Bio-based Platform Chemicals Market

Bio-based Platform Chemicals Market Synopsis

Bio-based Platform Chemicals Market Size Was Valued at USD 17.2 Billion in 2023, and is Projected to Reach USD 32.1 Billion by 2032, Growing at a CAGR of 7.2% From 2024-2032.

The bio-based platform chemicals market can be defined as a specific niche of the chemical industry which produces chemicals based on renewable biological feedstock. These chemicals derived from biomass, agricultural waste and other bio resources find use as key raw materials for producing hundreds of industrial and consumer products. Bio based platform chemicals can be safely be used to replace the petroleum based chemicals since it does not produce CAS and provides green solution by reducing the carbon footprints and other social costs. It has found application especially in bioplastics, solvents, pharmaceuticals and agrochemicals industry. The global need for platform chemicals is rising due to increasing regulatory requirements and customer awareness of environmental protection, thus making the bio-based platform chemical market vital for creating a circular economy around the globe. Materials such as bio-glycerol, bio-lactic acid, bio-succinic acid and other and other chemical products are now defining the chemical industry by providing green and environmentally friendly solutions.

Bio-based platform chemicals market has been growing at a very healthy rate in the past few years due to growing focus worldwide on bio-based products. The governments in many countries are bringing changes in the policies that aim at least the reduction in carbon emissions and there are increasing pressures to ensure industries use bio-based products. Thirdly, current improvements in the field of biotechnology, and the increasing use of multi-purpose bio-refineries are setting up the right environment for the production of a wide variety of bio-based chemicals in the large scale level. The market is also experiencing a boost in demand for environment-friendly products especially in the packaging segments and automotive and textiles industries. This change tracks with the international trend that seeking to move away from oil-based chemicals and towards more sustainability.

Another factor that has great influence on the growth of the market is the rising amount of money that is being spent on R & D by the major players to improve production facilities as well as product offering. New processes including enzyme based conversion technologies and microbial fermentation are evident signs of the future trends of a bio-chemical manufacturing environment. However, some barriers like high production cost, restricted availability of feedstock, and rivalry with staked petrochemical materials have not eliminated yet. However, this market remains limited in a given year due to these restrictions, although it is projected to expand considerably within the forecast period due to the increase in the use of renewable materials in new economies.

Bio-based Platform Chemicals Market Outlook, 2023 and 2032: Future Outlook

Bio-based Platform Chemicals Market Trend Analysis

Trend: Bioplastics as a Growth Catalyst

Demand for bioplastics has been growing and is becoming another prominant trend in the bio-based platform chemicals market. Bioplastics, produced from bio-based chemicals such as bio-succinic acid and bio-lactic acid, are gradually being used as suitable biodegradable substitution to standard plastics. This transition owes its primary roots to the recent reinforcement of limitations within the use of single-use plastics and the increasing concern and consciousness offered by the customers in this regard. The automotive and packaging industries are especially currently implementing bioplastics into its value chain to address sustainable development objectives. Moreover, improvements in technologic capabilities increase the picture of polymer sciences that further improve the strength, flexibility and cost performance of bioplastics that will be useful to the end users. It is estimated that this trend will help spur the use of bio-based platform chemicals as the fundamental building blocks of the global green chemistry movement.

Driver: Rising Demand for Sustainable Solutions

The major factor influencing the bio-based platform chemicals market is the increasing use of environment-friendly and eco-efficient products with its products influencing several sectors. Different countries and global agencies are implementing high standards of environmental policies to minimize emissions of green house gases and hence the need for bio products. The consumers are also purchasing environmentally friendly products and this factor is also fueling the growth of the respective market. Many industries including automotive, packaging, and personal care are using bio-based platform chemicals as a way to achieve sustainability goals, lower carbon emissions and create a desirable brand image. The analysis of chemical products used in industrial processes reveals that bio-based chemicals have better economic and environmental characteristics, which puts sustainability at the helm of chemical industry’s growth.

Restraint: High Production Costs and Feedstock Constraints

However, current and future development of the bio-based platform chemicals market has some limitations in terms of high production costs and feedstock availability. The manufacture of bio-based chemicals requires multistep and capital-intensive processes that increases costs compared to conventional petrochemical processes. Furthermore, feedstock is destabilized with regard to quantity and prices of sugar, starch, and agricultural residues that negatively affects the market growth. Production of food and problems with utilisation of the territory add to the difficulties with feedstock supply. These aspects make it very difficult for bio-based platform chemicals to reach the price point of petrochemicals – a key obstacle.

Opportunity: Expansion in Emerging Markets

In the APAC region and LATAM region there is great potential for the bio based platform chemicals market to grow. These regions have experienced a rapid industrial development together with the growing consciousness of environmental responsibility. International banking organisations are adopting various policies that will encourage the use of clean resources in order to create market structures. In the same manner, the expanding middle-income population in these areas is pressurizing manufacturers to use eco-friendly inputs for products that are consumed by customers. Additional advancements are seen in capital investments to production standards that include bio-refineries and other enhanced production facilities which are boosting market expansion. These markets have yet been explored hence offer potential for industry players to enhance their positions in the global market.

Bio-based Platform Chemicals Market Segment Analysis:

Bio-based Platform Chemicals Market Segmented on the basis of Chemical, Feedstock and end user.

By chemical

o   Bio Glycerol

o   Bio Glutamic Acid

o   Bio Itaconic Acid

o   Bio-3-Hydroxypropionic Acid

o   Bio Succinic Acid

o   Others

By End User

o   Polymers

o   Solvents

o   Fuels

o   Pharmaceuticals

o   Perfumes

o   Others

By FeedStock

o   Sugar

o   Syngas

o   Biogas

o   Oil

o   Others

By Region

o   North America (U.S., Canada, Mexico)

o   Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)

o   Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)

o   Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New-Zealand, Rest of APAC)

o   Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)

o   South America (Brazil, Argentina, Rest of SA)

By Chemical, Bio Glycerol segment is expected to dominate the market during the forecast period

The bio-glycerol segment is expected to be the largest during the forecast period, due to its versatile uses in the cosmetic, pharmaceutical, and food industries. Bio-glycerol produced from biodiesel synthesis has recently found its applications as a green solvent for various chemical processes and chemical intermediates, feed for production of bio pol ymers and numerous other chemical byproducts. Its versatility in applications is also justified by its relatively low eco-toxicity, therefore it is popular among manufacturers of green products.

Since the biodiesel production is on the rise especially in the developed countries of Europe and North America, availability of bio-glycerol feedstock is expected to remain constant. Moreover, the progress of biotechnological processes leads to index improvements of bioderived glycerol, decreasing manufacturing expenses and scaling. This trend will lead to the strengthening of the segment in the market becoming an essential part of the transition to sustainable development in the world.

By Feedstock, Sugar segment expected to held the largest share 

Pristine analysis states that the sugar segment will have the largest market share in the bio-based platform chemicals market due to the easy availability of sugars and relatively low costs incurred in obtaining the sugars. Bio-based chemicals in the chemical industry and others are synthesized using Sugars derived from sources like sugarcane, sugar beet and corn. The organic conversion of sugars into chemicals such as bio-succinic acid and bio-lactic acid is remarkably efficient and can be easily scaled up which makes its adoption attractive to producers.

The push for lower carbon and increased use of renewable raw materials is making the consumption of sugar-based bio-chemicals grow. Governments in the strategic places are also offering some incentives on the use of sugar as the feedstock to support its market share as well. This trend is expected to continue during the forecast period, thus establishing the sugar as a key raw material for bio based platform chemicals.

Bio-based Platform Chemicals Market Regional Insights

Asia Pacific is Expected to Dominate the Market Over the Forecast period 

According to the analysis, the Asia-Pacific region emerged as the largest market for bio-based platform chemicals market in 2023. They mention that the region dominates due to the availability of biomass feed stocks from the leading agriculture based economies of India and china. Further, growth in industrial development across the region, and a shift towards investment in renewable energy and sustainable products and services, are among the factors that are fuelling the growth of the market. The local market in this region is being driven by government programs that encourage adoption of bio based chemicals and by growing customer concern with sustainability. It is believed that the Asia-Pacific region holds a 35% market of the global pool of laptop users indicating its critical role in promoting the growth of the industry.

Bio-based Platform Chemicals Market Share, by Geography, 2023 (%)

Active Key Players in the Bio-based Platform Chemicals Market 

o   Amyris (USA)

o   BASF SE (Germany)

o   BioAmber (USA)

o   Cargill Incorporated (USA)

o   Corbion NV (Netherlands)

o   DuPont (USA)

o   Genomatica (USA)

o   GFBiochemicals (Italy)

o   Koninklijke DSM NV (Netherlands)

o   LanzaTech (USA)

o   Mitsui Chemicals (Japan)

o   Myriant Corporation (USA)

o   Novozymes (Denmark)

o   Reverdia (Netherlands)

o   Sigma-Aldrich (USA)

o   Other key Players

Global Bio-based Platform Chemicals Market Scope