Bio-based platform chemicals can be defined as the compounds manufactured by the breaking and processing of bio-based materials. These chemicals are used to produce several chemicals and materials that have better functionality and have the capabilities of being transformed into a number of other chemicals. Common examples of chemicals manufactured through bioprocessing or with the help of biomass include amino acids, carboxylic acids, isoprene, propane, short chain olefins, vitamins, polymers such as xanthan gum. Bio-based platform chemicals are a group of chemicals manufactured from sugar via the process of biological conversions. This group of chemicals contains molecules with a variety of functional groups, carrying the potential of getting transformed into a chemical that have better functionality. Bio-based platform chemicals are two to six carbon-containing compounds derived from fossil fuel resources. The oil and gas industry is one of the major supplier of raw materials to the platform chemicals market. Thus, fluctuations in the crude oil prices affect the prices of the raw materials thereby affecting the costs of platform chemicals. Thus, costs of platform chemicals depend upon the oil and gas industry.
The global bio-based platform chemicals market is anticipated to record a CAGR of around 11% over the forecast period i.e. 2019-2027. It is expected to maintain significant growth attributed to the high volatility of crude oil prices as the oil and gas industry is one of the major suppliers of raw materials to the platform chemicals market. Growing polymer and bio-plastics industry is projected to drive the product demand. Bio-based platform chemicals are gaining popularity over petroleum-based chemicals on account of rising environmental concerns. These chemicals are also likely to replace conventional chemicals used in various end-use industries, such as F&B, polymer, and pharmaceuticals. Bio-derived organic acids, polymers, and alcohols are used in wide range of applications such as surfactants, solvents, plasticizers, paints and coatings, lubricants, and binders.
Biocatalysts plays an important role in accelerating the production of these chemicals. Manufacturers are investing heavily in R&D activities for producing customized biocatalysts, which can fulfill specific requirements of the producers. Based on chemical type, bio-based platform chemical market is segmented into C3, C4, C5, C6. Out of which C3 segment is estimated to hold the major share attributed to the growth in end-user industries such as plastic, construction and paints & coatings. The volume growth is drive by the increasing production of biodiesel as C-3 chemicals are the resultant by product of biodiesel.
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Reduction in the natural reserve of fossil fuel has increased the demand for bio-based chemicals. Increasing awareness among the population and growing demand for an environmentally friendly product has led to the growth of the bio-based platform chemicals market. Presence of strict regulations regarding the usage of petrol-based chemicals and the rising inclination of consumers on environment-friendly products technological modification are likely to contribute towards the growth of market. As the demand for eco-friendly products across industries gathers strength and companies focus on the development of more effective varieties of bio-based platform chemicals. Scarcity of non-renewable resources is one of the driving factors of the market. The rising price of crude oil is resulting in the replacement of petroleum-based production of chemicals with bio-based production of chemicals.
Bio-based chemical finds its applications in different manufacturing industries. Currently, a huge range of products including solvents, pharmaceutical and solvents contains the bio-based platforms chemicals. Rising demand for these chemicals and increasing usage of bio-based products are projected to drive the market growth further. There has been a significant increase in R&D activities to increase the application areas of bio-based platform chemicals in various industries, such as biofuels and resins, by many major vendors. All these factors contributing to drive the bio-based platform chemical market growth.
On the basis of region, the market is segmented into five major regions i.e North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
North America bio-based platform chemical market is anticipated to witness fast growth over the forecast period. The growth in this region is attributed to shifting consumer preferences toward bio-based products along with various government policies regarding environmental protection. Rapidly expanding bio-based polymer industry along with increasing adoption of bio-refinery concepts is anticipated to drive the market growth in the region.
Asia Pacific market is estimated to witness significant growth on account of the rising concerns pertaining to the ill-effects of petroleum-based chemicals on the environment and the increased numbers of regulatory reforms mandating the increased uptake of bio-based chemicals.
Global bio-based platform chemical market is further classified on the basis of region as follows:
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