The global bio based chemicals market is expected to reach $1668 million approx by 2022 growing at 13.6% CAGR during 2016-2022. Bio based chemicals are the chemicals which is made up of bio based products such as wood, leather, sugar, proteins, fats, oil etc., bio based chemicals is growing due to its end number of applications majorly in manufacturing of bio based chemicals such as lactic acid, acrylic acid, succinic acid, bio based dyes and so on. There are many reasons for the shifting trend of peoples preferring bio based chemicals over standard chemicals such as high prices of crude oil, the standard chemicals are made up of petrol and petrol based materials like ethylene, propylene, benzene etc. The crude oil is a natural resources and scarcity of such resources is expected to occur in near future. The prices of such natural resource is also very high. The bio based chemical is made with fermentation procedure and the raw materials used in this is bio degradable like wood, leather, cornstarch etc. this is found in abundant in nature. Environmental concerns also boosting the market upward as the conventional chemicals adversely affect the environment and health of the people. These type of chemicals also produce greenhouse effect which is leading to global warming. Health issues like lung diseases, skin rashes and other severe diseases including death is caused by standard chemicals. Market is shifting towards bio based chemicals as it is much safer than normal chemicals, it is safe for human as well. This type of bio based chemical is also used in food processing industries such as nonalcoholic beverages industry as it is safe for human.
Bio based chemicals is made up of bio based feedstock by fermentation process, this adds up the total production cost of bio based chemical. Petrochemical based chemicals are still the cheaper products as compared to the bio based chemicals products. The higher price of bio based chemicals is mainly due to lack of proper supply chain model, Lack of awareness. This all acts as challenge in the growth of the global bio based chemicals market.
Global bio based chemicals market is divided into products, and regional outlook. In products market is divide into bioplastics, biofuels, industrial chemicals, pharmaceuticals, food products and agriculture. Bioplastics is subdivided into biodegradable bioplastics which is again divided into PLA, PHA, regenerated cellulose, biodegradable polyester, others. Non-biodegradable bioplastics is subdivided into bio PET, Bio PE, Bio PA, and others. Bio fuels segment is subdivided into bio diesel, ethanol, other alcohols, bio gas, and solid biomass. Industrial chemicals is divided into succinic acid, alcohols, bio based dyes, lactic acid, glycerol, acrylic acid and other chemicals. Pharmaceutical segment is divided into enzymes, amino acid, vitamins and related compounds, antibiotics and others. Food products is segmented into alcoholic beverages and others. Agriculture is segmented into bio fertilizers, bio pesticide and others. Bio-plastics are expected to be the fastest growing product segment attaining a CAGR of 14.6% in the forecasted period. Bio-degradable bio plastics are expected to grow with a CAGR of 16.6% in the forecasted period due to the benefits associated with them regarding the safety of the environment. Agriculture sub segment is also showing a rapid growth rate. Bio fertilizers and bio pesticides usage in agriculture fields boosted the agriculture sub segment.
Fats & oils, sugars, proteins and lignin are amongst the key components of bio-based materials. Manufacture of industrial chemicals like succinic acid, bio-based dyes, lactic acid, glycerol, acrylic acid and many more are some of the well- known examples of bio based chemicals. Bio-based chemicals are also used in other sectors like pharmaceuticals, food products and agriculture. Some of the major bio based products are bio-plastics which can be bio-degradable or non-biodegradable in nature, and Bio fuels are another bio based products which are finding huge popularity across the globe driven by a large number of factors such as rising fluctuations in the price of crude oil. The bio-based chemicals are addressing our socioeconomically and environmentally unsustainable reliability on petroleum feedstock. Researches are being conducted all around the world to commercially produce bio-fuel for transport industry. The concerns regarding the environment due to dangerous chemicals and depletion of fossil fuels are leading to the rise of the production of the bio-based chemicals market.
In regional outlook market is divided into North America, Europe, Asia pacific and rest of the world. Asia pacific region dominates the Global bio based chemicals market. The major reason for the growth of this region is increasing number of population. Rising population increases the demand for resources and other energy source to sustain, due to this demand related to energy products such as petrol and petrol based products also rises. This type of products occurs in nature hence scarcity may occur in near future. As a result, bio based products has to be develop in order to fulfill the demand of natural resources. The bio based chemicals are fulfilling the requirement of the world without damaging the environment. Plenty amount of feedstock is also fueling up this region. Bio based chemicals requires feedstock such as oil, leather, cornstarch, wood etc. to manufacture. Asia pacific region is basically agriculture products market, there is abundant amount of raw material for the manufacturing of bio based chemicals. Rest of the world region is fastest growing global bio based chemicals market with the CAGR of 15%. Rising usage of bio based fertilizers and abundant amount of bio based feedstock is the major reason for the growth of this region. European region is also showing a positive growth majorly due to environmental concerns related to adverse effect of standard chemicals. North America is showing a sluggish growth rate.
Some of the major market placer are-Bioamber Inc., Mitsui Technologies LLC, Royal DSM, Mitsubishi Chemicals, Tianjin green bio materials Co. Ltd., Shezhenecomann technology Co. Ltd, Bioome technology PLC, Australian Renewable Fuels Limited, Etc. Acquisition, Mergers and Expansions are the key strategies adopted by the market players to sustain the market.