The bio-based ethylene market was valued at US$ 414.34 million in 2019 and is projected to be worth US$ 718.32 million by 2028, growing at a CAGR of 6.4% during the forecast period.
Bio ethylene can be produced from biomass feedstock used for bio ethanol. Bio ethylene is now well known since it is used as a transportation fuel. Different types of natural resources such as sugars (sugarcane, sugar beets, and sweet sorghum), starch (corn and wheat), and lignocellulosic biomass (wood and grass), are used as raw materials in the production process. Bio ethylene is gaining importance from fuel additives, packaging, and detergent producing manufacturers. Industries looking for bio-based materials highly prefer utilizing bio ethylene in their products.
In 2019, Europe held the largest share of the global bio-based ethylene market and North America is estimated to register the fastest CAGR in the market over the forecast period. The largest market share of Europe is primarily attributed to the presence of major manufacturers such as The Dow Chemical Company, Oxy Low Carbon Ventures (OCLV), and Enerkem. North America is anticipated to account for a remarkable share of the bio-based ethylene market during the forecast period, owing to the wide applications of this material in packaging and plastic production industries located in this region. Bio-ethylene is manufactured from bio-based materials, including starch, sugars, and lignocellulosic biomass. Bioethanol is primarily utilized as a blend in transportation fuel, and it is further gaining importance in the automotive industry in this region, which is further influencing the market growth. The people living in North America and even the industry players are nowadays quite concerned about greenhouse gas emission; hence, they are adopting the bio ethylene as an alternative to petrochemical products. This is further bringing a positive outlook for the bio ethylene market in this region.
The ongoing pandemic has drastically altered the status of the chemicals & materials industry and has negatively impacted the growth of the bio-based ethylene market. The COVID-19 outbreak has interrupted the operational efficiency and agitated the value chains, owing to the sudden closure of national as well as international boundaries, creating revenue loss along with damage. The disruptive value chain has had a negative impact on the raw material supply, which, in turn, is impacting the growth of the bio-based ethylene market. However, as the economies are planning to revive their operations, the demand for bio-based ethylene is presumed to rise globally. During the pandemic, the demand for bio-based ethylene from the food packaging industry and consumer goods industry is rising since consumers are preferring to order goods online.
Further, positive measures have been taken by the governments of different countries such as partial lockdown, travel ban, and others, along with distributed generations & incorporation of advanced technology, which is another factor anticipated to bolster market growth. The safety measures followed by the companies include limiting direct contact with truck drivers & visitors, strengthening & communicating proper hygiene practices, and conducting complete sanitations & eliminating personnel contact during shift changes. With all these factors, it can be presumed that in post-pandemic times, the demand for bio-based ethylene from some application segments will take a hike.
Geographic Overview of Bio-Based Ethylene Market
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Market Insights
Necessity for Diminishing Dependency on Fossil Fuels
Ethylene is used as a feedstock for many downstream chemical products. It is one of the largest bulk chemicals and is extensively used in the production of plastics. Due to the wide-scale applications of ethylene, its demand is likely to continue to rise in the coming years. Traditionally, ethylene is manufactured from petroleum derivatives, which is resulting in the depletion of fossil fuels. To overcome this problem, biomass feedstock is considered a reliable alternative for the manufacturing of bio-based ethylene. Bio-ethylene is produced from bioethanol, which is widely made using lignocellulose biomass such as wood, sugarcane, and corn-starch, thus, reducing the dependency on petroleum derivatives, as well as on fossil fuels. Bio-based products produced using local resources are also capable of cutting down a country’s dependency on fossil fuel imports, thereby stimulating the domestic economy.
Further, bio-based ethylene reduces greenhouse gas emissions both during production and use. However, the environmental performance of bio-ethylene principally depends on the regional conditions of the production of bioethanol, emission of greenhouse gases caused due to the changes in land usage, and conditions of the necessary energy systems. However, bio-based ethylene can significantly decrease the environmental impact of chemical industries. Thus, urgent need to reduce the dependency on fossil fuels and rise in awareness regarding environmental sustainability are bolstering the bio-based ethylene market growth. Bio-based ethylene and petroleum-based ethylene are chemically identical, and thus, the existing production capacities and equipment can be used to produce other downstream products, including plastics as usual, without having much impact on the existing market, which is another factor supporting the market growth.
Raw Material Insights
Based on raw material, the global bio-based ethylene market is segmented into sugars, starch, and lignocellulosic biomass. The sugars segment led the market with the largest share in 2019. Bio ethylene is produced from bioethanol, which is a liquid biofuel widely utilized in the transportation sector. Sugar from sugarcane is a highly utilized raw material while producing bio ethylene, mainly in India and Brazil. In Brazil, production of bioethylene is economically competitive, owing to the wider availability of cheap sugarcane feedstock. Sugarcane, sugar beets, and sweet sorghum are quite easy to break down since the sucrose is a disaccharide, which can be further directly fermented into bio ethanol utilizing yeast. Sugar based bio-ethylene production is estimated to save about 60% of fossil energy as compared to petrochemical production since the process can further produce electricity. The production cost of sugarcane-based bio-ethylene is also very low. The greenhouse gas emissions caused by using fossil fuel can also be minimized by utilizing bio ethylene in the petrochemicals industry. Due to these benefits, most of the industries are adopting bio ethylene for various applications.
Bio-Based Ethylene Market, by Raw Material – 2019 and 2028
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End-User Industry Insights
In terms of end-use industry, the global bio-based ethylene market is segmented into packaging, detergent, lubricant, and additives. The packaging segment led the market with the largest share in 2019. Bio-based plastics or bioplastics are produced from renewable biological resources. For instance, sugar cane is mainly processed to prepare ethylene, which can further be utilized to manufacture polyethylene. Starch can also be processed to extract lactic acid and similarly polylactic acid (PLA). The properties of bioplastics can vary from material to material. Bio-based or partially bio-based durable plastics, such as PE, PET, or PVC, possess quite a similar property to their conventional versions. Bioplastics, including starch blends, bio-PE, PLA, and bio-PET are mostly utilized in packaging applications. They are also employed in fibers in the textiles industry. Succinic acid obtained from bio-based material is quite suitable for packaging and other applications. The growing preference among customers for decomposable polymers, owing to significant health issues caused by petrochemical products is a favorable factor to propel the product demand in packaging, as well as textiles applications.
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Bio-Based Ethylene Market: Strategic Insights
Market Size Value in US$ 414.34 Million in 2019 Market Size Value by US$ 718.32 Million by 2028 Growth rate CAGR of 6.4% from 2020-2028 Forecast Period 2020-2028 Base Year 2020
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Bio-Based Ethylene Market: Strategic Insights
| Market Size Value in | US$ 414.34 Million in 2019 |
| Market Size Value by | US$ 718.32 Million by 2028 |
| Growth rate | CAGR of 6.4% from 2020-2028 |
| Forecast Period | 2020-2028 |
| Base Year | 2020 |
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Key players operating in the global bio-based ethylene market include Braskem SA, The Dow Chemical Company, LyondellBasell Industries Holdings B.V., SABIC, and Oxy Low Carbon Ventures (OCLV). Major market players are focused on strategies such as mergers and acquisitions and product launches to increase their geographical presence and consumer base globally. For instance, in April 2021, Oxy Low Carbon Ventures and a bio-engineering startup called Cemvita Factory announced the construction and operation of a one metric ton per month bio-ethylene pilot plant. This would be done by using a jointly advanced technology utilizing carbon dioxide (CO2) instead of hydrocarbon-sourced feedstocks.
Report Spotlights
- Progressive industry trends in the global bio-based ethylene market to help players develop effective long-term strategies
- Business growth strategies adopted by developed and developing markets
- Quantitative analysis of the market from 2017 to 2028
- Estimation of the demand for bio-based ethylene across various industries
- PEST analysis to illustrate the efficacy of buyers and suppliers operating in the industry to predict market growth
- Recent developments to understand the competitive market scenario and the demand for bio-based ethylene
- Market trends and outlook coupled with factors driving and restraining the growth of the bio-based ethylene market
- Decision-making process by understanding strategies that underpin commercial interest with regard to the global bio-based ethylene market growth
- Bio-based ethylene market size at various nodes of market
- Detailed overview and segmentation of the global bio-based ethylene market as well as its dynamics in the industry
- Bio-based ethylene market size in various regions with promising growth opportunities
Bio-Based Ethylene Market, by Raw Material
- Sugars
- Starch
- Lignocellulosic Biomass
Bio-Based Ethylene Market, by End-User Industry
- Packaging
- Detergent
- Lubricant
- Additives
Company Profiles
- Braskem SA
- The Dow Chemical Company
- LyondellBasell Industries Holdings B.V.
- SABIC
- Oxy Low Carbon Ventures (OCLV)
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Raw Material and End-User Industry
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The major players operating in the global bio-based ethylene market are Braskem S.A., The Dow Chemical Company, LyondellBasell Industries Holdings B.V., SABIC, and Enerkem.
In 2020, Europe held the largest share of the global bio-based ethylene market. The largest market share of this region is primarily attributed to the presence of major manufacturers in the region. Also, the rising production activities of bio-based ethylene is expected to fuel the market growth during 2020–2028. Moreover, strict environmental regulations also promote the practice of producing biofuel and bio energy in the region. The increase in demand for alternative source of fossil fuel and growing demand for bi ethylene from plastic industry are further propels the growth of the bio-based ethylene market.
Bio-ethylene is produced from bioethanol, which is a liquid biofuel that is widely utilized in the transportation sector. Sugar from sugarcane is highly utilized raw material to produce bio ethylene mainly in India and Brazil. In Brazil, production of bio-ethylene is economically competitive owing to the wider availability of cheap sugarcane feedstock. Sugar from sugarcane, sugar beets, and sweet sorghum are quite easy to break down since the sucrose is a disaccharide, which can be further directly fermented into bio ethanol utilizing yeast. Sugar based bio-ethylene production is estimated to save about 60% of fossil energy as compared to petrochemical production since the process can further produce electricity. The production costs of sugarcane-based bio-ethylene is also very low. The greenhouse gas emissions caused for using fossil fuel can also be minimized while utilizing bio ethylene in petrochemicals industry. Due to these benefits, most of the industries are adopting bio ethylene for various applications.
The List of Companies - Bio-based Ethylene Market
- Braskem S.A.
- The Dow Chemical Company
- LyondellBasell Industries Holdings B.V.
- SABIC
- Enerkem
- Linde
- Shell Global
- TotalEnergies
- Axens
- Sigma-Aldrich
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- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
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Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
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Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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