Bio Based Esters Market Overview
As per MRFR analysis, the Bio Based Esters Market Size was estimated at 5.03 (USD Billion) in 2022.The Bio Based Esters Market Industry is expected to grow from 5.3(USD Billion) in 2023 to 8.5 (USD Billion) by 2032. The Bio Based Esters Market CAGR (growth rate) is expected to be around 5.38% during the forecast period (2024 - 2032).
Key Bio Based Esters Market Trends Highlighted
The bio-based esters market is experiencing a surge in demand due to growing concerns over the depletion of fossil fuels and the environmental impact of traditional esters. Key market drivers include the rising adoption of bio-based products in various industries, government initiatives promoting sustainability, and the increasing availability of cost-effective, high-performing bio-based esters.
Opportunities to be explored include the development of bio-based esters with enhanced properties, such as improved biodegradability, thermal stability, and oxidative resistance. The trend towards circular economy initiatives is also creating opportunities for bio-based esters derived from waste feedstocks.
Recent trends in the bio-based esters market include the growing demand for bio-based polyols, which are used in the production of polyurethane foams and other applications. The market is also witnessing the emergence of new technologies, such as enzymatic catalysis, for the production of bio-based esters.
Figure1: Bio Based Esters Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Bio Based Esters Market Drivers
Increasing Environmental Concerns
Growing environmental consciousness among consumers and governments is driving the demand for sustainable and eco-friendly products. Bio based esters offer a viable alternative to petroleum based esters, as they are derived from renewable resources and have a lower carbon footprint. Their use in various applications, such as lubricants, plasticizers, and solvents, is gaining traction due to their biodegradability and reduced environmental impact. As environmental regulations become more stringent, the adoption of bio based esters is expected to accelerate, creating significant growth opportunities for the Bio Based Esters Market Industry.
Growing Demand from Automotive and Transportation Sector
The automotive and transportation sector is a major consumer of bio based esters, primarily used in lubricants and fluids. The rising demand for fuel efficient and environmentally friendly vehicles ising the adoption of bio based esters in this sector. Bio based esters offer advantages such as improved lubricity, reduced friction, and enhanced engine performance, making them a suitable choice for various automotive applications. The growing popularity of electric vehicles and hybrid vehicles is also expected to contribute to the demand for bio based esters, as they are compatible with these advanced powertrains.
Expansion of Applications in Industrial and Consumer Products
Bio based esters are finding increasing applications in a wide range of industrial and consumer products. In the industrial sector, they are used as plasticizers in the production of plastics, films, and coatings. Bio based esters offer advantages such as improved flexibility, durability, and resistance to chemicals. In the consumer sector, bio based esters are used in personal care products, cosmetics, and home care products. Their emollient and moisturizing properties make them suitable for use in skincare products, hair care products, and cosmetics.The expansion of applications in these sectors is expected to drive growth in the Bio Based Esters Market Industry.
Bio Based Esters Market Segment Insights
Bio Based Esters Market Product Form Insights
The Bio Based Esters Market is classified by product form into solid and liquid. The liquid segment dominated the market in 2023, and is expected to be the largest segment throughout the forecast period. The growth of the liquid segment is associated with the increasing demand for liquid bio based esters in applications including solvents, plasticizers, and lubricants. The solid segment is also expected to witness considerable growth during the forecast period as solid bio based esters have applications in the production of biodegradable materials including bioplastics.The market for solid form is expected to be value at USD 1.8 billion by 2032, registering a CAGR of 5.8%. The market for liquid form is anticipated to be value at USD 6.7 billion by 2032, with a projected CAGR of 5.2%. The rising demand for sustainable and eco-friendly products contributes to the growth of the bio based esters market. The ambiguity gutting petroleum-based esters has spurred the interest in alternative products which has been a major factor driving market growth. Aside from this, the increasing awareness of the environmental impact of petroleum-based esters has also increased demand for bio-based esters.Additionally, affirmative government regulations on the use of bio-based materials have easily facilitated the market. Notable companies in the bio based esters market include BASF SE, Cargill Incorporated, Evonik Industries AG, and Archer Daniels Midland Company. These companies have concentrated on research and development to discover new bio-based esters and their applications.
Figure2: Bio Based Esters Market, By Product Form, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Bio Based Esters Market Application Insights
The Bio Based Esters Market is segmented by Application into Gasoline Additives, Biodiesel, Plasticizers, Lubricants, and Solvents. In 2023, the Gasoline Additives segment held the largest market share of 35.5%, and is projected to reach USD 2.9 billion by 2032, exhibiting a CAGR of 5.8% during the forecast period. The Biodiesel segment is expected to see considerable growth, expanding at a CAGR of 6.1% to reach a valuation of USD 2.1 billion by 2032. The Plasticizers, Lubricants, and Solvents segments are the other notable application sections that contribute to the market’s overall growth.The Bio Based Esters Market’s growth is being intensified by the rising demand for bio-based products, as well as stringent environmental regulations and government benefits.
Bio Based Esters Market Feedstock Insights
Vegetable Oils (Palm Oil, Soybean Oil, Canola Oil), Animal Fats, Microalgae, Sugarcane, and Corn are the key feedstocks used in the production of bio-based esters. Among these, vegetable oils are the most widely used feedstock, accounting for over 80% of the bio-based esters market revenue in 2023. Palm oil is the most dominant vegetable oil used, followed by soybean oil and canola oil. The growth of the vegetable oil segment is driven by the increasing demand for biofuels and the favorable properties of vegetable oils, such as their high energy content and low emissions.Animal fats are another important feedstock, accounting for a significant share of the market. They are typically derived from animal byproducts, such as tallow and lard, and are used in the production of biodiesel. Microalgae, sugarcane, and corn are also gaining traction as feedstocks for bio-based esters due to their sustainability and cost-effectiveness.
Bio Based Esters Market End User Insights
The Bio Based Esters Market is segmented by End User into Automotive, Construction, Industrial, and Consumer Products. Among these segments, the Automotive segment is expected to hold the largest share of the market in 2023, owing to the increasing demand for bio-based esters in the production of lubricants, greases, and other fluids used in automotive applications. The Construction segment is also expected to witness significant growth in the coming years, as bio-based esters are increasingly being used as plasticizers and additives in building materials.The Industrial segment is expected to grow steadily, driven by the demand for bio-based esters in the manufacturing of paints, coatings, and adhesives. The Consumer Products segment is also expected to witness moderate growth, as bio-based esters are increasingly being used in personal care products, cosmetics, and cleaning products.
Bio Based Esters Market Regional Insights
The Bio Based Esters Market is segmented into North America, Europe, APAC, South America, and MEA. In 2023, North America held the largest share of the worldwide bio-based esters market. The region's significant consumption of bio-based esters in industries like automotive, paints coatings, and personal care is attributed to its dominance. The United States is a significant contributor to the regional market due to supportive government initiatives and a growing emphasis on sustainability. Europe is another important market for bio-based esters.The region's stringent environmental regulations and rising demand for renewable and sustainable materials are driving growth. In 2024, the market for bio-based esters in Europe is anticipated to be worth USD 1.8 billion. The growing use of bio-based esters in the transportation and manufacturing sectors is a key factor supporting the market's expansion. APAC is a rapidly expanding market for bio-based esters. The region's expanding population, rising disposable income, and expanding middle class are fueling demand for bio-based products. China is a significant market in the region, with a sizable automotive and manufacturing industry that uses bio-based esters.South America and MEA are anticipated to experience steady growth in the bio-based esters market, albeit with smaller market shares than the other regions. The growing awareness of sustainability and the existence of government policies promoting the use of bio-based materials are the main drivers of market expansion in these regions.
Figure3: Bio Based Esters Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Bio Based Esters Market Key Players And Competitive Insights
Key companies in Bio Based Esters Market are making significant investments in research and development to expand product portfolio and provide a competitive edge. The industry is highly competitive on account of the wide range of products currently on offer. The providers have formed a diverse range from majors to niche regional players. The leading Bio Based Esters Market companies work on expanding market share through investments, expansion, merger and acquisition, and new product development. Factors driving the development of the market are growing demand for sustainable and renewable products, stringent regulations regarding chemicals based on fossil fuels and technological advancements in biotechnology. The competition in the market is expected to remain dynamic over the next few years with new entrants in the market and innovations.Company one is Archer Daniels Midland Company. It is a prestigious company in the bio based esters market. Archer Daniels Midland Company is a US based company in the agricultural industry that also produces bio based chemicals. The company has a wide range of bio-based esters, products that range from lubricants, plasticizers to solvents. Over the years it has made significant investments to develop bio based products and provide sustainable alternative for customers. Archer Daniels Midland Company has an extensive range of product offerings and geographical market presence. This diversity adds to its competitive advantage and provides a comprehensive solution to its regional and customers. Over the years it has developed a solid approach to innovation and contributing to renewable and circular economy.Company two is BASF. BASF is a leading worldwide chemical company. It is a key player in bio based chemicals with a number of bio-based esters in its portfolio. These include plasticizers and lubricants. BASF is a leading company in the chemicals sector with strong emphasis on sustainability and innovation. Over the years it has tapped into the biotechnology potential and developed a number of sustainable products. BASF has operations and a very diverse set of products. It is a leading company in the Bio Based Esters Market.
Key Companies in the Bio Based Esters Market Include
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Cargill
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Toray Industries
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Lotte Chemical Corporation
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BASF
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Solvay
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Sekisui Chemical
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Arkema
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Evonik Industries
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Stepan
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Archer Daniels Midland Company
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PTT Chemical
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Eastman Chemical Company
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Indorama Ventures
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Mitsubishi Chemical Holdings Corporation
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Rennovia
Bio Based Esters Market Industry Developments
The bio-based esters market is projected to be valued at USD 6.6 billion in 2023, and is expected to reach USD 8.5 billion by 2032, exhibiting a CAGR of 5.38% during the forecast period. Increasing demand for bio-based and sustainable products, coupled with stringent environmental regulations, is driving the market growth. Bio-based esters find applications in various industries, including food, pharmaceuticals, cosmetics, and automotive, as solvents, plasticizers, and lubricants. Growing awareness about the environmental impact of traditional fossil fuel-based esters is further contributing to the demand for bio-based alternatives. Technological advancements in bio-based ester production methods, such as enzyme catalysis and fermentation, are also expected to support market growth. The market is expected to witness significant growth in the Asia-Pacific region, driven by increasing demand from emerging economies such as China and India.
Bio Based Esters Market Segmentation Insights
Bio Based Esters Market Product Form Outlook
Bio Based Esters Market Application Outlook
- Gasoline Additives
- Biodiesel
- Plasticizers
- Lubricants
- Solvents
Bio Based Esters Market Feedstock Outlook
- Vegetable Oils (Palm Oil, Soybean Oil, Canola Oil)
- Animal Fats
- Microalgae
- Sugarcane
- Corn
Bio Based Esters Market End User Outlook
- Automotive
- Construction
- Industrial
- Consumer Products
Bio Based Esters Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
5.03(USD Billion) |
| Market Size 2023 |
5.3(USD Billion) |
| Market Size 2032 |
8.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
5.38% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Cargill ,Toray Industries ,Lotte Chemical Corporation ,BASF ,Solvay ,Sekisui Chemical ,Arkema ,Evonik Industries ,Stepan ,Archer Daniels Midland Company ,PTT Chemical ,Eastman Chemical Company ,Indorama Ventures ,Mitsubishi Chemical Holdings Corporation ,Rennovia |
| Segments Covered |
Product Form ,Application ,Feedstock ,End User ,Regional |
| Key Market Opportunities |
Rising demand for green chemicals Growing ecofriendly consumer awareness Biobased esters biodegradable nature Expanding application in biofuels Growing popularity in pharmaceutical industry |
| Key Market Dynamics |
Increasing environmental concerns Government regulations Rising demand for sustainable products Technological advancements Growing awareness of biobased solutions |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Bio Based Esters Market is expected to reach a valuation of USD 5.3 billion in 2023.
The Bio Based Esters Market is projected to grow at a CAGR of 5.38% from 2023 to 2032.
The Asia Pacific region is expected to hold the largest market share in the Bio Based Esters Market in 2023.
Bio Based Esters are primarily used as solvents, plasticizers, and lubricants in various industries, including automotive, construction, and personal care.
Key competitors in the Bio Based Esters Market include BASF SE, Cargill, Incorporated, Evonik Industries AG, and Archer Daniels Midland Company.
The growth of the Bio Based Esters Market is driven by increasing demand for sustainable and renewable materials, environmental regulations, and rising awareness of the harmful effects of traditional petroleum-based esters.
Challenges faced by the Bio Based Esters Market include high production costs, limited availability of raw materials, and competition from traditional petroleum-based esters.
Emerging trends in the Bio Based Esters Market include the development of bio-based feedstocks, advancements in production technologies, and increasing demand for bio-based products in various applications.
The COVID-19 pandemic had a moderate impact on the Bio Based Esters Market, leading to disruptions in supply chains and a temporary decline in demand from certain industries.
Key strategies adopted by players in the Bio Based Esters Market include investments in research and development, partnerships and collaborations, and capacity expansion to meet the growing demand for bio-based products.
