Bio Plasticizers Market Size, Share & Trends Analysis Report By Product (Epoxidized Soybean Oil, Castor Oil-Based Plasticizers, Citrates, Succinic Acid, Others), By End-User (Building and Construction, Packaging Material, Consumer Goods, Medical Goods, Automotive and Transportation, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global bio plasticizers market revenue was valued at USD 2660 million in 2022 and is estimated to reach an expected value of USD 4600 billion in 2031, growing at a CAGR of 6.3% over the forecast period (2023–2031). The global market is anticipated to be driven by favorable government laws for bio-plasticizers in the automotive, textile, and consumer goods sectors over the forecast period.

Plasticizers, in general, are chemical additives incorporated into polymers to enhance their mechanical properties, such as flexibility and processability. Bioplasticizers are obtained from agricultural products and wastes. They are not miscible and are resistant to leaching. These plasticizers are non-toxic and have lower costs than traditionally formulated plasticizers. Polyvinyl chloride (PVC) accounts for a share of 85% to 90% of the overall plasticizers consumed globally. It is used in various applications, such as electric cables and wire insulation, wall and floor covering, and roofing membranes. PVC is also used in the automotive and paints, and inks industries.

Market Dynamics

Global Bio Plasticizers Market Drivers

Growth of End-User Industries

Key raw materials for manufacturing bio-plasticizers include castor, soybean, linseed, and others. The increasing application scope of bio-plasticizers in a wide range of end-use industries such as automobiles, construction, packaging, textiles, transport, and agriculture is expected to trigger industry growth in the coming years. Moreover, the high demand for non-phthalate and bio-plasticizers in varied geographical regions is anticipated to drive the market. Other application segments include inks, medical, waxes, adhesives and sealants, and sports-related goods.

In the automotive and transportation sector, plasticizers enhance the properties of plastics increasingly used as replacements for heavy metal components in vehicles. The use of plastic in place of metal for both external and interior car components has reduced the weight of the vehicle, which in turn has decreased emissions and fuel consumption. Bioplasticizer use in the automotive industry is comparatively high due to its environmentally friendly characteristics.

Furthermore, the construction industry has been a major contributor to GDP growth for several countries. Regarding construction demands worldwide, USD 94 trillion is estimated for infrastructural investments in the coming two decades to fill the current bridge and construct over 13,000 buildings daily from 2021 to 2050. The industry is predicted to reflect a CAGR of 6.5% by 2026 on a global scale. Bio plasticizers are projected to grow due to heavy demand for wires, cables, and various molded plastic components, which are required in the construction industry.

Stringent Regulations on Traditional Plasticizers

Favorable government regulations regarding bio-plasticizers in automotive, textile, and consumer goods industries are expected to drive the global market over the forecast period. Bio-plasticizers are made from renewable and natural raw materials. EU Regulation (EC) No. 1907/2006 – REACH states that "there is no adverse effect on human health or the environment from using any polymer products," which is expected to drive the European market over the next seven years. Moreover, favorable initiatives undertaken by the European government for safety and internees for all Food Contact Materials (FCMs), including specialty polyamide products under Regulation EU 284/2011 and Regulation (EC) No 1935/2004, are expected to drive specialty polyamide consumer goods & retail market in the region. According to EPA 40 CFR 723.250, "the section grants an exemption from certain of the pre-manufacture notice requirements of section 5(a)(1)(A) of the Toxic Substances Control Act (15 U.S.C. 2604(a)(1)(A)) for the manufacture of certain polymers."

Furthermore, Japan's National Institute of Advanced Industrial Science and Technology (AIST) has collaborated to launch biodegradable, environmentally friendly, hypoallergenic, and non-toxic bioplasticizer products in Asia Pacific. An initiative such as "Make in India" is also anticipated to bolster the bio-plasticizer production scenario in the country over the forecast period. In addition, synthetic surfactants are derived from petrochemicals. Stringent regulations regarding environmental concerns and toxicity for synthetic surfactants are expected to drive the bio-based polyamide market over the forecast period. The toxicity of polyamides is regulated by the Toxic Substance Control Act (TSCA). EPA, under FIFRA, regulates the toxicity, disposability, and environmental issues related to synthetic surfactants.

Global Bio Plasticizers Market Restraint

High Cost of Bio Plasticizers

Bioplasticizer prices directly depend on oxidized soybean oil (ESBO), succinic acid, and castor oil availability and prices, which are the key raw materials required for bioplasticizer production. Oilseed prices depend on factors such as global supply-demand imbalance with declining stock, increasing demand for castor oil from different application segments, production of other major crops, and weather conditions. High demand for castor from the U.S., China, and Europe has resulted in surged prices. These commodities and their derived oils are increasingly used to produce bio-plasticizers for application in industries such as plastics, paints, lubricants, and pharmaceuticals. Castor oil prices increased with increasing crude oil prices and the consequent hike in oilseed prices.

India, a significant producer of castor oil, is expected to experience a decline in castor seed crop production. This is due to falling soil fertility in Rajasthan, India's major castor seed-producing state. Moreover, stagnant production of the crop globally, including India, followed by China and Brazil, is likely to result in higher prices of castor seeds and castor oil-based plasticizers in the global market. Castor oil is in high demand as a petroleum product substitute in many industries, including paper, plastics, and nylon. If crop production in India were to decline, prices would likely follow. Such a transition to biobased alternatives is also supported by the high price of crude oil.

Global Bio Plasticizers Market Opportunities:

Advent of Bio-Based Plastics

Packaging materials have significant penetration among all segments of bio-plasticizers. The advent of bio-based plastics has played a significant role in food, pharmaceutical, and beverage packaging applications. Compounded plastics, such as PET and PC, are being increasingly replaced by bio-plasticizer polymers in the packaging of beverages, consumer goods, appliances, toys, and apparel.

Bio-plasticizers in packaging applications are predicted to be driven primarily by rising consumption in developed and developing economies. Applications for bioplasticizers in packaging are anticipated to present profitable prospects; for example, using bioplastic to package drinks requires less than traditional materials. This saves transportation costs, time, and energy by trimming waste in all aspects.

Unlike conventional materials, bio-plasticizers can be reused for multiple applications and recycling processes. The increase in building and construction applications, including storage tanks, insulation materials, domes/skylights, pipes, high-performance safety windows, floorings, roofing, doors, and cables, is expected to translate into moderate scope for growth. Fire-resistant and impact-durable bio-plasticizer compounds are increasingly finding applications in the consumer goods industry.

Regional Analysis

Asia-Pacific Dominates the Global Market

Region-wise, the global bio plasticizers market is segmented into North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa.

Asia-Pacific is the most significant global bio plasticizers market shareholder and is estimated to register a CAGR of 6.3% during the forecast period. The growing demand for PVC in various industries, such as construction, automotive, and pharmaceuticals, is anticipated to propel the growth of the bioplasticizer market during the research year. Pfizer Inc., Bristol-Myers Squibb Company, Abbott, and Merck Sharp & Dohme Corp are the top market players in the North American pharmaceutical industry. In addition, the market will likely grow due to growing demand for automobile vehicles, increasing building and construction activities, and many pharmaceutical industries in countries including the U.S. and Mexico. According to a report published by AstraZeneca in 2020, the North American pharmaceutical market is anticipated to reach USD 633 billion by 2024, recording a CAGR of 3.5% annually. As of 2020, the U.S. held 48% of the global pharmaceuticals market.

Moreover, factors such as the increasing aging population, rising cases of non-communicable diseases such as cardiovascular diseases, chronic respiratory diseases, cancer, and diabetes, and the outbreak of the COVID-19 pandemic fuel the demand for pharmaceutical products in the region. Therefore, the rising demand for pharmaceutical products is contributing to the demand for PVC, which is expected to fuel the demand for bio-plasticizers.

Europe is estimated to exhibit a CAGR of 6.2% during the forecast period. Europe is run by major industrial economies such as the UK, Germany, France, Italy, and Spain, with an increasing number of manufacturers and various market suppliers of personal care and cosmetics products, pharmaceutical products, and automobile manufacturers penetrating the regional ecosystem. Major manufacturing units of personal care and cosmetic products are expected to drive the demand for bio plasticizers in the European region. Bio plasticizers are used as additives in manufacturing cosmetic products such as fragrances, lipstick, shower gel, and oral care. According to The Cosmetic, Toiletry, and Perfumery Association, Germany was the largest cosmetic products market in 2019, valued at around USD 16.5 billion, followed by France, valued at approximately USD 13.54 billion, the UK at nearly USD 12.71 billion, and Italy at USD 12.47 billion.

Moreover, there are over 5,900 Small and Medium Enterprises (SMEs) in the market that are continuously involved in launching new and innovative cosmetic products to cater to consumers' growing demand. Therefore, changing consumers' lifestyles, increased awareness regarding self-care, and rising preference for organic cosmetic products have increased the demand for organic cosmetic products. Thus, the growing demand for cosmetic products in the market is expected to augment the demand for bio-plasticizers over the forecast period.

In Central and South America, growing concerns regarding the depletion of petroleum reserves have emerged as the major factor driving the focus of various industries, including construction, food and beverage, and consumer goods, toward eco-friendly bio-plasticizers. This trend is expected to propel the demand for bio-plasticizers across Central and South America over the forecast period. The residential construction sector dominated the market and is expected to dominate over the forecast period. The construction of residential infrastructure is anticipated to witness substantial growth owing to the support of the Brazilian government to balance the supply and demand of affordable houses coupled with rising urbanization.

Moreover, the growth of the construction industry in the region is attributed to private capital infrastructure developments due to public-private partnerships and increasing per capita income in South America. Rapid development in the construction sector is anticipated to bolster the demand for PVC, boosting the demand for bio-plasticizers in the region over the forecast period.

Segmental Analysis

The global bio plasticizers market is segmented based on product and end-user.

By product, the global bio plasticizers market is categorized into epoxidized soybean oil, castor oil-based plasticizers, citrates, succinic acid, and others. 

The epoxidized soybean oil segment dominates the global market and is anticipated to exhibit a CAGR of 5.5% during the forecast period. Epoxidized soybean oil (ESBO) is an organic compound manufactured through the epoxidation of soybean oil using hydrogen peroxide in the presence of either formic acid or acetic acid. It is a yellowish viscous liquid, which is non-toxic. It is a bio-plasticizer used as a stabilizer in plastic materials, especially polyvinyl chloride (PVC) and its copolymers, owing to many epoxidized carbon-carbon double bonds. These bonds make ESBO highly reactive to be used as a plasticizer.

ESBO is also used in manufacturing cutting oils, pesticides, insecticides, pigment dispersion agents, adhesives, sealants, coatings, etc. The demand for this oil is expected to increase in the coming years owing to its low cost and environmental friendliness. ESBO is a good substitute for phthalates, which are unsafe for human health and the environment. It is economical and easily available in large quantities. Hence, ESBO can be used in various industries.

Based on end-users, the global bio plasticizers market is categorized into building and construction, packaging material, consumer goods, medical goods, automotive and transportation, and others. 

The building and construction segment owns the highest market share and is anticipated to exhibit a CAGR of 5.6% during the forecast period. In the building and construction sector, bio-plasticizers are used for manufacturing construction materials like PVC, which is extensively used in the manufacture of construction products such as pipes, fittings, cables and services ducting, roofing and ceiling systems, external and internal cladding, power cable, data and telecoms wiring and cables, window door profiles, flooring, water coverings, and many others. Properties such as flame retardant, electrical insulation, durability, flexibility, and lightweight make PVC ideal for building and construction industry use.

Furthermore, rising awareness regarding the adverse harmful chemical effects on human health and the environment, coupled with rapid urbanization, expanding population, and fast-paced industrial growth, has resulted in the increasing need for construction and infrastructure development across the globe. According to the Global Construction Perspectives and Oxford Economics report, the global construction industry is predicted to reach USD 8 trillion by 2030, mainly driven by countries including China, the U.S., and India, as they account for almost 57% of the global construction industry share. Moreover, the growth rate of the U.S. and India is expected to advance faster than China due to increasing demand for new houses, which is attributed to the growing population in India and the rising need to renovate houses and commercial buildings in the U.S.

Recent Developments

• October 2023- Biovero, Cargill's newest bioindustrial plasticizer, found widespread use in the production of a broad range of goods for its North American industrial clients, including flooring, apparel, wires, cables, and plastic films and sheets. The company has ambitions to expand the product's reach internationally.