Bio-Based Resin Market size is forecast to reach $126.08 million by 2026, after growing at a CAGR of 15% during 2021-2026. Biobased resins are thermosets and are plastic materials made partly or entirely of recycled raw materials that cannot be melted after a single hardening stage. With rise in demand for packaging, the bio-based resin market is witnessing an increase in demand. For an instance, polylactic acid is one of the bio-based and biodegradable polymeric packaging materials, that process high performance and high elasticity. Whereas the growing public interest towards sustainable and environment-friendly products to avoid pollution or disposal of packaging materials will further enhance the overall market demand for bio-based resin industry during the forecast period.
The sudden outbreak of coronavirus pandemic has hit the packaging industry hard, as during the month from March to June in 2020 almost every country was in the lockdown mode owing to which, e-commerce companies have also stopped their services for months. So, with the decline in packaging sector the bio-based resin market has also restrained.
Bio-Based Resin Market Segment Analysis – By Product Type
Biodegradable segment held the largest share in the Bio-Based Resin market in the year 2020 and is expected to grow at a CAGR of 5.6% during the forecast period. Biodegradable resins are ideal for producing disposable packaging materials. They are capable of playing a key role in sustainable plastic production. Products based on biodegradable plastics are often reflected as savior products as, shifting to these materials helps to lessen carbon dioxide, greenhouse gas emission levels, energy of manufacturing, and amount of waste produced and create opportunity for new plastic industries. However, they are heavier than the petroleum-based polymers. While they will never completely eliminate the problem of plastic waste (since they are not suitable for all product applications), biodegradables can nevertheless be an important tactic in reducing pollution and waste in some instances.
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Bio-Based Resin Market Segment Analysis – By Application
Packaging sector has been the primary market for Bio-Based Resin in the year 2020 and is expected to grow at a CAGR of 4.5% during the forecast period. Bio-polyethylene terephthalate, polylactic acid (PLA) and others are driving the packaging production and market demand for biobased resin. Polylactic Acid (PLA) are primarily used in the food, industrial, and medical industries. PLA originates from renewable sources as a result of eco-friendly fermentation and degrades into non-toxic content.
In addition, lignin as an organic polymer increases the barrier properties of finished products, especially against UV rays. Whereas, according to information provided by World Packaging Organization (WPO), the turnover of global packaging industry is more than $500 billion in the year 2019 and is expected to grow more in the upcoming years. Hence with the increase in market growth of packaging industry, the bio-based resin market is expected to grow.
Bio-Based Resin Market Segment Analysis – By Geography
APAC dominated the Bio-Based Resin market in the year 2020 holding share of 41% during the forecast period. China and India are the major countries in this region, owing to the great demand automotive, packaging and other industries. Bio-based resin are used in automotive sector for manufacturing of non-structural interior components, including wood trim, seat fillers, seat backs, headliners, interior panels, dashboards and thermoacoustic insulation.
So, with the growing manufacturing of automotive around the world the demand for bio-based resin is expected to grow in this sector. According to the OICA’s (International Organization of Motor Vehicle Manufacturers), sales statistics, the automotive production in Asia/Oceania/Middle East region has increased by 1.34% from 2015 to 2019. However, China was the largest producer of automotive in the world, while India was the 5th largest of automotive in the year 2019. Hence, with the growing demand for automotive will eventually led to the market growth the bio-based resin during the forecast period.
Bio-Based Resin Market Drivers
Emergence of Electric Vehicle
Bio-based resin already have a major demand in the automotive sector, mainly for interior products. But with the emergence electric vehicles, the bio-based resin market is expected to grow, while the growing potential demand for electric vehicle will eventually boost the demand for bio-based resin in electric vehicles. However according to the IEA’s Global EV outlook 2020, the global electric car stock has increased by 2.1 million in the year 2019, as compared with 2018. So, with the growing demand for electric vehicles around the world, the bio-based resin market will also drive.
Alternative for Petroleum-Based Products
Exploration and expansion of new chemical/material substitutes is critical in reducing mankind’s dependence on fossil fuel energy in the face of a potential fossil fuel crisis. Whereas bio-based resins (such as PHA, PLA, starch, protein, chitin, chitosan, and PBS) are some of the substitute for petroleum-based products. Furthermore, bio-based polymers are still new, though, they are in continuous development. Hence with the upcoming years the bio-based resin tends to increase.
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Bio-Based Resin Market Challenges
Higher Cost of Bio-Based Resin
Bio-based resin are generally two or three times more expensive than the major conventional plastics such as PE or PET, and their production is plagued by low yields and being expensive. At current technologies it cost nearly 50% more than the traditional petroleum products. These prices may come down in the near future, as technologies improve and source material access becomes cheaper to produce. Hence even being biodegradable and good for environment, the biobased resin cost is making difficult for the manufacturers to survive. This could restrain the market growth of bio-based resin.
Bio-Based Resin Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Bio-Based Resin market. Major players in the Bio-Based Resin Market are Absecon Mill, Agri-Fibers Inc, Archer Daniel Midland, Ashland Performance Material, BASF SE, Braskem, Cargill Nature Work, Cereplast, Dowdupont, Etech Surf, John Deere, among others.
In January 2019, PolyOne Corporation, a premier global provider of specialized polymer materials, services and solutions, has completed the acquisition of Fiber-Line, a global leader in customized engineered fibers and composite materials for $120 million.
In January 2019, Archer Daniels Midland Company has successfully completed its $ US 1.84 (€1.544) billion acquisition of Neovia, creating a global leader in value-added products and solutions for both production and companion animals.
Asia-Pacific dominates the bio-based resin market owing to increasing demand from end use industries such as packaging, construction and others.
The growing demand for bio-based resin for stable timber construction, is likely to aid in the market growth of bio-based resin.
The emergence of bio-based resin as an alternative for petroleum-derived polymers is expected to drive the market for bio-based resin in the upcoming years.
Higher cost of biobased resin will create hurdles for the bio-based resin in the near future.
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B. Bio-plastics Market
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