Bio-based Naphtha Market Analysis

Bio-based Naphtha Market Analysis

Bio-based naphtha market revenue from the bio-polyethylene (bio-PE) segment is predicted to surpass USD 1.5 billion by 2032. Agricultural wastes, such as sugarcane, corn, and other renewable resources, are used to make bio-PE. It is a biodegradable substitute for conventional polyethylene. The usage of non-biodegradable plastics is subject to regulation by governments worldwide. This would increase the demand for Bio-PE. It is also highly used in the packaging of food and cosmetics across the globe and is also used in sporting goods, toys, and household products.
 

Bio-based naphtha market value from the vegetable oils segment is set to cross USD 2.2 billion by 2032. Vegetable oil, also referred to as renewable diesel or sustainable aviation fuel, is a source of bio-based naphtha. In the process of transesterification, vegetable oil is transformed into bio-based naphtha. A natural oil triglyceride reacts with short-chain alcohol, such as ethanol or methanol, in the presence of a catalyst to produce fatty acid alkyl esters. As fossil fuels are becoming increasingly scarce, people have started considering sustainable alternatives.
 

Europe bio-based naphtha market is likely to observe 16.5% CAGR through 2032 due to the increasing usage of the substance for polymer production. According to estimates, around 150,000 tons of bio-based naphtha is already in use each year across the European region for polymer production. This demand is estimated to increase to several million tons during the forecast period. Promising growth in the petrochemical sector will influence the b regional market.