With growing concerns about environmental pollution and sustainable practices, Bio Based Ethylene Market Demand sourced from biomass feedstock such as sugarcane, corn, and pine wood has emerged as a viable alternative to conventional petroleum-based ethylene. Bio based ethylene has similar chemical and physical properties as traditional ethylene making it suitable for producing polyethylene, ethylene glycol, vinyl acetate, and other industrial chemicals. Major benefits include reduced greenhouse gas emissions and dependency on fossil fuels.
The global bio based ethylene market is estimated to be valued at US$ 570.3 Mn in 2024 and is expected to exhibit a CAGR of 6.1% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the bio based ethylene market are Braskem, SCG Chemicals, LyondellBasell, Cargill, Genomatica, BASF, Dow Chemical Company, Mitsubishi Chemical Corporation, NatureWorks LLC, Novamont, and Corbion. With stringent environmental regulations and policies promoting sustainable alternatives, the demand for bio based ethylene is expected to grow significantly in the coming years. Major companies are investing in capacity expansion projects and collaborating with technology providers to commercialize innovative biotech pathways for producing ethylene from renewable feedstock. Several countries in North America, Europe, and Asia Pacific are providing subsidies and incentives to build bio refineries and encourage the adoption of bio based chemicals and plastics.
Market Drivers
The growing Bio Based Ethylene Market Demand from end-use industries such as packaging, consumer durables, automotive, and construction is a major driver for the bio based ethylene market. Bio based ethylene offers OEMs and brand owners an opportunity to market their products as sustainable and environment-friendly. Further, rising crude oil prices and volatility in petrochemical prices stimulate the need for affordable renewable alternatives. Strong government support in the form of research funding and favorable policies is also fueling the bio based ethylene market growth.
The current geopolitical situation is impacting the growth of the bio based ethylene market. Due to rising tensions between major world powers, global trade is witnessing disruptions which is affecting the supply chains of key feedstocks and end products. Protectionist policies adopted by nations to secure domestic production is another challenge. However, countries are also promoting self-sufficiency in basic chemicals by incentivizing bio-based options to reduce import dependence. Thus, the market still has scope for growth in the medium term. Companies will need to diversify sourcing, evaluate local manufacturing/assembly, and forge new collaborations to gain alternate access to resources and customers. Nations too should strive for open communication and resolve issues through diplomacy to facilitate cross border commerce. Regional cooperation focused on sustainability can pave way for more stable trade relations in future.
North America currently dominates the market in terms of value, accounting for over 35% share. This is due to strong government support through funding, subsidies and regulatory push for bio-economy development. Brand owners preference for bioplastics to meet sustainability goals is another key driver. Asia Pacific is the fastest growing regional market and is expected to witness a CAGR of around 8% during the forecast period on back of rapid industrialization and increasing consumption in countries like China, India and South Korea. Increased availability of sustainably sourced feedstocks and expanding bio-refineries capacity in the region makes it an attractive investment destination.
Currently, Europe constitutes around 30% share of the global market value. However, rise of trade barriers can impact sourcing and supply in short run. Domestic production through collaboration of SMEs with larger firms receiving EU funding and guidance may mitigate external risks over long term. Overall, public-private cooperation to build region-specific bio-clusters will be crucial for maintaining Europe's leadership and capturing emerging opportunities from regionalization of bio economies.
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