cooking oil.
According to the OECD, only 9% of the plastic waste is recycled. But 15% was collected for recycling, but about 6% was disposed of as residues. About 50% end up in landfills, creating soil pollution and deterioration of soil quality.
Bio-based flexible PVC compounds use plant-based plasticizers made from renewable feedstock which creates a sustainable raw material that easily gets into the soil rather than traditional petroleum-based plasticizers, which remains unresolved.
Favorable regulatory measures
Governments around the world are phasing out single-use plastics and replacing them with recyclable materials. The New Zealand government has been promoting the phasing out of drink stirrers, plastic-stemmed cotton buds, plastic produce bags, plastic plates, bowls, and cutlery, and plastic straws with compostable and bio-based plastics. In April 2024, the European Parliament adopted the EU's Packaging and Packaging Waste Regulation (PPWR) which required reductions in plastics and other packaging. The rules required a ban on single-use plastic packaging for unprocessed fresh fruit and vegetables and foods and beverages consumed in cafés and restaurants. The rule is starting from 1 January 2030.
Governments and industry are taking steps for a net zero and circular economy. It is the key to energy security, job creation, and socio-economic development. Today almost half the global population lives in cities and by 2070 this is expected to reach 70%. Infrastructure and working space are needed the sustain such a large population. Bio-based materials are derived from living organisms, including bio-based polyvinyl chloride, which can be derived from sugarcane, etc.
Bio-based construction is growing among early adopters. One such project is Stockholm Wood City in Sickla, an area in the south of the Swedish capital. The construction would be on the 250,000-square-metre site and begin in 2025, along with 2,000 homes and 7,000 offices, restaurants, and shops. This city is incorporated with natural elements, such as green roofs, in its design.
The growing demand from the construction and building industry
The growth of the building and construction industry has created a related demand for construction materials, the total construction spending in the United States was 1,796,460 million dollars in January 2022, which jumped to 1,882,199 million dollars in January 2023. This growth in the construction industry remains with the challenges in the world where the sourcing of sustainable materials is needed. Several products and innovations are serving to make construction materials and components more sustainable. for instance, Cargill offers plasticizers from bio-based feedstocks that are used as components for flooring. This is to provide an alternative to phthalate and fossil fuel-dependent products.
Innovating solutions like Inovyn by Ineos worked with flooring Paris-based firm Tarkett for its new flooring collection. Further, Biovyn Inovyn (Ineos) could have numerous value-added applications in many industries in building and construction for pipe, and window frames. They are moving towards automotive and medical applications too. Biovyn is also Roundtable on Sustainable Biomaterials (RSB) certified.
Asia Pacific region to dominate the bio-based polyvinyl chloride market during the forecast period
The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region such as ASEAN countries. India and China have about 35.5% of the world's population. In this regard, the rapid growth of the construction and real estate industry with a growing focus on infrastructural development has created the demand for various materials including more sustainable choices.
China is one of the sought-after countries for construction and development around the world. After, a few downturns in 2022-2023, the country is moving towards better government regulations and policies. The concept of green building is growing in the market, with government backing and investments. According to the China Business Review, new regulations could require about 70% of new urban buildings to be certified green buildings. This also includes schools, hospitals, and public buildings. These buildings require low-carbon construction, renewable energy, water conservation, sustainable materials, etc.
The large-scale sourcing and application of the bio-based polyvinyl chloride-based material has been a challenge in replacing traditional plastics. Traditional plastics are easy to manufacture and adopt in the application compared to bio-based polyvinyl chloride. The continuous market adaptation and cost are challenges for polyvinyl chloride.
October 2024: TekniPlex Healthcare launched the first, ISCC PLUS certified medical grade bio-based PVC compounds, introducing a revolutionary breakthrough in sustainable materials for healthcare. These compounds match conventional PVC performance while using renewable resources with a high potential of lowering CO2 emissions up to 90%. This advancement helps turn the corner of the sector toward environmental practices without neglecting functionality. These bio-based compounds are produced at TekniPlex's Belfast facility and can be used for various medical applications, including tubing and packaging.
June 2024: As part of the Orbia Polymer Solutions Business, Sylvin has transitioned into a new identity: Alphagary. This shift symbolizes the company's goal of supplying more diverse products, which include PVC compounds and polymer solutions. The company began its operations on a PVC compounding platform but further developed its business to add TPE, olefins, and urethanes to serve the healthcare, automotive, and consumer goods sectors. The rebranding is the positioning of Alphagary towards better-serving customer needs with innovative and sustainable material solutions.