Bio-Based Platform Chemicals Market

Increasing Investments in Research & Development Activities to boost the market growth

The Global Bio-based Platform Chemicals Market Industry experiences a notable increase in demand for sustainable products. Consumers and industries alike are increasingly prioritizing eco-friendly alternatives to conventional chemicals. This shift is driven by heightened awareness of environmental issues and regulatory pressures aimed at reducing carbon footprints. As a result, the market is projected to reach 6.44 USD Billion in 2024, reflecting a growing preference for bio-based chemicals. Companies are responding by innovating and developing new bio-based products that align with sustainability goals, thereby expanding their market presence and contributing to the overall growth of the Global Bio-based Platform Chemicals Market Industry.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The market size in Europe was valued at USD 35.59 billion in 2020. The region accounted for the largest share of this market in 2020 and is estimated to occupy a leading position throughout the forecast period. Rising investment by European Union countries drives the growth of the market in Europe to promote a green and circular economy. Besides, the countries in this region promote the use of Bio-based Chemicals that are anticipated to surge the demand.

Furthermore, the region is experiencing a decline in conventional sources, and the steps taken to increase the dependency on biological sources will boost market growth.

Figure 3:  BIO-BASED PLATFORM CHEMICALS MARKET SHARE BY REGION 2022 (%)

 

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Asia Pacific is projected to be the fastest-growing region in the market. The market in the region is primarily driven by the shifting preference of consumers towards Bio-based products and the changing policies regarding environmental protection. In addition, the rising incorporation of bioplastics by various end-use industries in China will augment the growth of Bio-based Chemicals.

North America is estimated to exhibit substantial growth during the forecast period. Factors such as shifting emphasis towards the use of sustainable products, the emergence of low-cost feedstock, and innovations in the Bio-based sector are surging the demand in the region.In Brazil, during the year 2023, Braskem, which is a famous petrochemical company, declared its plan to construct an advanced biorefinery that will produce different types of bio-based platform chemicals. This demonstrates their aim of sustainability by following sustainable practices that will reduce carbon emissions and make the industry more environmentally friendly.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the bio-based platform chemicals market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the bio-based platform chemicals industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for bio-based platform chemicals. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their  presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the bio-based platform chemicals industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the bio-based platform chemicals industry to benefit customers and expand the market sector. The bio-based platform chemicals market has recently given medicine some of the most important advantages. Major bio-based platform chemicals market players, including Braskem, GFBiochemicals Ltd, Reverdia, GC Innovation America, Cargill, Incorporated, and others, are attempting to increase market demand by funding R&D initiatives.

Braskem is a petrochemical company and a biopolymer producer. It provides polyethylene, polypropylene, and polyvinyl chloride resins, as well as basic petrochemicals such as ethylene, propylene, butadiene, chlorine, benzene, toluene, etc. The company mainly serves the adhesives, agribusiness, rubber, construction, automotive, lubricants, paints and coatings, and retail industries. Braskem was created by the merger of six.

Also, In 2008, a group of biobased chemical experts saw the significant potential of levulinic acid to replace petroleum-based products across a range of market sectors. GFBiochemicals was founded to develop the production technology needed for this revolution in chemicals and biofuels. GFBiochemicals demonstrated these breakthrough technologies in the Caserta plant, in partnership with the University of Pisa and the PolytechnicIn 2022, DuPont decided to increase its production capacity for bio-based platform chemicals in the United States because there was higher demand than before. Their intention with this move is to position themselves as leaders of industrial sustainability.

They hope to be able to cater to more eco-friendly clients from various sectors by investing in complex manufacturing capabilities.