Farnesene market size potential likely to exceed USD 480 million by 2023
Published Date: May 4, 2016 Author: Global Market Insights, Inc.
Farnesene market size was estimated at 8.51 kilo tons in 2015, as per the latest research report by Global Market Insights, Inc. Growing trend towards biofuel use in aviation and automobile sector to curb carbon emissions may boost farnesene market growth.
Farnesene based renewable diesel & jet fuel is likely to hit price target and prove to be cost efficient, which will drive its use as a drop in replacement for synthetic fuels to lower GHG emissions.
Global farnesene market size is forecast to register USD 485.0 million by 2023. In EU, the RED (Renewable Energy Directive) has set 10% target for use of renewable energy in transport. In the U.S., key initiatives, CAAFI (Commercial Aviation Alternative Fuels Initiative) and MASBI (Midwest Aviation Sustainable Biofuels Initiatives) are formed to promote biofuel usage in aviation sector.
Cosmetic & personal care application dominated the demand and accounted for over 35% of the total demand in 2015. Farnesene derived squalene, through biotechnological route, is used as a useful ingredient in anti-ageing and moisturizing cream formulations.
Strong cosmetics growth expected from Europe and Asia Pacific market may promote farnesene demand and boost squalene market size. Cosmetics companies are shifting focus to use ingredients derived from vegetable or biotechnological route instead of animal sources owing to consumer perception, which may promote market growth.
Hydrogenated Esters and Fatty Acids (HEFA) and FT (Fischer-Tropsch) based on biomass are alternative biofuels considered to be used in aviation sector, proves to be a major challenge for market growth. Variation in key feedstock harvest, sugarcane, owing to unfavorable weather conditions may affect farnesene market price trend.
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Key insights from the report include:
- Global farnesene market size may see gains at over 28% CAGR and reach 180.9 kilo tons by 2023.
- Europe, led by Germany and UK, dominated the regional industry and accounted for over 42% of the total demand in 2015. Performance material applications in Europe are set to grow at a significant pace at above 45% CAGR and register over USD 65 million by 2023.
- APAC, with China and India being dominant contributors, is set to attain highest gains at over 29% up to 2023. Increase in per capita spending capacity coupled with presence of large scale chemical manufacturing facilities may promote regional growth.
- North America flavors & fragrances application should grow significantly, at above 26% CAGR, and register over USD 30 million in revenue by 2023.
- Global farnesene market share is presently dominated by Amyris, the company ias already engaged in commercial production, with capacity additions announced for 2017. Amyris has collaborated with some industrial partners including Total, IFF and kuraray to develop target molecule for relative applications such as biojet fuels, fragrances and polymers.
- Intrexon and Chromatin are currently at nascent stage to achieve commercial production. Intrexon achieved production in lab scale tests though methane bioconversion.