Bio-Based Epichlorohydrin Market Size (2025-2030)

The Bio-Based Epichlorohydrin Market was valued at USD 197.85 Million in 2024 and is projected to reach a market size of USD 332 Million by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 9.02%.

The bio-based epichlorohydrin market revolves around a sustainable alternative to traditional petrochemical-derived epichlorohydrin. It is produced mainly from renewable feedstocks such as glycerol, which is a by-product of biodiesel production. This shift toward renewable sources is driven by the growing emphasis on green chemistry and reducing dependence on fossil resources. Bio-based epichlorohydrin is a key raw material in the production of epoxy resins, which are widely used in coatings, adhesives, and composites. Beyond resins, it also finds applications in water treatment chemicals, textiles, and pharmaceuticals. Industries such as automotive, electronics, and construction are increasingly adopting bio-based variants to align with sustainability goals. The market is supported by technological advancements in fermentation and catalytic processes that enhance production efficiency. Environmental regulations and consumer demand for eco-friendly materials are also playing a strong role in shaping adoption.

Key Market Insights:

In 2024, the bio-based epichlorohydrin market stood at around USD 200 million, marking a strong shift toward renewable alternatives. Analysts project a steady growth rate of 9% CAGR through the next decade, driven by sustainability policies and industrial adoption.

Glycerol-based epichlorohydrin dominates the market, accounting for over 70% of global production in 2024. Its popularity stems from abundant glycerol availability as a biodiesel by-product, making it the most cost-efficient bio-based pathway.

Epoxy resins consumed more than 40% of bio-based epichlorohydrin demand in 2024. This share is expected to expand further, fueled by demand from coatings, adhesives, and composite materials across construction and automotive sectors.

Europe led the adoption in 2024, representing about 35% of total bio-based ECH consumption, supported by strict EU environmental regulations. Asia-Pacific followed closely, benefiting from rising manufacturing bases and government support for green chemicals.

Switching to bio-based epichlorohydrin reduces carbon dioxide emissions by 30–50% compared to petroleum-derived variants. This environmental edge is becoming a decisive factor for industries aiming to meet carbon neutrality targets by 2030.

Market Drivers:

Growing emphasis on sustainability and green chemistry is driving adoption of bio-based epichlorohydrin.

Industries worldwide are under increasing pressure to reduce reliance on petrochemicals and cut down greenhouse gas emissions. Bio-based epichlorohydrin, derived from renewable feedstocks such as glycerol, offers a cleaner and safer alternative. Regulatory frameworks in regions like Europe and North America are incentivizing the use of sustainable chemicals, accelerating the transition toward bio-based raw materials. Companies are also aligning with global carbon neutrality goals, making bio-based variants more attractive. This rising focus on environmental responsibility is a central driver behind the market’s growth trajectory.

Expanding demand for epoxy resins in diverse industries is fueling market growth.

Epoxy resins are a major downstream application of bio-based epichlorohydrin, with extensive use in coatings, adhesives, composites, and construction materials. The surge in automotive lightweighting, electronics miniaturization, and infrastructure development is directly boosting epoxy resin consumption. Since epoxy resins account for the largest share of bio-based ECH demand, their market expansion translates into steady growth for bio-based feedstocks. Growing renewable energy projects, such as wind turbines, are further amplifying resin demand. This broad-based industrial uptake makes epoxy resins a critical growth engine for the bio-based epichlorohydrin market.

Market Restraints and Challenges:

The process of producing bio-based epichlorohydrin from renewable feedstocks like glycerol requires advanced catalytic or fermentation technologies, which are often more expensive than conventional petrochemical routes. These higher costs make bio-based ECH less competitive in price-sensitive markets, especially in developing regions. Limited economies of scale further add to the expense, as production volumes remain lower compared to traditional epichlorohydrin. While sustainability benefits are strong, the cost gap often discourages large-scale adoption. Until significant technological improvements or subsidies reduce costs, this remains a key barrier to market expansion.

Market Opportunities:

The global push toward sustainable infrastructure and lightweight vehicles is creating new avenues for bio-based epichlorohydrin. Epoxy resins derived from bio-based ECH are increasingly being used in green building materials, adhesives, and composite structures. In the automotive sector, manufacturers are turning to bio-based solutions to meet stricter emission norms and enhance recyclability. This trend aligns with government incentives for sustainable construction practices and cleaner mobility solutions. As demand for eco-friendly materials accelerates, bio-based epichlorohydrin suppliers are well-positioned to benefit from expanding end-user industries.

BIO-BASED EPICHLOROHYDRIN MARKET REPORT COVERAGE:

Bio-Based Epichlorohydrin Market Segmentation:

Bio-Based Epichlorohydrin Market Segmentation by Feedstock Source

• Glycerol-based
• Sugar-based
• Lignocellulosic-based

Glycerol-based epichlorohydrin holds the dominant position due to abundant glycerol availability from biodiesel production. Its well-established production technology makes it more cost-efficient compared to other bio-routes. Industries prefer glycerol-derived ECH because of its stable supply and proven performance in epoxy resin applications. This segment forms the backbone of bio-based ECH production globally.

Lignocellulosic feedstock is emerging as the fastest-growing source, fueled by advances in bio-refining technologies. It taps into agricultural residues and non-food biomass, making it highly sustainable. Governments are supporting research in this area to diversify renewable chemical feedstocks. As scalability improves, lignocellulosic-based ECH is expected to see accelerated adoption.

Bio-Based Epichlorohydrin Market Segmentation by End-User Industry

• Automotive
• Electronics
• Construction
• Consumer Goods
• Healthcare

The construction sector is the largest consumer, as epoxy resins derived from bio-based ECH are widely used in coatings, adhesives, and flooring materials. Growing urbanization and infrastructure investments worldwide continue to drive demand. Builders are also under pressure to adopt greener materials in line with environmental standards. This makes construction the primary driver of volume consumption in the market.

Automotive stands out as the fastest-growing end-user, supported by trends in lightweighting and electric vehicles. Epoxy composites and adhesives enhance vehicle durability while reducing weight. Automakers are increasingly adopting bio-based materials to align with sustainability targets and emission regulations. This industry’s transition toward greener supply chains creates strong momentum for bio-based ECH.

Bio-Based Epichlorohydrin Market Segmentation by Application

• Epoxy Resins
• Water Treatment Chemicals
• Adhesives
• Coatings
• Textiles
• Pharmaceuticals
• Constructios

Epoxy resins represent the largest application segment, consuming the majority of bio-based ECH globally. Their versatility spans coatings, adhesives, electrical laminates, and composites, making them indispensable. Rapid industrialization in electronics, construction, and consumer goods sustains their dominance. As a result, epoxy resins remain the anchor of demand for bio-based epichlorohydrin.

Water treatment chemicals are the fastest-growing application due to rising global concerns about clean water access and industrial wastewater management. Bio-based ECH plays a role in producing polyamide resins and flocculants used in this sector. Governments and municipalities are investing heavily in sustainable water treatment solutions. This increasing demand makes it a high-growth area within the market.

Bio-Based Epichlorohydrin Market Segmentation: Regional Analysis:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Europe holds the largest share, driven by strict regulations promoting bio-based chemicals and reduced reliance on petrochemicals. The region has a mature biodiesel industry, ensuring steady glycerol supply. Leading chemical companies in Germany, France, and the Netherlands are pioneering bio-based ECH production. This regulatory and industrial ecosystem firmly positions Europe as the dominant market.

Asia-Pacific is the fastest-growing region due to rapid industrialization and expanding manufacturing bases in China and India. Governments are increasingly supporting renewable chemicals as part of sustainability initiatives. The booming automotive, construction, and electronics industries further fuel bio-based ECH demand. With a large consumer base and rising green investments, Asia-Pacific is emerging as the growth hotspot.

COVID-19 Impact Analysis:

The COVID-19 pandemic created significant disruptions for the bio-based epichlorohydrin market. Lockdowns and restrictions led to supply chain interruptions, particularly in glycerol availability, as biodiesel production declined during the crisis. Many downstream industries, such as construction, automotive, and electronics, faced temporary shutdowns, reducing short-term demand for epoxy resins and related applications. However, certain applications like water treatment chemicals and healthcare-related materials saw stable or even rising demand, partly offsetting losses. The pandemic also accelerated awareness around sustainability and resilience in supply chains, which in turn supported long-term interest in bio-based chemicals. Overall, while COVID-19 caused short-term challenges, it indirectly strengthened the case for adopting greener and more reliable alternatives like bio-based epichlorohydrin.

Latest Trends and Developments:

One of the latest trends in the bio-based epichlorohydrin market is the growing focus on lignocellulosic and second-generation feedstocks, which aim to reduce reliance on food-based raw materials. Producers are also investing in process innovations, such as advanced catalysts and energy-efficient bio-refining, to lower costs and improve yields. Partnerships between chemical manufacturers and biodiesel producers are becoming more common to ensure a steady glycerol supply chain. Another development is the expansion of bio-based ECH applications into renewable energy components, such as wind turbine blades and advanced composites. Regulatory support for carbon reduction and green chemistry is further encouraging companies to scale up commercial production facilities. Together, these developments signal a shift toward a more competitive and diversified bio-based epichlorohydrin industry.

Key Players in the Market:

1. Solvay S.A.
2. Spolchemie
3. The Dow Chemical Company
4. Sumitomo Chemical Co., Ltd.
5. Samsung Fine Chemicals
6. Aditya Birla Chemicals
7. Zhejiang Yangnong Chemical Co., Ltd.
8. Jiangsu Yangnong Chemical Group Co., Ltd.
9. Hexion Inc.
10. Huntsman Corporation

Market News:

• In 2024, a major American resin manufacturer introduced a new low-carbon epichlorohydrin grade to support sustainability goals in coatings and adhesives applications. This low-carbon variant is designed to help formulations reduce environmental impact while maintaining performance. It underscores increasing industry focus on eco-friendly alternatives in traditional chemical applications.
• In 2024, AGC Vinythai, together with Michigan State University and allnex, advanced a collaboration to develop fully bio-based epoxy coatings using lignin as a BPA substitute. The project aims to replace bisphenol A entirely with technical lignins and bio-based epichlorohydrin, promoting greener coating technologies. This initiative reflects growing academic-industry partnerships toward sustainable chemistry.
• In 2025, a U.S. chemical company announced expansion of its bio-based epichlorohydrin production facility to meet rising demand from automotive and electronics sectors. The facility expansion reflects strong industrial interest in bio-based ECH as a sustainable chemical input, especially in high-volume manufacturing industries. It signals growing commercial confidence in scaling green chemistry solutions.
• In 2025, Hexion Inc. expanded its bio-based ECH capacity in the Netherlands by an additional 25,000 tonnes. This capacity increase demonstrates continued investment in sustainable production infrastructure, particularly in Europe. It highlights how key players are responding to demand shifts toward greener feedstocks in the epichlorohydrin market.