Biocomposites Market - Forecast(2023 - 2028)

Biocomposites Market Overview

The Biocomposites Market size is analyzed to grow at a CAGR of 10.3% during the forecast period 2022-2027 and reach US$32.4 billion by 2027. Biocomposites are eco-friendly composites that are composed of a resin along with a reinforcement of natural fibers. They can be categorized based on various types of polymers which include polypropylene, polyethylene terephthalate, acrylonitrile butadiene, polylactide, polyethylene and more. They are used in a wide range of industries which include transportation, building & construction, packaging, electrical & electronics and other industries. The expansion of biocomposites is primarily driven by their usage in the construction industry. In 2020, the surge in the COVID-19 pandemic negatively impacted construction activities as a result of the country-wise shutdown of construction sites, shortage of labor and the decline of the supply and demand chain all across the world, thus, temporarily affecting the growth of the biocomposites industry. However, a steady recovery in new development and construction contracts has been witnessed across many countries around the world since 2021, which in turn, is driving the demand for biocomposites. For instance, according to recent insights from the World Cement, the global construction industry output increased by 5.7% in 2021. An increase in construction activities along with the surging demand from the packaging industry is expected to drive the growth of the Biocomposites Market size in the coming years. On the other hand, limitations associated with biocomposites may confine the growth of the market.

Biocomposites Market Report Coverage

The "Biocomposites Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Biocomposites Market.

Key Takeaways

• The injection molding segment in Biocomposites Market held a significant share in 2021. Its wide range of characteristics and higher efficiency made it stand out in comparison to other types of processing methods in the market.
• Transportation industry held the largest share in Biocomposites Market in 2021, owing to the increasing demand for biocomposites from the automotive, aerospace, marine and railway sectors across the world.
• Asia-Pacific dominated the Biocomposites Market in 2021, owing to its increasing demand from the transportation sector of the region. For instance, recent insights from the International Organization of Motor Vehicle Manufacturers (OICA) state that the total automobile production in 2021 in Asia-Pacific increased by 28% in comparison to 2020.
• A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Biocomposites Market Report.

Biocomposites Market Segment Analysis – by Type

The Injection Molding segment held a significant Biocomposites Market share of over 18% in 2021, owing to its increasing demand due to the benefits it offers over other types of processing methods. For instance, the injection molding method aids in faster production along with higher efficiency as compared to other types of processing methods, owing to which, it is commonly used in the production of biocomposites utilized in multiple industries. Moreover, biocomposites obtained through injection molding offers enhanced strength, durability and higher flexibility in comparison to extrusion, machine press and other types of processing method. Furthermore, the injection molding method is more cost-effective in comparison to other methods and has low labor cost, high-output production and low scrap rate. Hence, all of these benefits are driving its demand over other types of processing methods, which in turn, is expected to boost the market growth during the forecast period.

Biocomposites Market Segment Analysis – by End-use Industry

The transportation industry held the largest Biocomposites Market share of over 25% in 2021, owing to the increase in production from automotive, aerospace, marine and railway sectors across the world. For instance, recent insights from the European Automobile Manufacturers' Association (ACEA) state that total passenger car production during the fourth quarter of 2020 reached around 34 million in Asia-Pacific, 14 million in Europe, 1.3 million in the Middle East/Africa, 1.7 million in South America and 9.6 million in North America respectively. Moreover, Airbus manufactured around 460 commercial aircraft while Boeing manufactured 230 commercial aircraft in 2021. In February 2021, A.P. Moller – Maersk, a Denmark-based shipping company, announced its plan to launch its first carbon-neutral liner vessel in Denmark. The construction of the new vessel is scheduled to be delivered in 2023. Furthermore, in February 2021, the operations for the development of the British rail manufacturing facility commenced in the UK. The development of this facility is expected to be completed by 2023.

Biocomposites composed of polypropylene, polyethylene terephthalate, acrylonitrile butadiene, polylactide, polyethylene and other polymers offer a range of benefits such as lightweight, high strength, excellent resistance to heat and corrosion along with excellent durability and increased fuel efficiency. All of these properties make them ideal for use in various components of an automobile, aircraft, marine and rail systems such as wood trim, headliners, seat fillers, seat backs, dashboards, interior panels and other components. Thus, such increasing production from the transportation sectors is expected to increase the demand for biocomposites, owing to their above-mentioned benefits. This is expected to expand the Biocomposites Market size during the forecast period.

Biocomposites Market Segment Analysis – by Geography

Asia-Pacific held a dominant Biocomposites Market share of around 30% in the year 2021. The consumption of biocomposites is particularly high in this region due to its increasing demand from the transportation sector. For instance, recent insights published by the OICA (International Organization of Motor Vehicle Manufacturers) during the fourth quarter of 2020 state that around 25 million, 3.5 million, 8 million and 3.4 million units of vehicles were produced in China, South Korea, Japan and India, respectively, which in turn, contributed to approx. 50% of the global automobile production during the year 2020. In February 2022, Mitsubishi Shipbuilding partnered with TotalEnergies for the construction of a liquefied CO2 marine carrier in Japan. Its construction is scheduled for completion by 2023. Furthermore, in September 2021, the construction of a new fishing training ship began in Taiwan. The government of Taiwan invested NT$840 million (US$30.2 million) in the construction of the new ship which also complies with international standards. Its construction is scheduled to be completed in 2023.

In this way, an increase in the production from the transportation sector across multiple countries in the region is expected to increase the demand for biocomposites. And Biocomposites are used in automobile and marine components which include dashboards, interior panels, seat backs and other components, owing to their high strength, durability, low density, along with excellent heat and corrosion resistance properties. This is anticipated to propel the growth of the market during the forecast period.

Biocomposites Market Drivers

An increase in construction activities

Construction activities are considered to be the pillar of growth for a country and also play a major role in increasing the overall global economy. The factors such as urbanization and the rapid pace of development to aid the economic growth of the countries are driving the construction activities in multiple regions across the world. For instance, according to Volvo CE, the construction sector saw an increase in construction activities across multiple regions since the fourth quarter of 2020. South America saw an increase of 12%, Asia by 39%, Europe by 20% and China by 28% in 2020. Furthermore, YIT Corporation commenced the construction of numerous residential apartment building projects in Finland, the CEE countries and Russia in December 2021, with total investments of around EUR 200 million (US$236.5 million). The projects are scheduled to be completed by the end of 2023.

The properties of biocomposites such as high strength, durability, low density along with excellent resistance to heat and corrosion make them ideal for use in various applications in the construction industry which include formwork, walls and wallboard, window frames, flooring, decorative paneling, doors, ceiling panels and more. Hence, an increase in global construction activities is expected to increase the demand for biocomposites, owing to their above-mentioned properties. This is anticipated to drive the growth of the market in the upcoming years.

Surging demand from the packaging industry

Biocomposites composed of polypropylene, polyethylene terephthalate, acrylonitrile butadiene, polylactide, polyethylene and other polymers are primarily used as packaging materials, particularly in food & beverages packaging. The properties of biocomposites such as enhanced strength, improved moisture barrier, along with antioxidant and antimicrobial properties are driving their demand for use in the packaging industry. For instance, according to PMMI (The Association for Packaging and Processing), the North American beverage packaging industry is expected to increase by 4.5% from 2018 to 2028, with the United States leading the beverage packaging sector. According to a recent study published on Interpack, the consumption of food packaging in China is expected to increase up to 447,066 million in 2023. Moreover, recent insights from the Packaging Federation of the United Kingdom state that the UK packaging manufacturing industry reached an annual sales of GBP 11 billion (US$15.2 billion) in 2020, owing to the increasing demand for packaging from multiple sectors of the region. Furthermore, according to the Packaging Industry Association of India, the Indian packaging industry was valued at around US$50.5 billion in 2019 and is expected to increase up to US$204.81 billion by the end of 2025. It further states that food packaging is considered to be one of the industries with high growth in India and is rising at 22%-25% per year.

Thus, such surging growth of the packaging sector is expected to increase the demand for biocomposites for use in packaging materials, owing to their above-mentioned properties. This is expected to accelerate the growth of the Biocomposites Market in the upcoming years.

Biocomposites Market Challenge

Limitations associated with biocomposites

Biocomposites have numerous limitations such as poor fire resistance, low thermal resistance, high hydrophilicity and limited processing temperature. Moreover, they also have low mechanical and thermo-physio properties, along with poor fiber-matrix adhesion. Furthermore, raw materials such as wood fiber, flax fiber, hemp fiber, kenaf fiber and more required for the production of biocomposites are usually associated with high costs. For instance, the average cost of wood fiber falls around US$3,665.5/ton while hemp fiber costs around US$5,236.4/ton. Likewise, flax fiber usually costs around US$3,403.7/ton and kenaf fiber costs around US$1000.5/ton. In addition to this, biocomposites tend to have high fabrication and assembly costs. Thus, such limiting factors along with the high costs of biocomposite raw materials may confine the growth of the biocomposites industry during the forecast period.

Biocomposites Industry Outlook

Technology launches, acquisitions and increased R&D activities are key strategies adopted by players in the Biocomposites Market. The top 10 companies in the Biocomposites Market are:

1. UPM
2. Trex Company
3. Fiberon LLC
4. FlexForm Technologies
5. Universal Forest Products, Inc.
6. Nanjing Jufeng Advanced Materials Co. Ltd.
7. Meshlin Composites ZRT
8. Tecnaro GmbH
9. HempFlax Group B.V.
10. Arkema

Recent Development

In October 2021, Lanxess, a chemical company headquartered in Germany, launched its new renewable, biocomposite material with the aim of removing the company’s dependence on fossil fuels from its production processes. The newly launched biocomposite material has a lower density and is lighter in weight in comparison to glass fibers. They are primarily designed for use in the automotive and electronic industries.

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