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Bio-based Naphtha Market - By Source (Vegetable Oils, Biomass), By Application (Gasoline, Petrochemicals [Ethylene, Propylene, Butadiene]), By Downstream Application (Bio Polyethylene, Bio Polypropylene, Bio Polyvinyl Chloride) - Global Forecast to 2032

  • Report ID: GMI5510
  • Published Date: Mar 2023
  • Report Format: PDF

Bio-based Naphtha Market size

Bio-based Naphtha Market size valued at USD 920 million in 2022 and is poised to showcase around 17% CAGR from 2023 to 2032. The rising demand for renewable diesel and fuel will influence business expansion.

Bio-based Naphtha Market

Rising demand for sustainable fuels will drive the bio-based naphtha market growth. Oils and fats, like soybean or canola oil, are used to make renewable diesel, which is then processed to be chemically identical to petroleum diesel. Renewable diesel can be blended with any proportion of petroleum diesel or used as a fuel replacement. As per a recent report by International Energy Agency (IEA), the total global biofuel demand is expected to increase by over 20% by 2027. Ethanol consumption in the United Kingdom is projected to increase by 50% to meet the Renewable Transport Fuel Obligation (RTFO).

Fluctuating raw material prices could impact the bio-based naphtha market growth. The main raw materials for bio-based naphtha are oils, such as palm, tall, and rapeseed oils. The cost of these oils varies from time to time in the international market. The adoption of these oils depends highly on the fluctuating cost of raw materials.

Demand for alternative feedstock to augment market development

Bio-based naphtha industry from the petrochemicals segment is slated to record nearly 17% gains up to 2032. Naphtha is used as a feedstock for pyrolysis (NCC) to produce the fundamental feedstock for petrochemistry, including toluene, ethylene, benzene, propylene, butadiene, and xylene. It is the primary feedstock for the petrochemical sector, while bio-naphtha is the alternate feedstock for olefins.

Bio-based Naphtha Market Analysis

Global Bio-Based Naphtha Market Size, By Downstream Application,

Bio-based naphtha market revenue from the bio-polyethylene (bio-PE) segment is predicted to surpass USD 1.5 billion by 2032. Agricultural wastes, such as sugarcane, corn, and other renewable resources, are used to make bio-PE. It is a biodegradable substitute for conventional polyethylene. The usage of non-biodegradable plastics is subject to regulation by governments worldwide. This would increase the demand for Bio-PE. It is also highly used in the packaging of food and cosmetics across the globe and is also used in sporting goods, toys, and household products.

Global Bio-Based Naphtha Market Share By Source

Bio-based naphtha market value from the vegetable oils segment is set to cross USD 2.2 billion by 2032. Vegetable oil, also referred to as renewable diesel or sustainable aviation fuel, is a source of bio-based naphtha. In the process of transesterification, vegetable oil is transformed into bio-based naphtha. A natural oil triglyceride reacts with short-chain alcohol, such as ethanol or methanol, in the presence of a catalyst to produce fatty acid alkyl esters. As fossil fuels are becoming increasingly scarce, people have started considering sustainable alternatives.

Europe Bio-Based Naphtha Market Size

Europe bio-based naphtha market is likely to observe 16.5% CAGR through 2032 due to the increasing usage of the substance for polymer production. According to estimates, around 150,000 tons of bio-based naphtha is already in use each year across the European region for polymer production. This demand is estimated to increase to several million tons during the forecast period. Promising growth in the petrochemical sector will influence the b regional market.

Bio-based Naphtha Market Share

  • Preem
  • Shell Plc
  • Neste
  • Eni S.p.A.
  • UPM Biofuels
  • Total Energies
  • Diamond Green Diesel
  • Euglena Co., Ltd.
  • Kaidi Finland

are some of the leading solution providers in the global bio-based naphtha market. These companies are working on developing new strategies for innovating products along with strategic initiatives like partnerships, collaborations, and more.

To cite an instance, in 2023, to make a shift away from crude oil, Royal Dutch Shell in Germany announced plans to make naphtha using renewable energy and crops. Apart from this, the company also plans to expand an electrolysis plant that generates fossil-free hydrogen for commercial purposes. In the long run, Shell plans to replace conventional jet fuel and naphtha with synthetic power-to-liquids (ptl) produced at Weaseling, a facility that is a part of the Rhineland refinery, utilizing green electricity and biomass. Construction on the 100,000 t/a ptl plant is anticipated to start in 2023, and operations are projected to start in 2025.

This research report on the bio-based naphtha market includes in-depth coverage of the industry with estimates & forecasts in terms of volume in Kilo Tons and revenue in USD Million from 2018 to 2032 for the following segments:

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By Source

  • Vegetable oil
  • Biomass

By Application

  • Gasoline
  • Petrochemical
    • Ethylene
    • Propylene
    • Butadiene
    • Others
  • Bio Benzene
  • Bio Phenol
  • Others

By Downstream Application

  • Bio-PE
    • By Grade
      • HDPE
      • LDPE
      • LLDPE
    • By Application
      • Packaging
      • Textile
      • Automotive
      • Consumer goods
      • Others
    • Others
  • Bio-PP
    • By Grade
      • Homopolymers
      • Co-polymers
    • By Application
      • Packaging
      • Textile
      • Automotive
      • Consumer goods
      • Others
  • Bio-PVC
    • By Application
      • Construction
      • Textile
      • Automotive
      • Consumer goods
      • Others

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Russia
    • Spain
    • Finland
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • South Africa
    • UAE
    • Saudi Arabia


Authors: Kiran Pulidindi, Kunal Ahuja

Frequently Asked Questions (FAQ) :

The market size of bio-based naphtha crossed USD 920 million in 2022 and is poised to record more than 17% CAGR from 2023 to 2032.

The vegetable oils segment is expected to reach USD 2.2 billion by 2032 as it is a major source of naphtha.

Europe market for bio-based naphtha is slated to observe nearly 16.5% CAGR from 2023 to 2032 due to the increasing usage of the substance for polymer production.

Preem, Shell Plc, Neste, Eni S.p.A., UPM Biofuels, Total Energies, Diamond Green Diesel, Euglena Co., Ltd., and Kaidi Finland are some of the leading companies in the global market.

Bio-based Naphtha Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 10
  • Tables & Figures: 519
  • Countries covered: 19
  • Pages: 378
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