biobased propylene Market

The biobased propylene market is expected to be valued at US$ 63.71 million in 2023 and is projected to reach US$ 83.69 million by 2028; it is expected to grow at a CAGR of 5.6% from 2023 to 2028.

The biobased propylene market is expected to experience growth due to the rising demand for bioplastics caused by growing environmental awareness. Biobased propylene is produced from renewable sources and is primarily utilized for the production of biobased polypropylene. The increased demand for biobased polypropylene is expected to have a beneficial effect on the biobased propylene market.

The global biobased propylene market is segmented based on derivative, with polypropylene, propylene oxide, acrylonitrile, cumene, and others being the key segments. The acrylonitrile segment is anticipated to register the highest growth rate during the forecast period. The production of acrylonitrile is primarily achieved through a catalytic reaction of propylene in conjunction with ammonia and air. The growing use of acrylonitrile in the aviation and medical sectors is driving up its demand. Furthermore, increased attention on creating low CO2 emission products is driving the need for biobased acrylonitrile, resulting in increased emphasis on biobased propylene development.

The global biobased propylene market is categorized based on geography into North America, Europe, Asia Pacific (APAC), South and Central America (SCAM), and the Middle East & Africa (MEA). The APAC region is projected to exhibit the fastest growth rate in the biobased propylene market. This can be attributed to the growing government support and initiatives taken by manufacturers to explore the usage of biobased propylene in the production of polypropylene, in response to rising concerns about greenhouse gas emissions and global warming. These factors are expected to have a positive impact on the growth of the biobased propylene market in the region.

The COVID-19 pandemic posed unprecedented challenges to various industries, including chemicals and materials, due to factors such as labor and raw material shortages, factory shutdowns, and operational difficulties under safety protocols. As a result, the biobased propylene market was negatively impacted. The research and development of biobased propylene were also affected by the pandemic-induced lockdown, which hindered market growth. However, with the introduction of COVID-19 vaccines, the situation has eased, and business activities are resuming globally. As a result, the demand for biobased propylene is predicted to increase in the coming years. Additionally, due to an overreliance on the gasoline and diesel markets, manufacturers are increasingly prioritizing the development of biobased propylene from renewable sources.

Mitsui Chemicals, Inc.; Borealis AG; Global Bioenergies; The Dow Chemical Company; Cereplast, Inc.; and Trellis Earth Products, Inc. are among the leading players in the biobased propylene market. These companies are adopting strategies such as mergers & acquisitions and product launches to expand their geographic presence and consumer bases.

The global biobased propylene market size has been determined using both primary and secondary research methods. The research process began with an extensive secondary research effort that utilized internal and external sources to gather qualitative and quantitative information relevant to the market. Subsequently, multiple primary interviews were conducted with industry experts such as VPs, business development managers, market intelligence managers, national sales managers, as well as with external consultants, including valuation experts, research analysts, and key opinion leaders, who specialize in the global biobased propylene market. The purpose of these interviews was to validate the data and gain deeper analytical insights into the subject.