Bio Based Esters Market - Forecast 2022-2027
Bio Based Esters Market Overview
Bio Based Esters Market size is forecast to reach US$2.2 billion by 2027, after growing at a CAGR of 8.3% during 2022-2027. Bio Based Esters are manufactured from vegetable oil such as palm oil, cotton seed oil, sunflower oil and soybean oil. Esters are used as platform chemicals in bio-based fuels, solvents, plastic monomers and lubricants among others. Hence the growth in bio-based lubricants and solvents among various industries is driving the market for Bio Based Esters during the forecast period. Esters derived from carboxyl acid are the most common esters. These esters are produced by the reaction of alcohols and carboxylic acids in the presence of sulfuric or hydrochloric acid. The rising popularity of bio-plastics and recycling polymers in the packaging industry is also driving the demand for Bio-Based Esters. Increasing adoption of environmentally acceptable lubricants (EAL) is further accelerating the market growth of Bio-Based Esters during the forecast period 2022-2027. However, the volatile raw material prices will likely hamper the Bio-Based Esters Market size during the forecast period. The COVID-19 outbreak led to major economic problems and challenges for personal care and industries globally. According to the International Monetary Fund (IMF), the global GDP growth declined by 3.5% owing to the economic impact of COVID-19. Governments all across the globe announced strict measures to slow the spread of the coronavirus and only the production of essential commodities was allowed, which impacted the non-essential commodity industries, thereby impacting the production of Bio Based Esters.
Bio Based Esters Market Report Coverage
The “Bio Based Esters Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Bio based Esters industry.
Key Takeaways
- The Asia-Pacific region is expected to grow at a high CAGR 0f 9.6% during the forecast period. One of the key drivers driving the market is the growing production of lubricants and solvents.
- The growing trend for sustainable, clean and natural label products by end-users is augmenting the Bio Based Esters Market size during the forecast period.
- However, fluctuating oil prices along with the availability of synthetic esters are likely to hamper the market growth during the forecast period.
- A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Bio Based Esters Market Report.
Figure: Asia Pacific Bio Based Esters Market Revenue, 2021-2027 (US$ Million)
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Bio Based Esters Market Segment Analysis – by Type
The cellulose esters held the largest share with 28% in the Bio Based Esters industry in 2021 and are anticipated to grow at a significant CAGR during the forecast period 2022-2027. Cellulose esters are generally derived from natural cellulose by reaction with organic acids or acid chlorides. They are generally used as binders, coating additives, film formers, or modifiers in automotive, polymer, construction and other applications. The growing demand for cellulose ethers from the paints & coatings industry is positively driving the market for Bio Based Esters during the forecast period. According to the data published by American coatings, The United States exported approximately $2.4 billion worth of paint and coatings products in 2019.
Bio Based Esters Market Segment Analysis - by Application
The solvents segment held a significant share of 12% in the Bio Based Esters industry in 2021 and is anticipated to grow at a significant CAGR during the forecast period 2022-2027. Solvents find their applications in different applications such as adhesives & sealants, printing ink, industrial & domestic cleaners and paints & coating among others. Hence the growing demand for these applications is driving the market for solvents and further driving the market for Bio-Based Esters during the forecast period. The increasingly stringent rules on the usage of synthetic solvents due to high VOC content along with the growing awareness among end-users about the use of eco-friendly products are also driving the market for eco-friendly ester products. Solvents are also used in the personal care and cosmetics industry. According to the Ministry of Economy, Trade and Industry (METI), the cosmetics and personal care products market of Japan reached US$35 billion in 2019, making it the world’s third-largest after the U.S. and China. Japan has about 3,000 beauty care manufacturing companies, including global brands of Shiseido, Kao, Kose and Pola Orbis. These are some of the major factors supporting the market growth during the forecast period 2022-2027.
Bio Based Esters Market Segment Analysis – by Geography
The Asia Pacific region dominated the Bio Based Esters industry in terms of revenue with a share of 40% in 2021 and is projected to dominate the market during the forecast period (2022-2027). The presence of key manufacturers including, Cargill Inc., Arkema Inc., BASF SE and Solvay, are driving the market growth for Bio-Based Esters in the Asia Pacific region. The growing production of paints and coatings in developing nations such as India, Japan and China is supporting the market growth during the forecast period. The presence of notable paints and coatings manufacturers such as Asian Paints., Kansai Paint Co., Ltd, Nippon Paint Holdings Co., Ltd., PPG Industries, Inc. and Akzo Nobel N.V. among others are driving the market for Bio-Based Esters Market in the Asia-Pacific region. According to the facts published by Indian Paint Association (IPA), The Indian paint industry is currently valued at US$ 6.6 billion are poised to grow at a healthy rate and is expected to reach US$9.3 billion by 2022. The industry is expected to grow at a CAGR of 12-15% during 2021-2022.
Bio Based Esters Market Drivers
Growing automotive industry is driving the market growth for Bio Based Esters industry
Bio Based Esters are used in the production of industrial and automotive lubricants which are used in different automotive applications such as gear lubricants and engine lubricants among others. Generally, esters are used in lubricants for both high- and low-temperature applications and used as antioxidants, corrosion inhibitors, anti-wear agents and load-carrying additives among others. According to the data published by, the China Association of Automobile Manufacturers, in April 2022, the total production of a new passenger car is around 996,000 units and commercial vehicles are around 210,000 units. Hence the increasing production of vehicles will drive the market for lubricants and solvents which will further drive the market for Bio Based Esters during the forecast period.
Increasing demand for paint and coatings will support the market growth for the Bio-based industry
Bio-Based Esters are used as an important ingredient in the manufacturing of solvents which is further used in the paints and coatings industry. Paints and coatings are one of the major applications of Bio Based Esters. The growing usage of bio-based solvents in the paint and coating industry to reduce high VOC content in coatings solutions is the major factor supporting the market growth for Bio-Based Esters. According to the data published by American Coating Association, the USA paint and coatings market is valued at US$26 billion and the industry employed approximately 315,700 workers in the U.S. According, to the China National Coatings Industry Association (CNCIA) estimates there are roughly 700 coating manufacturers representing over 80 percent of the total Chinese coatings industry. However, CNCIA estimates that there are still more than 15,000 coatings manufacturers active in the Chinese coatings marketplace. Hence the presence of a large number of paint and coating companies is driving the market growth for the Bio Based Esters Market during the forecast period.
Bio Based Esters Market Challenges
Volatile raw material prices
The raw materials required for the processing and production of Bio Based Esters include vegetable oils such as palm oil, soybean oil, sunflower oil, cotton seed oil and castor oil among others. The most common source of vegetable oil is soybean, sunflower, palm and cotton crops. The extraction of these oils is totally dependent on crop production. Due to some environmental disasters, the production of these crops may affect which can further affect vegetable oil prices. The cost of vegetable oils has been growing for years. Crop harvests in certain parts of the world have been erratic, which has caused periodic shortfalls. For example, crops in Canada and Argentina were decimated by drought in 2020. The Ukraine and Russia war leads to an increase in the prices of sunflower oil, because Russia and Ukraine together accounted for 75% of sunflower oil production before the war began and Ukraine is the world's largest exporter of sunflower oil. Hence these are some of the challenges hampering the market growth for Bio Based Esters during the forecast period.
Bio Based Esters Industry Outlook
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Bio Based Esters Market. The top 10 companies in the Bio Based Esters Market include:
- Cargill Inc.
- Arkema Inc.
- BASF SE
- Vertec Bio-Solvents
- Solvay
- 6Huntsman Corporation
- Spak Orgochem
- Mangalam Organic Ltd.
- Ester Industries Ltd.
- ChemCeed
- Other Companies
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