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Bio-based Platform Chemicals Market - Forecast(2023 - 2028)
Bio-based Platform Chemicals Market Overview
The Bio-based Platform Chemicals Market size is
forecast to reach US$26.3 billion by 2027 after growing at a CAGR of 8.9% during
the forecast period 2022-2027. Bio-based platform chemicals are a group of
chemicals that are manufactured from sugar through the procedure of biological
conversions. This group of chemicals include molecules that have a wide range
of functional groups, hence, they can be converted into a range of other
high-value chemicals. Some of the examples of Bio-based Platform Chemicals
include Bio Glutamic Acid, Bio-3-Hydroxypropionic Acid, Bio Succinic Acid, and Isobutanol.
An increase in demand for Bio-based Platform Chemicals from the pharmaceutical and
packaging industry acts as the major driver for the market. On the other hand, shortage
and fluctuating prices of raw materials may act as a major constraint for the
market.
COVID-19 Impact
There is no doubt that the COVID-19 lockdown
has impacted the Bio-based Platform Chemicals Industry. Strict lockdowns all
over the world interrupted the entire supply and trade of raw materials from
manufacturing hubs like China, and India. This, in turn, resulted in slow
developments and manufacturing of drugs along with severely affecting multiple
companies that primarily depended on outsourcing. However, the Bio-based
Succinic Acid Industry started gaining momentum during the end of 2020 due to increasing demand for vaccines and drugs such as Hydroxychloroquine and
Remdesivir that were used to fight against COVID-19. For instance, according to
a research report published on PLOS medicine, the cumulative volume of
antibiotics that were sold in 2020 was about 16,290 million doses. Likewise,
Gilead Sciences reported that its total revenue increased by 17% after
incorporating the sales of coronavirus treatment Remdesivir. The increasing
demand for drugs required for the treatment of COVID-19 along with increasing
demand for vaccines to be manufactured in bulk in many countries across the
world resulted in the growth of the Bio-based Platform Chemicals Market as platform
chemicals such as Bio Succinic Acid is generally used as a starting material
for active pharmaceutical ingredients (API) along with being used as an
additive in drug formulation and for controlled release of drugs. All of these
factors have eventually led to the growth of the Bio-based Platform Chemicals Market
and it is expected to rise in the upcoming years as well.
Report Coverage
The report: “Bio-based Platform Chemicals Market – Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis
of the following segments of the Bio-based
Platform Chemicals Industry.
By Product Type: Bio Glycerol, Bio Itaconic Acid, Bio
Glutamic Acid, Bio Succinic Acid, Bio-1,4-Diacids, Bio-3-Hydroxypropionic Acid,
Others.
By Geography: North America (USA, Canada, and
Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia,
Belgium, and the Rest of Europe), Asia-Pacific (China, Japan, India, South
Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of
Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest
of South America), the Rest of the World (the Middle East, and Africa).
Key Takeaways
- Bio-Itaconic Acid in Bio-based Platform Chemicals Market is expected to see the fastest growth, owing to the increasing demand of Bio-Itaconic Acid from the pharmaceuticals industry.
- Bio-based
Platform Chemicals are generally used for the production of adhesives, polymers,
superabsorbents, fibers, plastic packaging, resins, and cleaning agents which
makes them ideal for use in the packaging and personal care industry.
- North
America dominated the Bio-based Platform Chemicals Market in 2021. The major
reason behind this is the increasing demand for Bio-based Platform Chemicals for
the production and controlled release of medical drugs and formulations, thus,
boosting the market growth.
Figure: North America Bio-based Platform Chemicals Market Revenue, 2021-2027 (US$ Billion)
Bio-based Platform Chemicals Market Segment Analysis – By Product Type
The Bio-Itaconic Acid segment held the largest
share in the Bio-based Platform Chemicals Market in 2021 and is expected to
grow at a CAGR of 8.3% between 2022 and 2027. The reason behind this is the
increasing demand for Bio-Itaconic Acid and its derivatives for the controlled release
of drugs in the pharmaceutical industry. Likewise, Bio-Itaconic Acid can easily
dissolve in alcohols, such as ethanol, methanol, and propanol, hence, they
are also used for effective and controlled release of drugs. For instance, in
2019, the UNDESA published a report, which showed that the majority of the elderly
population (approx. 703 billion) have a weaker immune system, hence, they tend
to fall sick quite often. This can increase the demand for Bio-Itaconic Acid
required for the production of medical drugs and medications, hence, leading to
Bio-based Platform Chemical Market growth in the upcoming years.
Bio-based Platform Chemicals Market Segment Analysis – By Geography
North America held the largest share in the Bio-based Platform Chemicals Market in 2021 up to 32%, owing to the increasing demand for Bio-based Platform Chemicals for controlled release of medical drugs and formulations. For instance, according to the data on therapeutic drug use in the U.S. published by National Centre for Health Statistics, the number of drugs that were ordered and provided through physician office visits reached around 2.9 billion, and the number of drugs that were given or prescribed through hospital emergency department visits reached around 336 million in 2020. Likewise, recent reports published by Kaiser Family Foundation (KFF) show that over 90 million of 246 million U.S. adults fall at a higher risk of serious illness if infected with the coronavirus. Thus, an increased risk of people falling sick or suffering from certain medical illnesses will also increase the demand for medicines or drug production required for the treatment. This can lead to an increase in demand for Bio-based Platform Chemicals required for the controlled release of medical drugs and formulations during their production. This, in turn, will play a major role in leading market growth in the upcoming years.
Bio-based Platform Chemicals Market Drivers
An increase in demand from the pharmaceuticals industry is most likely to increase demand for the product
Bio-based Platform Chemicals such as Bio Succinic Acid and Glutamic Acid are generally used as a starting material for active pharmaceutical ingredients (API) along with being used as an additive in drug formulation. A recent study indicates that the total sales revenue of traditional pharmaceuticals in China amounted to about $28.8 billion in 2019 and is expected to increase in the upcoming years. Likewise, recent reports from India Brand Equity Foundation (IBEF) show that the Indian pharmaceutical sector supplies over 50% of the global demand for various vaccines, 40% of the generic demand for the US, and 25% of all medicines for the UK during the ongoing COVID-19 pandemic. Hence, in this way, an increase in demand for medicines and drugs from pharmaceutical sectors across multiple countries will eventually lead to an increase in demand for Bio-based Platform Chemical such as Bio Succinic Acid, and Glutamic Acid required for their production as well, thus, leading to market growth.
An increase in demand from the packaging industry is most likely to increase demand for the product
Bio-based Platform Chemicals are generally used for the production of packaging materials such as adhesives, polymers, and biodegradable plastics which makes them ideal for use in packaging applications. For instance, China holds the largest market share around the world when it comes to food packaging. According to a recent study published on Interpack, the consumption of food packaging is expected to increase to 447,066 million by 2023. Likewise, it also states that the Chinese packaging companies such as 3D, SIP, and WLCSP alone achieved a revenue of around $5.88 billion with end packaging. Furthermore, The Flexible Packaging Association (FPA) stated that the total U.S. flexible packaging industry was valued at around $33.6 billion in 2019. It included packaging for retail and institutional food, industrial materials, pharmaceuticals, shrink and stretch films, consumer storage bags, retail shopping bags, along with wraps and trash bags. Hence, increased demand for packaging materials also increases the demand for Bio-based Platform Chemicals required during their production, thus, resulting in the growth of the market in the upcoming years.
Bio-based Platform Chemicals Market Challenges
Health hazards associated with the prolonged use of Platform Chemicals can cause an obstruction to the market growth
According to recent research, prolonged use of
Platform Chemicals may cause eye irritation, skin irritation, and
gastrointestinal irritation. Side effects of excessive exposure to platform
chemicals include nausea, vomiting, and diarrhea in mild cases. In severe cases,
it may also cause respiratory tract irritation in case of inhalation. Hence,
health hazards and risks associated with the prolonged use of Platform
Chemicals may confine the market growth.
Bio-based Platform Chemicals Market Landscape
Technology launches, acquisitions, and R&D
activities are key strategies adopted by players in the Bio-based Platform
Chemicals Market. Bio-based Platform Chemicals Market top companies are:
- BASF SE
- Braskem S/A
- Cargill Incorporated
- DuPont de Nemours Inc.
- Itaconix Corporation
- Koninklijke DSM N.V.
- LyondellBasell Industries N.V.
- Novozymes A/S
- PTT Global Chemical Public Company Limited
- Yield10 Bioscience Inc.
Relevant Reports
Bio-based
Resins Market – Forecast (2021 - 2026)
Report Code: CMR 96317
Bio-Based
Chemicals Market – Forecast (2021 - 2026)
Report Code: CMR 0850
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