Bio-plasticizers Market Report 2024 (Global Edition)

Market Dynamics of the Bio Plasticizers Market

Key Drivers of the Bio Plasticizers Market

• The rise in various industries like automotive, construction, and packaging, helps the market grow.

The market for bio-plasticizers is expected to increase as a result of the expansion of several industries, including agriculture, transportation, building, packaging, textiles, and automobiles. In the upcoming years, the market will grow due to these industries' growing adoption of bio-plasticizers made from raw materials such as soybeans, linseed, and castor oils. 
Within the bio-plasticizer market, consumer goods are one of the fastest-growing segments. Growing per capita incomes in industrialized and some developing nations, such as those in Central America and the Asia-Pacific region, are driving up demand for fast-moving consumer goods. The global market for bio-plasticizers is being driven mostly by strict regulations governing conventional plasticizers. 
Organic fabric softeners that are eco-friendly and derived from natural, renewable resources are becoming more and more popular with consumers. 
The National Institute of Advanced Industrial Science and Technology (AIST) in Japan is collaborating to introduce biodegradable, eco-friendly, hypoallergenic, non-toxic bio-softening goods. This is only one example of an initiative that is progressing across the Asia-Pacific region. (Source:https://www.aist.go.jp/index_en.html).
Throughout the projected period, initiatives like "Made in India" are anticipated to boost domestic bio-plasticizer production and support market expansion. In line with international sustainability goals, these partnerships and projects seek to increase the production and use of bio-plasticizers.

• The technological innovation in green Chemistry can help the market to grow

Green chemistry's primary objective is to develop processes and goods that maximize sustainability and efficiency while having the fewest adverse consequences on the environment. In terms of bio-plasticizers, this innovation is the development of novel, ecologically friendly additives derived from plant oils or biomass. These advancements address problems associated with conventional plasticizers made from petroleum by offering safer and more ecologically friendly substitutes. Green chemistry allows for the production of bio-plasticizers with higher performance attributes, such as enhanced flexibility, durability, and compatibility with various polymers, at a significantly lower environmental effect.
These developments also encourage the hunt for more efficient industrial processes that produce less waste and require less energy. As technology develops, researchers are going deeper into molecular design to make sure that bio-plasticizers match specific industry standards and application needs. This cycle of ongoing innovation expands the selection of bio-based additives that are available, lowers costs, and increases the overall competitiveness of these sustainable alternatives in the market. 
•    For instance, according to the report by Nature, Currently produced at a scale of less than two million tonnes annually, 100% bio-based bioplastics are thought to be a component of future circular economies to help achieve some of the Sustainable Development Goals (SDGs) of the United Nations (UN). These goals include utilising less toxic reagents and solvents in production processes, recycling or degradation pathways that are novel, and a shift away from fossil fuels.

(Source:https://www.nature.com/articles/s41578-021-00407-8)

Restraint of the Bio Plasticizers Market

• The high cost of bio-plasticizers can hamper the market.

One major obstacle facing the business is the rising cost of bio-plasticizers. The cost and availability of essential raw materials, such as castor oil, succinic acid, and soybean oil epoxidized (ESBO), which are the main inputs for the creation of bio-plasticizers, have a significant impact on the price of these bio-based alternatives. 
The dynamics of global supply and demand, variations in stocks, the growing need for castor oil across multiple industries, competition from other key crops, and the unpredictability of weather patterns are some of the factors affecting the cost of these materials obtained from oilseeds. The complex interactions between these factors influence the price volatility of oilseeds, which in turn affects the price of bio-plasticizers. These essential basic elements are used in many different industries, including the production of bio-plasticizers. These raw materials are essential to the production of bio-plasticizers and are used in a wide range of sectors, including plastics, paints, lubricants, and pharmaceuticals. However, the slow worldwide production of these plant sources, especially in China, Brazil, and India, is expected to drive up the cost of derivatives and seeds derived from castor oil even more on the international market. 
Price sensitivity to any drop in crop production is heightened by the growing global demand for castor oil as a substitute for petroleum-derived products in industries such as paper, plastics, and nylon, especially in India. Any decrease in crop output in this important production zone inevitably impacts costs and could have repercussions for other companies that depend on these bio-based commodities.
Essentially, the cost-effectiveness of bio-plasticizers is challenged by the unstable nature of oilseed prices and the increasing demand for these materials across multiple industries. It is difficult for the market to manage a balance between the desire for sustainable alternatives and the viability of producing them economically, particularly in light of price and availability swings for raw materials.
•    For instance, according to the article by Plastemart, one major issue facing the bio-plasticizer market is the higher cost of these materials when compared to plasticizers based on phthalates. When compared to conventional plasticizers, these bio-plasticizers have several advantages in terms of electrical and thermal performance when utilized in the cable manufacturing process.

(Source:https://www.plastemart.com/plastic-technical-articles/ban-on-phthalate-based-plasticizers-in-consumer-goods-food-packaging-and-medical-products-leads-to-development-of-bio-based-alternatives/2355#:~:text=Higher%20cost%20of%20bio%2Dplasticizers,as%20compared%20to%20traditional%20plasticizers)

Impact of the COVID-19 on the Bio Plasticizers Market

The COVID-19 outbreak has negatively impacted the worldwide bio-plasticizers industry in the first half of 2020. This is a result of the government's shutdown of several beneficial activities during the pandemic. The market for bio-plasticizers has suffered as a result of the decline in demand for bio-plasticizers based on cables, wires, floors, and wall coverings due to the imposition of lockdown by the government. The need for packaging has, however, increased due to the food and e-commerce sectors, which is expected to benefit the packaging materials made of bio-plasticizers and the market's growth throughout. 

Opportunities of the Bio Plasticizers Market.

• The use of bio-based plastics in various industries as an alternative option to metals can create new opportunities for the market.

One of the main factors driving the global demand for bio-plasticizers is the growing use of bio-based plastics in transportation and automotive applications as an alternative to metals and alloys. Packing materials is one of the most common applications for bio-plasticizers. 
Packaging solutions are being drastically changed by the emergence of bio-based plastics, especially in the food, beverage, and pharmaceutical industries. Bio-plasticizer polymers are gradually replacing traditional composite plastics like PET and PC in packaging for toys, apparel, consumer products, beverages, and electronics.
The use of bio-plasticizers, particularly in packaging, is greatly aided by the rise in consumption that is occurring in both developed and developing countries. This offers exciting potential, especially in the beverage packaging industry where bioplastics offer substantial advantages over conventional materials and require comparatively less volume.
Bio-plasticizers have particularly promising uses in packaging, where they can meet the increasing need for eco-friendly solutions. Bio-based plastics are becoming more and more popular as viable substitutes, which opens up new avenues for innovation and market growth, especially in the packaging sector across many industries. 
•    For instance, according to the report by Research Gate, bio-based plasticizers have come to be seen as necessary additives that can be added to the production of biodegradable polymers to greatly increase the applications of bio-based packaging.

(Source:https://www.researchgate.net/publication/354484355_Developments_of_biobased_plasticizers_for_compostable_polymers_in_the_green_packaging_applications_A_review)

Recent Development

•    On 23 March 2021, Evonik aimed to generate additional sales of around USD 381.20 million by 2030 with a solution for circular plastics. 

•    On 9 March 2021, Evonik Industries created a biobased polyamide for the optical sector. The optical sector will make use of this translucent, ecological polyamide. The purpose of this action was to lessen the carbon footprint. 

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