The bio-based chemicals market is projected to expand at a CAGR of 14.55% over the forecast period of 2017 - 2023. Bio-based chemicals are defined as those class of chemicals which are produced by using natural feedstock and have minimal impact on the environment. In the past, bio-based chemical products were rarely able to compete with traditional petrochemical products. But with the advancement in the methods and technologies, the bio-based chemical industry has become increasingly profitable and is now poised to take over a large share of the market. The major advantage of using bio-based chemical is that the feedstock used is available in abundance in nature and is recyclable. Climate change and depletion of fossil feedstocks are the key driving factors that are boosting the demand for bio-based chemicals. Growing global environmental awareness and sharp rise in oil prices are compelling manufacturers in this market to look for alternative sources to replace traditional petroleum in developing various products. Government initiatives to encourage sustainable products and processes across various industries to reduce carbon dioxide emissions is playing an integral role in the bio-based chemicals market growth. The market is expected to grow at a steady pace over the forecast period owing to the increased R&D activities in this field by various companies and governments to encourage use of sustainable products and to promote green chemicals. However, high production cost of these chemicals can restrain the growth of the market.
By Type of Product
By type of product, the bio-based chemicals market is segmented as bioplastics, polylactic acid (PLA), plant oils, biosolvents and others. Others include bio lubricants, biosurfactants, polyhydroxyalkanoates and etc. Bioplastics holds a significant share in the market owing to its increased usage in a variety of products including packaging, consumer electronics, coating, and construction and biomedical materials.
By end-user, the bio-based chemicals market is segmented as energy and power, chemical, packaging, and others. Others include automobile, aviation, and healthcare. Packaging holds a significant share in the market owing to the majority of bio-based products being utilized in this industry.
Geographically, the bio-based chemicals market is segmented as North America, Europe, Middle East & Africa, Asia-Pacific and South America. Asia Pacific holds a significant share in the market owing to measures taken by the countries such as Japan, and China to encourage the production of bio-based chemicals in their respective countries. For an instance, Biomass Nippon Strategy is adopted by Japan to utilize biomass as a valuable resource.
The bio-based chemical market is at the nascent stage and market competition is moderate. The key players are adopting strategies such as product launch, collaborations, and huge investments in R&D to produce bio-based chemicals for a number of industries. For an instance, BASF SE in April 2017, launched the new Ultramid Flex F, which is suitable for soft packaging. The key players are BASF SE, Eastman Chemical Company, Corbion, BioAmber Inc., Mitsubishi Chemical Corporation, Mitsui & Co., Inc., DSM and POET, LLC among others.
The bio-based chemicals market has been analyzed through following segments:
Polylactic Acid (PLA)
Energy and Power
Middle East and Africa