Bio-based Chemicals Market Size Is To Grow at a CAGR of 11.6%

Introduction

The global Bio-based Chemicals Market is poised for significant growth, projected to increase from USD 47 billion in 2023 to an estimated USD 142 billion by 2033, reflecting a robust compound annual growth rate (CAGR) of 11.6%. This market expansion is fueled by several key factors, including a rising demand for sustainable and eco-friendly products across various industries.

Market demand for bio-based chemicals is particularly strong in sectors such as packaging, automotive, and textiles, where there is a growing emphasis on reducing environmental impact. This trend is evident in the widespread adoption of bio-based polymers and bioplastics, driven by the need for biodegradable and compostable materials. Furthermore, industries are increasingly using bio-based chemicals in applications like adhesives and lubricants, which are favored for their biocompatibility and lower ecological footprint.

Opportunities in the bio-based chemicals market are expanding, especially in regions like Europe and Asia Pacific. Europe currently leads with a strong market share, supported by proactive governmental policies aimed at promoting a green economy. The Asia Pacific region is expected to exhibit the highest growth rate due to escalating investments and shifting consumer preferences towards eco-friendly products.

Additionally, the market is witnessing considerable innovation, with companies investing heavily in research and development to improve the efficiency and cost-effectiveness of bio-based chemical production. These advancements are aimed at enhancing the performance characteristics of bio-based products and broadening their applications across various industries.

Key Takeaways

• The bio-based chemicals market is expected to grow from USD 47 billion in 2023 to USD 142 billion by 2033, at a CAGR of 11.6%.
• In 2023, corn accounted for over 29.4% of bio-based chemical feedstock, driven by its widespread availability and established supply chains.
• Bioplastics captured 29.7% of the bio-based chemicals market in 2023, with rising demand for both biodegradable and non-biodegradable materials.
• The Asia Pacific region holds a 34% market share in the bio-based chemicals market, valued at USD 16.3 billion in 2023, with China and India leading.
• The automotive sector represents 25.5% of the bio-based chemicals market in 2023, driven by sustainable alternatives for vehicle interiors and fuel additives.

Bio-based Chemicals Statistics

• The scientists describe 10 key bio-based chemical product categories, their market production and consumption levels for the EU.
• The authors estimate that overall EU bio-based production accounts for about 4.7 Mt of bio-based chemicals per year, equivalent to about 3% of the total market for the 10 key products.
• Average annual growth rate of these 10 products is estimated at about 3.6%. In other words, their demand is not expected to grow rapidly.
• Nova Institute assesses the turnover in the European production of biodiesel at around € 7 billion in 2011, using their Prodcom database.
• This turnover is produced by a workforce of about 19,000. Turnover in the bioethanol industry is € 3 billion, produced by some 4,000 employees.
• We can therefore put total employment in the biofuel industry at 23,000. These employees use 16.5 million tons of vegetable oil for the production of biodiesel and 10.3 million tons sugar/starch for the production of bioethanol.
• To the total of 26.8 million tons. So per million tons of biobased feedstock, the biofuel industry employs a workforce of 860.
• In the chemical industry, 5% of the feedstock now is biobased; then also 5% of the workforce in chemical industry (1.2 million) are employed in the biobased chemicals sector.
• But biobased chemicals and biofuels also create employment in agriculture. Not more than half of the aforementioned amount of 26.8 million tons of feedstock is produced in the EU.
• By the year 2020, provide at least 25% of 1994 levels of organic carbon-based industrial feedstock chemicals and 10% of liquid fuels from a biobased products industry.
• Eventually satisfy over 90% of U.S. organic chemical consumption and up to 50 percent of liquid fuel needs with biobased products.
• The market for platform chemical molecules is large, with global production of 403 Mt/year in Europe. However, the share of biobased products is still low and represents only 0.3%. Significant investments will therefore have to be made.
• Only 3% of the biosolvents produced in the world are produced in Europe. The EU imports 43% of its consumption of bio-solvents.

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Emerging Trends

• Emerging trends in the bio-based chemicals market reflect a dynamic shift towards sustainability and innovation. One significant trend is the development and adoption of advanced bioplastics and bio-polymers, such as polylactic acid (PLA) and polyhydroxyalkanoate (PHA), which are being increasingly used in sectors like packaging, automotive, and textiles due to their biodegradability and lower environmental impact.
• Another trend is the heightened focus on renewable feedstocks, such as biomass, algae, and agricultural waste, as alternatives to traditional petrochemical feedstocks. This shift is driven by the global push towards reducing carbon emissions and enhancing the biodegradability of products, which in turn supports ecological balance and reduces long-term environmental pollution.
• Technological advancements in bio-based chemical production are also prominent, with significant investments being channeled into R&D to develop new, cost-efficient production methods. These advancements aim to improve the properties of bio-based chemicals and make them more competitive with traditional chemicals.
• Moreover, the market is seeing an increased corporate focus on greenhouse gas (GHG) emissions reductions throughout the supply chain. Companies are making commitments to reduce their Scope 3 GHG emissions, reflecting a broader industry movement towards more sustainable practices and products.

Use Cases

• Pharmaceuticals: Bio-based chemicals are being integrated into pharmaceutical applications due to their compatibility with medical products. They’re used in formulations, bio-adhesives, and as carriers for drug delivery, showcasing their adaptability and safety in health-related products.
• Packaging: The demand for sustainable packaging solutions is on the rise, with bio-based chemicals playing a crucial role. These materials are used to produce biodegradable and compostable packaging, which is particularly valued in the food and beverage sector for its reduced environmental impact.
• Automotive and Aerospace: Bio-based polymers and composites are increasingly used in the automotive and aerospace industries for parts and interiors. These materials help reduce the weight of vehicles and aircraft, leading to better fuel efficiency and lower emissions.
• Personal Care: In the personal care industry, bio-based chemicals are utilized to create natural cosmetic products. These chemicals offer a sustainable alternative to synthetic ingredients, appealing to consumers looking for eco-friendly options.
• Agriculture: In agriculture, bio-based chemicals find applications in bio-pesticides and bio-fertilizers, offering a more environmentally friendly approach to enhancing crop growth and protection against pests without harming the ecosystem.
• Construction and Textiles: Bio-based adhesives and coatings are used in construction and textiles. These products offer sustainable alternatives to conventional materials, aligning with global trends towards green building practices and eco-friendly textiles.

Recent Development

AGAE Technologies, based in Oregon, is a prominent player in the bio-based chemicals sector, specializing in the production of rhamnolipid biosurfactants. The company has pioneered advanced manufacturing technologies that allow for large-scale production while maintaining a low to zero waste carbon footprint. Their rhamnolipid products are used across various industries, including pharmaceuticals, personal care, environmental remediation, and agriculture, offering a sustainable alternative to traditional chemical surfactants. AGAE’s efforts have significantly pushed forward the commercial viability and accessibility of rhamnolipids, making them a competitive, eco-friendly option in the global market.

Archer Daniels Midland Company (ADM) plays a significant role in the bio-based chemicals sector, emphasizing the production of renewable chemicals that help reduce the carbon footprint while ensuring functional effectiveness. They have developed innovative products like biobased propylene glycol, which is used across various industries, including pharmaceuticals and animal feed. ADM’s focus on sustainable solutions is evident in their broad range of biobased products, which also includes biodiesel and renewable solvents, underscoring their commitment to enhancing environmental sustainability through their extensive R&D and production capabilities.

BASF SE is at the forefront of the bio-based chemicals sector, emphasizing sustainable and innovative production methods. Their dedicated bio-based portfolio includes a variety of products that serve as renewable alternatives to traditional chemicals, effectively reducing carbon footprints. These products range from bioactives used in cosmetics to bio-based polymers and solvents for industrial applications. BASF’s innovative biomass balance approach showcases their commitment by substituting fossil resources with renewable raw materials in production processes, which not only supports sustainability but also meets increasing market demands for green solutions.

Braskem SA is a leader in the bio-based chemicals sector, particularly noted for its production of biopolymers from renewable resources like sugarcane-based ethanol. The company has significantly expanded its production capabilities with investments such as a $87 million enhancement to its bio-based ethylene plant in Brazil. This expansion has increased the plant’s capacity to 260,000 tons per year. Braskem’s commitment to sustainability is further underscored by its goal to ramp up biopolymer production to one million tons by 2030 and achieve carbon neutrality by 2050. The company’s bio-based products are globally recognized and are utilized by over 250 major brands worldwide in various applications, ranging from packaging to automotive components.

Cargill Incorporated is actively expanding its bioindustrial presence in the bio-based chemicals sector, focusing on delivering sustainable and nature-derived solutions. With their acquisition of Croda’s performance technologies and industrial chemicals business, Cargill has significantly enhanced its capabilities and reach in the bio-based market. This move has positioned Cargill to better meet the growing global demand for environmentally friendly products across industries such as automotive, polymers, and food packaging. By leveraging renewable raw materials and prioritizing sustainability, Cargill is driving innovation and creating value with its expanded portfolio of bio-based solutions.

Koninklijke DSM N.V. is a key player in the bio-based chemicals sector, emphasizing the development of renewable biomass into fuels and chemicals. Positioned in the Netherlands with significant operations in the U.S., Brazil, and other locations, DSM focuses on technologies that convert biomass into valuable bio-based products like cellulosic bio-ethanol and bio-based succinic acid. This focus aligns with DSM’s broader strategy on sustainability and innovation in life and material sciences, leveraging advanced biotechnology to support a shift towards a bio-based economy.

Dow Chemical has taken significant steps in the bio-based chemicals sector, particularly through its collaboration with New Energy Blue. This partnership focuses on developing renewable plastics from agricultural residues like corn stover. Dow’s involvement includes the construction of a facility in Iowa that will process these residues to produce bio-based ethylene, which will then be used to manufacture sustainable plastic products. This initiative not only supports Dow’s sustainability goals but also contributes to reducing carbon emissions and enhancing the use of renewable resources in the chemicals industry.

DuPont is a leader in the bio-based chemicals sector, recognized for its innovative approaches to developing sustainable materials. The company has developed notable products like Sorona polymer, which is made from 37% renewable plant-based ingredients. Sorona is known for its applications in industries such as apparel and carpets, offering advantages like exceptional softness, durability, and environmental benefits compared to traditional materials. DuPont’s commitment to sustainability is also evident in its development of Everact, a new polyester that combines renewable materials to create products with enhanced barrier properties for packaging uses. These innovations highlight DuPont’s focus on integrating renewable resources across its product lines to support sustainability goals.

Evonik Industries is significantly shaping the bio-based chemicals sector through strategic innovation and sustainability-driven initiatives. The company has developed a robust portfolio of biosurfactants, which are manufactured through an environmentally friendly, biotechnological process using renewable feedstocks. Notably, Evonik has pioneered the industrial-scale production of rhamnolipid biosurfactants at its new facility in Slovakia. This advancement is part of Evonik’s broader strategy to enhance the sustainability profiles of various industries including personal care and cleaning products. By leveraging its biotechnology capabilities, Evonik aims to meet the growing demand for sustainable and high-performance bio-based chemicals.

GFBiochemicals Ltd., co-founded by Pasquale Granata and Mathieu Flamini, specializes in the production of levulinic acid, a key bio-based chemical derived from biomass. The company focuses on creating sustainable and biodegradable chemical solutions, aiming to replace petroleum-based chemicals with more environmentally friendly alternatives. Their production technology allows for the use of a wide range of biomass sources, significantly advancing the sustainability of the chemical industry. GFBiochemicals is actively involved in partnerships and innovations to promote the use of bio-based chemicals across various industries, demonstrating its commitment to reducing chemical pollution and supporting a circular bioeconomy.

LyondellBasell has made significant strides in the bio-based chemicals sector through strategic partnerships and innovations. In collaboration with Neste, a leader in renewable products, LyondellBasell has moved towards sustainable production practices, focusing on creating bio-based plastics such as polypropylene and polyethylene from renewable feedstocks like waste and residue oils. This initiative supports the manufacturing of environmentally friendly products, including food packaging materials, under the brand names Circulen and Circulen Plus. These efforts showcase LyondellBasell’s commitment to reducing carbon footprints and advancing circular economy solutions within the global market.

Mitsubishi Chemical Corporation has made significant strides in the bio-based chemicals sector, particularly with the development and production of BioPBS, a biodegradable polymer derived from plant materials like corn. This innovation is part of their broader strategy to replace non-renewable resources with sustainable alternatives in the production of plastics. BioPBS is notable for its excellent biodegradability, which allows it to decompose into water and CO2 under compostable conditions without requiring special facilities. This makes it an environmentally friendly option for applications such as agricultural mulch films, disposable tableware, and packaging materials. Mitsubishi Chemical aims to advance the use of renewable resources and enhance sustainability across various industries, aligning with global sustainability goals.

Toray Industries Inc. is a significant player in the bio-based chemicals sector, particularly known for its advancements in bio-based polymers and composites. They have achieved notable success in developing fully bio-based polybutylene terephthalate (PBT) using bio-derived 1,4-butanediol (BDO) in collaboration with Genomatica. This development is part of Toray’s broader strategy to produce eco-friendly materials that contribute to a sustainable low-carbon society. The company has been integrating nanotechnology with its core competencies in polymer chemistry and biotechnology to pioneer new materials and processes that align with global sustainability goals. Their work extends to producing sustainable fibers, resins, and films from bio-based sources, aiming to reduce reliance on fossil fuels and minimize environmental impact.

TotalEnergies is actively engaged in the bio-based chemicals sector, focusing on developing renewable and sustainable products. They have been pioneering in biofuels and bioplastics, using biomass conversion to meet the energy demands of a growing global population while addressing environmental concerns. Notably, their work includes the production of bioplastics like polylactic acid (PLA), which are biodegradable and have a lower carbon footprint compared to conventional plastics. TotalEnergies is also advancing its capabilities in producing sustainable aviation fuel, highlighting their commitment to reducing CO2 emissions and supporting a circular economy.

Vertec BioSolvents Inc. is known for its innovation in the bio-based chemicals sector, focusing on creating environmentally friendly solvent alternatives to traditional petroleum-based options. Their products are derived from renewable resources like corn, soybeans, and citrus fruits, emphasizing sustainability and performance. Vertec BioSolvents provides solutions across various industries including agriculture, industrial cleaning, and paints and coatings, offering benefits like reduced carbon footprint and biodegradability. Their approach combines technological advancement with environmental responsibility, aiming to outperform petrochemical solvents while supporting greener industry practices.

Conclusion

The bio-based chemicals market is poised for significant growth, driven by a global shift towards sustainability and the reduction of carbon footprints across industries. As industries increasingly opt for eco-friendly alternatives, bio-based chemicals are becoming crucial in applications ranging from pharmaceuticals to packaging, automotive, and beyond. This market’s expansion is bolstered by advancements in technology and substantial investments in research and development, enabling the production of more cost-effective and high-performance bio-based products. With stringent environmental regulations and rising consumer awareness, the demand for bio-based chemicals is expected to surge, underscoring their critical role in fostering a more sustainable future globally. As such, bio-based chemicals represent a key frontier in the transition to a greener economy and are likely to see continued growth and innovation in the coming years.

Sources:

• https://joint-research-centre.ec.europa.eu/jrc-news-and-updates/future-bio-based-chemicals-eu-bioeconomy-2019-01-23_en
• https://www.biobasedpress.eu/2015/06/bioeconomy-much-more-employment-in-biobased-chemicals-than-in-biofuels/
• https://www.ncbi.nlm.nih.gov/books/NBK232953/
• https://vb.nweurope.eu/projects/project-search/agriwastevalue/news/what-is-the-european-market-for-biomass-chemicals/