Bio-based Platform Chemicals Market

Bio-based Platform Chemicals Market Outlook

According to Fact.MR’s latest industry analysis on bio-based platform chemicals, the global market was valued at US$ 13 Mn in 2020 and is expected to accelerate at a CAGR of 8% to top US$ 23 Mn by 2031. Demand for C-5 platform chemicals (levulinic acid, glutamic acid, itaconic acid, and xylitol) is projected to rise at a CAGR of 7% across the assessment period of 2021 to 2031.

Bio-Based Platform Chemicals Consumption Analysis from 2016-2020 Vs Future Market Outlook for 2021-2031

As per Fact.MR - a market research and competitive intelligence provider, the global market for bio-based platform chemicals was valued at US$ 13 Mn in 2020.

Significant growth in the chemical and pharmaceutical industries represents one of the key factors creating a positive outlook for the market. Increasing consumption of bio-based C-3 platform chemicals, growing demand for environment-friendly & bio-based chemicals, and rising demand for bio-based levulinic acid & bio-based glucaric acid are also driving the market growth.

Additionally, various product innovations, such as the development of superabsorbent polymers (SAPs), are acting as other growth-inducing factors. SAPs exhibit superior water-absorbing capabilities and thus used for the production of diapers, adult incontinence pads, absorbent medical dressings, and controlled release drugs.

Implementation of favorable government policies promoting sustainable development, along with extensive R&D activities in the field of green chemistry, and increasing demand for C-6 platform chemicals and bio-based sorbitol are some of the major factors that are expected to drive the market at a CAGR of 8% from 2021 to 2031.

What are the Properties of Bio-Based Platform Chemicals Stimulating Market Growth?

Bio-based platform chemicals represents the group of building block chemicals that can be manufactured from sugar via the process of biological conversions. Some of the commonly used bio-based platform chemicals include bio glycerol, bio glutamic acid, bio itaconic acid, bio-3-hydroxypropionic acid and bio succinic acid.

Development of bio refineries has driven the evolution of bio-based chemicals as an alternative to petrochemicals. Such chemicals are produced from renewable resources either by chemical & enzymatic conversion or by fermentation, followed by product isolation and cleaning procedures.

These are manufactured using amino acids, carboxylic acids, isoprene, propane, short-chain olefins, butanediols and ethanol. These chemicals act as a crucial ingredient for manufacturing chemicals and materials with improved functionalities and are used in the production of adhesives, polymers, fibers, plastic packaging, resins and cleaning agents.

These superior properties will drive the expansion of the bio-based platform chemicals market over the coming years.

What Restraints are being Encountered by Bio-Based Platform Chemical Manufacturers?

High cost of production for bio-based chemicals due to the shortage of raw materials as well as the surge in popularity along with the well-rooted application areas of fossil-fuel products may hamper the growth of the market.

Which Regional Market is the Most Lucrative for Suppliers of Bio-Based Platform Chemicals?

North America leads with more than 50% of the share in the global market for bio-based platform chemicals, owing to government regulations promoting the use of bio-based products, and continuous research and innovations in the field of technological modification.

Moreover, stringent regulations related to petroleum-based platform chemicals, and depletion of fossil fuel reserves further provides a growth opportunity for the market in the region.

In addition, end-user industries, such as food and beverage, cosmetics, pharmaceutical, and fertilizer industries, in the country are strictly regulated, to avoid negative effects on the health of citizens. In this regard, these industries are more likely to shift to bio-based raw materials when compared to petroleum-based raw materials.

Research and development of bio-based platform chemicals and exploration of their beneficial applications in such industries can lead to the mandate of the use of such bio-based platform chemicals in the region.

Rising demand for bio glutamic acid in Russia, growing adoption of the latest trends of bio-glycerol in the U.K, and the increasing sales of bio-3-hydroxypropionic acid in Japan also supplement the growth prospects of the bio-based platform chemicals in the global market.

Country-wise Analysis

What is the Bio-Based Platform Chemicals Demand Outlook for the U.S.?

The U.S. bio-based platform chemicals market was valued at over US$ 4 Mn in 2020. Emergence of bio-based products and innovation in renewable energies have contributed to job creation, which is likely to drive the market in the U.S. Abundant availability of bio-based feedstock is projected to create ample growth opportunities for the market in this country.

Being a leader of industrial biotechnology, U.S. holds an important position in the market. Implementation of the Bio Preferred program by the United States Department of Agriculture (USDA) has fueled the sales of bio-based products, which, in turn, has propelled the product demand in the U.S.

Growing sales of bio-based aspartic acid, bio-glycerol, bio-based methylene succinic acid, bio succinic acid, and bio-based lactonic acid in the country is likely to drive the demand for bio-based platform chemicals over the coming years.

What are the Growth Opportunities for Bio-Based Platform Chemical Providers across China?

By 2031, China is expected to have a market worth roughly US$ 5 Mn. China has experienced growing product demand over the past few years owing to shifting consumer preferences toward bio-based products along with various government policies regarding environmental protection.

Rapidly expanding bio-based polymer industry coupled with increasing adoption of bio-refinery concepts and rising production of C4 platform chemicals & bio-based chemical building blocks is anticipated to drive the market growth in the country.

Category-wise Insights

Why is the Popularity of Bio-based Itaconic Acid Rising Rapidly?

Bio-based Itaconic acid, also known as bio-based methylene butanedioic acid or bio-based methylene succinic acid. It is an organic compound produced with fermentation. Also, it is widely used as a substitute for petroleum-based products in the chemical production sector. The material is soluble in alcohol, including ethanol, methanol, and propanol. Also, the product is largely biodegradable.

Further, the compound is used in the production of monoesters and is reactive to pyrrolidones alternatives, which are used in applications such as detergents, shampoo, and more. The derivatives of the chemical find roles in the chemical, pharmaceutical, and textile industries.

Bio-based itaconic acid is used as an alternative to acrylic acid, for the development and production of super absorbent polymer variants. The slump of fossil fuel consumption and demand for bio-based itaconic acid & bio-based methylene butanedioic acid is expected to boost the growth of the bio-based platform chemicals market.

Why are Bio-based Platform Chemicals Gaining Immense Popularity in the Polymer Industry?

Based on application, bio-based platform chemicals for the polymer industry accounted for a share of 40% in the market. Bio-based platform chemicals are key components for the production of polymers. These chemicals are more widely used in polymer manufacturing than other bio-based offerings.

Lignocellulosic polymers are extensively used in high-value applications, including filters, films, and fibers. Developments in the bioplastics sector are still fairly new. However, the segment is likely to grow strongly in the near future.

Widening scope of use in superabsorbent polymers for a large number of end-use offerings is a key factor driving the demand for bio succinic acid, growth of the bio glutamic acid sales and bio-3-hydroxypropionic acid demand.

Superabsorbent polymers allow for the absorption and retention of large liquid volumes for materials such as aqueous solutions. This makes such polymers ideal for use in products such as adult incontinence pads, baby nappies, controlled release drugs, and absorbent medical dressings.

Platform chemicals used for the production of polymers include C4 aspartic acid, C6 glucaric acid, succinic acid, and 3-hydropropionic acid. Higher demand for bio-based polymers in the construction, automotive, and pharmaceutical sectors is expected to generate revenue for the market during the assessment period.

How Has COVID-19 Impacted Demand for Bio-Based Platform Chemicals?

The coronavirus pandemic has had a major impact on the global economy and is having a moderately adverse effect on the bio-based platform chemicals market. Bio-based platform chemicals find roles in pharmaceuticals, agriculture, cosmetics, and more. While supply chain disruptions are likely to hurt short-term prospects, a decline of fossil fuel use during the crisis will create lucrative opportunities.

In the pharmaceutical sector, demand for bio-based platform chemicals is likely to remain high. Also, applications in the agrochemicals sector will gain traction, as governments continue to invest in food security. These factors will influence market developments in the post-pandemic era.

Competitive Landscape

Top bio-based platform chemical suppliers, succinic acid producers, glucaric acid suppliers, and bio itaconic acid suppliers are adopting various business strategies such as product launches, acquisitions, innovations, agreements, and expansions to sustain in this competitive market.

They are looking into latest trends of bio-based platform chemicals and bio-based succinic acid, and are involved in capacity expansions, plant turnaround, and mergers and acquisitions.

• In Nov 2020, the School of Forest Sciences partnered with EBU to provide students with a curriculum on bioeconomy studies, to widen the scope of expertise for professionals in the bio-based industry and research sector.
• Lygos Inc. announced a collaboration with Bioindustrial Manufacturing and Design Ecosystem (BioMADE), with the objective of innovation in terms of technologies in the bio-industrial manufacturing sector, improving prototyping, cutting down time requirements, and reducing commercialization costs for bio-based platform chemicals.
• In October 2020, Virent Inc. announced a collaboration with Cargill Inc. to analyze the use of Cargill’s corn dextrose for the development and production of drop-in, low-carbon biofuels, and biochemicals for applications such as jet fuel and gasoline.

Bio-Based Platform Chemicals Market Report Scope

Attributes	Details
Market size value in 2020	USD 13 Million
Market forecast value in 2031	USD 23 Million
Growth Rate	CAGR of 8% from 2021 to 2031
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Key Companies Profiled	BioAmber, Inc. Cargill, Inc. BASF SE Mitsubishi Chemical Corporation PTT Global Chemical Public Co. Ltd. DuPont Tate & Lyle Bio Products Company LLC Braskem SA Evonik Industries AG DowDuPont, Inc. GFBiochemicals Ltd. Koninklijke DSM NV Myriant Corporation Novozymes A/S Prinova Group LLC. Yield10 Bioscience, Inc. Succinity GmbH
Pricing	Available upon Request

Key Segments in Bio-Based Platform Chemicals Industry Research

• By Type

  • C-3 Platform Chemicals
    • Glycerol
    • Bio-3-Hydroxypropionic Acid
  • C-4 Platform Chemicals
    • Succinic Acid
    • Fumaric Acid
    • Malic Acid
    • Aspartic Acid
  • C-5 Platform Chemicals
    • Levulinic Acid
    • Glutamic Acid
    • Itaconic Acid
    • Xylitol
  • C-6 Platform Chemicals
    • Sorbitol
    • Glucaric Acid
    • 2,5-Furan Dicarboxylic Acid

• By Application

  • Polymers
  • Plastic Formulation
  • Bio-fuel
  • Cosmetics
  • Paints & Coatings
  • Solvents
  • Pharmaceuticals

• By Region

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • MEA