Bio-Based Building Materials Market – By Material Type, By Construction Type, By Application, By End Use, By Distribution Channel and Forecast, 2024 - 2032

Bio-Based Building Materials Market Size

The global bio-based building materials market was valued at USD 24.2 billion in 2023 and is estimated to grow at a CAGR of over 19% from 2024 to 2032.
 

As governments and the private sector increasingly advocate for sustainable construction methods, the demand for green building materials is on the rise. With a heightened emphasis on energy efficiency, carbon neutrality, and minimizing environmental footprints, bio-based materials—such as hempcrete, bamboo, straw bale, and cork are gaining traction as preferred alternatives to conventional materials like concrete and steel.
 

Bio-Based Building Materials Market Trends

Green certifications like LEED, BREEAM, and Net Zero Carbon are gaining traction, propelling the use of bio-based building materials. These certifications mandate sustainable and low-carbon materials, easily met with bio-based alternatives. With the rising demand for green buildings, bio-based materials are increasingly integral to construction projects.
 

Bio-Based Building Materials Market Analysis

Heightened consumer awareness regarding the health advantages of bio-based building materials is driving market expansion. Materials like wood, bamboo, and cork, being naturally non-toxic, lack the harmful chemicals often present in synthetic alternatives. This quality makes them increasingly sought after for fostering healthier indoor environments. Notably, this trend is most pronounced in the residential sector, with homeowners actively pursuing eco-friendly, non-toxic, and natural building materials.
 

Builders and developers often face a significant barrier due to the perceived high upfront costs of bio-based materials, which are typically higher than those of traditional materials like concrete or steel. Furthermore, the lack of comprehensive building codes or standards governing bio-based materials in many regions presents an additional challenge to their widespread adoption.
 

Based on material type, the market can be segmented into natural fibers, wood-based products, agro-waste-based products, bio-polymers, bio-insulation materials, bio-concrete, and others. The wood-based products segment accounted for revenue of around USD 8.2 Billion in the year 2023 and is estimated to grow at a CAGR of around 19.5% from 2024 to 2032. Wood stands out as one of the most sustainable bio-based materials. Being renewable and biodegradable, it boasts a carbon footprint that's notably lower than that of conventional building materials like concrete and steel.
 

In construction, products such as cross-laminated timber (CLT), wood fiber insulation, and bamboo are gaining traction, thanks to their minimal environmental impact. Moreover, technological advancements have birthed innovative wood-based products, including CLT, engineered wood products (EWP), and wood-fiber insulation. These products not only match but often surpass traditional materials in strength, durability, and fire resistance.
 

Based on the end-use, the global bio-based building materials market is categorized as residential, commercial, industrial, and infrastructure. The residential segment held around 37% of the total market share in 2023 and is anticipated to grow at a CAGR of 19.3% during the forecast period. Homeowners are becoming more conscious of the health impacts of materials used in their residences. Conventional construction materials frequently harbor toxic chemicals, like formaldehyde and VOCs, which can deteriorate indoor air quality. In contrast, bio-based materials, including wood, hemp, and bamboo, are inherently non-toxic and contribute to healthier indoor settings. With a rising emphasis on health, particularly in homes, there's an escalating demand for bio-based building materials that enhance indoor air quality.
 

The U.S. bio-based building materials market accounted for revenue of around USD 5.1 Billion in the year 2023 in North America and is estimated to grow at a CAGR of around 19.2% from 2024 to 2032. Through a range of policies and incentives, the U.S. government actively promotes sustainable building practices, particularly emphasizing the use of bio-based materials. Programs like LEED (Leadership in Energy and Environmental Design) and Energy Star certification offer financial benefits, motivating builders and homeowners to choose green materials. For instance, the U.S. Green Building Council (USGBC) and the Department of Energy (DOE) are championing the shift towards sustainable materials, especially bio-based alternatives, through their incentive programs. Additionally, federal initiatives, including tax credits for energy-efficient homes and carbon-neutral buildings, bolster the adoption of bio-based materials across both residential and commercial construction sectors.
 

North America: North America boasts a range of environmental regulations that advocate for bio-based materials. In the U.S., initiatives like Energy Star and the Federal Green Construction Guide for Specifiers champion eco-friendly building materials. Meanwhile, Canada enforces stringent regulations to curb the carbon footprint of construction materials, steering the market towards bio-based alternatives. Innovations, including cross-laminated timber (CLT), hemp-based composites, and bio-based insulation, are enhancing the durability and cost-effectiveness of bio-based products, making them competitive with traditional materials such as concrete and steel.
 

Europe: Germany is at the forefront of developing and implementing green building standards, including the DGNB (German Sustainable Building Council) certification and Passivhaus standards. These standards promote the use of bio-based materials, such as wood, hemp, and natural fibers. As a result, they're shaping building practices throughout Europe and boosting the demand for sustainable materials. With ambitious goals set for carbon neutrality, Germany aims to achieve net-zero carbon emissions by 2045, and bio-based materials are pivotal in reaching this target.
 

Asia Pacific: The Chinese government actively champions sustainable construction, emphasizing green building practices through various policies and regulations. Initiatives like the Green Building Action Plan and the National New-type Urbanization Plan underscore the government's commitment to promoting eco-friendly structures and bio-based materials. With a pledge to attain carbon neutrality by 2060, China is zeroing in on curbing emissions from its construction sector, a major player in the nation's emission landscape.
 

Middle East: Saudi Arabia is prioritizing sustainable urbanization and eco-friendly infrastructure, as evidenced by the rapid development of cities like Neom and the Red Sea Project. The Saudi Green Building Forum and the Saudi Energy Efficiency Program are championing the adoption of green construction standards, with a particular emphasis on promoting bio-based materials. To further bolster these efforts, the Saudi government has rolled out a series of green building and sustainability regulations, offering incentives for the use of environmentally friendly materials.
 

Bio-Based Building Materials Market Share

The global bio-based building materials industry showcases a competitive landscape teeming with a mix of players, from multinational giants to regional manufacturers and specialized niche companies. Predominantly fragmented, the market sees major players like BASF SE, Interface, Inc., Forbo Flooring Systems, Novamont S.p.A., and Hempitecture Inc. These companies command significant market shares, bolstered by their vast product portfolios and robust brand recognition. The surge of e-commerce has broadened online sales channels, allowing brands to tap into wider audiences and boost customer engagement via digital marketing.
 

Bio-Based Building Materials Market Companies

Major players operating in the bio-based building materials industry are:

• BASF SE
• Clayworks Ltd.
• Cork House
• Durisol
• EcoCocon
• ECOR Global
• Forbo Flooring Systems
• Green Building Supply
• Hempitecture Inc.
• Interface, Inc.
• Kirei
• MycoWorks
• NatureWorks LLC
• Novamont S.p.A.
• Plantd
   

Bio-Based Building Materials Industry News

• In November 2024, BASF inaugurated a new production line in Heerenveen, the Netherlands. This expansion underscores BASF's dedication to bolstering its manufacturing capabilities in the region. It aligns with the company's strategy to address the surging demand for innovative and sustainable solutions. Furthermore, this move showcases BASF's continuous investment in state-of-the-art technologies and sustainable practices. Such efforts solidify BASF's leadership in providing advanced material solutions across various industries, including construction, automotive, and consumer goods.
   
• In September 2021, Interface, Inc., a global leader in commercial flooring and a trailblazer in sustainability, marked a pivotal moment in its environmental commitment. The company disclosed that its European-manufactured carpet tiles would now utilize the cutting-edge CQuest Bio backing, made from carbon-negative materials. This landmark move not only highlights Interface's dominance in sustainable manufacturing but also showcases its innovative materials and processes that enable a negative carbon footprint for its carpet tiles.
   

This Bio-Based Building Materials market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2032, for the following segments:

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Market, By Material Type

• Natural fibers
• Wood-based products
• Agro-waste-based products
• Bio-polymers
• Bio-insulation materials
• Bio-concrete
• Others (bio-adhesives and binders, Etc)

Market, Construction Type

• New construction
• Renovation and retrofit

Market, Application

• Structural components
• Insulation
• Flooring
• Wall panels and cladding
• Roofing
• Others (decorative materials, Etc)

Market, End Use

• Residential
• Commercial
• Industrial
• Infrastructure

Market, Distribution Channel

• Direct
• Indirect

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa