• Categories Cloud
    This will be shown to users with no Flash or Javascript.
  • Directory Statistics
    • Active Links: 110832
    • Todays Links: 0
    • Active Articles: 4129
    • Todays Articles: 0

Trusted Site Seal

Error. Page cannot be displayed. Please contact your service provider for more details. (19)

Free Directory SubmitArticle Details

Biorenewable chemicals market to be worth US$6.8 bln by 2015 at a CAGR of 22.8 %, Bio Based Polymers

Date Added: June 02, 2011 10:36:56 AM
Author: Plastemart
Category: Business & Economy: News and Media

Increasing environmental awareness on the part of product manufacturers and the desire to reduce dependency on oil are the leading drivers behind the US$2.4 bln 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, as per SBI Energy. By 2015, the BRC market will be worth US$6.8 bln, a CAGR of 22.8% between 2010 and 2015. The largest region for BRC sales continues to be the U.S., which captured 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 the market. 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 succinic acid. Compared to the platform chemicals market, the intermediate biorenewable chemicals (IBC) market is much more nascent, particularly in relation to its potential. In 2010, IBCs accounted for US$574.9 million of the BRC market; however this will grow to US$2.5 billion in 2015 and account for 37% 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 manufacture bio-based plastics. The world market for succinic acid was approximately 66 mln lbs in 2009, of which less than 5% was produced from bio-based feedstock. Biorenewable succinic acid is just entering the marketplace, but by 2015, will account for two thirds of the estimated 200 mln lbs pa global succinic acid market. Approximately 30% of succinic acid is used for pigments and coatings, following by use in the plating industry and pharmaceuticals as the next largest markets. SBI Energy also expects to see environmentally friendly de-icers becoming 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 see 3-hydroxypropanoic acid (3-HPA) and acetic acid achieving production volumes greater than 45 mln lbs pa by 2015, primarily due to strong R&D programs from Cargill and WACKER respectively. Various companies (primarily in the U.S. and Europe) have moved past the laboratory to the pilot plant stage for isosorbide, isoprene, levulinic acid, and adipic acid. For these platform organic chemicals, production will continue to be a very limited affair, with volumes well below 20 mln lbs pa for the foreseeable future. Revenue of PHA worldwide reached an SBI Energy estimated US$107.8 mln in 2009, up 21% from US$89.1 mln in 2008, and is expected to reach US$150.3 mln for 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% between 2006 and 2010. The largest barrier for PHA to gain market share is high manufacturing costs which are still much higher than other polymers. Manufacturing Trends: Three of the most widely used biomass feedstocks currently in use, corn, soybean oil and palm oil, have all stabilized in price since the turbulent prices experienced in 2008 and the first part of 2009. Average world soybean oil prices peaked at US$1283/ton in June 2008, with peaks occurring for palm oil and maize in March 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 of 2008. Since that time, prices have stabilized to summer of 2007 levels, with palm oil and soybean oil both selling at approximately US$725/ton and maize at US$147/ton. Production costs for biorenewable chemicals have held remarkably steady according to the U.S. Bureau of Labor Statistics production price index (PPI) for biorenewable chemical manufacturing, up only 3.4% in July 2010 as compared to December 2008. The results are similar to production price indexes for wet corn milling and soybean and other oilseed processing, which would be a significant part of any bio-based chemical manufacturer’s production costs. Steady growth in the two largest biorenewable chemical market segments, in addition to key regulatory and research developments, will spur the industry to a high of US$7 bln in 2015, more than twice the anticipated 2011 market value of almost US$3 bln. "The ever increasing price of oil is not the only driver pushing sales in the biorenewable chemicals market.Read more..
Ratings Average rating: (0 votes)

No Comments Yet.

Visual Confirmation Security Code

*Enter the code shown:  

  • Help
  • Featured Website
  • Natural Skin Care - Expederm
  • Twitter Ticker
    Twitter icon

    My tweets

  • Latest Links
  • Latest Articles
    Rudimentary Criteria In Roofing Described
    Examining Systems Of Roofing, The Options For Root Criteria For Roofing, Compared - Roofing Solutions, Thinking About Core Factors For Roofing