Global Bio-Based Platform Chemicals Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2031

Bio-Based Platform Chemicals Market Analysis

The bio-based platform chemicals market is witnessing significant advancements driven by innovative technologies and sustainable practices. Recent developments include the use of microbial fermentation and enzymatic processes to convert biomass into platform chemicals such as succinic acid, 1,3-propanediol, and lactic acid. These methods not only enhance yield and purity but also reduce energy consumption compared to traditional petrochemical processes.

Moreover, advancements in synthetic biology enable the engineering of microorganisms for improved production efficiency, leading to lower costs and higher scalability. The growing emphasis on sustainability and circular economy practices is propelling the demand for bio-based chemicals, with industries ranging from plastics to textiles increasingly seeking eco-friendly alternatives.

As governments and organizations push for stringent regulations on carbon emissions, the bio-based platform chemicals market is projected to grow at a robust CAGR. Investment in research and development, along with collaborations among biotechnological firms, is further driving innovation in this sector. Overall, the market is set to expand significantly, aligning with global sustainability goals and the transition towards greener alternatives in chemical production.

Bio-Based Platform Chemicals Market Size

The global bio-based platform chemicals market size was valued at USD 18.45 billion in 2023 and is projected to reach USD 49.38 billion by 2031, with a CAGR of 13.10% 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 Platform Chemicals Market Trends

“Increasing Demand for Sustainable Products”

One specific trend propelling the growth of the bio-based platform chemicals market is the rising demand for sustainable and eco-friendly products. Consumers are becoming increasingly aware of environmental issues, prompting industries to seek alternatives to petrochemicals. Bio-based platform chemicals, derived from renewable resources such as agricultural feedstocks, are viewed as greener options. For instance, in December 2020, Ginkgo Bioworks, known for its organism engineering capabilities, completed the acquisition of key assets from Novogy, Inc. This strategic move will incorporate Novogy's strain assets and intellectual property into Ginkgo's advanced bioengineering platform. The acquisition also includes Novogy’s talented technical team, enhancing Ginkgo’s capabilities in lipid production, which aligns with the increasing demand for sustainable bio-based oils and materials.

Report Scope and Bio-Based Platform Chemicals Market Segmentation         

Bio-Based Platform Chemicals Market Definition

Bio-based platform chemicals are key intermediates derived from renewable biomass sources, serving as building blocks for a variety of chemicals and materials. Unlike traditional petrochemicals, these compounds are produced through sustainable processes, often involving fermentation or enzymatic conversion of plant materials. Common instances include lactic acid, succinic acid, and 1, 3-propanediol. These chemicals are crucial for developing biodegradable plastics, solvents, and fuels, aligning with the growing demand for sustainable and environmentally friendly alternatives. The bio-based platform chemicals market is expanding due to increased regulatory support and consumer preference for greener products, promoting innovation in renewable resource utilization.

Bio-Based Platform Chemicals Market Dynamics

Drivers

• Increasing Application of Bio-Based Polymers

The rising application of bio-based polymers across various sectors significantly boosts the demand for bio-based platform chemicals. In consumer goods, these polymers are used in packaging, enhancing sustainability while meeting consumer preferences for eco-friendly products. The automotive industry increasingly incorporates bio-based materials to reduce weight and improve fuel efficiency, aligning with stricter emission regulations. Additionally, in the building and construction sector, bio-based polymers contribute to energy-efficient materials and sustainable building practices. For instance, companies such as BASF are investing in bio-based polymer technologies, further driving market growth. This expanding utilization across industries is pivotal for the bio-based platform chemicals market's growth trajectory.

• Rising Demand of Bio-Based Glycerol

The increasing demand for bio-based glycerol is significantly driving the growth of the bio-based platform chemicals market. Glycerol, a crucial platform chemical, finds applications in food, pharmaceuticals, and personal care products. Its composition varies based on biodiesel production processes, typically containing soap, fatty acid methyl esters, glycerides, and methanol. As industries seek sustainable alternatives, bio-based glycerol emerges as a preferred choice due to its renewable sourcing and lower environmental impact. For instance, in August 2023, Archer Daniels Midland (ADM), a prominent agricultural processing and food ingredients company, announced plans to construct a new bio-based isobutanol plant in Illinois. This facility will play a crucial role in producing isobutanol, a versatile bio-based platform chemical with applications in plastics, fuels, and lubricants. With a projected operational date in 2025, the plant is expected to have a significant capacity of 250,000 tons per year.

Opportunities

• Supportive Government Incentives

Stricter government regulations aimed at reducing greenhouse gas emissions are creating significant opportunities in the bio-based platform chemicals market. For instance, the European Union's Green Deal emphasizes sustainable production and aims to reduce carbon emissions by at least 55% by 2030. This regulatory pressure compels industries to seek alternatives to fossil fuels, prompting investments in bio-based chemical production. Additionally, governments are offering grants and tax incentives to support research and development in this sector. Companies that embrace these regulations by transitioning to bio-based chemicals can enhance their market positioning, attract environmentally conscious consumers, and comply with evolving legislative frameworks.

• Advancement in Technology

Innovations in biotechnology and chemical engineering are revolutionizing the production of bio-based platform chemicals, making them more competitive with traditional petrochemical processes. For instance, in December 2020, Kemira Oyj and DuPont Nutrition & Biosciences announced a strategic collaboration aimed at expanding and commercializing DuPont's innovative enzymatic polymerization-based polysaccharide platform technology. This partnership is expected to introduce new biobased and fully biodegradable products tailored for Kemira’s key markets, including water treatment, paper and board production, and the oil and gas industries. DuPont will grant Kemira access to its cutting-edge material technology that utilizes enzymatic polymerization to create polysaccharide materials from basic sugars.

 Restraints/Challenges

• High Production Costs

High production costs significantly hinder the bio-based platform chemicals market. The advanced biotechnological processes required for their production are often more expensive than traditional petrochemical methods. This encompasses various costs, including sourcing raw materials, which may be more costly and less stable than petroleum-based feedstocks. Additionally, the fermentation processes involved can be complex and resource-intensive, further escalating expenses. Purification methods to isolate and refine the bio-based chemicals add another layer of costs. Consequently, these financial burdens can deter investment and adoption, limiting the scalability and competitiveness of bio-based platform chemicals in the broader chemical industry.

• Limited Feedstock Availability

Limited feedstock availability significantly hampers the bio-based platform chemicals market. Sustainable biomass feedstock is often constrained by existing agricultural practices and land use, creating a competitive environment for land between food production and biofuel or bio-based chemical production. This competition leads to challenges in securing sufficient quantities of raw materials needed for large-scale operations. Additionally, the fluctuating prices of agricultural commodities can impact the cost and availability of feedstock, further complicating the supply chain. Consequently, these limitations hinder the ability to scale production effectively and can result in higher costs, ultimately affecting market growth and competitiveness against traditional petrochemical alternatives.

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 Platform Chemicals Market Scope

The market is segmented on the basis of source, product type, type and application. The growth amongst these segments will help you analyse 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.

Source

• Pentose Sugar
• Xylose
• Arabinose
• Others

 Product Type

• Pentanediol
• Ethanol
• Furfural
• Hydroxymethylfurfural
• 2,5-Furandicarboxylic Acid
• Glycerol
• Isoprene
• Succinic Acid
• 3-Hydroxypropionic Acid/Aldehyde
• Levulinic Acid
• Lactic Acid
• Sorbitol
• Xylitol
• Others

 Type

• Sugar
• Syngas
• Biogas
• Oil
• Algae
• Others

 Application

• Polymers
• Fuels
• Solvents
• Perfumes
• Food and Beverage
• Pharmaceutical
• Chemical
• Plastic
• Biofuel
• Research and Development
• Others

Bio-Based Platform Chemicals Market Regional Analysis

The market is analysed and market size insights and trends are provided by source, product type, type and application as referenced above.

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

Asia-Pacific dominates the bio-based platform chemicals market in terms of market share due to increasing many government policies regarding environmental protection and rapidly growing bio-based polymer industry. Furthermore, growing adoption of bio-refinery concepts and regulatory concerns about environmental pollution caused by risky chemicals will boost the market growth in this region.

North America is anticipated to be the fastest developing region in the bio-based platform chemicals market during the forecast period, driven by significant innovations in renewable energies and the growing emergence of bio-based products. Factors such as increasing investments in sustainable technologies, supportive government policies, and a rising consumer preference for environmentally friendly alternatives are further propelling market growth 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 such as 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 Platform Chemicals 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 Platform Chemicals Market Leaders Operating in the Market Are:

• Lyondell Basell Industries Holdings BV (Netherlands)
• BASF SE (Germany)
• Thermo Fisher Scientific (U.S.)
• Ultimate Chem India Pvt. Ltd (India)
• Alpha Chemika, (India)
• Haihang Industry (china)
• Ronas Chemicals (China)
• Merck KGaA (Germany)
• Alfa Aesar (U.S.)
• FUSO CHEMICAL CO., LTD. (China)
• FUJIFILM Wako Pure Chemical Corporation (Japan)
• Dupont (U.S.)
• Braskem (Brazil)
• KURARAY CO., LTD. (Japan)
• DAIKIN (Japan)
• Cargill Incorporated (U.S.)
• IP Group plc  (U.K.)
• Novozymes (Denmark)
• Yield10 Bioscience Inc (U.S.)

Latest Developments in Bio-Based Platform Chemicals Market

• In June 2021, Cargill entered into a partnership with Helm Company to develop a commercial-scale 1, 4-butanediol production facility through their joint venture, Qore, with an investment of USD 300 million. This collaboration aims to replace fossil-based chemistries with sustainable, bio-based intermediates, facilitating leading brands in reducing their greenhouse gas emissions significantly. The venture underscores the growing importance of sustainable practices in chemical production
• In March 2021, OMV, an Austrian refining company, announced its plans to establish a pilot plant at its Schwechat refinery, which has a processing capacity of 200,000 barrels per day. Set to begin operations in 2023, the facility will focus on producing advanced biofuels using waste-based glycerol, a byproduct of biodiesel production. By utilizing glycerol as a catalyst, OMV aims to generate approximately 1.23 million liters of propanol annually, enhancing the sustainability of its operations

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