The global market for bio-based esters is anticipated to grow at a CAGR of 9% during the forecast period of 2024 to 2032. Esters have so many potential applications, including as platform chemicals in bio-based fuels, plastic monomers, fragrances, flavors, and solvents, metabolic engineering for the synthesis of bio-based esters has recently attracted a lot of attention. Esters that are produced from carboxyl acid are by far the most common. These esters are the product of a reaction between alcohols and carboxylic acids that takes place in the presence of sulfuric or hydrochloric acid. Bio-based esters are esters that originate from natural resources such as soybeans, maize oil, canola oil, and palm oil. Other examples of bio-based esters are stearic acid and oleic acid.
Increased Demand for Environment-Friendly Solution Remains the Key Driver
The need for bio-based components is being driven by the growing popularity of recyclable plastics as a solution to the problem of waste caused by plastics. The bio-based esters provide the plastic with superior material strength while having a negligible effect on the surrounding environment. Because of this, the market for bio-based esters is growing rapidly all over the world. Esters derived from biological sources are utilized in a wide variety of applications, including but not limited to paints and coatings, personal care products, lubricants, plastics, construction, textiles, and paper. The global market for bio-based esters is dominated by the paints and coatings industry as well as the plastics sector.
Increasing Demand from End User Industries Boosting Market Revenues
The rapid expansion of the paints and coatings business can be attributed to the expansion of related industries such as public works, real estate, and building and construction. Specifically, this expansion has occurred in the United States. It is anticipated that an increase in concerns regarding the high VOC content of synthetic solvents, as well as a growth in awareness among end-users about the use of environmentally friendly products, will drive the demand for environmentally friendly, also known as green, solvents across the globe. Both final customers and manufacturers of personal care products are worried about the environmental impact that different goods and the substances in those products have. The demand for sustainable products in the global personal care market is being driven by an increase in the amount of awareness that is being spread about the negative consequences of synthetic components.
Paints and Coatings Are to Remain as the Key Application Segment
In 2023, the paints and coatings segment held the largest share of the market. This was primarily attributable to an increase in environmental concerns regarding the utilization of chemical-grade industrial solvents with a high volume of volatile organic compounds (VOC) in paints and coatings solutions. Awareness regarding the effects of chemical-grade industrial solvents on both the environment and human health is growing across the globe. This is one of the primary factors that is driving demand for bio-based alternatives in fundamental applications like paints and coatings as well as adhesives in end-use industries like the automotive and construction industries. As a result of the COVID-19 pandemic, bio-based esters were utilized by several key businesses in the industry as an important solvent in the production of paints and coatings. This was possible due to the antiviral qualities that these esters possess. During the forecast period, it is anticipated that the segment will continue to have a leading position.
North America Remains as Global Leader, APAC to be the Most Lucrative Investment Destination
In the year 2023, North America was the most dominant region contributing the largest to the global market revenues of biobased esters. North America is followed by Europe and the Asia Pacific. North America is driven by an increase in the demand for environmentally friendly products, such as solvents, for use in paints, coatings, and industrial applications, which is being driven by stringent environmental norms in the United States. Demand for solvents is being fuelled by the robust expansion of the construction industry, particularly in the United States, which is being backed by the country's overall economic expansion. It is anticipated that the market for bio-based esters will expand at the highest rate in the Asia Pacific during the forecast period of 2024 to 2032. The market in the region is being aided by an increase in consumer interest in luxury personal care goods. Demand in this region is being driven by the growing consumption of bio-based esters in countries such as China, Japan, and Korea, as well as Thailand, Taiwan, Singapore, and Malaysia. It is anticipated that there will be a significant uptick in demand for esters derived from biomaterials in the Asia Pacific region. The expansion of infrastructure in countries like China and India, as well as an increase in both public and private investments, is driving up demand for solvents in the paints and coatings industry in the Asia Pacific region. Demand for environmentally friendly solvents in the region is anticipated to increase as a result of government actions aimed at lowering the environmental concerns posed by petroleum-based solvents with high VOC concentrations. It is anticipated that the demand for bio-based esters in the Asia Pacific region will increase over the period covered by the forecast due to the aforementioned factors.
Price to Determine the Market Share of the Competitors
The biobased esters market is significantly consolidated with key players dominating the market. However, the growth in the market is expected to encourage new regional players, who can cater to the needs of the customers in their region. However, pricing will be the key competitive factor that is expected to decide the success of companies in this market. Key companies in this segment include Cargill, Incorporated, Arkema Inc., BASF SE, Vertec BioSolvents, Solvay, Huntsman Corporation, BIOAMBER S.A.S., Spak Orgochem, Mangalam Organic Ltd., Ester Industries Ltd., Esters and Solvents LLP, ChemCeed, Palmer Holland Inc., The Chemical Co., Kowa American Corp., Allan Chemical Corp. And Other Notable Players.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Bio-based Esters market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Key questions answered in this report
