Bio-Based Esters Market Size (2023 – 2030)

In 2022, the Global Bio-Based Esters Market was valued at USD 1.16 billion and is projected to reach a market size of USD 2.2 billion by 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 8.4%.

INDUSTRY OVERVIEW

Vegetable oils including palm, cottonseed, sunflower, and soybean oils are used to make bio-based esters. Esters are utilised as basis chemicals in a variety of bio-based products, including solvents, plastic monomers, lubricants, and fuels. As a result, the market for bio-based esters is estimated to develop over the projected period due to the increase in bio-based lubricants and solvents across different sectors. The most typical esters are those generated from carboxyl acid. Alcohols and carboxylic acids react in the presence of sulfuric or hydrochloric acid to create these esters.

The demand for Bio-Based Esters is also being driven by the growing use of bioplastics and recycled polymers in the packaging sector. During the anticipated period of 2022–2030, the growing use of environmentally acceptable lubricants (EAL) will further accelerate market growth for bio-based esters. However, it is anticipated that the fluctuating price of raw materials would limit the expansion of the market for bio-based esters throughout the anticipated period. Global personal care and industry sectors faced significant economic difficulties and obstacles as a result of the COVID-19 pandemic. The COVID-19 economic impact, according to the International Monetary Fund (IMF), caused a 3.5% drop in world GDP growth. Only the manufacturing of necessary commodities was allowed, which had an influence on the non-essential commodity industries and, in turn, had an impact on the production of Bio-Based Esters. Governments all over the world had proclaimed harsh measures to prevent the spread of the coronavirus.

COVID-19 IMPACT ON THE BIO-BASED ESTERS MARKET

The new coronavirus has spread to over 180 nations and is an unprecedented global pandemic that has severely damaged both the economy and human life worldwide. Due to its reliance on paints & coatings, ink production, adhesives & sealants, and other industries, the market for green/bio-based solvents has been adversely affected by the COVID-19 epidemic. Due to the danger of infection among the workers when green/bio-based solvents are used to dissolve or diffuse the ingredients used in the paint composition, several paint and coating production enterprises have either shut down or reduced their operations. Due to this, market demand during the COVID-19 period has been temporarily restricted. Additionally, COVID-19 has temporarily halted several construction projects, which has reduced demand in the building and construction industries. Due to a lack of raw materials, manpower scarcity, and other factors, the production of many consumer items and other things was stopped all over the world. The market for bio-based esters is predicted to suffer as a result.

MARKET DRIVERS: 

Growing demand for bio-based esters is being driven by the expanding automotive sector

Industrial and automotive lubricants, including gear lubricants and engine lubricants, among other lubricants needed in automobiles, are produced using bio-based esters. Esters are often employed in lubricants as antioxidants, corrosion inhibitors, anti-wear agents, load-carrying additives, and other purposes in both high- and low-temperature usage. The overall production of new passenger cars and commercial vehicles is estimated to be about 996,000 and 210,000 units, respectively, in October 2022, according to figures released by the China Association of Automobile Manufacturers. As a result, over the projection period, rising vehicle production will fuel demand for lubricants and solvents, which in turn will fuel the need for bio-based esters.

The global expansion of the bio-based sector would be aided by rising demand for paint and coatings

In the production of solvents, which are then employed in the paint and coatings industry, bio-based esters play a key role. One of the main uses for Bio-Based Esters is in paints and coatings. The primary driver of the market expansion for Bio-Based Esters is the increasing use of bio-based solvents in the paint and coating sector to minimize high VOC content in coating solutions. The American Coating Association claimed that the paint and coatings business in the United States was worth US$26 billion and that it employed around 315,700 people. Over 800 coating manufacturers, or more than 80% of the whole Chinese coatings sector, are estimated to exist by the China National Coatings Industry Association (CNCIA). However, according to CNCIA, the Chinese coatings industry still has more than 15,000 active coatings producers. Consequently, the existence of several paint and coating businesses is boosting the market expansion for bio-based esters during the estimated year.

MARKET RESTRAINTS:

Fluctuating raw material costs are impeding the market expansion

Vegetable oils such as palm, soybean, sunflower, cotton seed, and castor oil are among the raw materials needed for the processing and manufacture of bio-based esters. Soybean, sunflower, palm, and cotton crops are the most popular sources of vegetable oil. These oils are entirely dependent on crop yield for extraction. The production of these crops may be impacted by some environmental catastrophes, which might also impact vegetable oil prices. Vegetable oils have become more expensive over time. There have been sporadic deficits as a result of uneven crop harvests in several regions of the world. For instance, a drought in 2020 destroyed the crops in Canada and Argentina. Given that Ukraine is the world's top exporter of sunflower oil and that Russia and Ukraine jointly produced 75% of the oil before the start of the war, the conflict between the two countries raises the price of sunflower oil. Consequently, these are a few of the issues impeding the market's expansion for Bio-Based Esters throughout the anticipated year.

BIO-BASED ESTERS MARKET REPORT COVERAGE:

BIO-BASED ESTERS MARKET – BY SOURCE

• Palm Oil

• Soybean Oil

• Sunflower Oil

• Cotton Seed Oil

• Castor oil

• Others

Based on Source, the bio-based esters market is segmented into Palm Oil, Soybean Oil, Sunflower Oil, Cotton Seed Oil, Castor oil and Others. Due to its frequent usage in the manufacturing of bio-based esters and affordable prices, the palm oil segment dominated the market in 2021 and had the largest revenue share. Due to its widespread availability and low price, the market is predicted to expand at the quickest CAGR throughout the projected period.

BIO-BASED ESTERS MARKET – BY TYPE

• Sucrose Esters

• Cellulose Esters

• Methyl Esters

• Others.

Based on the type, the bio-based esters market is segmented into Sucrose Esters, Cellulose Esters, Methyl Esters and Others. With a 28% market share in 2021, cellulose esters are likely to continue to dominate the bio-based esters market between 2022 and 2030, growing at a considerable CAGR. Usually, organic acids or acid chlorides are used to create cellulose esters from natural cellulose. They are often employed in automotive, polymer, construction, and other industries as binders, coating additives, film formers, or modifiers. During the projection period, the market for bio-based esters would benefit from the expanding demand for cellulose ethers from the paints and coatings sector. The United States exported paint and coatings goods worth around $2.4 billion in 2019, according to information provided by American Coatings.

BIO-BASED ESTERS MARKET - BY APPLICATION

• Lubricants

• Solvents

• Plasticizers

• Surfactants

• Fuel and Oil Additives

• Flavoring Agents

• Paints and Coating

• Others.

Based on the application, the bio-based esters market is segmented into Lubricants, Solvents, Plasticizers, Surfactants, Fuel and Oil Additives, Flavoring Agents, Paints and Coating and Others. Solvents held a sizeable share of 12% in the Bio-Based Esters market in 2021, and it is projected that this sector would expand at a considerable CAGR from 2023 - 2030. Solvents are used in a variety of products, including paints and coatings, printing ink, industrial and household cleaners, and adhesives and sealants. Therefore, over the projected period, the market for solvents as well as the market for bio-based esters will be driven by the rising demand for these applications. The market for eco-friendly ester products is also being driven by the tightening regulations on the use of synthetic solvents due to their high VOC content and the rising consumer awareness of the use of eco-friendly goods. Additionally, the personal care and cosmetics industries employ solvents. Japan's market for cosmetics and personal care goods reportedly surpassed US$35 billion in 2019, making it the third-largest industry in the world behind China and the United States. About 3,000 firms in Japan produce beauty products, including well-known names like Shiseido, Kao, Kose, and Pola Orbis. These are some of the key elements boosting market expansion from 2023 - 2030, according to forecasts.

BIO-BASED ESTERS MARKET – BY END-USER

• Transportation (Automotive, Aerospace, Marine and Railways)

• Paint Coating

• Food & Beverage

• Textile

• Personal Care and Cosmetics

• Pharmaceutical

• Agriculture

• General Manufacturing

• Metallurgy

• Construction

• Others

Based on the end-user, the bio-based esters market is segmented into Transportation (Automotive, Aerospace, Marine and Railways), Paint Coating, Food & Beverage, Textile, Personal Care and Cosmetics, Pharmaceutical, Agriculture, General Manufacturing, Metallurgy, Construction and Others. The market's dominance in the paints and coatings sector in 2021 was largely brought on by growing environmental worries over the use of industrial solvents of chemical grade with a high VOC content in paints and coatings solutions. Globally, people are becoming more aware of the negative consequences that industrial solvents with chemical composition have on the environment and human health. In end-use sectors like construction and automotive, this is fueling the need for bio-based substitutes in essential applications like paints, coatings, and adhesives.

BIO-BASED ESTERS MARKET - BY REGION

• North America

• Europe

• The Asia Pacific

• Latin America

• The Middle East

• Africa

By region, the Bio-Based Esters Market is grouped into North America, Europe, Asia Pacific, Latin America, The Middle East and Africa. In terms of revenue, the Asia Pacific region controlled 40% of the market for bio-based esters in 2021, and it is predicted to continue to do so throughout the forecast period (2023 - 2030). Key producers like Cargill Inc., Arkema Inc., BASF SE, and Solvay are present in the Asia Pacific area, which is boosting the market growth for bio-based esters. During the anticipated period, the market expansion is being aided by the rising production of paints and coatings in emerging countries like China, Japan, and India. The market for bio-based esters in the Asia-Pacific region is being driven by the presence of renowned paints and coatings producers like Asian Paints, Kansai Paint Co., Ltd, Nippon Paint Holdings Co., Ltd, PPG Industries, Inc., and Akzo Nobel N.V., among others. Facts provided by the Indian Paint Association (IPA) show that the country's paint market, which is presently valued at US$ 6.6 billion, is anticipated to increase at a healthy rate and reach US$ 9.3 billion by 2022. Between 2021 and 2022, the industry is anticipated to expand at a CAGR of 12 to 15%.

BIO-BASED ESTERS MARKET - BY COMPANIES

Some of the major players operating in the Bio-Based Esters Market include:

1. CARGILL INC.

2. ARKEMA INC.

3. BASF SE

4. VERTEC BIO-SOLVENTS

5. SOLVAY

6. 6HUNTSMAN CORPORATION

7. SPAK ORGOCHEM

8. MANGALAM ORGANIC LTD.

9. ESTER INDUSTRIES LTD.

10. CHEMCEED

11. OTHER

NOTABLE HAPPENING IN THE BIO-BASED ESTERS MARKET

• EXPANSION- In August 2021, Mitsubishi Chemical Corporation announced the opening of a new unit at its Fukuoka plant for the manufacturing of sugar ester. The company's manufacturing capacity will rise as a result of the new facility to fulfil the growing demand from the food industry, where sugar ester is mostly used.

• ACQUISITION- LANXESS completed the purchase of Kalama Chemicals in August 2021 to broaden and improve its industrial applications portfolio.

• PRODUCT LAUNCH- A new next-generation phosphate ester for metal working formulations based on renewable sources was introduced by Clariant in September 2020. Clariant is one of the industry's top manufacturers of sustainable ingredients and solutions for the industrial lubricants market.