The market for Bio-based chemical is anticipated to grow from $6474 million in 2016 to $23976 million by 2025, at a CAGR of 16.16% between 2017 and 2025. The base year considered for the study is 2016 and the forecast period is between 2017 and 2025. The concerns regarding the environment due to dangerous chemicals and depletion of fossil fuels are leading to the rise of the production of the bio-based chemicals.
The Industrial chemical application is anticipated to dominate the global Biobased chemical market whereas the Agriculture application is anticipated to grow at a faster CAGR of 16.48% during the forecast period. Various industrial bio-based chemicals include succinic acid, industrial alcohol, bio-based dyes, lactic acid, glycerol, acrylic acid and others. Amongst them, Glycerol is the fastest growing industrial chemical. Bio-based chemicals present a wide range of applications in the agriculture sector in the form of bio-pesticides and bio-fertilizers. These chemicals are mainly used in the agriculture sector in order to increase the yield of crops and to destroy the harmful components present in the soil that can cause diseases in the plants. The pharmaceutical industry is one of the major end-user industries for the consumption of bio-based chemicals. Bio-based chemicals are majorly used in this sector for the development of medicines & therapies. Food products are anticipated to hold a share of 20% by 2025. Rising population along with changing lifestyle has fuelled the demand for food & beverages at the global level.
In terms of products, Biofuels have generated the highest revenue of $3690 million in 2016. On the other hand, Bioplastics are anticipated to grow at a faster CAGR of 16.43% during the forecast period. Biofuel market includes biodiesel, biogas and solid biomass. Biodiesel dominates the biofuel market by contributing $1437million in 2016. Biofuels are produced from organic material such as animal waste and plant materials. The increasing technological advancements enable the extraction of biofuels from materials such as crops, woods, and waste materials. Bioplastics accounts to 1%, that is, around 300 million tons of annual production of plastic. However, the increasing demand for varied applications in different sectors, with new emerging and more sophisticated products is driving the growth of the global market at a rapid pace. Bioplastics market includes Biodegradable and Nonbiodegradable market. The bio-degradable market is the fastest growing segment in bioplastics market with a CAGR of 16.62% during the forecast period.
Asia-Pacific is the largest market for the Biobased chemicals market, and the demand for Biobased chemicals in this region is anticipated to increase during the forecast period. Europe is the second-largest Biobased chemicals market, owing to the development of new value chains with bio-based feedstock, i.e. creation of biochemicals and biorefineries. North America is anticipated to grow at a faster CAGR of 17.03% during the forecast period. Availability of low cost and abundant feedstocks, the shift of consumer perception towards more eco-friendly products and the government initiatives and regulations are anticipated to be the key factors for the growth of North America biochemicals market. In Europe, Germany dominates the market followed by France, UK, and Italy. Asia Pacific is one of the largest producer and consumers of bio-chemicals. Currently, it accounts for 42.38% share of the total market. Availability of raw materials and the technological advancement is becoming the base of the market. The awareness of bio-based chemicals and its varied advantages are the major key factors for the development of the market.
Government policies towards business sustainability programs, intensive fluctuations in the crude oil prices, usage of the eco-friendly product and high market probable of bio-based chemical products are the chief drivers for the market development. Conversely, aspects inhibiting the market development are a dearth of supply chain exemplary in feedstock and raw materials and the low acceptance level in biopesticides. Lack of supply chain model in raw materials and feedstock is a major factor which hinders the growth of the global bio-based chemical market. Most of the raw materials used for the production of bio-based chemical need raw materials that are organic in nature. Rising demand for bio-based product amongst end users is the major factor which helps in boosting the bio-based chemical market in near future. Biobased products majorly comprise of plants and animals as their main ingredients. The challenges in the Biobased chemical markets are the higher prices of bio-based chemicals and the food safety issues due to the significant climate change.
Major players in the Biobased chemicals market are Abengoa Bioenergia, S.A., BASF AG, BioAmber Inc., Braskem, Cargill, Incorporated, CORBION Purac, Meredian Inc., Metabolix Inc., Methanex Corporation, Mitsubishi Chemicals, Mitsui & Co., Ltd., Myriant Technologies LLC, Natureworks, Novozymes ASS, PTT Global, Royal DSM, Synbra., Teijin and Zhejiang Hisun Biomaterials Co., Ltd. Mitsubishi chemical holdings has the largest percentage of global bio-based chemical market followed by BASF, PTT Global, Purac and Mitsui & Co. (Chemical) respectively. Mitsubishi chemical is highly focused on customer demands and hence innovates its products accordingly. Because of this, Mitsubishi Chemicals have a fabulous demand in chemicals market. BASF is known as the world’s leading chemical company. The increasing demand of the chemicals worldwide has created an opportunity for the BASF, as it is a world leader in chemicals.