The bio-based materials and chemicals market could reach 4.9 million megatonnes by 2017, according to a new report by market analyst Lux Research. The leading growth category will be intermediate chemicals such as adipic acid and lactic acid, said the firm.
“The basic science of bio-based materials and chemicals has advanced to the point that dozens of chemicals can now be produced from multiple feedstocks, at costs that are competitive with petroleum at least in theory and at scale,” said Julia Allen, Lux Research analyst and the lead author of the report Cultivating Capacity for Bio-based Materials and Chemicals through 2017. “As a result, bio-based material and chemical manufacturers continue to expand and diversify into new feedstock types, product types and geographical areas.”
Speciality chemicals are set to boom, said Lux, with chemicals such as farnesene growing at a CAGR of 46% to 2017. Companies that could benefit include Solazyme and Segetis.
North America, currently fourth in global capacity, will emerge as the world leader by 2017 as American start-ups like Gevo build plants closer to home, while Europe's share will drop from 37% in 2005 to 14% by 2017, Lux predicted.