GMI

Bio-Based Ethylene Market Size – Industry Share Report, 2024

Press Release   •   Nov 10, 2016 02:12 EST

Aiding to save fossil energy up to 50% and curb GHG emissions up to 40% as compared with petrochemical products are driving Bio-Based Ethylene Market size. Bio-ethylene made from bio-ethanol signifies a chemically identical substitute to its petroleum counterpart.

Global ethylene market size was over USD 160 billion in 2015 and is foreseen to exceed USD 235 billion valuation by 2024. Bio-ethylene production facilities in India and Brazil caters around 0.5% of the overall ethylene capacity, the largest facility produces over 200 kilo tons annually in 2015. Feasible production owing to the chemical’s identical nature, as the existing equipment and facility can be used for plastics and other downstream products production including polyethylene, ethylene oxide, benzene, and dichloride.

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Brazil and the U.S. are the major contributors due to their largest input in bio-ethanol production, accounting for over 22% and 62% of the overall production in 2015, with corn and sugarcane majorly used feedstocks respectively. Rising production scope from ligno-cellulosic biomass owing to its non-competence with food production and need for non-arable land should favour bio-based ethylene market size.

U.S. being the major contributor in corn derived bio ethylene producer will observe immense growth. Strict environment guidelines by authorities including FDA and EPA pertaining to petrochemical products’ biodegradability has influenced industry focus towards bio-based alternatives.

Bio-Based ethylene market price trend with petrochemical products and biomass accessibility are two major determinants for industry growth. The production is typically more expensive than petrochemical derived products, and manufacturers may hesitate to capitalize in this novel production route which may impact industry growth. Policy measures including carbon tax schemes, incentives, eco-labelling, and removing import tariffs on bio-ethanol are lucrative factors to draw manufacturers attention towards production capacity deployment and impacting bio-based ethylene market price trend.

Simultaneously, bio plastics may attract premium prices and make a competitive business in regions with presence of economical biomass feedstock. For instance, in Brazil owing to availability of inexpensive biomass resource, bio-based ethylene prices are closely equal to its petrochemical counterparts. This technology alleviated country’s oil dependence and favoured the local employment and economy. However, extensive production is prone to compete with feed and food production for the arable land availability.

Global bio-based ethylene market share is primarily focusing on sustainable development and industrial scale production with the aim for commercialization. Total, Axen, and IFPEN came into a joint venture called Atol in 2014. This joint venture is competing for commercial operations through this technology. The Dow Chemical, Alberta, Cargill, and Suiker Unie are also involved in the bio ethylene production. The traditional producers are shifting their focus towards this novel technology and to capture market at its initial stage. High initial R&D costs in these novel technologies establishment might cause threats to new and small scale entrants.

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