Bio-Based Ethylene Market Size, Trends and Growth Analysis by 2027

The global market for bio-based ethylene was valued at approximately US$ 414.34 million in 2019 and is anticipated to reach US$ 718.32 million by 2028, reflecting a compound annual growth rate (CAGR) of 6.4% during the forecast period.

Bio ethylene is derived from biomass feedstock, which is also utilized for producing bioethanol. Its recognition has grown significantly due to its application as a transportation fuel. Various natural resources serve as raw materials in the production of bio ethylene, including sugars (such as sugarcane, sugar beets, and sweet sorghum), starches (like corn and wheat), and lignocellulosic biomass (comprising wood and grass). The increasing demand for bio-based materials has led manufacturers in sectors such as fuel additives, packaging, and detergents to favor bio ethylene in their products.

The global bio-based ethylene market is categorized based on raw materials into three segments: sugars, starch, and lignocellulosic biomass. In 2019, the sugars segment dominated the market, holding the largest share. Bio ethylene is primarily produced from bioethanol, a widely used liquid biofuel in the transportation industry. Sugarcane is a particularly favored raw material for bio ethylene production, especially in countries like India and Brazil. In Brazil, the production of bioethylene is economically viable due to the abundant availability of inexpensive sugarcane feedstock. The breakdown of sugarcane, sugar beets, and sweet sorghum is relatively straightforward, as sucrose, a disaccharide, can be directly fermented into bioethanol using yeast. The production of bio-ethylene from sugar is estimated to conserve around 60% of fossil energy compared to traditional petrochemical methods, as the process can also generate electricity. Additionally, the production costs associated with sugarcane-based bio-ethylene are notably low. Utilizing bio ethylene in the petrochemical sector can significantly reduce greenhouse gas emissions linked to fossil fuel usage. Consequently, many industries are increasingly adopting bio ethylene for a variety of applications.

Regionally, the bio-based ethylene market is divided into North America, Europe, Asia Pacific (APAC), South America (SAM), and the Middle East & Africa (MEA). North America is projected to be the fastest-growing market for bio-based ethylene in the upcoming years. Europe holds the largest market share, largely due to the presence of key manufacturers such as The Dow Chemical Company, Oxy Low Carbon Ventures (OCLV), and Enerkem. North America is expected to capture a significant portion of the bio-based ethylene market during the forecast period, driven by the extensive use of this material in the packaging and plastics industries. Bio-ethylene is produced from various bio-based materials, including starch, sugars, and lignocellulosic biomass. Bioethanol is primarily used as a blend in transportation fuels and is gaining traction in the automotive sector, further propelling market growth. The growing concern among North Americans regarding greenhouse gas emissions has led to a shift towards bio ethylene as a sustainable alternative to petrochemical products, fostering a positive outlook for the bio ethylene market in this region.

Ethylene serves as a crucial feedstock for numerous downstream chemical products and is one of the most significant bulk chemicals, extensively utilized in plastic production. Given the broad applications of ethylene, its demand is expected to continue rising in the foreseeable future. Traditionally, ethylene has been produced from petroleum derivatives, contributing to the depletion of fossil fuel reserves. To address this issue, biomass feedstock is emerging as a reliable alternative for producing bio-based ethylene. Bio-ethylene is generated from bioethanol, which is predominantly derived from lignocellulosic biomass such as wood, sugarcane, and corn-starch, thereby reducing reliance on petroleum derivatives and fossil fuels. Furthermore, bio-based products sourced from local resources can diminish a country's dependence on fossil fuel imports, thereby bolstering the domestic economy.

Moreover, bio-based ethylene contributes to a reduction in greenhouse gas emissions during both its production and usage. However, the environmental performance of bio-ethylene is largely influenced by regional conditions surrounding bioethanol production, greenhouse gas emissions resulting from land use changes, and the energy systems in place. Nevertheless, bio-based ethylene has the potential to significantly mitigate the environmental impact of the chemical industry. The urgent need to lessen reliance on fossil fuels, coupled with a growing awareness of environmental sustainability, is driving the expansion of the bio-based ethylene market. Notably, bio-based ethylene and petroleum-based ethylene are chemically identical, allowing existing production facilities and equipment to be utilized for producing other downstream products, including plastics, without significantly affecting the current market dynamics, which further supports market growth.

Key players in the global bio-based ethylene market include Braskem SA, The Dow Chemical Company, LyondellBasell Industries Holdings B.V., SABIC, and Oxy Low Carbon Ventures (OCLV).

The overall size of the global bio-based ethylene market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the findings and gain deeper analytical insights. Participants in this research included industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants, valuation experts, research analysts, and key opinion leaders specializing in the global bio-based ethylene market.