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Bio-based Ethylene Market | Industry Challenges, Key Vendors, Drivers 2025
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The bio-ethylene market can be segmented based on raw materials used for production, application, end-user industry, and region. Production of bio-ethylene can be attained from sugars, starch, and ligno-cellulosic biomass. The sub-segments can be further divided into sugary biomass which includes sugarcane, sugar beets, sweet sorghum; starchy biomass which includes wheat, corn and barley; and ligno-cellulosic biomass which is obtained from wood, straw, and grasses. Bio-ethylene is employed in the production of several organic chemicals and plastics such as high and low density polyethylene (HDPE and LDPE), polyethylene chloride (PVC), polystyrene (PS), and polyethylene terephthalate (PET). In terms of end-user industry, the market can be classified into packaging, detergents, lubricants, and additives. Based on region, the bio-ethylene market can be divided into Asia Pacific, Europe, Middle East & Africa, North America, and Latin America.
The global bio-ethylene market has not attained maturity except in Brazil. Stringent rules and regulations regarding the environment are expected to propel the market of bio-ethylene. Bio-based ethylene reduces the emission of greenhouse gases (GHG) by lessening the usage of fossil fuels. Till date, reduction of GHGs and petrochemical energy through bio-based ethylene has been achieved up to 50% and 65%, respectively, as compared to the use of traditional ethylene. Bio-based ethylene is expected to reduce the dependence on fossil fuels; however, the cost of fossil fuels and bio-ethylene is a crucial factor in deciding the extent of their usage. The cost of producing bio-ethylene is high due to the availability and low-price of biomass feedstock. This acts as a restraint to the bio-ethylene market. The cost of bio-ethylene is almost 1.5 to 2 times higher than that of petrochemical ethylene. However, bio-plastics are inexpensive as compared to petrochemical plastics. Ligno-cellulosic biomass is expensive than sugar and starch biomass and the cost of producing from ligno-cellulosic material is also high. Production of sugarcane is low-priced in Brazil. Large-scale production of sugarcane is done in India, South America, and some parts of Asia.
Corn is produced in large quantities in the U.S. Europe accounts for one-third of the global production of sugar beets. Food versus fuel is a limiting factor in the production of bio-ethylene from sugar and starch feedstock. Ligno-cellulosic biomass can be grown on unfertile land. Bioethanol, the precursor of bio-ethylene, is primarily used for transportation fuel, though it can be in other applications too. This restricts the large-scale production of bio-based ethylene. Similarly, demand for biomass feedstock for application in heat, electricity, and biofuels production is expected to increase in the near future.
Brazil is the largest market of bioethanol. The production of bioethanol in Brazil is higher than that of petrochemical ethanol. Brazil and the U.S. contribute to more than half of the global production of bioethanol. India and Brazil have the advantage of availability of inexpensive biomass. China is an emerging market for bio-ethylene in terms of production. Asia Pacific is projected to constitute a major market share in the near future due to the vast availability of biomass. Demand for bio-ethylene is estimated to soar in Europe due to the rise in awareness about health and environment and regulations for bio-based production. North America is estimated to expand during the forecast period led by the technological advancements and research and development activities in the region. Major players in the global bio based ethylene market include Atol, Cargill, The Dow Chemical Company, and Alberta.
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