Biobased Polybutylene Terephthalate Market Size(2023-2030)

The global Biobased Polybutylene Terephthalate Market is gauged to be worth USD 2 Billion in 2022 & is projected to hit a value of USD 2.76 Billion by 2030, growing at a CAGR of 4.1% during the forecast period 2023-2030.

The increasing demand for biobased and sustainable materials in various end-use industries such as automotive, electronics, and consumer goods is driving the growth of the biobased PBT market. The automotive industry, in particular, is a major contributor to the market growth due to the rising demand for lightweight, high-performance, and eco-friendly materials for use in various automotive components such as engine covers, seat belts, and airbag systems. Additionally, government initiatives and regulations promoting the use of biobased materials are also anticipated to drive market growth in the coming years.

Industry Overview:

Biobased Polybutylene Terephthalate (PBT) is a type of thermoplastic polymer derived from renewable resources such as corn starch, sugarcane, and beetroot. It is widely used in various applications, including automotive, electronics, consumer goods, and others. Biobased PBT offers several advantages over traditional PBT, including lower carbon footprint, reduced dependence on fossil fuels, and improved biodegradability. The global Biobased PBT market has experienced steady growth in recent years due to increased environmental concerns and the shift towards sustainable materials. The increasing adoption of Biobased PBT in the automotive industry for the production of lightweight and fuel-efficient vehicles is estimated to drive the market growth. The rising demand for Biobased PBT in electrical and electronics applications due to its excellent electrical insulation properties is another major factor driving the market. However, the high production costs and limited availability of raw materials may hinder the growth of the Biobased PBT market in the coming years. The market players are focused on developing cost-effective and sustainable production methods to overcome these challenges and gain a competitive edge in the market.

COVID-19 impact on the Biobased Polybutylene Terephthalate Market:

The COVID-19 pandemic has had a mixed impact on the biobased polybutylene terephthalate market. The market for biobased PBT is closely linked to the automotive, electrical and electronics industries, which were severely affected by the pandemic due to supply chain disruptions and lockdown measures. As a result, the demand for biobased PBT from these industries witnessed a decline. However, the market witnessed a surge in demand from the healthcare industry due to the need for medical supplies and equipment such as ventilators, face shields, and masks. In addition, the growing trend of sustainability and eco-friendliness has further driven the demand for biobased PBT in packaging, construction, and textiles industries. Despite the pandemic-induced challenges, the market is estimated to witness growth in the coming years owing to increasing investments in research and development activities, as well as government initiatives to promote the use of bio-based materials.

Market Drivers:

• Increasing Demand for Sustainable and Eco-friendly Packaging helps to drive market growth:-
  • One of the major drivers for the biobased polybutylene terephthalate market is the rising demand for sustainable & eco-friendly packaging materials. As consumers become more environmentally conscious, there is a growing demand for recyclable packaging materials, biodegradable, and made from renewable sources. Biobased polybutylene terephthalate fits these criteria, as it is derived from plant-based feedstocks such as sugarcane & corn. As a result, the demand for biobased polybutylene terephthalate in packaging applications is estimated to continue to grow in the coming years.
• Government Initiatives to Promote Bio-based Products helps to drive the market growth:-
  • Another driver for the biobased polybutylene terephthalate market is the increasing number of government initiatives to promote the use of bio-based products. Many countries have introduced policies & regulations that incentivize the use of renewable materials & promote sustainable development. For instance, in the European Union, the Bio-based Industries Joint Undertaking (BBI JU) was established to support the development of sustainable and innovative bio-based products. Such initiatives are estimated to increase the adoption of biobased polybutylene terephthalate in various applications, including packaging, automotive, and electrical & electronics.

Market Restraints:

• The Biobased Polybutylene Terephthalate Market's growth is being stifled by High Production Cost:
  • The production of biobased polybutylene terephthalate requires high investment & manufacturing costs as compared to conventional polybutylene terephthalate. This factor may hamper the growth of the market as it increases the final cost of the product, making it less attractive to consumers.
• The Biobased Polybutylene Terephthalate Market's growth is being stifled by Limited Availability of Raw Materials:
  • The production of biobased polybutylene terephthalate requires the availability of raw materials such as biomass, which may not be readily available in all regions. The limited availability of these materials may restrict the growth of the market, as it can impact the production capacity & pricing of the final product. Additionally, the demand for raw materials from other industries may also impact the availability & pricing of raw materials required for biobased polybutylene terephthalate production.

BIOBASED POLYBUTYLENE TEREPHTHALATE MARKET REPORT COVERAGE:

Market Segments:

This research report on the global Biobased Polybutylene Terephthalate Market has been segmented based on Type, Application, End-user Industry and Region.

Biobased Polybutylene Terephthalate Market—By Type

• Injection Molding Grade
• Extrusion Grade

Biobased Polybutylene Terephthalate (Bio-PBT) market can be segmented by type into injection molding grade & extrusion grade. Injection molding grade of Bio-PBT is anticipated to hold the largest market share due to its wide range of applications such as electrical & electronic parts, automotive parts, & consumer goods. The increasing demand for lightweight and sustainable products has increased the usage of Bio-PBT in the automotive electrical & electronics industries. Extrusion grade of Bio-PBT is also estimated to grow significantly in the coming years due to its rising demand in the packaging industry. The increasing awareness about the environmental hazards of traditional plastics & the stringent regulations on plastic waste management are driving the demand for sustainable packaging solutions. This has led to the development of biodegradable and compostable packaging materials, & Bio-PBT is estimated to play a critical role in this trend.

Biobased Polybutylene Terephthalate Market – By Application

• Automotive
• Electrical & Electronics
• Industrial
• Consumer Goods
• Others

Biobased polybutylene terephthalate (PBT) is a high-performance thermoplastic polymer that is derived from renewable sources such as biomass & other natural resources. The market for biobased PBT is estimated to witness significant growth in the coming years due to its increasing demand across various end-use industries. In terms of application, the automotive industry is estimated to be a major driver for the growth of the biobased PBT market, due to the increasing demand for lightweight and sustainable materials to reduce carbon emissions. The electrical and electronics industry is also estimated to drive market growth due to the increasing demand for biobased PBT for use in electrical components and wiring applications. Furthermore, the industrial segment is estimated to witness substantial growth in the biobased PBT market due to the increasing demand for sustainable & high-performance materials in various industrial applications. Additionally, the consumer goods segment is estimated to drive market growth due to the increasing demand for biobased PBT for use in packaging & other consumer goods applications. Overall, the biobased PBT market is estimated to see momentous growth in the coming years, controlled by increasing demand from various end-use industries and the shift towards sustainable and renewable materials.

Biobased Polybutylene Terephthalate Market – By Region

• North America
• Europe
• Asia-Pacific
• Rest of the World

The demand for biobased polybutylene terephthalate (PBT) is increasing globally, & the market is witnessing steady growth. North America and Europe are leading the market due to favorable government policies promoting the use of bioplastics & increasing consciousness of the benefits of biobased materials. The Asia Pacific region is estimated to witness significant growth due to the increasing demand for biobased materials in various end-use industries, such as automotive, packaging, and electronics. In addition, the growing population and rising disposable income levels in emerging economies like China and India are estimated to drive market growth in the region. Latin America and the Middle East & Africa are also estimated to witness significant growth due to increasing awareness of environmental issues and government initiatives promoting sustainable development. The development of advanced processing technologies and the availability of renewable raw materials are further driving the growth of the biobased PBT market in these regions. The market is highly competitive, & key players are focusing on growing their product portfolios, developing new biobased materials, & strengthening their distribution networks to meet the growing demand for biobased PBT in various end-use industries.

Major Key Players in the Market:

1. DuPont de Nemours, Inc.
2. BASF SE
3. Toray Industries, Inc.
4. DSM Engineering Plastics BV
5. Lanxess AG
6. Sabic
7. PolyOne Corporation
8. Mitsubishi Chemical Corporation
9. RTP Company
10. Toyobo Co., Ltd.

Market Insights and Developments:

• In August 2020, a research team from the Indian Institute of Technology (IIT) in Roorkee announced a new biobased PBT material that has been synthesized from waste cooking oil. The research team claimed that the new material has fantabulous thermal and mechanical properties, making it suitable for use in a range of applications, including packaging, automotive, and electronic components.
• In March 2021, a joint venture between Mitsui Chemicals and PTT Global Chemical announced that it would begin production of a new biobased PBT resin at its plant in Thailand. The new resin will be produced using plant-derived isobutylene, which will be used to replace the traditional petroleum-derived raw materials typically used in the production of PBT. The companies expect the new biobased PBT resin to be in high demand, particularly in the automotive and electrical industries.