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Biorenewable Chemicals World Market


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Biorenewable Chemicals World Market

  1. 1. Get more info on this report!Biorenewable Chemicals World Market2009-2010November 4, 2010Increasing environmental awareness on the part of product manufacturers and the desire to reduce dependency on oil are the leading drivers behind the $2.4billion global market for biorenewable chemicals (BRC) in 2010. This steadily growing market has experienced a compound annual growth rate (CAGR) of 14.8%,a growth trend that is going to increase as the world resumes a more normal production page and new bio-based chemicals such as bioethylene come to market.By 2015 the BRC market will be worth $6.8 billion, a CAGR of 22.8% between 2010 and 2015. The largest region for BRC sales continues to be the U.S., whichcaptured 21.6% of the BRC market in 2009.The platform biorenewable chemicals (PBC) glycerin and lactic acid make up the bulk of biorenewable chemicals being sold in 2010, accounting for 79.2% of themarket. There is a large range in market maturity for PBCs, ranging from mature markets such as lactic acid to nascent markets for chemicals such as succinicacid.Compared to the platform chemicals market, the intermediate biorenewable chemicals (IBC) market is much more nascent, particularly in relation to its potential. In2010, IBCs accounted for $574.9 million of the BRC market; however this will grow to $2.5 billion in 2015 and account for 37.0% of biorenewable chemical sales.The strongest growth will be for secondary chemicals such as polylactic acid (PLA), polyhydroxyalkanoate (PHA) and bioethylene that are used to manufacturebio-based plastics.Biorenewable Chemicals World Market by SBI Energy provides key insight into current and future markets for biorenewable chemicals worldwide, with a particularemphasis on the U.S. market. The analysis includes definitions, current product offerings and market detail on the following segments:  Industrial organic acids, amino acids and other organic compounds, made from biorenewable feedstocks such as corn, oilseeds and sugarcane, which can be used as the building blocks for alternatives to petroleum-based chemicals. These chemicals are referred to as platform biorenewable chemicals (PBC).  Industrial organic acids and polymers that are manufactured from platform biorenewable chemicals and are themselves key chemical components for the manufacture of many other chemicals and products. These chemicals are referred to as intermediate biorenewable chemicals (IBC).The report also analyzes the key industries that make use of biorenewable chemicals for their end products. These include bioplastics, cleaners, solvents andadhesives.Report MethodologyThis report contains primary and secondary data obtained from government sources, trade associations and publications, business journals, scientific papers,company literature, investment reports, and interviews with industry professionals. Statistics on U.S. production, imports and exports are from the U.S.International Trade Commission; European production and trade data comes from Eurostat; trade data for other nations comes from the respective customs officefor each country and the United Nations ComTrade database.What You’ll Get in This ReportBiorenewable Chemicals World Market provides a concise, focused look on the market for chemicals made from biomass feedstocks as it exists today, and showswhere the market is moving between 2010 and 2015. The report highlights key players in the biorenewable chemicals industry and pinpoints ways that current andprospective competitors can capitalize on recent trends and spearhead new ones. No other market research report provides both the comprehensive analysis andextensive data that Biorenewable Chemicals World Market offers. Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tablesand graphs.
  2. 2. How You’ll Benefit from this ReportIf your company is considering investing in biorenewable technology, or is involved in petroleum-based chemical production and considering expanding its portfolioto include bio-based alternatives, you will find this report invaluable as it provides a comprehensive package of information and insight not offered in any othersingle source. You will gain a thorough understanding of the current market for biorenewable platform and intermediate chemicals, as well as projected marketsand trends for these chemicals through 2015. The report also provides a concise view of the top application industries for available bio-based chemicals, outliningkey drivers and barriers for these markets.This report will help:  Marketing managers identify market opportunities and develop targeted promotion plans for businesses looking to develop markets for both new and existing biorenewable chemicals.  Research and development professionals stay on top of competitor initiatives and explore demand for bio-based chemicals as well as the downstream product market for platform and secondary biorenewable chemicals.  Advertising agencies working with clients in a host of market sectors such as packaging, retail and commercial cleaner products, transportation, textiles or construction products to develop messages and images that compel homeowners, businesses and industries to migrate towards bio-based chemicals as an alternative to petroleum-based products.  Business development executives understand the dynamics of the market and identify possible partnerships with feedstock providers, key organizations and biorenewable chemical manufacturers with unique products or processes.  Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.Additional InformationMarket Insights: A Selection From The ReportSuccinic Acid & Other Platform ChemicalsThe world market for succinic acid was approximately 66 million pounds in 2009, of which less than 5% was produced from bio-based feedstock. Biorenewablesuccinic acid is justentering the marketplace, but by 2015, will account for two thirds of the estimated 200 million pounds per year global succinic acid market. Approximately 30% ofsuccinic acid isused for pigments and coatings, following by use in the plating industry and pharmaceuticals as the next largest markets. SBI Energy also expects to seeenvironmentally friendly de-icersbecoming an important part of the biosuccinic market.There are a number of other bio-based platform chemicals being actively researched that are near the pilot plant stage of development. SBI Energy expects to see3-hydroxypropanoic acid (3-HPA) and acetic acid achieving production volumes greater than 45 million pounds/year by 2015, primarily due to strong R&Dprograms from Cargill and WACKER respectively. Various companies (primarily in the U.S. and Europe) have moved past the laboratory to the pilot plant stage forisosorbide, isoprene, levulinic acid, and adipic acid. For these platform organic chemicals, production will continue to be a very limited affair, with volumes wellbelow 20 million pounds/year for the foreseeable future.Polyhydroxyalkanoates (PHA) World MarketRevenue of PHA worldwide reached an SBI Energy estimated $107.8 million in 2009, up 21.0% from $89.1 million in 2008, and is expected to reach $150.3 millionfor 2010. A steady increase in global production has balanced a decreasing trend in pricing for PHA, giving the PHA market a strong CAGR of 28.3% between2006 and 2010. The largest barrier for PHA to gain market share is high manufacturing costs which are still much higher than other polymers.Manufacturing TrendsThree of the most widely used biomass feedstocks currently in use, corn, soybean oil and palm oil, have all stabilized in price since the turbulent pricesexperienced in 2008 and the first part of 2009. Average world soybean oil prices peaked at $1,283/ton in June 2008, with peaks occurring for palm oil and maize inMarch of the same year. The recession then caused prices for all three food crops to drop precipitously, erasing a year’s worth of price gains in the last quarter of2008. Since that time, prices have stabilized to summer of 2007 levels, with palm oil and soybean oil both selling at approximately $725/ton and maize at $147/ton.
  3. 3. Production costs for biorenewable chemicals have held remarkably steady according to the U.S. Bureau of Labor Statistics production price index (PPI) forbiorenewable chemical manufacturing, up only 3.4% in July 2010 as compared to December 2008. The results are similar to production price indexes for wet cornmilling and soybean and other oilseed processing, which would be a significant part of any bio-based chemical manufacturer’s production costs.In the News Seismic Activity in Chemicals Market to Propel Global Biorenewable Industry to $7 billion in 2015New York, November 11, 2010 — Steady growth in the two largest biorenewable chemical market segments, in addition to key regulatory and researchdevelopments, will spur the industry to a high of $7 billion in 2015, more than twice the anticipated 2011 market value of almost $3 billion, according to SBIEnergy’s latest study Biorenewable Chemicals World Market."The ever increasing price of oil is not the only driver pushing sales in the biorenewable chemicals market. In the near term, more support within regulations andlegislations for funding and research and development is key to keeping the biorenewable chemicals market a lively and growing concern," says Robert Eckard,SBI Energy analyst.Pacing the industry will be the platform biorenewable chemicals segment, which will continue to be worth approximately two-thirds of the overall biorenewablemarket by climbing to more than $4 billion in sales in 2015 and achieving a compound annual growth rate (CAGR) of 22% for the five year period. Slower to pickup in 2011, sales will continue to grow steadily from 2012 through 2015 for all major selling chemicals within the category. 6Glycerin and lactic acid will continue tobe the main chemicals within the segment.Meanwhile, the intermediate biorenewable chemicals segment will see slightly stronger growth than the platform biorenewable chemicals segment, approaching $3billion in 2015 and showing a CAGR of 33% between 2011 and 2015. Bioethylene will be the largest intermediate biorenewable chemicals category by salesvolume in 2015, although polyhydroxyalkanoates (PHA) will be the largest market by revenue due to its much higher production cost. SBI Energy estimates annualproduction of polylactide (PLA) will more than double between 2011 and 2015, while production of 1,3-propanediol (PDO) will triple, and PHA production willquadruple.The world biorenewable chemicals market was rocky between 2007 and 2009. After an absolutely amazing year in 2008 in which biorenewable chemicals grew anastonishing 72% to almost $3 billion, market value dropped by 26% to $2 billion.Global platform biorenewable chemicals were worth $1.7 billion in 2009, down 27% from $2.3 billion in 2008. This drop was entirely due to the bottom falling out ofglycerin prices, heavily slashing overall revenue for the chemical despite a slight increase in production. However, 2010 proved to be a boon for the platformbiorenewable chemicals segment, with total sales expected to reach an estimated $1.8 billion by year’s end, up 11%. Despite the slump in 2009, the segment ismanaging a respectable CAGR of 12% between 2006 and 2010, primarily due to strong growth in the biorenewable lactic acid market. SBI Energy calculates thatglycerin and lactic acid together will make up 96% of the platform biorenewable chemicals market in 2010.From $232 million in 2006, the intermediate biorenewable chemicals market grew to $486 million in 2008, a growth of 110% caused by unprecedented biobutanolsales. SBI Energy forecasts the intermediate biorenewable chemicals market to reach an estimated $575 million in 2010 as all major categories within the segmentapart from biobutanol are expected to show growth. Polylactic acid and PHA are the key biorenewable chemicals in the segment, capturing 72% of the market in2009.The U.S. and European Union were the top two biorenewable chemicals markets in 2009, capturing 22% and 19% of product sales respectively. Both regionswere strong markets for almost all types of biorenewable chemicals, but it is the larger sales of polymers such as PLA and PHA in the U.S. keeping the country asthe top biorenewable chemicals market. China continues to be a strong market for glycerin and lactic acid, but has yet to become a strong contender for otherbiorenewable chemicals segments such as bio-based polymers.Biorenewable Chemicals World Market provides key insight into current and future markets for biorenewable chemicals worldwide, with a particular emphasis onthe U.S. market. The report analyzes the key industries that make use of biorenewable chemicals for their end products. These include bioplastics, cleaners,solvents and adhesives. The report analysis also includes definitions, current product offerings and market details on platform biorenewable chemicals (PBC) andintermediate biorenewable chemicals (IBC).About SBI EnergySBI Energy, a division of, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets.SBI Energy also offers a full range of custom research services.Additional MaterialsThe impact of Braskem’s new bioethylene production
  4. 4. by SBI Analyst, Norman DeschampsNovember 8th, 2010The thermoplastic resin and petrochemical producer Braskem is poised to radically alter the intermediate biorenewable chemical market, with production starting atits new bio-based ethylene plant in Triunfo, Brazil. After just three years from project announcement, the new facility started production in September 2010. Atmaximum capacity, the Braskem plant will produce enough bioethylene to manufacture 440 million pounds/year of bio-based polyethylene, one of the mostcommon plastics in the world.This amount of production is huge in the bioplastic world but is really only a minor fraction of the total polyethylene (PE) market; in 2009 the U.S. alone produced36.7 billion pounds of high density and low density polyethylene plastics. But this is good news for Braskem. Even if the company was able to ramp up to fullproduction capacity instantaneously, the PE market is large enough to easily absorb the production if Braskem’s product is competitive.And Braskem’s product is competitive. First, the bio-PE that Braskem is producing is priced comparably with petroleum-based PE. Secondly, the bio-basedplastic is mechanically equivalent to what product manufacturers are using now. This means no retooling on the product manufacturer’s part is required to switchto the biorenewable PE version Braskem is now offering.In fact, even before the plant had started production Braskem had already signed Toyota and Proctor & Gamble on as customers for its bio-based resins. Andnow that production is actually underway, Braskem has received invitations from four other companies in four different countries to implement similar projectsaround the world. Braskem itself is also planning to announce a new “green” PE project by the end of the year.All of these factors point to Braskem quickly gaining a foothold in the bioplastic space and giving the company incentive to expand its biorenewable chemicalproduction. Production of bioethylene could swamp production of other intermediate biorenewable chemicals such as polylactic acid (PLA) andpolyhydroxyalkanoate (PHA) also used to make bio-based plastics. What First Solar has done for the solar cell industry by providing cheap and plentifulphotovoltaic cells and dominating the market, Braskem may now be doing for biobased plastics.Table of ContentsChapter 1: Executive Summary Key Biorenewable Chemicals The World Biorenewable Chemicals Market Regional Breakdown of BRC Production and Market Platform Biorenewable Chemicals Market Figure 1-1: World Platform Biorenewable Chemical Market, 2006-2010 (in million $) Glycerin World Market Table 1-1: World Glycerin Market, 2006-2010 (in million $) Lactic Acid World Market Succinic Acid & Other Platform Chemicals Intermediate Biorenewable Chemicals Market Figure 1-2: World Intermediate Biorenewable Chemical Market, 2006-2010 (in million $) Polylactic Acid World Market Polyhydroxyalkanoates (PHA) World Market 1,3-Propanediol World Market Biobutanol World Market Using Bioethylene for Bio-Based Polymers Other Intermediate Biorenewable Chemicals Biorenewable Chemical Market Forecast Figure 1-3: World Biorenewable Chemical Market Forecast, 2011-2015 (in million $) Platform Biorenewable Chemicals Forecast Table 1-2: Platform Biorenewable Chemical Production Forecast, 2011-2015 (in million pounds) Intermediate Biorenewable Chemicals Forecast Table 1-3: Intermediate Biorenewable Chemical Production Forecast, 2011-2015 (in million pounds) Biorenewable Chemical Companies Manufacturing Trends Figure 1-4: Monthly U.S. Biorenewable Producer Price Indexes, 2006-2010 (index) Financial Trends Market Forces Table 1-4: Biorenewable Chemical Market Drivers & Barriers Biorenewable Chemical Applications Bioplastic Applications Figure 1-5: Bioplastic Production Capacity by Region, 2008 (in percentage)
  5. 5. Bio-Based Cleaners and Detergents Bio-Based Solvents Research & Development Trends for Biorenewable Chemicals Table 1-5: Federal U.S. Funding for Biorenewable Chemical R&D, 2010 (in million dollars) Regulations & StandardsChapter 2: Defining Biorenewable Chemicals Scope of this Report Figure 2-1: Bioprocesses and Chemical Processes to Produce Bio-Based Products Methodology Description of Key Terms Bio-Based Chemicals versus Petroleum-Based Chemicals Figure 2-2: Flow Chart for Products from Petroleum-Based Feedstocks Figure 2-3: Pathway of Feedstock to Market for Bio-Based Products Platform Biorenewable Chemicals Table 2-1: Potential Biorenewable Platform Chemicals Lactic Acid Glycerin Succinic Acid Intermediate Biorenewable Chemicals Polylactic Acid Polyhydroxyalkanoates (PHA) 1,3-Propandiol The Biorenewable Chemicals Product Chain Figure 2-4: The Bioproduct Market Pyramid End-Use Applications for Biorenewable Chemicals The Bio Refinery: Mimicking Petroleum-Based Production Figure 2-5: Multi-Product Biorefinery Industrial Biotechnology & Bio-Based Chemicals Biomass Feedstocks Biomass Generations Table 2-2: Potential Biorenewable Platform Chemicals Sugar Feedstocks Starch Feedstocks Oils Lignocellulosic Biomass Food versus FuelChapter 3: The Market The World Biorenewable Chemicals Market Figure 3-1: World Biorenewable Chemical Market, 2006-2010 (in million $) Key Biorenewable Chemicals Figure 3-2: Current Adoption and Future Potential of Key Biorenewable Chemicals, 2010 Pricing Trends for Biorenewable Chemicals Table 3-1: Lactic Acid & Glycerin Pricing, 2006-2010 (in $/lb) U.S. and Europe are production leaders Figure 3-3: World Biorenewable Chemical Production, 2009 (in million pounds) U.S. and Europe Remain as Top Markets Figure 3-4: World Biorenewable Market by Country, 2009 (in percentage of world market) Chemicals versus Fuels for Biorenewable Manufacturing CompaniesPlatform Biorenewable Chemicals Market Figure 3-5: World Platform Biorenewable Chemical Market, 2006-2010 (in million $) Glycerin World Market Figure 3-6: World Glycerin Market, 2006-2010 (in million $) Production Figure 3-7: World Raw Glycerin Production, 2006-2010 (in million pounds) Figure 3-8: World Refined Glycerin Production, 2006-2010 (in million pounds) Lactic Acid World Market Figure 3-9: World Lactic Acid Market, 2006-2010 (in million $) Table 3-2: Exports of Lactic Acid by Country, 2006-2010 (in million pounds) Production Figure 3-10: World Lactic Acid Production, 2006-2010 (in million pounds) Succinic Acid World Market Production Table 3-3: Current & Future Biorenewable Succinic Acid Production Facilities, 2010 (nameplate capacity in million pounds/year) Other Platform Chemicals
  6. 6. Table 3-4: Potential Biorenewable Platform Chemicals Other Promising Platform Chemicals Looking Ahead to 2015Intermediate Biorenewable Chemicals Figure 3-11: World Intermediate Biorenewable Chemical Market, 2006-2010 (in million $) Polylactic Acid World Market Figure 3-12: World Polylactic Acid Market, 2006-2010 (in million $) Production Table 3-5: Current & Future PLA Production Facilities, 2010 (nameplate capacity in million pounds/year) Polyhydroxyalkanoates (PHA) World Market Figure 3-13: World PHA Market, 2006-2010 (in million $) Production Table 3-6: Current & Future PHA Production Facilities, 2010 (nameplate capacity in million pounds/year) 1,3-Propanediol World Market Production Biobutanol World Market Table 3-7: Biobutanol Production in China, 2006-2010 (in million pounds and million $) Using Bioethylene for Bio-Based Polymers Other Intermediate Biorenewable Chemicals Table 3-8: Potential Biorenewable Platform Chemicals Butanediol Isobutanol Methyl Ethyl Ketone (MEK)Market Forces & Forecast Figure 3-14: Biorenewable Chemicals Market Drivers & Barriers Market Drivers for Biorenewable Chemistry Moving Away from Petroleum Dependency Increased Consumer Environmental Responsibility Increased Environmental Responsibility of Manufacturers Support from Policy and Regulations Market Barriers for Biorenewable Chemistry The Traditional Petroleum-Based View of the Chemical Industry Lack of Funding Production Process Issues High Production Costs Land Use Concerns Biorenewable Chemical Market Forecast Figure 3-15: World Biorenewable Chemical Market Forecast, 2011-2015 (in million $) Platform Biorenewable Chemicals Forecast Figure 3-16: World Platform Biorenewable Chemical Market Forecast, 2011-2015 (in million $) Table 3-9: Platform Biorenewable Chemical Production Forecast, 2011-2015 (in million pounds) Intermediate Biorenewable Chemicals Forecast Figure 3-17: World Intermediate Biorenewable Chemical Market Forecast, 2011-2015 (in million $) Table 3-10: Intermediate Biorenewable Chemical Production Forecast, 2011-2015 (in million pounds)Chapter 4: Biorenewable Chemical Applications Figure 4-1: Summary Assessment Matrix of Biobased Products for U.S. Markets, 2008 Consumers Want Bio-Based Products Applications for Bio-Based Plastics & Polymers Figure 4-2: U.S. Plastics Consumption by Market Segment, 2009 (in percentage) The Market for Bio-Based Plastics Figure 4-3: Bioplastic Production Capacity by Region, 2008 (in percentage) Types of Bioplastics Table 4-1: Comparison of Bioplastic Characteristics Bio-Based Plastics for Packaging Bioplastic Fibers BIOFRONT Ready to Take the Heat Table 4-2: Bayer Ecotrekker Biorenewable Plastics Use Cleaners & Detergents Using Bio-Based Chemicals Table 4-3: Product Categories for the Soaps, Detergents & Maintenance Products Market, 2010 The Cleaners and Detergents Market Figure 4-4: European Market Breakdown of Soaps, Detergents & Maintenance Products, 2009 (in percentage) Bio-Based Soaps and Detergents Solvents Solvent Applications Market Bio-Based Solvents Table 4-4: Bio-Based Solvents, 2010
  7. 7. Adhesives & Sealants Market Bio-Based Adhesives NeutraceuticalsChapter 5: Biorenewable Chemical Trends Patents Trends for Biorenewable Chemistry Table 5-1: U.S. & European Biorenewable Product Patents, 2009-2010 Recent Biorenewable Chemistry Patents European Patent System Lags the U.S. for Effectiveness Biorenewable Chemistry Benefits from Biotechnology Patent Advocacy Financial Trends for Biorenewable Chemical Companies Biorenewable Chemical Firms are Undervalued Initial Public Offerings are Scarce Table 5-2: Biorenewable Company Initial Public Offerings, 2010 Venture Capital Spending Up in 2010 Table 5-3: VC Funding of Biorenewable Chemical Companies, 2009-2010 Partnering is a Key Strategy for BRC Companies Research Funding & Trends The Engineering Research Center for Biorenewable Chemicals DOE & USDA Funding Table 5-4: Federal U.S. Funding for Biorenewable Chemical R&D, 2010 (in million dollars) Funding in Europe Table 5-5: 7th Framework Programme Funding for Biorenewable Chemical R&D, 2010 (in million euro) Biochem versus Biofuel for Funding Using Cellulose & Lignin Based Feedstocks Table 5-6: Planned U.S. Biorenewable Chemical Refineries as of 2010 Plants as chemical factories Manufacturing Trends Bio Feedstocks versus Petroleum Feedstock Figure 5-1: Monthly World Biomass Feedstock Prices, 2006-2010 (in dollars/short ton) Figure 5-2: Monthly World Biomass Feedstock & Petroleum Price Indexes, 2006-2010 (index, 100 = January, 2006) Manufacturing Costs for Biorenewable Chemicals Figure 5-3: Monthly U.S. Biorenewable Producer Price Indexes, 2006-2010 (index) Biorenewable Chemicals Regulations & Standards Regulations in the U.S.: USDA BioPreferred Program Regulations in the U.S.: Other Biorenewable Chemical Initiatives Regulations in the U.S.: Updating the TSCA Regulations in the European Union: Bio-based Products Lead Market Initiative Figure 5-4: Policies & Regulations Affecting the Bio-Based Product LMI, 2010 Regulations in the EU: REACH The ACS Develops a Market-Wide Green Chemistry StandardChapter 6: Biorenewable Chemical Companies Partnerships Table 6-1: Current Biorenewable Chemical Company Partnerships Archer Daniels Midland Overview Performance Figure 6-1: ADM Revenue, FY2007-FY2010 (in billion $) Table 6-2: ADM Biorenewable Chemicals, 2010 Production New Developments DNP Green Technology Overview Performance Production New Developments DuPont Overview Performance Figure 6-2: DuPont Revenue, 2006-2009 (in billion $) Table 6-3: DuPont Biorenewable Chemical Products, 2010 Production New Developments Genomatica
  8. 8. Overview Performance Production New Developments Gevo Overview Performance Figure 6-3: Gevo Revenue, 2006-2009 (in thousand $) Production New Developments Metabolix Overview Performance Figure 6-4: Metabolix Revenue, 2006-2009 (in million $) Production New Developments NatureWorks Overview Performance Production New Developments Procter & Gamble Overview Performance Figure 6-5: P&G Revenue, FY2007-FY2010 (in billion $) Production New Developments Purac Overview Performance Figure 6-6: Purac Revenue, 2006-2009 (in million $) Production New DevelopmentsAppendix A: Acronyms Used in the ReportAppendix B: Company Contact InformationAvailable immediately for Online Download at 800.298.5699UK + +1.240.747.3093Fax: 240.747.3004