Bio-Based Ethylene Market Research and Industry Analysis Report, 2016 – 2024
Bio-ethylene production facilities in India and Brazil caters around 0.5% of the overall ethylene capacity, the largest facility produces over 200 kilo tons annually in 2015. Feasible production owing to the chemical’s identical nature, as the existing equipment and facility can be used for plastics and other downstream products production including polyethylene, ethylene oxide, benzene, and dichloride.
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Brazil and the U.S. are the major contributors due to their largest input in bio-ethanol production, accounting for over 22% and 62% of the overall production in 2015, with corn and sugarcane majorly used feedstocks respectively.
U.S. being the major contributor in corn derived bio ethylene producer will observe immense growth. Strict environment guidelines by authorities including FDA and EPA pertaining to petrochemical products’ biodegradability has influenced industry focus towards bio-based alternatives.
Favorable environment laws to encourage bio based production due to environment safety and increased consumer willingness to pay more should drive Germany, France, and UK bio-based ethylene demand.
Industry end-users include packaging, agrochemicals, detergents, lubricants, and textiles manufacturers. Growing preference for decomposable polymers due to significant health issues caused by petrochemical counterparts are favorable factors to fuel product demand in packaging and textiles applications.
Bio-Based ethylene market price trend with petrochemical products and biomass accessibility are two major determinants for industry growth. The production is typically more expensive than petrochemical derived products, and manufacturers may hesitate to capitalize in this novel production route which may impact industry growth.
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For instance, in Brazil owing to availability of inexpensive biomass resource, bio-based ethylene prices are closely equal to its petrochemical counterparts. This technology alleviated country’s oil dependence and favoured the local employment and economy. However, extensive production is prone to compete with feed and food production for the arable land availability.
Global bio-based ethylene market share is primarily focusing on sustainable development and industrial scale production with the aim for commercialization. Total, Axen, and IFPEN came into a joint venture called Atol in 2014. This joint venture is competing for commercial operations through this technology. The Dow Chemical, Alberta, Cargill, and Suiker Unie are also involved in the bio ethylene production. The traditional producers are shifting their focus towards this novel technology and to capture market at its initial stage. High initial R&D costs in these novel technologies establishment might cause threats to new and small scale entrants.
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