A lot of research was carried out in the past few years on bio-based chemicals and bio-based materials. According to the global statistics, the current global production of bio-based chemicals and polymer materials is approximately 50 million tons and the production of bio-based plastic is approximately 2440 thousand tons over the past few years. The bio-based chemicals industry has developed drastically due to advent of advanced technology, increase in product categories and enhanced economical efficiency which has encouraged huge industrial investments. The market for bio-based chemicals is still at the budding stage and will witness a drastic growth over the next few years. Each variant of bio-based chemical has limited players indicating very low competition in the market. All the manufacturers in bio-based chemicals market are at a budding stage and are yet to stabilize their business.
All the Asian countries are rich in biomass resources. Bio-based chemicals are derived from renewable sources or natural raw materials. Various the bio-based chemicals products are alcohols, organic acids, ketones, platform chemicals, biopolymers, and others (Bio-based 1,3-PDO, ECH, and 1,4-BDO). Bio-based chemicals are used in transportation, textiles, food safety, environment, communication, housing, recreation, health, hygiene, bio-medical, agriculture and other applications. The key factor affecting the growth in Asia bio-based chemicals market is the high price of the bio-based chemical products compared to the conventional chemicals. Therefore, many manufacturers are investing heavily in research and innovation to develop improved bio-based chemicals.
According to the study “Asia Bio-Based Platform Chemicals Industry Situation and Prospects Research Report”, the evolution of bio-refineries in Asia’s petrochemicals sector was due to advanced developments in bio-based chemicals. Major concerns in the Asian countries are increasing government concerns regarding health, environment, and limited fossil resources which is encouraging sustainable technologies to produce chemicals, and plastics. Bio-based chemicals offer great potential for decarbonizing everyday products. Bio-based chemicals are introduced in all sectors such as shoe soles, plastics, car parts, and many more. A positive growth will be witnessed in Asia bio-based chemicals market due to increasing consumption.
The depleting fossil fuel reserve is a major factor for implementation of strict regulations in Asian energy sector. Asian countries are witnessing a tremendous growth in bio-based chemicals due to increasing stringent regulations on conventional petro-based chemicals. The major by-product in bio-diesel production is bio-glycerol which is comparatively economical. Bio-glycerol is used as a major feedstock in various manufacturing industries, such as cosmetics, pharmaceuticals, food and beverages. Bio-glycerol accounts for a larger market share in Asia bio-based platform chemicals market due to the drastic development in Asian economies such as China and India.
Various available products in Asia’s bio-based platform chemicals market are Bio 1, 4-diacids, Bio Glycerol, Bio Glutamic Acid, Bio Itaconic Acid and others. The leading players in Asia’s bio-based chemicals market are BASF SE, BioAmber, Cargill, Myriant Corporation, PTT Global Chemical Public Company, DSM, Succinity GmbH, Novozymes and INEOS. Geographically, Asia’s bio-based platform chemicals market is spread across China, Japan, India, Korea, Saudi Arabia and other regions.
Asian bio-based chemicals market is generating huge growth opportunities due to increasing adoption of bio materials in various industries such as pharmaceutical, automotive, and personal care, advent of new raw bio-based materials, and demand for low cost bio-based chemicals. Amongst, the Asian countries China will witness a drastic development in the bio-based chemicals due to the availability of raw materials, growing awareness against traditional petro-based products and other factors.
Asia bio-based chemicals market will witness a drastic growth because China will lead all the markets supported by the ongoing demand adhering to the government’s regulations, and customer’s preference for eco-friendly products over conventional petro-based products. Asian countries are focussing on many bio-based chemicals projects in China, India and Thailand. With the increasing adoption and consumption, Asia will witness a positive growth in bio-based chemicals market in the next few years.
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Ankur Gupta, Head Marketing & Communications