EU & US Bio-based Chemicals Market Size, Share & Industry Analysis, By Product Category (Platform Chemicals, Polymers for Plastics, Paints, Coatings, Inks & Dyes, Surfactants, Cosmetics & Personal Care, Adhesives, Man-made Fibers, and Others), By Application (Industrial, Agricultural, Pharmaceutical, and Others), and Regional Forecast, 2024-2032

The EU & US bio-based chemicals market size was valued at USD 60.02 billion in 2023. The market is projected to grow from USD 64.72 billion in 2024 to USD 126.96 billion by 2032 at a CAGR of 8.8% during the 2024-2032 period.

Bio-based chemicals are a class of chemicals that are produced using renewable biomass sources such as plants, animals, and microorganisms. These chemicals are used in various applications, including food and beverage production, pharmaceuticals, cosmetics, and industrial processes. Unlike traditional fossil-based chemicals, bio-based products offer several advantages, such as a reduced carbon footprint and increased sustainability. These chemicals are typically produced through various processes such as fermentation, enzymatic catalysis, and chemical synthesis. Thus, they do not contribute to the depletion of finite resources, making them an attractive option for environmentally conscious consumers.

The outbreak of the COVID-19 pandemic had a significant impact on the market. The global economic slowdown decreased the demand for bio-based chemicals across several industries, such as industrial and agriculture. Moreover, the disrupted supply chains and the volatility of raw material prices also adversely affected the market. However, as economies gradually reopened and the demand for sustainable and recyclable materials continued to grow, the market recovered in a short period.

EU & US Bio-based Chemicals Market Trends 

Advancements in Technology and Research to Facilitate Market Growth

Advancements in technology and research are expected to facilitate the EU & US bio-based chemicals market growth. Biochemicals are now being produced using advanced biotechnology, such as synthetic biology and metabolic engineering, enabling new and improved production methods. These technologies also allow for tailoring chemicals to specific applications, making them more versatile and efficient. In addition, research on biochemicals has led to the discovery of new feedstocks and the development of more efficient conversion processes. For example, previously considered a waste material, lignocellulosic biomass can now be converted into high-value chemicals using biorefinery processes. This creates a value-added product, reduces waste, and supports a circular economy.

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EU & US Bio-based Chemicals Market Growth Factors

Rising Demand For Bio-based Polymers and Plastics in Various Industries Such as Packaging, Automotive, and Textiles to Spur Market Growth

There is a prominent surge in demand for bio-based plastics and polymers across a number of end-use industries, such as packaging, automotive, and textiles. This move is driven by the need to adopt environmentally friendly and sustainable products. Moreover, bio-based plastics and polymers offer several benefits, such as lowering greenhouse gas emissions, reducing dependence on fossil fuels, and bringing down waste.

In the packaging industry, bio-based polymers and plastics have gained popularity due to their biodegradability and compostability. This makes them an ideal alternative to traditional plastics, which can take hundreds of years to decompose. Overall, the growing demand for bio-based polymers is a positive development that could help reduce the environmental impact of these industries in the EU & US bio-based chemicals market. As more companies adopt these materials, it is expected to drive innovation and push for more sustainable practices in the future.

RESTRAINING FACTORS

Difficulty in Achieving Consistent Quality and Performance of the Product May Restrict Market Growth

Producing bio-based chemicals with consistent quality and performance is a complex process that poses several challenges. One of the main obstacles is the natural variability of the raw materials used in the production process. This is because the chemical composition of biomass feedstocks can vary widely depending on factors such as soil quality, weather patterns, and plant genetics. As a result, ensuring that the final product meets the desired specifications can be difficult. Finally, the purification of biochemicals can also pose challenges. Depending on the desired end-use of the chemical, different purification methods may be required, such as distillation, chromatography, or crystallization. Each method has advantages and disadvantages, and selecting the most appropriate method for a particular product can be challenging.

Despite these challenges, researchers and engineers are making significant progress in developing new methods and technologies to improve the consistency and performance of the product. These advancements are critical for adopting a product as a sustainable and viable alternative to traditional petrochemicals.

EU & US Bio-based Chemicals Market Segmentation Analysis

By Product Category Analysis

Surfactants Segment Holds a Dominant Share Due to Growing Demand for Renewable Resources

By product category, the market is segmented into platform chemicals, polymers for plastics, paints, coatings, inks & dyes, surfactants, cosmetics & personal care, adhesives, man-made fibers, and others. The surfactants segment holds the dominant share of the market. Surfactants reduce surface tension between liquids and solids and are used in various industries. They can be produced using bio-based chemicals derived from renewable sources, making them more environmentally friendly and sustainable. Bio-based surfactants offer several benefits, such as reducing the carbon footprint and promoting sustainable development. They are used in various applications, including emulsion polymerization, detergent formulations, and home care products. The growing interest in developing and using bio-based surfactants in various industries is due to their advantages over traditional petroleum-based surfactants.

Paints, coatings, inks, & dyes is anticipated to account for substantial growth during the study period. These chemicals are derived from renewable sources such as plant-based materials and biomass, which makes them environmentally friendly and sustainable. These chemicals have been used to produce various products, including bio-based resins made from bio-based sources such as plant oils and sugars, bio-based pigments made from beetroot, spinach, and turmeric, bio-based solvents made from vegetable oils, soybeans, and corn, bio-based additives made from plant extracts and biopolymers. Bio-based paints, coatings, inks, & dyes also offer comparable or even superior performance to traditional petroleum-based products. As a result, there has been a growing interest in developing bio-based chemicals and their use in these industries.

By Application Analysis

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Industrial Segment Held a Major Share Owing to Increasing Product Adoption in Various Manufacturing Processes

Based on application, the market is segmented into industrial, agriculture, pharmaceutical, and others. Among these, the industrial segment held the largest EU & US bio-based chemicals market share in 2023. Bio-based chemicals serve as raw materials for various manufacturing processes across industries such as plastics, textiles, cosmetics, and chemicals. They are used in the production of bio-based plastics, fibers, adhesives, solvents, and lubricants. These chemicals are becoming increasingly prevalent in the industrial sector due to their potential to reduce environmental impact and reliance on crude oil. These chemicals are derived from renewable biomass sources such as plants, algae, agricultural residues, and waste materials. Their utilization offers several advantages, including reduced carbon footprint, decreased dependence on non-renewable resources, and potential economic benefits.

In the agriculture industry, bio-based chemicals lead to considerable growth as an active ingredient in biopesticides, which control pests, diseases, and weeds in crops. Biopesticides are derived from natural substances such as plant extracts, microbial organisms, and biochemicals. They offer effective pest management while minimizing adverse effects on non-target organisms and the environment. In addition, these chemicals act as biostimulants that promote plant growth, improve nutrient uptake, and enhance stress tolerance in crops. Biostimulants are composed of various substances such as humic acids, seaweed extracts, amino acids, and beneficial microbes. They contribute to soil health, increase crop resilience to environmental stresses, and enhance overall yield and quality.

REGIONAL INSIGHTS

Europe dominated the market in 2023, driven mainly by growing challenges such as high Greenhouse Gas (GHG) emissions. The reliance on fossil energy sources from other countries in the European Union chemical industry is facilitating the adoption of biochemicals. Moreover, collaborations and partnerships between companies and research institutions are expected to accelerate the development and production of biochemicals.

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The rapid growth of agriculture and pharmaceutical industries in the U.S. is fueling the demand for biochemicals in many applications. In addition, increasing government stringent regulations on conventional chemicals and growing emissions are further poised to promote the adoption of bio-chemicals during the forecast period.

List of Key Companies in EU & US Bio-based Chemicals Market

Key Players Adopted Product Development and Technology Upgradation Strategies to Maintain Their Dominance in Market

The competitive landscape depicts a consolidated and competitive market. Regional players in the market have heavily invested in the research and development of better technologies and products. Superior operational efficiency and novel technology development are the strategies used by market leaders for their growth. In addition, market players are focusing on acquisition and expansion activities to increase their share in the EU & US bio-based chemicals market.

LIST OF KEY COMPANIES PROFILED:

• BASF SE (Germany)


• Vertec BioSolvents, Inc. (U.S.)


• AGAE Technologies, LLC (U.S.)


• TotalEnergies Corbion (Netherlands)


• Archer-Daniels-Midland Company (ADM) (U.S.)


• DuPont de Nemours, Inc. (U.S.)


• Evonik Industries AG (Germany)


• Cargill, Incorporated. (U.S.)


• GF Biochemicals Ltd. (France)


• DSM Corporation (Netherlands)

KEY INDUSTRY DEVELOPMENTS:

• March 2024 – TotalEnergies Corbion and Sansu announced that they are developing an embossed label water bottle from Luminy PLA bioplastics to hasten the adoption of recycled PLA as feedstock. This innovation will revolutionize recycled PLA production and create a more sustainable future, reducing waste and promoting sustainable practices.


• October 2023 – Evonik launched INFINAM eCO PA12, the first bio-circular raw material-based PA12 powder for industrial 3D printing. The powder substitutes 100% of fossil feedstock with waste cooking oil, leading to a 74% reduction of CO2 emissions compared to Evonik's INFINAM Terra development grade. This advancement is a significant milestone toward a more sustainable and circular approach to plastics manufacturing.


• September 2023 – BASF agreed with Qore LLC to obtain a long-term supply of QIRA bio-based 1,4-butanediol (BDO), which will be produced at Cargill's Iowa biotech campus. BASF will expand its existing line of BDO derivatives with bio-based PolyTHF and THF variants. The first commercial quantities are expected to be available in Q1 2025.


• December 2021 – Cargill acquired the majority of Croda's performance technologies and industrial chemicals business for USD 1.03 billion. The move expands Cargill's bioindustrial footprint to offer greener ingredient solutions to industrial manufacturers.


• September 2020 – Vertec BioSolvents created a biosolvent that cleanses surfaces of microbial contamination and provides bactericidal and bacteriostatic activity even when diluted with water. Unlike other cleaners, this formulation contains no antibiotics, biocides, or pharmaceuticals, and all raw materials used are commonly found in foods and cosmetics.

REPORT COVERAGE

The EU & US bio-based chemicals market research report provides a detailed analysis. It focuses on key aspects such as prominent companies, product types, and leading end-use industries. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

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Report Scope & Segmentation