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Bio-Renewable Chemicals Market Size
Bio-Renewable Chemicals Market is expected to exhibit robust growth over 2024–2032 owing to the rising advantages, such as low environmental footprint compared to traditional petrochemicals and the high consumer inclination towards renewable products. The demand for renewable bio-based chemicals is escalating due to their lower carbon footprint, unlike conventional petrochemicals, boasting of wide application scope in industries, such as food & beverage packaging and transportation. Of late, there has been rapid transition towards bioeconomy and renewable feedstocks to produce low-carbon alternatives for industries, including chemicals.
The high interest in the use of biofuels due to strict automotive vehicle emission norms, coupled with the rising deployment of bio-based polymers in the textile sector will propel the market expansion. However, high production costs, limited scalability of production processes, and competition from conventional chemicals may act as major restraints for the product demand. In addition, regulatory uncertainties, and challenges in securing consistent and cost-effective feedstock supplies may hinder the market expansion to some extent.
Bio-Renewable Chemicals Market Trends
Ongoing collaborative efforts are driving innovations and accelerating R&D activities for enabling the commercialization of bio-based chemicals. Several leading companies are forging strategic alliances to enhance production processes, access new feedstock sources, and expand market reach. These partnerships facilitate the development of novel bio-based products, improve supply chain efficiency, and address market challenges collectively, augmenting the industry outlook. For instance, in May 2023, New Energy Blue and Dow signed a long-term supply agreement across the North American region to produce bio-based ethylene from renewable agricultural residues to help Dow minimize carbon footprints from plastic manufacture and utilize it in recyclable applications, such as footwear, packaging, and transportation.
Bio-Renewable Chemicals Market Analysis
Bio-renewable chemicals industry from the bio-solvents segment will register strong revenue growth by 2032. This is attributed to the surging deployment of bio-based raw materials across the paint and adhesives industries. The emergence of greener and environment-friendly alternatives to harmful solvents, including Cyrene, for the pharmaceutical sector is also projected to facilitate the segmental growth.
In terms of application, the bio-renewable chemicals industry from the packaging segment will witness traction between 2024 and 2032 owing to the increasing consumer demand for sustainable and eco-friendly packaging solutions. Bio-based chemicals offer advantages like biodegradability, reduced carbon footprint, and recyclability in aligning with the ongoing shift towards circular economy practices. Furthermore, the increasing implementation of stringent regulations on single-use plastics, rising awareness of plastic pollution, and the pressing need for innovative, renewable materials will boost the segment growth.
Given the regional landscape, the Latin America bio-renewable chemicals market is slated to depict a considerable growth rate during 2024-2032, owing to the rising cultivation of soybeans for bio-based products, mainly in Brazil and Mexico. With the growing usage of soybeans in biodiesel, the need for renewable chemicals for biological crop production will increase in the region. Likewise, upcoming projects, including Mexico's proposed ETS (Emissions Trading Scheme) and other GHG emission reduction missions will also stimulate the regional industry growth.
Bio-Renewable Chemicals Market Share
Leading bio-renewable chemical providers are taking proactive efforts to invest in research, develop innovative bio-based products, and forge strategic partnerships for market expansion and enhanced product diversity in meeting the rising demand for sustainable solutions across industries. To illustrate, BASF has been focusing on innovative bio-based solutions, sustainable practices, and strategic collaborations to cater to the need for eco-friendly alternatives across industries.
Some of the global bio-renewable chemicals market players are-
- Gevo
- LanzaTech
- DuPont
- BioAmber
- Myriant
- Solvay
- BASF SE
- TerraVia Holdings
- ZeaChem
- Amyris
Bio-Renewable Chemicals Industry News
- In 2023, Gevo, Inc. announced a Hydrogen Development Services deal with Zero6 Energy for developing a 20-megawatt hydrogen production unit in Lake Preston, South Dakota, using Cummins Inc.’s electrolyzer technology.