Biobased Propylene Market Research Report and Outlook by 2028

In 2023, the biobased propylene market is anticipated to reach a valuation of US$ 63.71 million, with projections indicating an increase to US$ 83.69 million by 2028. This growth represents a compound annual growth rate (CAGR) of 5.6% over the five-year period from 2023 to 2028.

The biobased propylene market is poised for expansion, driven by the escalating demand for bioplastics, which is largely influenced by heightened environmental consciousness. Biobased propylene is derived from renewable resources and is mainly used in the manufacture of biobased polypropylene. The rising need for biobased polypropylene is expected to positively impact the biobased propylene market.

The global biobased propylene market is divided into several segments based on derivatives, including polypropylene, propylene oxide, acrylonitrile, cumene, and others. Among these, the acrylonitrile segment is projected to experience the most significant growth during the forecast period. The production of acrylonitrile primarily involves a catalytic reaction between propylene, ammonia, and air. The increasing application of acrylonitrile in the aviation and healthcare industries is boosting its demand. Additionally, the growing focus on developing products with low CO2 emissions is enhancing the need for biobased acrylonitrile, thereby increasing the emphasis on the advancement of biobased propylene.

Geographically, the global biobased propylene market is segmented into North America, Europe, Asia Pacific (APAC), South and Central America (SCAM), and the Middle East & Africa (MEA). The APAC region is expected to show the highest growth rate in the biobased propylene market. This growth can be attributed to increasing governmental support and initiatives by manufacturers to investigate the use of biobased propylene in polypropylene production, in light of rising concerns regarding greenhouse gas emissions and climate change. These elements are likely to foster the growth of the biobased propylene market in this region.

The COVID-19 pandemic presented significant challenges across various sectors, including chemicals and materials, due to issues such as labor shortages, raw material scarcities, factory closures, and operational hurdles under safety regulations. Consequently, the biobased propylene market faced adverse effects. The pandemic also disrupted research and development efforts related to biobased propylene, which impeded market growth. However, with the rollout of COVID-19 vaccines, conditions have improved, and business operations are gradually returning to normal. As a result, the demand for biobased propylene is expected to rise in the upcoming years. Furthermore, manufacturers are increasingly focusing on the development of biobased propylene from renewable sources due to their heavy reliance on gasoline and diesel markets.

Key players in the biobased propylene market include Mitsui Chemicals, Inc., Borealis AG, Global Bioenergies, The Dow Chemical Company, Cereplast, Inc., and Trellis Earth Products, Inc. These companies are employing strategies such as mergers and acquisitions, along with product launches, to enhance their market presence and expand their customer base.

The size of the global biobased propylene market has been assessed through a combination of primary and secondary research methodologies. The research process commenced with comprehensive secondary research that leveraged both internal and external sources to collect qualitative and quantitative data pertinent to the market. Following this, numerous primary interviews were conducted with industry experts, including vice presidents, business development managers, market intelligence managers, national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the global biobased propylene market. These interviews aimed to validate the data and provide deeper analytical insights into the market landscape.