PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1551298
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1551298
According to Stratistics MRC, the Global Bio-Based Materials Market is accounted for $39.73 billion in 2024 and is expected to reach $138.26 billion by 2030 growing at a CAGR of 23.1% during the forecast period. Bio-based materials are an environmentally friendly substitute for conventional petroleum-based materials because they are derived from renewable biological resources like plants, animals, and microorganisms. Because they contribute to the circular economy, decrease carbon emissions, and lessen dependency on fossil fuels, these materials are essential for advancing sustainability. Moreover, they are used to make natural fibers, biodegradable plastics, biocomposites, and other cutting-edge products in a variety of industries, such as textiles, construction, automotive, and packaging.
According to the European Bioplastics Association, the global production capacity of bio-based plastics is expected to increase significantly in the coming years, driven by growing consumer demand and advances in bio-based technologies.
Demand from customers for green products
The market is changing as a result of the growing number of environmentally conscious consumers choosing sustainable, morally, and environmentally friendly products. Companies are incorporating bio-based materials into a range of products, including clothing, personal care items, and packaging, as a result of the shift in consumer preferences. Additionally, by utilizing these materials, brands can set themselves apart in a crowded market and appeal to an increasing number of customers who place a high value on sustainability.
Elevated production expenses
The higher production cost of bio-based materials in comparison to conventional materials is one of the main barriers to the market. Costly specialized equipment and cutting-edge technologies are frequently needed for the extraction and refinement of bio-based materials. Furthermore, certain crops or organic waste may not always be readily available as raw materials for bio-based products, or they may require a substantial investment in agricultural practices. Because consumers frequently pay the higher costs, bio-based products lose out in markets where consumers are price-sensitive.
Growing consumer interest in eco-friendly products
The increasing demand from consumers for sustainable and environmentally friendly products presents a big opportunity for bio-based materials as environmental awareness rises. Customers now prefer products that are recyclable, biodegradable, and made from renewable resources because they are more aware of how their purchases affect the environment. Due to their preference for sustainability and ethical issues when making purchases, younger generations are especially strong supporters of this trend. Moreover, companies can capitalize on this demand by introducing eco-friendly substitutes that are consistent with consumer values and by using bio-based materials in their products.
Rivalry with conventional materials
Bio-based materials continue to face fierce competition from well-established conventional materials, especially petroleum-based plastics and other synthetic materials, despite the growing interest in them. These conventional materials are well-established in the market, have a long history of use, and have robust supply chains and economies of scale. They are the go-to option in many industries because they frequently provide better performance qualities like increased durability, thermal resistance, and cost-effectiveness. Additionally, the widespread adoption of bio-based alternatives is still significantly hampered by the lower cost of conventional materials, which are the result of mass production and well-established technologies.
The market for bio-based materials saw conflicting effects from the COVID-19 pandemic. Delays and higher costs resulted from production and distribution being temporarily hampered by labor shortages, supply chain disruptions, and decreased industrial activity. The market was growing more slowly because many businesses postponed investments in green technologies due to the unpredictability of the economy. However, the pandemic contributed to a greater global consciousness of environmental and sustainability issues, which in turn raised the demand for eco-friendly materials, particularly in industries where sustainability and hygienic practices are critical, such as packaging and healthcare.
The Bio-Based Polyethylene Terephthalate (PET) segment is expected to be the largest during the forecast period
In the market for bio-based materials, the segment with the largest share is bio-based polyethylene terephthalate (PET). Because of its exceptional durability, recyclability, and compatibility with the current PET recycling infrastructure, bio-based PET is widely used in the packaging industry, particularly for beverage bottles, food containers, and other consumer goods. The market for bio-based PET has expanded as well-known companies look to lessen their environmental effect by using sustainable materials without sacrificing the quality of their products. Moreover, bio-based PET's dominance in the bio-based materials market can be attributed to its versatility as well as the strong demand from consumers and regulations for sustainable packaging solutions.
The Building and Construction segment is expected to have the highest CAGR during the forecast period
The Building and Construction segment in the Bio-Based Materials Market is anticipated to exhibit the highest CAGR. The growing need for environmentally friendly and sustainable building materials, which are in line with global trends toward energy efficiency and green construction, is what is propelling the growth of this industry. The performance and sustainability of construction products are being improved by innovations in bio-based materials, such as those derived from natural fibers, bioplastics, and recycled organic materials. Furthermore, this trend is a reflection of a larger commitment to lessening the impact of construction projects on the environment and complying with laws requiring greener building methods.
The market for bio-based materials is anticipated to hold the largest share in the Asia-Pacific region. Rapid industrialization, expanding automotive and construction industries, and rising consumer awareness of sustainable products in important nations like China and India are the main causes of this dominance. The region is well-positioned to lead the market owing to its broad manufacturing capabilities and government policies that support green technologies. Additionally, Asia-Pacific is expected to hold a sizable portion of the market as long as there is a continued demand for environmentally friendly materials and technological advancements.
The bio-based materials market is anticipated to grow at the highest CAGR in the Latin America region. Growing investment in sustainable technologies, growing environmental awareness, and encouraging government programs to lessen carbon footprints are the main drivers of this growth. The region's fast market expansion is attributed to a number of factors, including a growing consumer base seeking eco-friendly products, a favorable economy, and an increasing emphasis on the agricultural and industrial applications of bio-based materials. Furthermore, Latin America is positioned for significant growth in the bio-based materials industry as it continues to embrace sustainability.
Key players in the market
Some of the key players in Bio-Based Materials market include BASF SE, Clariant AG, Solvay, DSM, Braskem S.A, Sumitomo Chemical, Mitsubishi Chemical Corporation, Dow Chemical Company, Covestro, PepsiCo Inc, DuPont de Nemours Inc, Toray Industries, Inc, Coca-Cola Company, Evonik Company and Teijin Limited.
In July 2024, BASF and ENGIE signed a 7-year Biomethane Purchase Agreement (BPA). Under the BPA, ENGIE will supply BASF with 2.7 to 3.0 terawatt hours of biomethane throughout the term of the agreement. BASF uses certified biomethane at its Ludwigshafen/Germany and Antwerp/Belgium sites as a sustainable alternative to fossil raw materials in its manufacturing process.
In June 2024, Solvay S.A. and Cyclic Materials, an advanced metals recycling company building a circular supply chain for rare earth elements and other critical metals, announced the signing of an agreement for the supply of recycled mixed rare earth oxide (rMREO) from Cyclic Materials to Solvay, with shipments to begin in late 2024.
In March 2024, Clariant, a sustainability-focused specialty chemical company, and its process partner Lummus Technology have been selected by Huizhou Boeko Materials Co. Ltd., to provide their CATOFIN catalyst and process technology for the dehydrogenation of isobutane at the new plant in Huizhou City, China.