Natural (Bio-based) Resin Market Size, Share & COVID-19 Impact Analysis, By Type (Starch Blends, Polylactic Acid, Bio-Polyethylene Terephthalate, Polyhydroxyalkanoate, Bio-Polyethylene, and Others), By Application (Packaging, Textiles, Automotive & Transportation, Consumer Goods, Agriculture, and Others), and Regional Forecast, 2023-2030

The global natural (bio-based) resin market size was USD 5.29 billion in 2022 and is projected to grow from USD 5.82 billion in 2023 to USD 11.95 billion in 2030, exhibiting a CAGR of 10.8% during the forecast period. Europe dominated the natural resin market with a market share of 45.94% in 2022.

Natural (bio-based) resins are entirely or mostly made up of monomers that are derived from biological sources. These resins are eco-friendly as they are plant-based. Soybean and corn by-products from modification of bio-diesel are majorly used raw materials for manufacturing natural resins. They are also manufactured using sugar cane, potatoes, sugar beet, whey, lignocellulose, and algae. Bio-based polymers have created the opportunity to introduce high-performance composites that are fully bio-based. These factors are expected to propel the natural (bio-based) resin market growth.

COVID-19 IMPACT

Supply Chain Disruptions Due to Spread of COVID-19 Resulted in Reduced Production Capacity

The COVID-19 pandemic negatively impacted almost all regions, and a number of businesses, and the natural resin market is no exception. However, during the initial phase of the pandemic, the effect of the lockdown restrictions imposed across the globe was not the same across different end-use industries that use natural (bio-based) resin. End-use industries such as packaging and textile showed a significant drop in demand due to restrictions.

Due to supply chain disruptions, manufacturing plants were either operating at reduced capacity or were temporarily shut down. Moreover, the worldwide pandemic and lockdown restrictions enforced by several countries caused massive disruption in natural (bio-based) resin production and supply chain. In addition, companies were experiencing a shortage of trained and unskilled labor, resulting in huge losses. Even then economic activity has already begun to pick up steam as governments throughout the world relaxed restrictions. However, the supply chain could still be disrupted as a result of the logistical uncertainties caused by the emergence of new virus strains.

LATEST TRENDS

Adoption of Biobased Resin by the Automotive Industry to be a Prominent Trend in Market

The automotive industry is adopting environment-friendly substitutes to practice sustainability. Engineers and designers are developing lightweight, aerodynamic automobile bodywork, tires with reduced rolling resistance, and advanced methods of obtaining materials to increase fuel efficiency and decrease carbon footprint and pollution. In the U.S., bulk production of sustainably obtained vehicle parts is thriving, which offer lesser carbon footprints and are formed using natural (bio-based) resin for vehicle exterior parts, including body panels, seat fillers, under-bonnet components, and tires.

For instance, in last decade, PES Performance developed several bio-derived components for the Elcomap project, which proposes to manufacture auto body panels from bio-based composites. The use of natural (bio-based) resins fibers in composites has developed due to the growing need for reduced environmental impact and chemical sustainability.

DRIVING FACTORS

Rising Demand from Packaging Industry to Drive Market Growth

Bioplastics made from bio based resins offer renewable and sustainable options to the packaging industry for a wide array of applications. Due to growing usage of flexible and rigid packaging in many products, including bottles, canisters, jars, cups, containers, buckets, trays, and clamshells. Most of the bio-based packaging products are made of non-biodegradable, bio-based PE & PET. Additionally, PBS, PLA and PHA plastics offer biodegradability to packaging applications. For instance, bio-PLA’s application in flexible packaging offers stiffness, high clarity, and excellent printability. These properties make PLA resin highly suitable for flexible packaging films.

The growing food & beverage industry and modernization in the packaging sector have been boosting the growth of the packaging market. This is on account of the comparatively lower cost, lightweight, and enhanced functionality offered by advanced products.

RESTRAINING FACTORS

High Production Cost of Natural (Bio-based) Resins to Hamper Market Growth

The cost of manufacturing natural (bio-based) resins is more as compared to producing resin using petrochemical methods which further adds up to the end product’s cost. With recent technologies, manufacturing these resins costs nearly 50% more than conventional petroleum products. Hence, even after being environmentally friendly and biodegradable, the high cost of biobased resin is making it difficult for manufacturers to survive. The resin and its production are plagued by lower yields and high costs. This could restrain the demand for natural (bio-based) resins.

SEGMENTATION

By Type Analysis

Starch Blends Segment to Hold Larger Share Due to Excellent Properties

In terms of type, the global market is segmented into starch blends, polylactic acid, bio-polyethylene terephthalate, polyhydroxyalkanoate, bio-polyethylene, and others. The starch blends segment held the largest share in the year 2022. Bio-based starch blends are biodegradable polymeric materials of cellulose-based biomaterials, which microorganisms and enzymes can easily break down. The high demand for degradable resin is driving the use of starch blends. Polylactic Acid (PLA) is one of the predominant bio-based polymers used in packaging applications.

The Food & Drug Administration (FDA) has approved the use of PLA in fabricating food-related packaging. High demand for food-contact packaging is one of the factors driving growth. Bio-based drop-in plastics, including bio-PET and bio-PE, are similar to fossil-based equivalents and can be used in the same applications. Bio-PET is often used to manufacture transparent packaging. As they are manufactured from renewable resources and appropriate for prevailing recycling systems, many biobased plastics, such as biobased PE or partially biobased PET, can potentially increase resource proficiency.

By Application Analysis

Packaging Sector to Dominate Owing to Soaring Demand for Safe Packaging

In terms of application, the global natural resin market is segmented into packaging, textiles, automotive, consumer goods, agriculture, and others. The packaging sector dominated the market in 2022 and is expected to continue its dominance by the end of the forecast period. Packaging is one of the significant applications of bioplastics. The high demand for environmentally safe and non-toxic packaging is boosting market growth.

The consumer goods segment held a significant share in 2022. Many consumer goods and electrical appliances are manufactured using plastics because of their durability, strength, flexibility, and other properties. The growing choice of bioplastic products in fast-moving consumer electronics, including loudspeakers, touch screen computer casings, keyboard elements, vacuum cleaners, mobile casings, and others, are influencing growth.

Biodegradable polymers offer a specific set of advantages in agriculture and horticulture. For instance, using biobased mulching paper to produce clean foods with minimum use of pesticides is one of the essential methods supporting organic farming. Plowing in these films after crop harvesting instead of collecting, cleaning, and returning them for reprocessing significantly improves the economics of the operation and reduces plastic pollution.    

REGIONAL INSIGHTS

Europe held the largest natural (bio-based) resin market share in 2022, generating a value of USD 2.43 billion. Increasing demand for sustainable and biobased packaging materials owing to the stringent rules regarding plastic pollution is likely to foster market growth. Moreover, increasing demand for food-grade and non-toxic packaging materials is driving the demand for bio-based materials.

Asia Pacific is expected to grow with the highest CAGR by the end of the forecast period. The growing packaging sector in the Asia Pacific, owing to the growing e-commerce industry, is the prime factor driving the market growth. Additionally, the growing demand for consumer goods from densely populated countries such as India and China is generating growth opportunities for bioplastics.

North America held a significant market share in the global market in 2022. Due to the government's various initiatives to practice sustainability, high demand for green packaging solutions is anticipated to bolster industry growth. 

The Latin America and the Middle East and Africa regions are expected to show significant growth by the end of the forecast period. Latin America is a significantly developing region in terms of industrial growth. Increasing demand for petroleum-free plastics owing to the detrimental effects of petro-based plastics is expected to drive market growth. Middle East & Africa is expected to grow considerably by the end of the forecast period. Increasing demand for bio-based packaging and consumer goods is anticipated to fuel market growth.

KEY INDUSTRY PLAYERS

Implementation of Product Developments as Strategic Initiatives by Companies to Increase their Market Presence

The global market is fragmented with key players operating at global and regional levels. Key producers operating in the bio-based resin market are Braskem, BASF, NatureWorks LLC., and Arkema. Key players are engaged in product development and strategic alliances to develop their respective product portfolios and gain a robust footing in the global market.

LIST OF KEY COMPANIES PROFILED:

• SABIC (U.K.)


• BASF (Germany)


• Braskem (Brazil)


• Arkema (France)


• Ashland Performance Materials (U.S.)


• Danimer Scientific (U.S.)


• Minima (Taiwan)


• NatureWorks LLC (U.S.)


• Avantium (Netherlands)

KEY INDUSTRY DEVELOPMENTS:

• March 2023 – Avantium, a Netherlands-based Technology provider, and Kvadrat sign an offtake contract for the expansion of PEF for interior textiles application. Kvadrat decided to purchase the fully recyclable and 100% plant-based polymer PEF (polyethylene furanoate) from Avantium’s FDCA Flagship Plant, which currently is under construction in Delfzijl and is set to initiate commercial production in 2024.


• January 2023 – Braskem, one of the major polyolefins producers in the global market, pioneer producer of biopolymers on a commercial scale, announced a project to assess a venture in manufacturing carbon-negative bio-based polypropylene (PP) in the U.S.


• January 2023 - Avantium N.V., and Henkel, a global manufacturer of sealant, adhesives, and functional coatings have signed an agreement for five years. Under this agreement, Avantium would supply furandicarboxylic acid produced in Avantium’s FDCA Flagship Plant to Henkel.


• October 2021 – SABIC announced the launch of a new portfolio of bio-based ULTEM resins that offer sustainability while delivering high performance and processability as ULTEM materials. These advanced polyetherimide (PEI) materials are the first ever certified high-performance, renewable, and amorphous polymers available in the sector.

REPORT COVERAGE

The research report provides a comprehensive market analysis and emphasizes on crucial aspects such as leading companies, types, applications, and products. Also, it provides quantitative data regarding volume and value, market analysis, research methodology for market data, and insights into market trends and highlights vital industry developments and competitive landscape. In addition to the abovementioned factors, the report encompasses various factors contributing to the market growth in recent years.

Report Scope & Segmentation