The India bio-based chemicals market size is projected to reach US$ 21.25 million by 2031 from US$ 13.88 million in 2023. The market is expected to register a CAGR of 5.5% during 2023–2031. Technological innovation and process optimization are likely to bring new market trends.
India Bio-Based Chemicals Market Analysis
As consumer awareness of environmental issues increases and regulations on plastic use tighten, there is a growing demand for sustainable packaging solutions. This trend is pushing the packaging industry to seek alternatives to traditional petroleum-based plastics, creating opportunities for bio-based chemicals. Bio-based chemicals are derived from renewable resources such as plants, algae, or waste materials. They are increasingly being used to produce biodegradable and compostable packaging materials. These materials offer functionality similar to conventional plastics but have a reduced environmental impact. The food and beverages industry, in particular, is adopting bio-based packaging to meet consumer demands for eco-friendly products. Large retailers and brands are committing to using more sustainable packaging, further driving the demand for bio-based chemicals.
India Bio-Based Chemicals Market Overview
In India, the growing awareness of sustainability and rising demand for sustainable products are increasingly shaping the trajectory of various industries, including packaging, automotive, textiles, and personal care. As companies strive to minimize their environmental impact and align with global sustainability trends, the market for bio-based chemicals is emerging as a key alternative to traditional petrochemicals. This shift is particularly evident in the packaging industry, where the demand for eco-friendly and sustainable solutions is on the rise. Consumers are becoming more conscious of the environmental footprint of the products they purchase, leading to a heightened preference for packaging materials that are biodegradable, compostable, or made from renewable resources. Additionally, stringent government regulations aimed at reducing plastic waste and promoting sustainable practices are driving the adoption of bio-based polymers.
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India Bio-Based Chemicals Market: Strategic Insights
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We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
India Bio-Based Chemicals Market: Strategic Insights
Shejal
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Shejal will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
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India Bio-Based Chemicals Market Drivers and Opportunities
Growth in the Adoption of Bioplastics
The adoption of bioplastics is increasing in India, owing to the rising impacts of conventional petroleum-based plastics on the environment. The Government of India is encouraging manufacturers to develop biodegradable versions of plastics due to the rising environmental concerns. Moreover, the government has made the products more affordable to increase customer adoption. Bio-based propylene and ethylene oxide can be used to manufacture bio-based polypropylene and ethylene glycol, respectively. Moreover, the production of propylene and ethylene oxide using renewable energy sources can reduce carbon dioxide emissions to a substantial rate, which would help the government in achieving its sustainability goals. Many manufacturers have found new approaches to manufacturing propylene with the help of renewable biomass and ethylene oxide using sugar, starch, and lignocellulosic biomass. The rising sustainability trends in the country can boost the adoption of such environment-friendly manufacturing processes in the coming years.
Expansion of Domestic Markets
The Government of India's initiatives, such as the ban on single-use plastics and policies promoting circular economy principles, are fostering a favorable environment for the growth of bio-based packaging materials. This trend toward sustainable packaging is expected to create substantial opportunities for innovation within the bio-based chemicals market. Companies are investing in the development of new bio-based materials that meet the functional requirements of packaging while being environmentally friendly. The increasing collaboration between industry players, research institutions, and the government is accelerating the advancement of bio-based chemical technologies, making them more cost-effective and scalable.
India Bio-Based Chemicals Market Report Segmentation Analysis
The derivative type segment contributed to the derivation of the India bio-based chemicals market analysis.
- Based on derivative type, the market is segmented 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 share of the market in 2023.
India Bio-Based Chemicals Market Share Analysis by Geography
The geographic scope of the India bio-based chemicals market report focuses on the market scenario in terms of historical market revenues and forecasts.
The Government of India has been actively fostering the bio-based chemicals market through a series of strategic initiatives aimed at enhancing sustainability, reducing carbon footprints, and promoting the use of renewable resources. Central to this push is the "National Policy on Biofuels," first introduced in 2009 and revised in 2018, which prioritizes the production and use of bio-based chemicals derived from non-food biomass. This policy promotes second-generation (2G) biofuels, which utilize agricultural residues and other non-food materials, thus avoiding the food-versus-fuel debate. Under this policy, the government has set ambitious targets for biofuel blending, indirectly boosting demand for bio-based chemicals, as they can be derived from the same biomass sources. Thus, the government's focus on developing bio-based products is driving the India bio-based chemicals market growth.
India Bio-Based Chemicals Market Report Scope
India Bio-Based Chemicals Market News and Recent Developments
The India bio-based chemicals market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the India bio-based chemicals market are listed below:
- Indian state-controlled refiner Bharat Petroleum (BPCL) plans to build a 400,000 t/yr polypropylene (PP) project at its Kochi refining complex in southwest India's Kerala state. The project is expected to be completed in almost 46 months and will cost approximately INR 50.44 billion (US$ 606 million). [Source: Bharat Petroleum Corporation Limited (BPCL), Press Release, December 2023]
- INEOS Launches new Bio-Attributed Ethylene Oxide, Completely Substitutes Fossil Feedstock With Renewable Biomass The Bio-attributed Ethylene Oxide delivers 100% substitution of fossil feedstock on a mass balance basis, as certified by RSB and ISCC+. The material delivers a Greenhouse Gas saving of over 100% compared to conventionally produced EO. [Source: INEOS, July 2022)
India Bio-Based Chemicals Market Report Coverage and Deliverables
The "India Bio-Based Chemicals Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
- India bio-based chemicals market size and forecast at country levels for all the key market segments covered under the scope
- India bio-based chemicals market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed Porter's Five Forces and SWOT analysis
- India bio-based chemicals market analysis covering key market trends, country framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the India bio-based chemicals market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The market is estimated to register a CAGR of 5.5% during 2023–2031.
The market is projected to reach US$ 21.25 million by 2031.
Clariant AG, India Glycols Ltd, Vizag Chemicals Pvt Ltd, Mitsui Chemicals Inc, and The Dow Chemical Co are among the key players operating in the India bio-based chemicals market.
Technological innovation and process optimization are expected to be the future trends for the market.
The growing demand from the packaging industry is one of the factors driving the market growth.
The propylene segment dominated the market in 2023.
1. Introduction
1.1 The Insight Partners Research Report Guidance
1.2 Market Segmentation
2. Executive Summary
2.1 Key Insights
2.2 Market Attractiveness
3. Research Methodology
3.1 Secondary Research
3.2 Primary Research
3.2.1 Hypothesis formulation:
3.2.2 Macro-economic factor analysis:
3.2.3 Developing base number:
3.2.4 Data Triangulation:
3.2.5 Country level data:
4. India Bio-Based Chemicals Market Landscape
4.1 Overview
4.2 Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitutes
4.3 Ecosystem Analysis
4.3.1 Raw Material Suppliers:
4.3.2 Manufacturers/Processing Plants:
4.3.3 Distributors/Suppliers:
4.3.4 End-Use Industries:
4.3.5 List of Vendors in the Value Chain
5. India Bio-Based Chemicals Market – Key Market Dynamics
5.1 India Bio-Based Chemicals Market – Key Market Dynamics
5.2 Market Drivers
5.2.1 Growth in Packaging Industry
5.2.2 Government Initiatives
5.3 Market Restraints
5.3.1 Limited Production Capacity of Bio-Based Chemicals in India
5.4 Market Opportunities
5.4.1 Expansion of Domestic Markets
5.5 Future Trends
5.5.1 Technological Innovations and Process Optimization
5.6 Impact of Drivers and Restraints:
6. India Bio-Based Chemicals Market Analysis
6.1 India Bio-Based Chemicals Market Volume (Kilo Tons), 2021–2031
6.2 India Bio-Based Chemicals Market Volume Forecast and Analysis (Kilo Tons)
6.3 India Bio-Based Chemicals Market Revenue (US$ Million), 2021–2031
6.4 India Bio-Based Chemicals Market Forecast and Analysis (US$ Million)
7. India Bio-Based Chemicals Market Volume and Revenue Analysis – by Derivative Type
7.1 Propylene
7.1.1 Overview
7.1.2 Propylene: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
7.1.3 Polypropylene
7.1.3.1 Overview
7.1.3.2 Polypropylene: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
7.1.4 Propylene Oxide
7.1.4.1 Overview
7.1.4.2 Propylene Oxide: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
7.1.5 Acrylonitrile
7.1.5.1 Overview
7.1.5.2 Acrylonitrile: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
7.1.6 Cumene
7.1.6.1 Overview
7.1.6.2 Cumene: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
7.1.7 Others
7.1.7.1 Overview
7.1.7.2 Others: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
7.2 Ethylene Oxide
7.2.1 Overview
7.2.1.1 Ethylene Oxide: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
7.2.2 Di-Ethylene Glycol
7.2.2.1 Overview
7.2.2.2 Di-Ethylene Glycol: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
7.2.3 Tri-Ethylene Glycol
7.2.3.1 Overview
7.2.3.2 Tri-Ethylene Glycol: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
7.2.4 Ethylene Glycol Ethers
7.2.4.1 Overview
7.2.4.2 Ethylene Glycol Ethers: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
7.2.5 Alkyl Phenols
7.2.5.1 Overview
7.2.5.2 Alkyl Phenols: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
7.2.6 Others
7.2.6.1 Overview
7.2.6.2 Others: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
8. Competitive Landscape
8.1 Heat Map Analysis by Key Market Players
8.2 Company Positioning & Concentration
9. Industry Landscape
9.1 Overview
9.2 Collaboration
9.3 New Product Launch
9.4 Expansion
9.5 Mergers & Acquisitions
10. Company Profiles
10.1 Clariant AG
10.1.1 Key Facts
10.1.2 Business Description
10.1.3 Products and Services
10.1.4 Financial Overview
10.1.5 SWOT Analysis
10.1.6 Key Developments
10.2 India Glycols Ltd
10.2.1 Key Facts
10.2.2 Business Description
10.2.3 Products and Services
10.2.4 Financial Overview
10.2.5 SWOT Analysis
10.2.6 Key Developments
10.3 Vizag Chemicals Pvt Ltd
10.3.1 Key Facts
10.3.2 Business Description
10.3.3 Products and Services
10.3.4 Financial Overview
10.3.5 SWOT Analysis
10.3.6 Key Developments
10.4 Mitsui Chemicals Inc
10.4.1 Key Facts
10.4.2 Business Description
10.4.3 Products and Services
10.4.4 Financial Overview
10.4.5 SWOT Analysis
10.4.6 Key Developments
10.5 The Dow Chemical Co
10.5.1 Key Facts
10.5.2 Business Description
10.5.3 Products and Services
10.5.4 Financial Overview
10.5.5 SWOT Analysis
10.5.6 Key Developments
11. Appendix
11.1 About The Insight Partners
List of Tables
Table 1. India Bio-Based Chemicals Market Segmentation
Table 2. List of Vendors
Table 3. India Bio-Based Chemicals Market – Volume and Forecast to 2031 (Kilo Tons)
Table 4. India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
Table 5. India Bio-Based Chemicals Market – Volume and Forecast to 2031 (Kilo Tons) – by Derivative Type
Table 6. India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million) – by Derivative Type
List of Figures
Figure 1. India Bio-Based Chemicals Market Segmentation, by Geography
Figure 1. Porter's Five Forces Analysis: India Bio-Based Chemicals Market
Figure 2. Ecosystem: India Bio-Based Chemicals Market
Figure 3. Indian Plastics Exports — by Product (2022–2023)
Figure 4. Impact Analysis of Drivers and Restraints
Figure 5. India Bio-Based Chemicals Market Volume (Kilo Tons), 2021–2031
Figure 6. India Bio-Based Chemicals Market Revenue (US$ Million), 2021–2031
Figure 7. India Bio-Based Chemicals Market Share (%) – Derivative Type, 2023 and 2031
Figure 8. Propylene: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
Figure 9. Polypropylene: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
Figure 10. Propylene Oxide: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
Figure 11. Acrylonitrile: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
Figure 12. Cumene: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
Figure 13. Others: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
Figure 14. Ethylene Oxide: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
Figure 15. Di-Ethylene Glycol: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
Figure 16. Tri-Ethylene Glycol: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
Figure 17. Ethylene Glycol Ethers: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
Figure 18. Alkyl Phenols: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
Figure 19. Others: India Bio-Based Chemicals Market – Revenue and Forecast to 2031 (US$ Million)
Figure 20. Heat Map Analysis by Key Players
Figure 21. Company Positioning & Concentration
The List of Companies - India Bio-Based Chemicals Market
- Clariant AG
- India Glycols Ltd
- Vizag Chemicals Pvt Ltd
- Mitsui Chemicals Inc
- The Dow Chemical Co
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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