Global Bio Plasticizer Market - 2020-2027

Global Bio Plasticizer Market - 2020-2027

Market Overview

Bioplastics can also be known as bio-based and biodegradable. Biodegradability and compostability depend on the chemical structure rather than the feedstock source. According to the U.S Department of Agriculture (USDA), bio-based products are described as commercial or industrial goods composed in whole or in a significant part of biological products. Moreover, the bio-based plastics, such as bio enriched polyurethane manufactured using modified vegetable oils, polypropylene monomers derived from dehydration of bio-butanol, polyethylene monomers derived from the dehydration of bio-ethanol and poly (ethylene terephthalate) monomers, catalytic pyrolysis or gasification of biomass, that have at least partial sourcing from plants constitute emerging technologies expected to drive the market during the forecast period.

The global bio plasticizer market is estimated to reach USD XX billion by 2027 from the recorded market size of worth USD XX billion in 2019, growing at a CAGR of XX% during the forecast period (2020-2027).

Market Dynamics

Bio-based plastics may overcome the sustainability issues and environmental challenges posed by synthetic plastics' production and disposal. However, the large-scale commercial deployment of bio-based plastics to substitute conventional plastic materials remains challenged by various factors. Some of the hurdles are attributed to the relatively poor performance, lack of infrastructure, variability of the feedstock properties associated with the location & time of harvest and high production cost. Recent advancements in bacteria synthesized plastics (PHAs) and the utilization of nature's building blocks such as carbohydrates, proteins, fats, lignin, etc., obtained from agricultural feedstock and agricultural industry wastes constitute significant progress towards bio-based plastics over the last decade.

Moreover, plastics are amorphous organic solid polymers, including a wide range of polymerization products suitable for the manufacture of diversified products. Global annual plastics production is expected to reach 300 million tons by 2015. Plastics are precious materials because of their low cost & extraordinary versatility, and they constitute the largest petroleum application second only to energy. Among the many plastics applications, packaging accounts for almost one-third of their use, followed by construction and consumer products. The materials science community has been endeavoring for decades to generate bio-based plastics to substitute conventional synthetic plastics based on exclusively petroleum feedstock. According to current estimates, bioplastics' global production is expected to grow at an annual rate of up to 29.5% in the coming decade to reach 3.4 million tonnes in 2020.

Furthermore, the advancement in bio-based plastics is spurred by public concern over the depletion of petroleum-based raw materials, the improvement in properties & the cost-competitive relationship of bioplastics and the manufacturing companies to develop more sustainable raw material sources. As these bio-based plastic industries continuously develop, the demand for new types of plasticizers with new characteristics, performance and other additives compatible with the bioplastics also grow in the same direction. Moreover, in developing packaging materials from bio-based materials, high ductility at room temperature is required. Thus, there is no tolerance for the polymer film cracking when subjected to stresses during package manufacturing or use. In addition, an increase in the utilization of plasticized polymers for biomedical and pharmaceutical applications, the search for safer plasticizers for commodity plastics such as poly (vinyl chloride) and efforts to produce renewable and biodegradable plasticizers constitute an added motive for the recent development of new plasticizers.

Segment Analysis

By type, the market is segmented into cellulose acetate, protein-based plastics, thermoplastic starch, polyhydroxyalkanoates, poly (lactic acid) plastics and others. By product type, the market is segmented into epoxidized soybean oil, castor oil-based plasticizers, citrates, succinic acid and others. By application, the market is segmented into cables & wire, film & sheet, flooring & wall covering, medical devices, package materials and others. By end-user, the market is segmented into pharmaceutical, packaging materials, consumer goods, automotive & transport, building & construction, textiles, agriculture & horticulture and others.

The use of plasticized polymers in pharmaceutical applications covering from packaging materials or auxiliary substances in conventional dosage forms to matrices or membranes modifying and controlling the drug discharge characteristics in therapeutic systems has been expected to boost the market size. The processing behavior, such as coating dispersion & film formation, and properties of polymers in various applications are greatly improved by an adequate choice of plasticizer quantity & type. Generally, these plasticizers' choice to be used as plastics is limited by the required environmental favorability, safety, physical & chemical property that deliver their miscibility, processing temperature, and required flexibility towards the target application.

Geographical Analysis

North America dominates and holds the largest market share due to technological advancement and sustained expansion of consumer goods and packaging industries. The boost of the automotive & transport sector in North America is a key factor responsible for driving the regional market growth for bio-plasticizers. Moreover, the government initiatives to support bio-based plastics in manufacturing processes further boosting the regional market growth. The US EPA and EU regulations and legislation have imposed policies aiming to encourage sustainable manufacturing practices, develop eco-friendly products, and decrease carbon footprint, positively influencing the market.

APAC is expected to be the fastest-growing region during the forecast period due to increasing investment in the construction industry, rising population, increased middle-class incomes, and urbanization. In addition, China is the leading in the construction industry with a market size of USD 1092.9 billion in 2019, registering a growth rate of 14.7% compared to the previous year.

Furthermore, the total new construction in Japan was accounted for about 113 million square meters in 2020 and is expected to increase the consumption of bio-plasticizers used for applications include cables, wire, flooring, and wall coverings.

Competitive Landscape

The bio plasticizer market is fragmented with the presence of regional and global players. The competitive contour lies with the increase in the regional company and growing investment in upstream application. Evonik Industries AG, Matrica S.p.A., OQ Chemicals GmbH, Dow Chemical, BioAmber Inc., Emery Oleochemicals LLC, Lanxess AG, PolyOne Corporation, Myriant Corporation, Solvay S.A are the major player in the plasticizer market. The major players adopt several growth strategies such as product launches, acquisitions, and collaborations, contributing to growing the bio plasticizer market globally.

Evonik Industries AG

Evonik launched a new generation of PVC plasticizers with its new ELATUR® product brand. With this diplomatic portfolio addition, Evonik is consistently expanding its product range of sustainable plasticizers. Moreover, the ELATUR® CH phthalate-free plasticizer is particularly suitable for sensitive PVC applications such as everyday use articles that directly contact the skin. In addition, based on its consistent research efforts, the new generation of plasticizers will be continuously expanded with additional innovative products in the future.

Furthermore, adding phthalate-free and bio-based plasticizers to the company portfolio is an ideal supplement to our existing, proven VESTINOL® product family. With its new ELATUR® plasticizers, customers will have an even wide choice of plasticizers that are individually and optimally suited for their requirements and offer complete service from a single source to customers, including technical and logistics and support. In addition, Evonik plasticizers are primarily used in the plastics, construction and automotive industry.