Bio plasticizers are non-toxic, non-carcinogenic, and environmentally friendly alternatives to phthalate plasticizers. They enhance the flexibility and workability of plastics and are majorly used in PVC applications. Bio plasticizers offer various advantages over conventional plasticizers such as improved longevity, UV resistance, durability, and heat stability.
The global Bio Plasticizers Market is estimated to be valued at US$ 1.45 Billion in 2023 and is expected to exhibit a CAGR Of 5.9% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Being environmentally-friendly presents a major opportunity for the growth of the bio plasticizers market. Conventional plasticizers such as phthalates pose health and environmental risks. The increasing consumer preferences for sustainable and eco-friendly products is fuelling the demand for bio-based and degradable alternatives. Bio plasticizers are biodegradable and do not leach out or evaporate from plastic products. Their use helps plastic manufacturers comply with various government regulations regarding the use of toxic plasticizers. Furthermore, consumers are willing to pay premium prices for green products. The bio plasticizers industry can tap into this lucrative opportunity by emphasizing on their environmental credentials which in turn would boost the market growth over the forecast period.
Porter's Analysis
Threat of new entrants: The threat of new entrants in the bio plasticizers market is low as there are significant capital requirements and well-established industry players. However, it may increase due to growing environmental concerns.
Bargaining power of buyers: The bargaining power of buyers in the bio plasticizers market is moderate as bio plasticizers have limited suppliers and buyers can negotiate based on quantity demanded and procurement costs.
Bargaining power of suppliers: The bargaining power of suppliers is high since suppliers of raw materials like vegetable oils and other biomaterials have a major influence over prices in the bio plasticizers market.
Threat of new substitutes: Threat of new substitutes is moderate as conventional plasticizers are major substitutes, but bio plasticizers are gaining popularity due to environmental friendly properties.
Competitive rivalry: The competitive rivalry is high due to presence of many national and international players operating in the bio plasticizers market. Players compete based on product quality, price, and innovation.
SWOT Analysis
Strengths: Bio plasticizers produce less hazardous emissions, biodegradable, compliance with environmental regulations. Weaknesses: High production costs, limited supply infrastructure.
Opportunities: Growing environmental concerns, supportive government regulations. Threats: Substitutes like conventional plasticizers dominate the market, availability of raw materials depends on agriculture.
Key Takeaways
The Global Bio Plasticizers Market Demand is expected to witness high growth at a CAGR of 5.9% during the forecast period of 2022-2027.
Regional analysis of Asia Pacific shows fastest growth in countries such as China, India and Indonesia. China dominates the market due to large plastic production and government support for bio-based chemicals. North America and Europe are also major markets for bio plasticizers.
Key players operating in the bio plasticizers market are BASF SE, Lanxess AG, Emery Oleochemicals LLC, Dowdupont, Evonik Industries, Danisco US Inc., and PolyOne Corporation. BASF SE is the global leader in plasticizers manufacturing with wide product portfolio. Lanxess AG focuses on developing sustainability solutions including bio-based plasticizers.
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