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Bio-based Naphtha Market size worth over $2.9 Bn by 2032
- Published Date: March 29, 2023
Bio-based Naphtha Market size is set to reach USD 2.9 billion by 2032, as per a recent research report announced by Global Market Insights Inc.
A rapid increase in the demand for bioplastics will influence the market trends. Bio-naphtha is a petrochemical feedstock that works as a building block for chemicals & aromatics required to manufacture polyester & other packaging materials. The demand for single-use packing solutions has motivated companies to develop new products. The goal is to achieve faster rates of biodegradation using these materials. Moreover growing efforts toward the development and adoption of sustainable solutions will complement bio-based naphtha market growth.
High demand for biomass naphtha over fossil fuels
The biomass segment is predicted to record nearly 18% gains from 2023 to 2032. Lignocellulosic biomass resources are readily accessible around the world and can be converted into distinctive industrial goods and bio-based naphtha with the right technology. In contrast to fossil fuels, biomass technology is far less expensive as bypasses the requirement for significant investment in equipment such as oil drilling, gas pipelines, and fuel collection that are needed in fossil fuel production.
Browse key industry insights spread across 378 pages with 488 market data tables & 31 figures & charts from the report, “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”, in detail along with the table of contents:
Adverse environmental impacts of fossil fuel driving demand for eco-friendly fuels
The gasoline segment is forecasted to cross USD 134 million by 2032. Bio-based naphtha can be used to make ethylene, propylene, and butadiene, which are used to formulate chemicals and polymers, or as a feedstock in the manufacturing of gasoline. Natural gasoline is a light naphtha produced through NGL fractionation. The depletion of fossil fuels and their adverse effects on the environment, such as air pollution, climate change, and global warming, have stoked interest in sustainability and the creation of alternative eco-friendly fuels.
Rising demand for bio-polypropylene
Bio-based naphtha market from the bio-polypropylene segment is expected to observe over 19% CAGR from 2023 to 2032. The need for bio-based materials like bio-PP is driven by expanding markets and product demand, particularly across Asia. Factors like the rising middle-class population, government backing for sustainable development, and greater environmental consciousness across the region is estimated to incite product uptake. To meet impending demand, many companies are seeking to expand their production capacity.
Promising growth in the agricultural sector of APAC
Asia Pacific bio-based naphtha market is expected to cross more than USD 509 million by 2032. The need for bio-based naphtha is fueled by the sizeable agricultural sector in the Asia Pacific area, which might serve as a source of feedstock for generating bio-based naphtha. Countries like India are largely focused on agricultural activities, driving the bio-based naphtha industry growth. The increasing demand for consumer electronics, cars, and home furnishings may also offer a boost to the bio-based naphtha industry across Asia Pacific.
Competitive landscape to define the business outlook
Kaidi Finland, Diamond Green Diesel, Neste, Eni S.p.A., Shell Plc, UPM Biofuels, Preem, Total Energies, and Euglena Co., Ltd. are some of the key players in the global bio-based naphtha market. Companies are focusing on new business development strategies like product launches, mergers, partnerships, and acquisitions.