Market Research Blogs


Bioeconomy Part II – At the end of the rainbow


Going forward, environmental concerns and climate change will be one of the critical factors for bioeconomy evolution. For example, concerns on traditional KA oil based process to produce Adipic Acid will be replaced by Biobased Adipic Acid Market. Regulations against phthalate based plasticizers will keep funding alternate green plasticizer opportunities like FDCA and other furan based resins.

 

Discussions in the 2015 PARIS Summit, focusing on climate change indicate that the landscape of biobased industry activity may shift to emerging markets like India, China, Malaysia, Thailand, Indonesia, Vietnam & Philippines from Europe and USA. We already see that move happening with most biobased chemicals manufacturing facilities coming on stream in these regions. This shift not only offers labor cost arbitrage but also address feedstock availability issues, also these markets will most likely be consumer growth markets going forward.

 

Enhanced functionalities offered by novel molecules Such as FDCA, Levulinic acid derivatives will keep investor interest high despite of pricing pressures.

 

Biobased startups are more resilient now as they constantly reposition their technology, product portfolios oriented towards new adjacent opportunities; evident by successful repositioning of Farnesene platform by Amyris , to cater to cosmetic and nutraceuticals market with Squalene.

 

Historically, petrochemicals industry has survived and grown through these periodic economic cycles with synergistic diversification strategies in terms of new products, new markets and new regions. Every Bio-based player will have to adapt to these dynamics for penetrating the industry. This consolidation should provide the industry with new opportunities, which will be difficult to take advantage off but could promise a pot of gold at the end of the rainbow.