A Bio-based Future for the Chemicals and Materials Market

The concept of competition between natural and synthetic chemicals has a long history. Today, crude oil forms the largest feedstock material for the chemical industry in terms of volume. Currently, an enormous amount of work is being done by the chemical industry to develop both new bio-based chemicals and new bio-based routes to existing chemicals. The aim of this study is to bring together many of the most recent happenings in the market for bio-based chemicals into a more holistic and coherent analysis. It will, therefore, be most valuable to chemical companies that are in the process of formulating their own strategy for using bio-based chemicals.

Published: 27 Dec 2011

This Frost & Sullivan research service titled A Bio-Based Future for the Chemicals and Materials Market provides a detailed analysis of the latest developments in the global market for bio-based chemicals. In this research, Frost & Sullivan's expert analysts thoroughly examine the following: impact of megatrends on the market, source feedstock trends and end-market pull factors. It concludes with a series of case studies illustrating how best to connect the many tiers of the value chain. 

This analysis is available through our Chemicals & Materials Growth Partnership Services programme. With continuous access to intelligence and resources from all seven perspectives of the Complex Business Universe, the Growth Partnership Services programme ensures that you and your Growth Team™ are able to maintain a 360 Degree Perspective of the market. This comprehensive, objective information allows your company to mitigate risk, identify new opportunities, and drive effective strategies for growth. For more information on this custom subscription service, please click here.

Market Overview 

Bio-based Chemicals to Support Higher Levels of Sustainability for Chemical Companies

Interest in making the best use of natural resources, in order to reduce society's reliance on synthetic petroleum-based chemicals, is increasing due to the general interest in a low-carbon economy.  There is an enormous amount of work being done by the chemical industry to develop both new bio-based chemicals, and new bio-based routes to existing chemicals. 

“Use of bio-based chemicals is the most important route to achieving higher levels of sustainability for chemical companies,” notes the analyst of this research. “Beyond this, many factors contribute to growth in demand for bio-based chemicals; whilst the drive to a low-carbon economy is the biggest driver, functionality and performance factors are also important, as too are the benefits with respect to both health and wellness, and globalisation.” Functionality and performance is an important consideration in bio-based chemicals for several reasons.  One aspect of this is the potential for bio-based chemicals, and natural extracts, to offer multi-functionality to the products they are used in.  In cosmetics and personal care applications, extracts that are included primarily as moisturising agents often have secondary benefits that are not available from petrochemically derived moisturising agents, such as anti-ageing or even providing biocidal protection to the product itself. Examples include green tea extract, grapeseed oil, lavender oil and many others.

Regional Collaborations to Provide Momentum to the Development of Bio-Based Chemicals Industry 

The continuing dominance of fuel as a primary product, which is an issue in the petrochemical industry, will remain a major challenge in the bio-based chemicals market. “The development of a bio-based chemicals industry has the potential to break this link between chemicals and fuel,” remarks the analyst.  “However, in many cases, bio-based chemicals will remain a co-product, and production will be linked, not to petroleum-derived gasoline, but to bio-ethanol and bio-diesel.”

In order to make the most of the opportunities available to develop the bio-based chemicals industry, collaboration is critical. Regional collaborations are particularly beneficial, as they allow a group of companies to work together to develop an entire value chain, starting with feedstocks from the most appropriate local crops, through to finished bio-based products. “Other forms of collaboration, especially technology licensing, will also be a critical part of the on-going development of the bio-based chemicals market," concludes the analyst. 

Frost & Sullivan Growth Partnership Services

Frost & Sullivan's Growth Partnership Services empower companies to accelerate their growth by achieving top-line improvements and bottom-line results. This is accomplished by helping our clients execute successful growth strategies and providing their Growth Teams™ with the skills, know-how, and tools to generate growth opportunities, evaluate these opportunities to create a growth pipeline, and implement a growth strategy to deliver measurable business results. 

Our growth solutions support the entire growth process:

TEAM Research is a program that furnishes clients with access to market research, competitive intelligence, financial benchmarking, and market strategies and analysis, and provides access to industry experts to aid in generating growth opportunities. 

Growth Consulting Services unite clients with our industry experts to evaluate opportunities and develop customised strategies and business plans to drive top-line revenue and margin growth.

Growth Team Membership™ is a career-focused offering that was developed to address the unique challenges that senior executives face when implementing strategies to achieve aggressive corporate growth targets.