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The bio-based platform chemicals market share is expected to increase by USD 2.12 billion from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 10.78%.
This bio-based platform chemicals market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers bio-based platform chemicals market segmentation by chemical type (bio-1 4 diacids, bio-glycerol, bio-glutamic acid, bio-3-HPA, and bio-itaconic acid) and geography (APAC, Europe, North America, MEA, and South America). The bio-based platform chemicals market report also offers information on several market vendors, including BASF SE, Braskem SA, DuPont Tate & Lyle Bio Products Company LLC, Evonik Industries AG, IP Group Plc, Koninklijke DSM NV, LyondellBasell Industries NV, Merck KGaA, Parchem fine & specialty chemicals Inc., and PTT Global Chemical Public Co. Ltd. among others.
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The volatility in crude oil prices is notably driving the bio-based platform chemicals market growth, although factors such as high production cost may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the bio-based platform chemicals industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Bio-based Platform Chemicals Market Driver
Volatility in crude oil prices is one of the major drivers of the bio-based platform chemicals market growth. The use of crude oil as a carbon feedstock for producing chemicals has dominated the industry. The oil and gas industry is one of the major suppliers of raw materials to the global platform chemicals market. The fluctuations in the crude oil prices affect the prices of the raw materials considerably, thereby affecting the costs of platform chemicals. The price of Brent crude oil per barrel decreased in the subsequent years, by nearly 60% in 2016 compared to 2012. In 2018, the price of Brent crude oil increased by almost 62% compared to 2016, but the price again decreased by 40% in 2020. The volatile prices of raw materials will directly affect the revenue and profit margins of the manufacturers. Vendors are compelled to seek alternative solutions to maintain their profit margins, thereby reducing the use of petroleum-derived feedstock chemicals. In addition, the continuous supply of raw materials could be negatively affected by adverse weather conditions, national emergencies, natural disasters, supply shortages, and other events. The price fluctuations and non-availability of raw materials can affect the cost of the products and operations of the vendors. Bio-based platform chemicals have emerged as an alternative to petroleum-based chemicals owing to the comparatively stable costs.
Key Bio-based Platform Chemicals Market Trend
An increase in R&D activities is one of the major trends in the bio-based platform chemicals market growth. Growing R&D expenditure is a major trend that is being witnessed in the global bio-based platform chemicals market in recent years. 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 in recent years. Globally, major bio-based platform chemicals players have increased their R&D spending to reduce the manufacturing cost of bio-based platform chemicals. Furthermore, the manufacturers have been heavily emphasizing new product innovations and developments to maintain a competitive edge and gain shares in the market. In 2016, an International Bioeconomy Forum (IBF) aimed at improving the orientation of research in Europe and fostering multilateral cooperation was formed. This forum helps in providing an informal multilateral network for countries that are engaged in the development of a bio-based economy.
Key Bio-based Platform Chemicals Market Challenge
High production cost is one of the major challenges to the bio-based platform chemicals market growth. The US has set a goal to produce 21 billion gallons of advanced biofuels by 2022. To achieve the target, the gap between research and commercial, large-scale production of advanced biofuels must be bridged. Building a bio-refinery plant costs more than $100 million, and it takes 3-4 years to complete the construction. Achieving the national energy and climate goals will require a large, economically viable, and environmentally sustainable bio-based industry. Limitations in technology and economies of scale are some of the factors responsible for the high production cost of bio-based platform chemicals. Lack of knowledge and commercialization of bio-based platform chemicals are also expected to hinder the growth of the global bio-based platform chemicals market. The competitive and optimized value chain for the production of these chemicals and downstream products is essential for competing with petroleum-based organic chemicals.
This bio-based platform chemicals market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the global bio-based platform chemicals market as a part of the global diversified chemicals market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the bio-based platform chemicals market during the forecast period.
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
This statistical study of the bio-based platform chemicals market encompasses successful business strategies deployed by the key vendors. The bio-based platform chemicals market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The bio-based platform chemicals market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the bio-based platform chemicals market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the diversified chemicals market includes the following core components:
The report has further elucidated other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Chemical type
6 Customer landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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