Bio-based Aromatics Market: Potential Renewable substitute
- Bio-based aromatics is an alternative to plastic, which is made from oil and petrochemical feedstock. These aromatics are majorly manufactured using lignin and sugar, which is derived from cellulose and hemicellulose. About 40 % of all chemicals are made of benzene and its products such as toluene and xylene, which are called as aromatics.
- Bio-based aromatics are majorly utilized in diverse applications including textiles, wood panels and laminates, polymers, paints & coatings, fragrance & aroma, pharmaceutical, and fine chemicals. Among these applications, paints & coatings is estimated to be the major application segment of the bio-based aromatics market.
Key drivers of bio-based aromatics market
- Rise in depletion of fossil fuel feedstock coupled with an increase in ban on polymer based products is anticipate to fuel the demand for bio-based products in the near future. Moreover, growing awareness about bio-based products among consumers is projected to fuel the bio-based aromatics market across the globe.
- Bio-based aromatics having the potential to replace the chemicals made from fossil fuels, which is a key factor boosting the bio-based aromatics market. Furthermore, shift in consumer preference toward bio-based products is offering significant opportunity to the development of technologically advanced materials across the globe. Additionally, bio-based aromatics offer increased safety and high environmental characteristics, thus boosting the market.
- These aromatics are also expected to decrease the climatic changes by reducing CO2 emission. For instance, on October 2018, Anellotech, Inc. announced that Bio-TCatTM process has the potential to reduce CO2 emission by 70% or more, as comparison to that of petroleum-derived equivalents. The process manufactures bio-based aromatics using pine wood as its raw material.
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Reduced dependence on non-renewable resources
- Bio-based aromatics have the potential to decrease the heavy dependency on crude oil. Independence from fossil fuel resources is projected to boost competitiveness and greener economic growth. Additionally, lower carbon footprint is likely to benefit the manufacturers by increasing economic stability and avoiding social crises within oil exporting countries such as GCC.
- Expansion of the market and the use of bio-based aromatics, majorly depends on various factors, which include incentives and policies formulated to raise awareness about bio-based aromatics across the globe. Moreover, other factors include the availability of biomass.
- Use of bio-based aromatics to manufacture highly sustainable products, such as bioplastics instead of bio-fuels, is estimated to offer considerable opportunity to the biobased aromatics market in the near future.
High cost of production likely to hamper the market
- Production of biobased aromatics is likely to require considerable funding to develop the machinery and processes to manufacture such products. Furthermore, a lack of large quantity of biomass required for commercialization of bio aromatics is anticipated to hamper the market in near future.
- The production of bio-based aromatics requires technologies that are extremely limited and only available in research & development laboratories
- Additionally, the establishment of bio-refinery is an expensive task. High number of bio refineries with highly advanced technologies are required to manufacture high volumes of bio-based aromatics products.
Europe is expected to hold major share of global bio-based aromatics market
- In terms of region, the global bio-based aromatics market can be split into five regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
- Europe is projected to be a leading consumer of bio-based aromatics. Increasing regulations on usage of fossil fuel based products coupled with rising restrictions on the use of hazardous chemicals is anticipated to propel the demand for alternatives across the region. Furthermore, Europe is home to established major manufacturers such as DowDuPont Inc, Koninklijke DSM N.V., and BASF SE that are operating in the green chemistry. This, in turn, is expected to further fuel the bio-based aromatics market.
- Europe being a developed region has a strong technological and research base; however, presently it is at a nascent stage
- Furthermore, development of the bio-based aromatics depends on availability of research centers and infrastructure, despite the presence of sufficient feedstock in cheap areas such as Asia or Latin America.
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Key players operating in the bio-based aromatics market
The market across the globe is dominated by a few players. These players account for a major share of the global market. Key players operating in the bio-based aromatics market include
- Anellotech, Inc.
- IFP Energies nouvelles
On February 27, 2019, Anellotech Inc. and its joint venture partner IFP Energies nouvelles and Axens started production of bio-based aromatics, on a pilot scale. The company has successfully recovered highly pure bio-based paraxylene, which can further be used for the production of bio-based PET bottles.
Global Bio-based Aromatics Market: Research Scope
Global Bio-based Aromatics Market, by End-use
- Paints & Coatings
- Special chemicals
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
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
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.
2. Insights and Tools
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.
3. Actionable Results
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.
4. Strategic Frameworks
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?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.