BioSight up to 2025: Changes in supply and demand affecting the global bio-based chemical industry

Pöyry has produced a report, ’BioSight up to 2025’ forecasting both the supply and demand trends in the bio-chemicals sector through to 2025 which confirms that the bio-based chemicals sector is a growing, global market.

In the report, Pöyry introduces its concept for structuring the bio-chemicals sector. Chemicals are divided into sugar, oil, lignin and gas platforms according to their feedstock. These platforms form the basis of the extremely broad spectrum of end-uses including automotive, electronics and packaging.

Pöyry has forecast business opportunities over the coming years for each of the four platforms. First, Poyry’s experts found that whilst the oil and fat platform is the most mature, sensibilities around sustainability arguments mean future supply is uncertain. In the coming years, Pöyry believes that the European market will invest effort in supplying lignin. The report makes this assessment on the basis that lignin is currently underused but is a market enabler for lignocellulose sugars and therefore has potential for significant growth.

Pöyry point out that there is a lack of solid understanding of the demand side and the added value of bio-based components. During the study, Pöyry did an estimation of bio-based plastics as a large end-use by itself for bio-based chemicals, representing approximately 900 kt in 2013. Demand for bio-based plastics is increasingly brand driven and many leading consumer brands have set targets for introducing bio-based plastics to their products. However, despite rapid growth rates, bio-based plastics will account for less than 2% of the total plastics demand in 2025. The question is whether this would be typical of an analysis of any other bio-based product.

Pöyry expect changes to supply and demand to affect the various geographical hubs that dominate the biochemicals industry. Asia leads global production and is expanding thanks to significant government support. Globally, North America, Europe and Brazil all compete with their different competitive advantages.

Pöyry admit that the bio-based chemical and polymer industry is complex and a tough business to forecast. However, the Pöyry ’BioSight up to 2025’ addresses these and many other significant market issues. The report offers an insight into the bio-based chemical business, providing value to investors and companies active in the financial sector, forest and agricultural industries, chemical industry, end-users and brand owners as well as to authorities and government agencies.

For the detailed press release, please click here.