The global bio-based chemicals market size is expected to witness potential gains in the future, and register a significant CAGR of 15.74% over the forecast period (2019 - 2027).
Bio-based chemicals are products derived from plants and other renewable agricultural, marine, and forestry materials. Some of the examples of bio-based chemicals include, non-food starch, cellulose fibers and cellulose derivatives, tall oils, fatty acids, and fermentation products such as ethanol and citric acid. Methane, methanol, carbon monoxide, and formic acid are some commercially produced and used bio-based chemicals. Anaerobic digestion or fermentation of biodegradable materials, syngas, and biofine processes are some of the methods used to produce bio-based chemicals. Bio-based chemicals are used in various applications such as production of biogas and synthesis gas. Bio-based chemicals are also used in the agriculture sector in the form of bio-pesticides and bio-fertilizers.
Increasing demand for biofuels in order to mitigate the impact of greenhouse gas emission and pollution is expected to contribute to the market size for bio-based chemicals. Moreover, fluctuations in crude oil prices can also boost the market growth. Bio-chemicals can also be used to produce degradable plastics. Microorganisms can convert cornstarch into a resin that is as rigid as petroleum-based plastics. Increasing demand for bio-based chemicals from the pharmaceutical industry is also expected to boost the market growth. In the pharmaceutical industry, bio-based chemicals are used for the development of medicines & therapies.
Lack of legislation regarding production and use of bio-based chemicals is major factor retraining growth of the market. Several countries lack the presence and implementation of law or legislation about production, usage or waste management of bio-based chemicals. Recycling of bio-based chemical products is also a major issue as bio-based chemicals might actually contaminate the recycling process when not separated from conventional chemical products. High costs of bio-based chemicals compared to their conventional counterparts may play a significant role in market outlook. However, large-scale industrial production may help to reduce costs.
Glycerol, a bio-based chemical, is a major byproduct in biodiesel production. Glycerol can be converted into several value-added products via several reactions such as fuels, fuel additives, and other precursor chemicals. Moreover, although some of the reactions leading to the production bio-based chemicals have been patented, only a few of the products have reached commercial production stage such as epichlorohydrin. Key players can focus on research and development in order to commercialize bio-based chemicals by introducing integrated process systems and highly tolerant and novel catalysts in production of bio-based chemicals.
Asia Pacific is expected to hold dominant position in the global bio-based chemicals market over the forecast period. This is attributed to increasing demand for clean energy and significant growth of pharmaceuticals industry in the region. Europe is expected follow Asia Pacific in terms of market share, owing to increasing development of value chains with bio-based feedstock.
Some of the key players in the global bio-based chemicals market include, BioAmber Inc., Danimer Scientific, Metabolix, Inc., Myriant Corporation, NatureWorks LLC, Koninklijke DSM N.V., PTT Global Chemical Public Company Limited, Corbion, BASF SE, Braskem, Mitsui & Co., Ltd., Mitsubishi Chemical Corporation, Synbra Holding BV, Zhejiang Hisun Biomaterials Co., Ltd, and Teijin Limited