Bio based Chemicals Market

The global bio-based chemicals market is expected to register a healthy CAGR of 10.47% during the forecast period, 2018–2023. The increasing application of bio-based lubricants in different end-use industries is expected to boost the demand for bio-based chemicals and drive the growth of the global market. Likewise, stringent regulations on the use of conventional plastics and growing use of bio-alcohols in the food & beverage industry are also expected to propel the growth of the global bio-based chemicals market during the forecast period. However, fluctuating raw material prices are estimated to restrain the growth of the global bio-based chemicals market. Nevertheless, the growing use of lignocellulosic materials to produce biomass and bio-based chemicals is expected to create lucrative opportunities for the players operating in the global market during the review period.

Bio-lubricants are produced from a variety of vegetable oils, such as sunflower, rapeseeds, canola, soybean, coconut oils, and palms. They are recognized as a potential alternative to conventional lubricants, i.e., petroleum based. Synthetically, lubricants are produced from base oil. The use of petroleum-based lubricants in the transportation and industrial sectors is a cause of grave concern regarding future energy security. Besides, petroleum-based lubricants cause environmental hazards and pollution, owing to which bio-based lubricants were developed. They play a vital role in overcoming environmental instability and problems. Bio-based lubricants possess constant viscosity and high flashpoints, which minimize harmful emissions and their impact on the environment. They also contribute in reducing greenhouse emissions. In addition, they are bio-degradable and require less time to dispose of as compared to petroleum-based lubricants. In many European countries, bio-lubricants are strictly used in environmentally sensitive areas. The stringent government regulations regarding the use of synthetic chemicals in different geographies are expected to fuel the demand for bio-based lubricants. The increasing use of bio-based lubricants in the automotive and industrial equipment industries is expected to boost demand for bio-based chemicals. The automotive industry is growing at a healthy CAGR, due to the increasing adoption of vehicles and growth of the transportation sector. With the increase in the sale of automobiles, the demand for lubricants is expected to grow, and boost the growth of the global bio-based chemicals market.

Lignocellulosic materials consist of three polymers: cellulose, hemicellulose, and lignin. Woody biomass, non-woody biomass, and organic waste are the different types of lignocellulosic materials. Woody biomass includes forest residues and food wastes, non-woody biomass consists of agricultural residues—straws, bagasse, and stover—and organic waste comprises animal and plant wastes. Lignocellulosic materials are used as feedstock for the production of bio-based chemicals. Its biorefineries use engineering and biotechnology to convert lignocellulosic biomass into bio-based products such as biomaterials, biofuels, and bio-based chemicals. The growing shift toward the use of bio-based chemicals and the rising adoption of biomass as a feedstock are factors projected to create growth opportunities for the players operating in the global bio-based chemicals market. The abundant availability of lignocellulosic biomass, especially in Asia-Pacific, research and development to enhance yield from biorefineries, and the growing participation of government agencies in the field of lignocellulosic biorefineries are expected to result in an increase in the number of lignocellulosic biorefineries.

The bio-based chemicals are produced from renewable sources such as corn, sugarcane, wheat, barley, and cellulose. Currently, renewable sources are majorly used to produce pharmaceutical- and food-grade chemicals. The bio-based chemicals derived from the renewable feedstocks are used in the production of biofuels as well as in the production of food & beverages and pharmaceuticals. This has resulted in “food vs. fuel” debate due to the risk of diverting farmland or crops for biofuels production to the detriment of the food supply. According to the Food and Agriculture Organization of the United Nations (FAO), the world population will reach 9.1 billion by 2050. This growth in population is likely to drive the demand for food, and approximately 70% increase in agricultural output is required to fulfill this demand. It is suspected that biofuel production from first-generation sources, such as sugarcane, corn, beet, cellulose, and oilseed, is affecting the production and prices of food. The habitual and cultivable land is also used for non-food purposes. Thus, the “foods vs. fuel” debate is expected to affect the prices of the feedstock for bio-based chemicals and thus restrain the growth of the global bio-based chemicals market.