Bio-based aromatics is an alternative to plastic, which is made from oil and petrochemical feedstock. These aromatics are majorly manufactured using lignin and sugar, which is derived from cellulose and hemicellulose. About 40 % of all chemicals are made of benzene and its products such as toluene and xylene, which are called as aromatics.
Bio-based aromatics are majorly utilized in diverse applications including textiles, wood panels and laminates, polymers, paints & coatings, fragrance & aroma, pharmaceutical, and fine chemicals. Among these applications, paints & coatings is estimated to be the major application segment of the bio-based aromatics market.
Key drivers of bio-based aromatics market
Rise in depletion of fossil fuel feedstock coupled with an increase in ban on polymer based products is anticipate to fuel the demand for bio-based products in the near future. Moreover, growing awareness about bio-based products among consumers is projected to fuel the bio-based aromatics market across the globe.
Bio-based aromatics having the potential to replace the chemicals made from fossil fuels, which is a key factor boosting the bio-based aromatics market. Furthermore, shift in consumer preference toward bio-based products is offering significant opportunity to the development of technologically advanced materials across the globe. Additionally, bio-based aromatics offer increased safety and high environmental characteristics, thus boosting the market.
These aromatics are also expected to decrease the climatic changes by reducing CO2 emission. For instance, on October 2018, Anellotech, Inc. announced that Bio-TCatTM process has the potential to reduce CO2 emission by 70% or more, as comparison to that of petroleum-derived equivalents. The process manufactures bio-based aromatics using pine wood as its raw material.
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Reduced dependence on non-renewable resources
Bio-based aromatics have the potential to decrease the heavy dependency on crude oil. Independence from fossil fuel resources is projected to boost competitiveness and greener economic growth. Additionally, lower carbon footprint is likely to benefit the manufacturers by increasing economic stability and avoiding social crises within oil exporting countries such as GCC.
Expansion of the market and the use of bio-based aromatics, majorly depends on various factors, which include incentives and policies formulated to raise awareness about bio-based aromatics across the globe. Moreover, other factors include the availability of biomass.
Use of bio-based aromatics to manufacture highly sustainable products, such as bioplastics instead of bio-fuels, is estimated to offer considerable opportunity to the biobased aromatics market in the near future.
High cost of production likely to hamper the market
Production of biobased aromatics is likely to require considerable funding to develop the machinery and processes to manufacture such products. Furthermore, a lack of large quantity of biomass required for commercialization of bio aromatics is anticipated to hamper the market in near future.
The production of bio-based aromatics requires technologies that are extremely limited and only available in research & development laboratories
Additionally, the establishment of bio-refinery is an expensive task. High number of bio refineries with highly advanced technologies are required to manufacture high volumes of bio-based aromatics products.
Europe is expected to hold major share of global bio-based aromatics market
In terms of region, the global bio-based aromatics market can be split into five regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Europe is projected to be a leading consumer of bio-based aromatics. Increasing regulations on usage of fossil fuel based products coupled with rising restrictions on the use of hazardous chemicals is anticipated to propel the demand for alternatives across the region. Furthermore, Europe is home to established major manufacturers such as DowDuPont Inc, Koninklijke DSM N.V., and BASF SE that are operating in the green chemistry. This, in turn, is expected to further fuel the bio-based aromatics market.
Europe being a developed region has a strong technological and research base; however, presently it is at a nascent stage
Furthermore, development of the bio-based aromatics depends on availability of research centers and infrastructure, despite the presence of sufficient feedstock in cheap areas such as Asia or Latin America.
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Key players operating in the bio-based aromatics market
The market across the globe is dominated by a few players. These players account for a major share of the global market. Key players operating in the bio-based aromatics market include
