Renewable chemicals market on track for robust growth through 2020

30.11.2015

The report “Renewable Chemicals Market - Alcohols (Ethanol, Methanol), Biopolymers (Starch Blends, Regenerated Cellulose, PBS, Bio-PET, PLA, PHA, Bio-PE, and Others), Platform Chemicals & Others - Global Trends & Forecast to 2020”, offers a sharp analysis of the global renewable chemical market market size by volume and value.

The renewable chemicals market includes all the chemicals obtained from renewable feedstock such as agricultural raw materials, agricultural waste products or biomass microorganisms, and so on. The benefits of the development of this market are that it would reduce the dependence on conventional fossil fuel sources, would also help to diversify the feedstock portfolio.

It is a market that is currently facing considerable competition from conventional chemicals derived from petrochemical feedstock; because the renewable chemicals market is susceptible to the volatility in crude oil prices, rising environmental concerns and governmental litigations. Market participants are witnessing the need to make a paradigm shift from petrochemical feedstock to renewable feedstock. This move would not only bring in economic benefits, it would also successfully address the rising concern over greenhouse gas emissions and their lasting impact on the environment.

The threat of substitutes for renewable chemicals market is high. Presently, renewable chemicals account for a small share of the overall chemicals market. These renewable chemicals have higher prices when compared to the conventional chemicals. This ensures a large availability of alternative chemicals for buyers and increases the chances of substitution. There are issues regarding the performance of some renewable chemicals which restricts their penetration in application markets. The increase in capacity utilization rate and new products launch is estimated to make the renewable chemicals market more competitive.

Ethanol is the most commercialized segment among all the major renewable chemicals. The U.S. and Brazil together account for more than 80.0% of the global ethanol production. There is ample scope of growth in Canada, Europe, and developing nations such as China and India in the Asian region. In the bio-polymers segment; bio-PET and bio-PE together accounts for more than 50.0% share, in terms of volume. Bio-PET is projected to register the highest CAGR of over 20.0% (by volume), followed by PLA during the forecast period.

The renewable chemicals market is a currently a niche. However, as demand grows, the trend is estimated to move toward full scale commercialization from pilot scale projects. New players will have to make significant investments in R&D and facility development for entry into the market. However, favorable government and EU policies toward green & biodegradable products will allow more companies to enter into the market with increased capacities. Currently, this market has a limited number of companies - and a lot of potential.

For this report, various secondary sources, such as directories, technical handbooks, company annual reports, industry association publications, chemical magazine articles, trade websites, and databases have been referred to identify and collect information useful for this extensive commercial study of the renewable chemicals market. The primary sources that include experts from related industries and suppliers have been interviewed to obtain and verify critical information as well as to assess future prospects and market estimations.

This report includes the analysis of different marketing trends and various growth strategies adopted by the players in the market. It includes the identification of market dynamics such as drivers, restraints, opportunities, burning issues, and winning imperatives. Companies such as BioAmber (Canada), Myriant Corporation (U.S.), Metabolix Inc. (U.S.), BASF SE (Germany), Mitsubishi Chemical Corporation (Japan), Braskem (Brazil), Corbion N.V. (The Netherlands), NatureWorks LLC (U.S.), BioMCN (The Netherlands), have also been profiled in this report. (KL)

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