India Bio-Based Chemicals Market is expected to reach US$ 21.25 Million by 2031

Favorable Government Initiatives Propels India Bio-Based Chemicals Market Growth

According to the latest market study on "India Bio-Based Chemicals Market Forecast to 2031 – Country Share, Trend, and Growth Opportunity Analysis – by Derivative Type," the market was valued at US$ 13.88 million in 2023 and is projected to reach US$ 21.25 million by 2031; it is anticipated to record a CAGR of 5.5% from 2023 to 2031. The report highlights key factors contributing to the India bio-based chemicals market size and prominent players along with their developments in the market.

The India bio-based chemicals market report emphasizes key factors impacting the market. The "Make in India" initiative, launched in 2014, has encouraged domestic manufacturing in various sectors, including the chemical sector. This initiative provides incentives such as tax holidays, subsidies, and ease of doing business reforms, which have made it attractive for companies to invest in the production of bio-based chemicals within India. The government's emphasis on self-reliance under the "Atmanirbhar Bharat" campaign further strengthens this, encouraging local industries to develop and scale up technologies for bio-based chemical production and reduce reliance on imports.

India Bio-Based Chemicals Market Breakdown

The government has invested heavily in research and development to support innovation in bio-based chemical field. The Department of Biotechnology (DBT) and the Council of Scientific and Industrial Research (CSIR) have launched several programs aimed at advancing biotechnological processes, which are critical for the efficient production of bio-based chemicals. Grants, funding, and the establishment of bio-refineries across the country have also been part of this effort. The "Green India Mission" under the National Action Plan on Climate Change (NAPCC) aligns with these initiatives by promoting sustainable and eco-friendly industrial practices. The introduction of policies such as the "Zero Defect, Zero Effect" initiative, which aims to ensure that manufacturing processes have no adverse environmental impact, also supports the growth of the bio-based chemicals market. The government's push for a circular economy, where waste materials are reused in industrial processes, further complements the drive toward bio-based chemical production. Therefore, the government's increasing emphasis on the development of bio-based products fuels the India bio-based chemicals market growth.   

Continued investment in research and development is set to play a crucial role in driving the growth of the bio-based chemicals market in India by leading to significant technological breakthroughs. As the industry evolves, innovations such as advanced fermentation processes, enzyme technologies, and genetically engineered microorganisms are expected to revolutionize the production of bio-based chemicals, making them more efficient and scalable. Advanced fermentation processes, for instance, can enhance the yield and purity of bio-based chemicals by optimizing the conditions under which microorganisms convert biomass into valuable chemicals. This not only improves the overall efficiency of production but also reduces the time and resources required, thereby lowering costs. Similarly, enzyme technologies are being refined to facilitate more efficient breakdown and conversion of biomass into bio-based chemicals. By engineering enzymes that are more robust and capable of functioning under a broader range of conditions, the industry can achieve higher productivity with less input.        

Technological innovations and process optimization is expected to be one of the significant India bio-based chemicals market trends. By modifying the genetic makeup of microorganisms, researchers can create strains that are more effective at converting specific types of biomass into bio-based chemicals. These engineered microorganisms can be tailored to optimize the production of particular chemicals, enhancing both the yield and efficiency of the process. Moreover, these advancements can reduce dependency on costly and complex chemical synthesis processes, further decreasing production costs. These technological advancements are crucial for overcoming the current challenges faced by the bio-based chemicals industry, particularly the high costs and limited scalability of production. Therefore, the growing emphasis on the development of advanced manufacturing processes is positively impacting the India bio-based chemicals market share.

The ethylene oxide segment of the India bio-based chemicals market has witnessed substantial growth in recent years. Ethylene oxide, traditionally derived from petrochemical sources, is increasingly being produced from renewable feedstocks such as bioethanol. This shift is driven by the growing demand for sustainable and eco-friendly chemical alternatives in various industries, including pharmaceuticals, textiles, and personal care. The Indian market for bio-based ethylene oxide is still in its nascent stage; however, it is witnessing significant growth due to the country's increasing focus on reducing carbon emissions and dependency on fossil fuels. Government initiatives and favorable policies promoting the use of bio-based chemicals are also contributing to the expansion of this segment. Additionally, the rising awareness among consumers and industries about the environmental benefits of bio-based products is propelling the demand for bio-based ethylene oxide.

The demand for ethylene oxide derivatives such as bio-based di-ethylene glycol (DEG) and tri-ethylene glycol (TEG) is growing significantly. The bio-based DEG segment represents a growing niche within the broader bio-based chemicals market in India. Di-ethylene glycol—a colorless, hygroscopic liquid—is traditionally derived from petrochemical processes. However, with the increasing emphasis on sustainability, there is a shift toward producing DEG from renewable resources, particularly through bio-based methods. This shift is gaining momentum in India as industries seek to reduce their carbon footprint and align with global environmental standards. In India, the demand for DEG is driven by several factors, including the rising demand for environmentally friendly solvents in industries such as pharmaceuticals, cosmetics, and textiles. Furthermore, TEG—known for its applications in solvents, humectants, and the production of plastics and resins—is now being produced from renewable sources, such as bioethanol, instead of the traditional petrochemical route. In India, the market for bio-based TEG is gaining momentum due to the increasing demand from industries such as pharmaceuticals, textiles, and personal care. The market growth for the segment is further supported by government initiatives aimed at promoting the use of bio-based chemicals, which helps reduce dependency on imported petrochemical-based products. This push toward self-reliance in chemical production encourages the development and commercialization of bio-based TEG within the country.

The India bio-based chemicals market analysis is carried out by identifying and evaluating key players in the market. Clariant AG, India Glycols Ltd, Vizag Chemicals Pvt Ltd, Mitsui Chemicals Inc, and The Dow Chemical Co are among the key players profiled in the India bio-based chemicals market report.

The report includes the segmentation of the India bio-based chemicals market as follows:

The India bio-based chemicals market is segmented on the basis of derivative type. Based on derivative type, the market is categorized into propylene (polypropylene, propylene oxide, acrylonitrile, cumene, and others) and ethylene oxide (di-ethylene glycol, tri-ethylene glycol, ethylene glycol ethers, alkyl phenols, and others). The propylene segment held a larger India bio-based chemicals market share in 2023. Propylene, a key building block in the chemical industry, is traditionally derived from fossil fuels. However, with the increasing emphasis on sustainability, there is a shift toward bio-based propylene derivatives, which are produced from renewable resources, such as biomass, agricultural waste, and other organic materials. Bio-based propylene derivatives include a variety of chemicals, such as propylene glycol, propylene oxide, and acrylonitrile. These derivatives are widely used across several industries, including automotive, construction, packaging, textiles, and consumer goods. The growth of the bio-based propylene derivates segment in India is supported by the government's initiatives to promote green chemicals and spread awareness among industries about the benefits of sustainable products. The Government of India's focus on reducing the country's carbon footprint and implementing favorable policies for the bio-based chemicals industry is likely to further propel the demand for bio-based propylene derivatives in the coming years.  

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