Bio-based chemicals are derived from the natural feedstock, which include plants and other renewable aquatic, agricultural, and forestry materials. These chemicals provide an excellent alternative to petroleum-derived chemicals, fuels, and products. Continuous change in climate conditions and rise in need for finding green solutions as crude oil has limited stock are the primary factors driving the demand for bio-based chemicals.
Bio-based Chemicals Market: Trends & Developments
Demand for bio-based chemicals has been increasing due to the rise in consumption of these chemicals in various industries. Additionally, increase in need to lower greenhouse gas (GHG) emissions and rise in demand for bio-derived products due to environment concerns are projected to propel the demand for bio-based chemicals during the forecast period. Growth in initiatives to minimize carbon emissions and increase in investments in R&D activities to develop bio-based chemicals are also anticipated to fuel the market in the next few years. However, significant availability of substitute products, including polylactic acid and bio-based PET, is estimated to restrain the market in the near future. Furthermore, rise in demand for sugarcane, soya, and corn in the food & beverages industry impacts the availability of raw materials required in the manufacture of bio-based chemicals since these are derived from respective plants. High cost of manufacturing and developing bio-based chemicals is also inhibiting the market growth. Increase in demand for bio-based chemicals in various end-users and technological advancements in bio-based chemical refineries are projected to boost the demand for bio-based chemicals during the forecast period.
Bio-based Chemicals Market: Segmentation
The bio-based chemicals market can be classified based on product and application. In terms of product, the bio-based chemicals market can be bifurcated into bioplastics, and biofuels. The bioplastics segment can be further sub-segmented into biodegradable bioplastics such as regenerated cellulose, bio-degradable polyesters, and non-biodegradable bioplastics such as Bio-PET and Bio-PE. Plastics are made from petrochemicals. Increase in focus on the usage of renewable resources is driving the demand for bioplastics. Polylactides (PLAs) and Polyhydroxyalkonates (PHAs) are bio-derived polymers, which are made from lactic acid in green plants, bacterial fermentation of sugar, and lipids. Plant oils are triacylglycerides, which are used to manufacture polymers. Plant oils are extracted from soybeans and castor oil plants. The biofuels segment can be segregated into bio-diesel, biogas, and solid biomass. Bio-based lubricants are synthetic esters made from mineral oil-based products. These are further used in automotive, aviation, and marine applications.
In terms of application, the bio-based chemicals market can be divided into industrial chemicals, pharmaceuticals, agriculture, food & beverages, and others. Rise in demand for bio-based chemicals in industrial chemicals in anticipated to boost the market in the near future. Increase in trend of using biofuels in the automotive industry to lower crude oil consumption is also propelling the demand for bio-based chemicals. Bio-based chemicals based bioplastics are widely used in packaging of food products such as vegetables, meat, and confectionery products. Bio-based chemicals are also employed as building blocks for the synthesis of bio-based plastics and other materials such as coatings, paints, and adhesives. Furthermore, bio-based chemicals can be used as substitutes for highly concentrated toxic chemicals such as phthalate-based plasticizers and toluene. Bio-based polypropylene is manufactured from bio-based raw materials such as corn, sugarcane, and beet.
Bio-based Chemicals Market: Regional Outlook
Based on region, the global bio-based chemicals market can be segregated into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. The bio-based chemicals market in North America is anticipated to expand at a rapid pace, as the U.S. EPA has imposed supportive regulations on the adoption of bio-based chemicals. The market in Europe market is anticipated to expand at a rapid pace due to the government initiatives toward adoption of bio-based chemicals and depletion of petroleum-based products in the region. Asia Pacific is estimated to be a rapidly growing region of the global bio-based chemicals market. Rise in population and increase in need for bio-based solutions due to the growth in pollution is the key factor driving the market in major economies of Asia Pacific such as China, India, and Japan. The bio-based chemicals market in Middle East & Africa and Latin America is projected to expand at a moderate pace in the near future, owing to the high production cost of bio-based chemicals in these regions.
Global Bio-based Chemicals Market: Key Players
Key players operating in the global bio-based chemicals market are BASF SE, ABENGOA, S.A., Braskem, Cargill, Incorporated, Eastman Chemical Company, Corbion, and UPM Biochemicals.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
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- Actionable Results to meet all the business priorities
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The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
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The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
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The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
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The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
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