Global consultants, Frost & Sullivan's latest analysis, Growth Opportunities for Bio-based Chemicals and Materials in Europe and North America, includes a forecast for how much the market could be worth by 2024, They predict that if driven by government initiatives, proactive efforts from market participants to develop environmentally friendly products, and consumer preferences for adopting greener and safer products it could reach a staggering $25.90 billion in just six years. The report points towards the establishment of regulatory standards being critical to ensure consistency and increase market transparency toward bio-degradability, recyclability, sustainability, and bio-based content of products.
"Governments, especially in Europe and North America, are aiming to encourage sustainable products and processes across various industries to reduce carbon dioxide emissions. This has been driven by various initiatives that include incentives, tax credits, and subsidies" said Soundarya Gowrishankar, Visionary Science Industry Analyst at Frost & Sullivan.
"Europe is also making proactive efforts to move to sustainable material usage across various end markets that are extensively dependent on crude oil-based plastics, resulting in landfill issues," continued Soundarya.
To position products competitively in the marketplace and convince customers of the sustainability of the product, the report recommends participants undertake a complete bio-based product lifecycle analysis. Proprietary lifecycle analysis tools and models will also help in carving out an edge for companies in the marketplace.
Key highlights for success and growth include:
- Implementing optimization strategies for sourcing raw material, streamlining production processes, and managing logistics and transportation of materials to address higher average price challenges;
- Strengthening technological competence to obtain stronger expertise in formulation and production activities that will help develop investor and consumer confidence;
- Bringing bio-based products on par with synthetic counterparts in terms of functionality, performance, price, and familiarity of production processes to accelerate adoption of bio-based materials; and
- Increasing scale of production to substantially reduce average prices of bio-based products, thereby boosting customer adoption rates.
"Integration in the industry through partnerships and mergers and acquisitions will remain critical in establishing a seamless value chain, material availability, and technical capability in the marketplace," noted Gowrishankar. Read more about the report here.
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