Biocomposites Market

Market Overview

The global biocomposites market size was valued at USD 25.47 billion in 2022. It is estimated to reach USD 85.07 billion by 2031, growing at a CAGR of 14.34% during the forecast period (2023–2031). In recent years, there has been a growing concern regarding environmental degradation and growing greenhouse gas emissions owing to rapid urbanization and industrialization. As a result, there has been a paradigm shift towards renewable and biodegradable resources, which is anticipated to drive the global biocomposites market.

Biocomposites are composite materials with multiple phases, with at least one phase comprising biological or renewable resources. Typically, these materials combine a matrix or binder phase and reinforcing fibers or particles obtained from natural sources. The matrix phase is commonly obtained from sustainable sources, such as plant polymers, including starch, cellulose, or soy-based resins. The reinforcement phase may involve the incorporation of organic fibers, such as flax, hemp, jute, or kenaf, as well as particles obtained from materials like wood, bamboo, or other agricultural waste.

The main objective is to develop a composite material that leverages the advantageous characteristics of both components. They possess several advantages over traditional composites, including eco-friendliness, biodegradability, affordability, lightness, heat resistance, and improved mechanical characteristics. Biocomposites are extensively utilized in diverse industries, including building and construction, transportation, consumer goods, electrical and electronics, and other sectors.

Market Dynamics

Global Market Drivers

Rising Demand for Eco-Friendly Materials

In recent years, there has been a notable rise in environmental concerns and a corresponding urgency to decrease greenhouse gas emissions. According to Statista, global greenhouse gas (GHG) emissions rose by 1.7 percent in 2022, reaching a record high of 53.8 billion metric tons of carbon dioxide equivalent (GtCO₂e). The emissions of greenhouse gases (GHGs) have increased globally by approximately 60% since 1990. The main cause of climate change and the source of about 75% of greenhouse gas emissions is carbon dioxide (CO₂). As a result, demand for biocomposites, composed of renewable and biodegradable materials, is expected to increase.

Biocomposites can contribute to diminishing reliance on fossil fuels and mitigating waste generation and disposal issues. Biocomposites exhibit reduced carbon footprint and energy usage compared to traditional composites, making them more sustainable and appealing for many applications. The advancement of biocomposites corresponds to the increasing interest in sustainable and eco-friendly materials to tackle problems about climate change and the exhaustion of resources. Hence, these factors propel the global biocomposites market growth.

Global Market Restraint

Relatively Low Strength as Compared to Glass Fibers

A significant challenge the biocomposites market encounters is the comparatively limited strength and rigidity of natural fibers compared to manufactured fibers, such as glass and carbon fibers. Biocomposites have suboptimal mechanical properties and durability due to inadequate bonding between natural fibers and the matrix.

Biocomposites can be adversely affected by moisture absorption, fungal attack, and heat degradation, all of which are common vulnerabilities of natural fibers. These factors could compromise the quality and stability of the biocomposites. Hence, biocomposites are restricted to specific high-performance applications requiring exceptional strength and rigidity.

Global Market Opportunities

Increasing Research and Development Activities

The biocomposites market has experienced a significant increase in research and development efforts due to the potential for enhancing the characteristics and performance of biocomposites. For instance, in 2022, Zaheeruddin Mohammed, a Department of Materials Science & Engineering graduate at Tuskegee University in Alabama, United States, collaborated with others to present advancements in sustainable techniques for enhancing biocomposite reinforcement. The research outlines explicitly a technique for producing biochar, a high-quality carbon generated from organic sources, which can improve the strength of polymers in 3D printing applications.

Additionally, in December 2022, SeaBioComp, a collaborative project, successfully developed and manufactured innovative bio-based composite materials to replace traditional oil-based products in the maritime industry. These materials, made from flax-based thermoplastic biocomposites, were showcased through various manufacturing processes, resulting in several demonstrator products specifically designed for the marine environment. Hence, progress in research and development will generate opportunities for market expansion.

Regional Analysis

Based on region, the global biocomposites market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global biocomposites market shareholder and is expected to expand substantially during the forecast period. The region has witnessed rapid industrialization and urbanization, leading to a significant demand for biocomposites from diverse industries. Thus, it has become the fastest-growing market for biocomposites. This increased industrialization and urbanization leads to an increase in harmful greenhouse gas emissions. According to the IEA, China's carbon dioxide (CO2) emissions exceeded 11.9 billion tons in 2021, representing 33% of global emissions. Consequently, there has been a significant increase in the need for renewable resources such as biocomposites in this region. Moreover, the region's abundant natural fibers and inexpensive labor give it a competitive advantage in the biocomposites industry. China, India, and Japan are the dominant nations in the region due to their substantial population and burgeoning economies, significantly contributing to the demand for biocomposites.

Furthermore, there has been an increase in the expansion of research and development activities focused on biocomposites with improved characteristics. For instance, in November 2023, the Korea Carbon Industry Promotion Agency (KCARBON) and the Korea Institute of Science Technology (KIST) collaborated to create biocomposites made of lyocell fiber, polylactic acid (PLA), and wood. The testing of these materials demonstrated flexural strength, flexural modulus, and impact strength that are three, two, and nine times more than plywood, respectively. KCARBON collaborated with Kongju National University in Gongju-si, South Korea, to create furniture that was showcased at the 2023 London Design Fair in London, U.K. KCARBON is making progress in the development of biocomposites, focusing on improving their composition, processing techniques, and applications. Therefore, these factors are expected to contribute to the expansion of the regional market.

Europe is an important market for biocomposites since consumers and businesses are increasingly aware of and prefer eco-friendly materials. The region is characterized by a significant concentration of stakeholders and research institutions actively engaged in advancing and exploring biocomposites. In May 2023, the German Institutes of Textile and Fiber Research (DITF, Denkendorf) successfully created an environmentally friendly biocomposite material specifically designed for support profiles and connecting nodes. In the future, these components can be utilized in transportable architecture, pavilions, and structures with limited load-bearing capacity.

Similarly, in April 2023, Aimplas, the Plastics Technology Centre in Valencia, Spain, and the Dutch research center TNO in The Hague, Netherlands, completed the ELIOT Project. This project entailed an in-depth review of existing recycling technologies for composites and biocomposites in the aeronautics industry. Additionally, the project involved an assessment of the most viable alternatives on a pilot plant scale, taking into account both technical and financial feasibility. The study concluded that solvolysis is the most effective technique among the 12 technologies examined for recycling six distinct biocomposite materials. These factors contribute to the expansion of the market in the region.

Segmental Analysis

The global biocomposites market is bifurcated into the fiber type, polymer type, product type, and end-user industry.

Based on fiber type, the global market is divided into wood fiber and non-wood fiber composites. 

The wood fiber composites segment is the most significant contributor to the market. Wood fiber biocomposites, or wood fiber-reinforced composites, are produced by blending wood fibers with a polymer matrix to form a composite material. These composites utilize wood fibers' strength and rigidity and the polymer matrices' adaptability. The combination of the components yields a substance that demonstrates enhanced mechanical characteristics, including strength, rigidity, and resilience, in contrast to the individual constituents.

Moreover, wood fiber biocomposites are a sustainable and diverse type of material that has the potential to be used instead of or alongside traditional composites in many applications. Wood fiber is the predominant fiber type utilized in biocomposites due to its widespread availability, low cost, and ease of processing. Wood fiber biocomposites are primarily utilized in building and construction applications, including decking, fencing, cladding, and other similar uses.

Based on polymer type, the global market is bifurcated into synthetic and natural polymers. 

The natural polymer segment owns the market share. Natural polymers' renewable and sustainable nature makes them commonly utilized in biocomposite manufacturing. While natural polymers are considered more ecologically sustainable and capable of breaking down naturally compared to synthetic polymers, they exhibit lower mechanical characteristics and stability. It comprises polymers from biological sources, such as starch, cellulose, lignin, and other similar substances. These natural polymers form strong mechanical properties in lightweight, environmentally friendly biocomposites mixed with reinforcing fibers such as cellulose, hemp, or flax fibers. These materials are utilized in diverse industries, such as automotive, construction, and packaging, as substitutes for conventional petroleum-based composites.

Based on product type, the global market is bifurcated into hybrid and green biocomposites. 

The green biocomposites segment dominates the global market. Green biocomposites comprise natural fibers and polymers, such as wood-starch composites, hemp-cellulose composites, and other similar materials. The matrix material used in green biocomposites is commonly sourced from renewable resources, such as bio-based polymers or biodegradable polymers. Some examples of bio-based resins are polylactic acid (PLA), polyhydroxyalkanoates (PHA), starch-based polymers, and other similar materials.

Moreover, the emergence and utilization of green biocomposites align with the increasing need for sustainable and eco-friendly materials in many industries. Researchers and industries are always investigating methods to improve these substances' efficiency, affordability, and scalability. Green biocomposites have superior environmental sustainability and biodegradability compared to hybrid biocomposites but have reduced strength and durability.

Based on the end-user industry, the global market is divided into transportation, building and construction, consumer goods, electrical and electronics, and others.

The transportation segment is experiencing rapid growth in the utilization of biocomposites due to their ability to lower vehicle weight and improve fuel efficiency. Biocomposites are increasingly employed in various vehicles, including cars, buses, trucks, etc. Biocomposites are utilized to improve the comfort and aesthetics of car interiors, including door panels, seat coverings, dashboards, and other components. Moreover, the prominent players involved are actively striving for the advancement of biocomposites within the automotive industry, a development expected to propel this segment's expansion.

For instance, in October 2022, Faurecia, located in Nanterre, France, and a subsidiary of the Forvia Group, is an international automotive supplier focused on creating technologies that promote secure, environmentally friendly, cutting-edge, and personalized transportation solutions. Although CW has recently covered the progress made by the company in developing carbon fiber-reinforced polymer (CFRP) hydrogen storage tanks for light commercial vehicles, Faurecia's efforts also encompass the advancement of biocomposites and smart materials for environmentally friendly vehicle interiors. Faurecia claims to have decades of experience in this field.

Recent Developments

• October 2023- FrostPharma, in partnership with Mälarplast and Stora Enso, successfully created a collection of hazardous waste containers using a sustainable material known as biocomposites. These containers comprise Nordic wood fibers and bio-based polypropylene (PP).
• January 2024- Biocomposites, a global medical devices company specializing in the development, production, and promotion of cutting-edge products for bone regeneration and infection management in bone and soft tissue, announced that its investee company, Renovos Biologics (Renovos), received Breakthrough Device Designation from the US Food and Drug Administration (FDA) for its flagship product, RENOVITE® BMP-2 (Bone Morphogenic Protein 2).