Biobased Chemicals Market Overview
Globally, in recent years, there has been a shift toward development of sustainable materials to replace petroleum-based derivatives. Moreover, biobased chemicals, which were initially unable to compete with the traditional products on terms of performance in the chemicals industry, are now substituting the petroleum-based products such as diesel and natural gas. The availability of low-cost feedstocks and the rising awareness of consumer toward eco-friendly products are making the biobased chemicals market a lucrative one.
Biobased chemicals are produced using natural feedstocks such as trees, plants, and animals, and are environment-friendly They have applications in industrial chemicals, agricultural products, pharmaceuticals, and food products. In the report, the global biobased chemicals market is segmented on the basis of type, application, fuel, and geography. Based on type, the market can be classified into biodegradable and non-biodegradable chemicals. The biodegradable chemicals include polylactic acid (PLA), polybutylene succinate (PBS), and polyhydroxybutyrate, whereas the non-biodegradable chemicals include bio-polyethylene terephthalate, bio-polyacrylate, and bio-polyethylene.
Based on application, the biobased chemicals market can be categorized into industrial chemicals, pharmaceuticals, food products, and agricultural products. Traditionally, industrial chemicals, which include succinic acid, industrial alcohol, biobased dyes, lactic acid, glycerol, acrylic acid, and others, held a significant share in the market. These chemicals are generally more expensive than the conventional ones, but are manufactured by a number of chemical companies around the world.
The biobased chemicals market on the basis of fuel type can be classified into biodiesel, biogas, and solid biomass. Among these, biogas is expected to hold a significant share in the market during the forecast period. This is due to the fact that biogas has wide application areas, including as a domestic fuel and for generation of electricity.
Based on region, the biobased chemicals market can be categorized into North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), and Middle East and Africa (MEA). During the historical period, APAC accounted for a significant share in the market. Furthermore, the demand for these biologically sourced chemicals is increasing at a rapid pace in the APAC region, owing to rapid growth and development in countries such as China, India, Malaysia, and Japan. Moreover, the demand for these chemicals in the APAC region is also expected to grow a result of recent implementation of strict environmental protection laws.
Biobased Chemicals Market Dynamics
The biobased chemicals industry is expected to be driven by government policies such as Energy Independence and Security Act (2007) by the U.S. Congress, which stated to increase the production of clean renewable fuels; and the U.S. Energy Policy Act (2005), which stated petroleum distributors to add ethanol to gasoline. increase the biobased chemicals market size.
Alternative energies such as wind, geothermal, and solar cannot be used on a large scale, but biodiesel as a fuel can be used on a large scale because of its reliability and it can be easily be used in diesel engines with slight modification to the engines. This would also give a boost to the growth of the biobased chemicals industry.
Another major driver of the biobased chemicals market is that the chemicals require fewer special methods of handling than their counterparts and their disposal is a much less problematic than conventional chemicals. Apart from this, their by-products are also less harmful. These factors incentivize their adoption and are likely to contribute to the overall market growth.
High cost of raw materials along with cost competitiveness from conventional chemicals is the major factor that is restricting the growth of biobased chemicals market. This factor restricts the widespread adoption of these biologically sourced products, thereby inhibiting high-growth in the market.
With growing governments’ supports toward biobased chemicals and introduction of regulations, the adoption of biobased materials is expected to grow in the areas of industrial chemicals, agriculture, pharmaceuticals, and energy. At present, the biobased chemicals market is at a very nascent stage and the competition is modest. The technological changes required for the development of biologically sourced chemicals is huge, and currently the technologies available are just of laboratory scale and have possibilities of industrial scaleup. These create huge opportunities for players operating in the market.
Biobased Chemicals Market Competitive Landscape
Some of the major companies operating in the global biobased chemicals market are Mitsubishi Chemical Corporation, Mitsui Chemicals Inc., Corbion NV, BASF SE, BioAmber Inc., Braskem, Methanex, Novozymes A/S, BEWiSynbra Group AB, and PTT Global Chemical Public Company Limited.
The study provides the historical as well the forecast market size data for various countries, including the U.S., Canada, France, Germany, the U.K., Italy, Spain, Japan, China, India, Brazil, Saudi Arabia, and South Africa.