Global Bio-based Aromatics Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2031

Bio-based Aromatics Market Analysis

Bio-based aromatics are used in various industries for their eco-friendly properties. They are utilized in packaging, automotive parts, and consumer goods to replace traditional petrochemical products. These sustainable alternatives help reduce environmental impact and align with growing consumer demand for greener solutions.

Bio-based Aromatics Market Size

Global bio-based aromatics market size was valued at USD 2.63 billion in 2023 and is projected to reach USD 4.04 billion by 2031, with a CAGR of 5.50% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include import export analysis, production capacity overview, production consumption analysis, price trend analysis, climate change scenario, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework.

Bio-based Aromatics Market Trends

“Increasing Use in Sustainable Packaging”

A significant trend in the bio-based aromatics market is the growing use of these materials in sustainable packaging. As environmental concerns and regulatory pressures increase, companies are shifting towards packaging solutions that reduce their carbon footprint and reliance on fossil fuels. Bio-based aromatics, derived from renewable resources, offer a greener alternative to traditional petroleum-based packaging materials. They enhance the sustainability of packaging by being biodegradable or recyclable, which aligns with the broader push for environmental responsibility.

This trend is driven by both consumer demand for eco-friendly products and industry commitments to sustainability goals. Brands are adopting bio-based aromatic packaging to appeal to environmentally conscious consumers and to meet stricter environmental regulations. This shift supports market growth and encourages further innovation in bio-based materials, making sustainable packaging more accessible and effective.

Report Scope and Bio-based Aromatics Market Segmentation

Bio-based Aromatics Market Definition

Bio-based aromatics are chemicals derived from renewable plant sources instead of petroleum. They are used to create various products like plastics, resins, and fragrances. These compounds offer an eco-friendly alternative to traditional petrochemical-based aromatics, helping reduce reliance on fossil fuels and lower carbon emissions. Applications include manufacturing sustainable packaging materials, developing biodegradable plastics, and producing natural flavors and scents. By using bio-based aromatics, industries can enhance sustainability while meeting consumer demands for greener products.                   

Bio-based Aromatics Market Dynamics

Drivers  

• Increase in Consumer Preference for Sustainable Products

As people become more environmentally conscious, they seek products made from renewable resources rather than traditional petroleum-based materials. Bio-based aromatics, derived from plant sources, offer a greener alternative, appealing to these eco-minded consumers. Companies are responding by investing in and developing bio-based aromatic products to meet this demand. This shift not only helps reduce reliance on fossil fuels but also lowers carbon emissions, aligning with global sustainability goals. As consumer awareness and demand for eco-friendly products increase, more businesses are adopting bio-based aromatics to attract customers and stay competitive. This trend supports the expansion of the market and encourages further innovation in sustainable solutions.

For instance, in 2023, according to an article by Royal Society of Chemistry, the eco-friendly and sustainable qualities of bio-based products have made them more popular in both commercial and industrial uses. These products are not only better for the environment but also offer economic advantages, supporting sustainability and providing opportunities for both businesses and consumers. Consequently, bio-based products are increasingly favored in the agrochemical market.

• Growth in Demand From End-Use Industries

Industries such as packaging, automotive, and consumer goods are increasingly seeking sustainable materials to meet consumer preferences and regulatory requirements. Bio-based aromatics, made from renewable sources, offer a greener alternative to traditional chemicals. As more companies focus on reducing their environmental footprint, they turn to bio-based aromatics to achieve sustainability goals and enhance their brand image. This rising demand from various sectors drives market growth by encouraging more innovation and investment in bio-based aromatic products. Additionally, businesses are expanding their product lines to include these sustainable options, further fueling the market's development.

Opportunities

• Innovation and Technology Development

As the demand for sustainable products rises, companies can invest in developing new and improved bio-based aromatic solutions. Advancements in processing technologies and renewable feedstocks can lead to more efficient and cost-effective production methods. By exploring new formulations and applications, businesses can create a wider range of bio-based aromatics that meet diverse consumer needs and industry requirements. This focus on innovation not only enhances market competitiveness but also supports long-term growth by catering to evolving environmental and performance standards.

For instance, in 2022, according to an article by ResearchGate GmbH, fragrant mixtures derived from plant-based residual materials, sustainable sources, natural by-products, and highly adaptable feedstocks include both liquids (such as glycerol, fats, fatty acids, and oils) and solids (such as agricultural wastes). Bio-aromatics, which are either a current reality or a future prospect, can be produced from lignin—a substance abundantly found in wood that acts as a binder for cellulose and hemicellulose. The potential to produce bio-aromatics from lignin is promising and could see rapid growth in the coming years.

• Government Support and Incentives

Many governments offer subsidies, tax breaks, or grants to companies that invest in renewable resources and sustainable practices. These incentives can reduce production costs and encourage businesses to adopt bio-based aromatics. Such support helps lower financial barriers for companies and stimulates market expansion by making bio-based products more attractive and accessible. Additionally, favorable regulations and standards can drive industry growth by aligning with global sustainability goals and consumer preferences.  

Restraints/Challenges

• High Production Costs

The Producing bio-based aromatics often involves expensive raw materials and complex manufacturing techniques. These costs can make bio-based products more expensive than traditional petrochemical alternatives, potentially limiting their competitiveness in the market. Higher prices may also deter consumers and businesses from choosing bio-based options, impacting overall market growth. Addressing this challenge requires ongoing research and development to improve cost efficiency and make bio-based aromatics more affordable.

• Limited Raw Material Availability

Many bio-based aromatics rely on specific agricultural or plant-based feedstocks, which can be subject to seasonal variations and supply chain disruptions. Limited availability of these raw materials can affect production stability and increase costs. Additionally, competition for these feedstocks with other industries, such as food and beverage, can further strain supply. To mitigate this issue, the industry must explore alternative sources and invest in sustainable agriculture practices to ensure a reliable supply of raw materials for bio-based aromatic production. 

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Bio-based Aromatics Market Scope

The market is segmented on the basis of type, end-use, and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Benzene
• Toluene
• Xylene
• Styrene
• Phenol
• Others

End-Use

• Chemicals
• Food & Beverages
• Pharmaceuticals
• Personal Care & Consumer
• Others

Application

• Paints & Coatings
• Textile Industry
• Plastic Industry
• Chemical Processing
• Others

Bio-based Aromatics Market Regional Analysis

The market is analyzed and market size insights and trends are provided by country, type, end-use, and application as referenced above.

The countries covered in the market are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, rest of Middle East and Africa, Brazil, Argentina, and rest of South America.

Asia-Pacific region is dominating the global bio-based aromatics market. With China, Japan, and India expected to be the largest markets in the region. The area is forecasted to be the fastest-growing market for bio-based aromatics, driven by significant chemical manufacturing centers in China, India, Japan, and South Korea.

North America is growing with the highest CAGR in the bio-based aromatics market, driven by increasing investment in sustainable technologies and a strong focus on reducing carbon emissions in industries. Companies are expanding their bio-based product lines and improving infrastructure in this region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Bio-based Aromatics Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Bio-based Aromatics Market Leaders Operating in the Market Are:

• BASF SE (Germany)
• Chevron Phillips Chemical Company LLC (U.S.)
• Dow (U.S.)
• DSM (Netherlands)
• Exxon Mobil Corporation (U.S.)
• LG Chem (South Korea)
• LyondellBasell Industries Holdings B.V. (Netherlands)
• Neste (Finland)
• Reliance Industries Limited (India)
• SABIC (Saudi Arabia)

Latest Developments in Bio-based Aromatics Market

• In May 2023, Dow Chemical Company and New Energy Blue entered into a long-term supply agreement in North America to produce bio-based ethylene from renewable agricultural residues. Dow plans to buy this ethylene to lower emissions from plastic production and use it in recyclable products like transportation materials, footwear, and packaging. This agreement marks Dow's first initiative in North America to use corn stover and agricultural residues for plastic production.
• In July 2022, BASF enhanced its role as a key ingredients partner in the nutrition, flavor, and fragrance sectors. Its Nutrition & Health division is focusing on strengthening its core product platforms and assets in vitamins and carotenoids, and expanding its feed enzyme business.
• In March 2021, Royal DSM agreed to acquire Amyris, Inc.'s flavor and fragrance bio-based intermediates business. This acquisition will broaden DSM's Aroma Ingredients portfolio with bio-based components for the fragrance and cosmetics industries. It includes seven intermediate products, with four already generating sales and EBITDA, two recently launched, and one still under development.

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