1. Get more info on this report!
Biorenewable Chemicals World Market
2009-2010
November 4, 2010
Increasing environmental awareness on the part of product manufacturers and the desire to reduce dependency on oil are the leading drivers behind the $2.4
billion global market for biorenewable chemicals (BRC) in 2010. This steadily growing market has experienced a compound annual growth rate (CAGR) of 14.8%,
a growth trend that is going to increase as the world resumes a more normal production page and new bio-based chemicals such as bioethylene come to market.
By 2015 the BRC market will be worth $6.8 billion, a CAGR of 22.8% between 2010 and 2015. The largest region for BRC sales continues to be the U.S., which
captured 21.6% of the BRC market in 2009.
The platform biorenewable chemicals (PBC) glycerin and lactic acid make up the bulk of biorenewable chemicals being sold in 2010, accounting for 79.2% of the
market. There is a large range in market maturity for PBCs, ranging from mature markets such as lactic acid to nascent markets for chemicals such as succinic
acid.
Compared to the platform chemicals market, the intermediate biorenewable chemicals (IBC) market is much more nascent, particularly in relation to its potential. In
2010, IBCs accounted for $574.9 million of the BRC market; however this will grow to $2.5 billion in 2015 and account for 37.0% of biorenewable chemical sales.
The strongest growth will be for secondary chemicals such as polylactic acid (PLA), polyhydroxyalkanoate (PHA) and bioethylene that are used to manufacture
bio-based plastics.
Biorenewable Chemicals World Market by SBI Energy provides key insight into current and future markets for biorenewable chemicals worldwide, with a particular
emphasis on the U.S. market. The analysis includes definitions, current product offerings and market detail on the following segments:
 Industrial organic acids, amino acids and other organic compounds, made from biorenewable feedstocks such as corn, oilseeds and sugarcane, which
can be used as the building blocks for alternatives to petroleum-based chemicals. These chemicals are referred to as platform biorenewable
chemicals (PBC).
 Industrial organic acids and polymers that are manufactured from platform biorenewable chemicals and are themselves key chemical components for
the manufacture of many other chemicals and products. These chemicals are referred to as intermediate biorenewable chemicals (IBC).
The report also analyzes the key industries that make use of biorenewable chemicals for their end products. These include bioplastics, cleaners, solvents and
adhesives.
Report Methodology
This report contains primary and secondary data obtained from government sources, trade associations and publications, business journals, scientific papers,
company literature, investment reports, and interviews with industry professionals. Statistics on U.S. production, imports and exports are from the U.S.
International Trade Commission; European production and trade data comes from Eurostat; trade data for other nations comes from the respective customs office
for each country and the United Nations ComTrade database.
What You’ll Get in This Report
Biorenewable Chemicals World Market provides a concise, focused look on the market for chemicals made from biomass feedstocks as it exists today, and shows
where the market is moving between 2010 and 2015. The report highlights key players in the biorenewable chemicals industry and pinpoints ways that current and
prospective competitors can capitalize on recent trends and spearhead new ones. No other market research report provides both the comprehensive analysis and
extensive data that Biorenewable Chemicals World Market offers. Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables
and graphs.

2. How You’ll Benefit from this Report
If your company is considering investing in biorenewable technology, or is involved in petroleum-based chemical production and considering expanding its portfolio
to include bio-based alternatives, you will find this report invaluable as it provides a comprehensive package of information and insight not offered in any other
single source. You will gain a thorough understanding of the current market for biorenewable platform and intermediate chemicals, as well as projected markets
and trends for these chemicals through 2015. The report also provides a concise view of the top application industries for available bio-based chemicals, outlining
key drivers and barriers for these markets.
This report will help:
 Marketing managers identify market opportunities and develop targeted promotion plans for businesses looking to develop markets for both new and
existing biorenewable chemicals.
 Research and development professionals stay on top of competitor initiatives and explore demand for bio-based chemicals as well as the
downstream product market for platform and secondary biorenewable chemicals.
 Advertising agencies working with clients in a host of market sectors such as packaging, retail and commercial cleaner products, transportation,
textiles or construction products to develop messages and images that compel homeowners, businesses and industries to migrate towards bio-based
chemicals as an alternative to petroleum-based products.
 Business development executives understand the dynamics of the market and identify possible partnerships with feedstock providers, key
organizations and biorenewable chemical manufacturers with unique products or processes.
 Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital
information they need to do their jobs more effectively.
Additional Information
Market Insights: A Selection From The Report
Succinic Acid & Other Platform Chemicals
The world market for succinic acid was approximately 66 million pounds in 2009, of which less than 5% was produced from bio-based feedstock. Biorenewable
succinic acid is just
entering the marketplace, but by 2015, will account for two thirds of the estimated 200 million pounds per year global succinic acid market. Approximately 30% of
succinic acid is
used for pigments and coatings, following by use in the plating industry and pharmaceuticals as the next largest markets. SBI Energy also expects to see
environmentally friendly de-icers
becoming an important part of the biosuccinic market.
There are a number of other bio-based platform chemicals being actively researched that are near the pilot plant stage of development. SBI Energy expects to see
3-hydroxypropanoic acid (3-HPA) and acetic acid achieving production volumes greater than 45 million pounds/year by 2015, primarily due to strong R&D
programs from Cargill and WACKER respectively. Various companies (primarily in the U.S. and Europe) have moved past the laboratory to the pilot plant stage for
isosorbide, isoprene, levulinic acid, and adipic acid. For these platform organic chemicals, production will continue to be a very limited affair, with volumes well
below 20 million pounds/year for the foreseeable future.
Polyhydroxyalkanoates (PHA) World Market
Revenue of PHA worldwide reached an SBI Energy estimated $107.8 million in 2009, up 21.0% from $89.1 million in 2008, and is expected to reach $150.3 million
for 2010. A steady increase in global production has balanced a decreasing trend in pricing for PHA, giving the PHA market a strong CAGR of 28.3% between
2006 and 2010. The largest barrier for PHA to gain market share is high manufacturing costs which are still much higher than other polymers.
Manufacturing Trends
Three of the most widely used biomass feedstocks currently in use, corn, soybean oil and palm oil, have all stabilized in price since the turbulent prices
experienced in 2008 and the first part of 2009. Average world soybean oil prices peaked at $1,283/ton in June 2008, with peaks occurring for palm oil and maize in
March of the same year. The recession then caused prices for all three food crops to drop precipitously, erasing a year’s worth of price gains in the last quarter of
2008. Since that time, prices have stabilized to summer of 2007 levels, with palm oil and soybean oil both selling at approximately $725/ton and maize at $147/ton.

3. Production costs for biorenewable chemicals have held remarkably steady according to the U.S. Bureau of Labor Statistics production price index (PPI) for
biorenewable chemical manufacturing, up only 3.4% in July 2010 as compared to December 2008. The results are similar to production price indexes for wet corn
milling and soybean and other oilseed processing, which would be a significant part of any bio-based chemical manufacturer’s production costs.
In the News
Seismic Activity in Chemicals Market to Propel Global Biorenewable Industry to $7 billion in 2015
New York, November 11, 2010 — Steady growth in the two largest biorenewable chemical market segments, in addition to key regulatory and research
developments, will spur the industry to a high of $7 billion in 2015, more than twice the anticipated 2011 market value of almost $3 billion, according to SBI
Energy’s latest study Biorenewable Chemicals World Market.
"The ever increasing price of oil is not the only driver pushing sales in the biorenewable chemicals market. In the near term, more support within regulations and
legislations for funding and research and development is key to keeping the biorenewable chemicals market a lively and growing concern," says Robert Eckard,
SBI Energy analyst.
Pacing the industry will be the platform biorenewable chemicals segment, which will continue to be worth approximately two-thirds of the overall biorenewable
market by climbing to more than $4 billion in sales in 2015 and achieving a compound annual growth rate (CAGR) of 22% for the five year period. Slower to pick
up in 2011, sales will continue to grow steadily from 2012 through 2015 for all major selling chemicals within the category. 6Glycerin and lactic acid will continue to
be the main chemicals within the segment.
Meanwhile, the intermediate biorenewable chemicals segment will see slightly stronger growth than the platform biorenewable chemicals segment, approaching $3
billion in 2015 and showing a CAGR of 33% between 2011 and 2015. Bioethylene will be the largest intermediate biorenewable chemicals category by sales
volume in 2015, although polyhydroxyalkanoates (PHA) will be the largest market by revenue due to its much higher production cost. SBI Energy estimates annual
production of polylactide (PLA) will more than double between 2011 and 2015, while production of 1,3-propanediol (PDO) will triple, and PHA production will
quadruple.
The world biorenewable chemicals market was rocky between 2007 and 2009. After an absolutely amazing year in 2008 in which biorenewable chemicals grew an
astonishing 72% to almost $3 billion, market value dropped by 26% to $2 billion.
Global platform biorenewable chemicals were worth $1.7 billion in 2009, down 27% from $2.3 billion in 2008. This drop was entirely due to the bottom falling out of
glycerin prices, heavily slashing overall revenue for the chemical despite a slight increase in production. However, 2010 proved to be a boon for the platform
biorenewable chemicals segment, with total sales expected to reach an estimated $1.8 billion by year’s end, up 11%. Despite the slump in 2009, the segment is
managing a respectable CAGR of 12% between 2006 and 2010, primarily due to strong growth in the biorenewable lactic acid market. SBI Energy calculates that
glycerin and lactic acid together will make up 96% of the platform biorenewable chemicals market in 2010.
From $232 million in 2006, the intermediate biorenewable chemicals market grew to $486 million in 2008, a growth of 110% caused by unprecedented biobutanol
sales. SBI Energy forecasts the intermediate biorenewable chemicals market to reach an estimated $575 million in 2010 as all major categories within the segment
apart from biobutanol are expected to show growth. Polylactic acid and PHA are the key biorenewable chemicals in the segment, capturing 72% of the market in
2009.
The U.S. and European Union were the top two biorenewable chemicals markets in 2009, capturing 22% and 19% of product sales respectively. Both regions
were strong markets for almost all types of biorenewable chemicals, but it is the larger sales of polymers such as PLA and PHA in the U.S. keeping the country as
the top biorenewable chemicals market. China continues to be a strong market for glycerin and lactic acid, but has yet to become a strong contender for other
biorenewable chemicals segments such as bio-based polymers.
Biorenewable Chemicals World Market provides key insight into current and future markets for biorenewable chemicals worldwide, with a particular emphasis on
the U.S. market. The report analyzes the key industries that make use of biorenewable chemicals for their end products. These include bioplastics, cleaners,
solvents and adhesives. The report analysis also includes definitions, current product offerings and market details on platform biorenewable chemicals (PBC) and
intermediate biorenewable chemicals (IBC).
About SBI Energy
SBI Energy, a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets.
SBI Energy also offers a full range of custom research services.
Additional Materials
The impact of Braskem’s new bioethylene production

4. by SBI Analyst, Norman Deschamps
November 8th, 2010
The thermoplastic resin and petrochemical producer Braskem is poised to radically alter the intermediate biorenewable chemical market, with production starting at
its new bio-based ethylene plant in Triunfo, Brazil. After just three years from project announcement, the new facility started production in September 2010. At
maximum capacity, the Braskem plant will produce enough bioethylene to manufacture 440 million pounds/year of bio-based polyethylene, one of the most
common plastics in the world.
This amount of production is huge in the bioplastic world but is really only a minor fraction of the total polyethylene (PE) market; in 2009 the U.S. alone produced
36.7 billion pounds of high density and low density polyethylene plastics. But this is good news for Braskem. Even if the company was able to ramp up to full
production capacity instantaneously, the PE market is large enough to easily absorb the production if Braskem’s product is competitive.
And Braskem’s product is competitive. First, the bio-PE that Braskem is producing is priced comparably with petroleum-based PE. Secondly, the bio-based
plastic is mechanically equivalent to what product manufacturers are using now. This means no retooling on the product manufacturer’s part is required to switch
to the biorenewable PE version Braskem is now offering.
In fact, even before the plant had started production Braskem had already signed Toyota and Proctor & Gamble on as customers for its bio-based resins. And
now that production is actually underway, Braskem has received invitations from four other companies in four different countries to implement similar projects
around the world. Braskem itself is also planning to announce a new “green” PE project by the end of the year.
All of these factors point to Braskem quickly gaining a foothold in the bioplastic space and giving the company incentive to expand its biorenewable chemical
production. Production of bioethylene could swamp production of other intermediate biorenewable chemicals such as polylactic acid (PLA) and
polyhydroxyalkanoate (PHA) also used to make bio-based plastics. What First Solar has done for the solar cell industry by providing cheap and plentiful
photovoltaic cells and dominating the market, Braskem may now be doing for biobased plastics.
Table of Contents
Chapter 1: Executive Summary
Key Biorenewable Chemicals
The World Biorenewable Chemicals Market
Regional Breakdown of BRC Production and Market
Platform Biorenewable Chemicals Market
Figure 1-1: World Platform Biorenewable Chemical Market, 2006-2010 (in million $)
Glycerin World Market
Table 1-1: World Glycerin Market, 2006-2010 (in million $)
Lactic Acid World Market
Succinic Acid & Other Platform Chemicals
Intermediate Biorenewable Chemicals Market
Figure 1-2: World Intermediate Biorenewable Chemical Market, 2006-2010 (in million $)
Polylactic Acid World Market
Polyhydroxyalkanoates (PHA) World Market
1,3-Propanediol World Market
Biobutanol World Market
Using Bioethylene for Bio-Based Polymers
Other Intermediate Biorenewable Chemicals
Biorenewable Chemical Market Forecast
Figure 1-3: World Biorenewable Chemical Market Forecast, 2011-2015 (in million $)
Platform Biorenewable Chemicals Forecast
Table 1-2: Platform Biorenewable Chemical Production Forecast, 2011-2015 (in million pounds)
Intermediate Biorenewable Chemicals Forecast
Table 1-3: Intermediate Biorenewable Chemical Production Forecast, 2011-2015 (in million pounds)
Biorenewable Chemical Companies
Manufacturing Trends
Figure 1-4: Monthly U.S. Biorenewable Producer Price Indexes, 2006-2010 (index)
Financial Trends
Market Forces
Table 1-4: Biorenewable Chemical Market Drivers & Barriers
Biorenewable Chemical Applications
Bioplastic Applications
Figure 1-5: Bioplastic Production Capacity by Region, 2008 (in percentage)

5. Bio-Based Cleaners and Detergents
Bio-Based Solvents
Research & Development Trends for Biorenewable Chemicals
Table 1-5: Federal U.S. Funding for Biorenewable Chemical R&D, 2010 (in million dollars)
Regulations & Standards
Chapter 2: Defining Biorenewable Chemicals
Scope of this Report
Figure 2-1: Bioprocesses and Chemical Processes to Produce Bio-Based Products
Methodology
Description of Key Terms
Bio-Based Chemicals versus Petroleum-Based Chemicals
Figure 2-2: Flow Chart for Products from Petroleum-Based Feedstocks
Figure 2-3: Pathway of Feedstock to Market for Bio-Based Products
Platform Biorenewable Chemicals
Table 2-1: Potential Biorenewable Platform Chemicals
Lactic Acid
Glycerin
Succinic Acid
Intermediate Biorenewable Chemicals
Polylactic Acid
Polyhydroxyalkanoates (PHA)
1,3-Propandiol
The Biorenewable Chemicals Product Chain
Figure 2-4: The Bioproduct Market Pyramid
End-Use Applications for Biorenewable Chemicals
The Bio Refinery: Mimicking Petroleum-Based Production
Figure 2-5: Multi-Product Biorefinery
Industrial Biotechnology & Bio-Based Chemicals
Biomass Feedstocks
Biomass Generations
Table 2-2: Potential Biorenewable Platform Chemicals
Sugar Feedstocks
Starch Feedstocks
Oils
Lignocellulosic Biomass
Food versus Fuel
Chapter 3: The Market
The World Biorenewable Chemicals Market
Figure 3-1: World Biorenewable Chemical Market, 2006-2010 (in million $)
Key Biorenewable Chemicals
Figure 3-2: Current Adoption and Future Potential of Key Biorenewable Chemicals, 2010
Pricing Trends for Biorenewable Chemicals
Table 3-1: Lactic Acid & Glycerin Pricing, 2006-2010 (in $/lb)
U.S. and Europe are production leaders
Figure 3-3: World Biorenewable Chemical Production, 2009 (in million pounds)
U.S. and Europe Remain as Top Markets
Figure 3-4: World Biorenewable Market by Country, 2009 (in percentage of world market)
Chemicals versus Fuels for Biorenewable Manufacturing Companies
Platform Biorenewable Chemicals Market
Figure 3-5: World Platform Biorenewable Chemical Market, 2006-2010 (in million $)
Glycerin World Market
Figure 3-6: World Glycerin Market, 2006-2010 (in million $)
Production
Figure 3-7: World Raw Glycerin Production, 2006-2010 (in million pounds)
Figure 3-8: World Refined Glycerin Production, 2006-2010 (in million pounds)
Lactic Acid World Market
Figure 3-9: World Lactic Acid Market, 2006-2010 (in million $)
Table 3-2: Exports of Lactic Acid by Country, 2006-2010 (in million pounds)
Production
Figure 3-10: World Lactic Acid Production, 2006-2010 (in million pounds)
Succinic Acid World Market
Production
Table 3-3: Current & Future Biorenewable Succinic Acid Production Facilities, 2010 (nameplate capacity in million pounds/year)
Other Platform Chemicals

6. Table 3-4: Potential Biorenewable Platform Chemicals
Other Promising Platform Chemicals
Looking Ahead to 2015
Intermediate Biorenewable Chemicals
Figure 3-11: World Intermediate Biorenewable Chemical Market, 2006-2010 (in million $)
Polylactic Acid World Market
Figure 3-12: World Polylactic Acid Market, 2006-2010 (in million $)
Production
Table 3-5: Current & Future PLA Production Facilities, 2010 (nameplate capacity in million pounds/year)
Polyhydroxyalkanoates (PHA) World Market
Figure 3-13: World PHA Market, 2006-2010 (in million $)
Production
Table 3-6: Current & Future PHA Production Facilities, 2010 (nameplate capacity in million pounds/year)
1,3-Propanediol World Market
Production
Biobutanol World Market
Table 3-7: Biobutanol Production in China, 2006-2010 (in million pounds and million $)
Using Bioethylene for Bio-Based Polymers
Other Intermediate Biorenewable Chemicals
Table 3-8: Potential Biorenewable Platform Chemicals
Butanediol
Isobutanol
Methyl Ethyl Ketone (MEK)
Market Forces & Forecast
Figure 3-14: Biorenewable Chemicals Market Drivers & Barriers
Market Drivers for Biorenewable Chemistry
Moving Away from Petroleum Dependency
Increased Consumer Environmental Responsibility
Increased Environmental Responsibility of Manufacturers
Support from Policy and Regulations
Market Barriers for Biorenewable Chemistry
The Traditional Petroleum-Based View of the Chemical Industry
Lack of Funding
Production Process Issues
High Production Costs
Land Use Concerns
Biorenewable Chemical Market Forecast
Figure 3-15: World Biorenewable Chemical Market Forecast, 2011-2015 (in million $)
Platform Biorenewable Chemicals Forecast
Figure 3-16: World Platform Biorenewable Chemical Market Forecast, 2011-2015 (in million $)
Table 3-9: Platform Biorenewable Chemical Production Forecast, 2011-2015 (in million pounds)
Intermediate Biorenewable Chemicals Forecast
Figure 3-17: World Intermediate Biorenewable Chemical Market Forecast, 2011-2015 (in million $)
Table 3-10: Intermediate Biorenewable Chemical Production Forecast, 2011-2015 (in million pounds)
Chapter 4: Biorenewable Chemical Applications
Figure 4-1: Summary Assessment Matrix of Biobased Products for U.S. Markets, 2008
Consumers Want Bio-Based Products
Applications for Bio-Based Plastics & Polymers
Figure 4-2: U.S. Plastics Consumption by Market Segment, 2009 (in percentage)
The Market for Bio-Based Plastics
Figure 4-3: Bioplastic Production Capacity by Region, 2008 (in percentage)
Types of Bioplastics
Table 4-1: Comparison of Bioplastic Characteristics
Bio-Based Plastics for Packaging
Bioplastic Fibers
BIOFRONT Ready to Take the Heat
Table 4-2: Bayer Ecotrekker Biorenewable Plastics Use
Cleaners & Detergents Using Bio-Based Chemicals
Table 4-3: Product Categories for the Soaps, Detergents & Maintenance Products Market, 2010
The Cleaners and Detergents Market
Figure 4-4: European Market Breakdown of Soaps, Detergents & Maintenance Products, 2009 (in percentage)
Bio-Based Soaps and Detergents
Solvents
Solvent Applications Market
Bio-Based Solvents
Table 4-4: Bio-Based Solvents, 2010

7. Adhesives & Sealants
Market
Bio-Based Adhesives
Neutraceuticals
Chapter 5: Biorenewable Chemical Trends
Patents Trends for Biorenewable Chemistry
Table 5-1: U.S. & European Biorenewable Product Patents, 2009-2010
Recent Biorenewable Chemistry Patents
European Patent System Lags the U.S. for Effectiveness
Biorenewable Chemistry Benefits from Biotechnology Patent Advocacy
Financial Trends for Biorenewable Chemical Companies
Biorenewable Chemical Firms are Undervalued
Initial Public Offerings are Scarce
Table 5-2: Biorenewable Company Initial Public Offerings, 2010
Venture Capital Spending Up in 2010
Table 5-3: VC Funding of Biorenewable Chemical Companies, 2009-2010
Partnering is a Key Strategy for BRC Companies
Research Funding & Trends
The Engineering Research Center for Biorenewable Chemicals
DOE & USDA Funding
Table 5-4: Federal U.S. Funding for Biorenewable Chemical R&D, 2010 (in million dollars)
Funding in Europe
Table 5-5: 7th Framework Programme Funding for Biorenewable Chemical R&D, 2010 (in million euro)
Biochem versus Biofuel for Funding
Using Cellulose & Lignin Based Feedstocks
Table 5-6: Planned U.S. Biorenewable Chemical Refineries as of 2010
Plants as chemical factories
Manufacturing Trends
Bio Feedstocks versus Petroleum Feedstock
Figure 5-1: Monthly World Biomass Feedstock Prices, 2006-2010 (in dollars/short ton)
Figure 5-2: Monthly World Biomass Feedstock & Petroleum Price Indexes, 2006-2010 (index, 100 = January, 2006)
Manufacturing Costs for Biorenewable Chemicals
Figure 5-3: Monthly U.S. Biorenewable Producer Price Indexes, 2006-2010 (index)
Biorenewable Chemicals Regulations & Standards
Regulations in the U.S.: USDA BioPreferred Program
Regulations in the U.S.: Other Biorenewable Chemical Initiatives
Regulations in the U.S.: Updating the TSCA
Regulations in the European Union: Bio-based Products Lead Market Initiative
Figure 5-4: Policies & Regulations Affecting the Bio-Based Product LMI, 2010
Regulations in the EU: REACH
The ACS Develops a Market-Wide Green Chemistry Standard
Chapter 6: Biorenewable Chemical Companies
Partnerships
Table 6-1: Current Biorenewable Chemical Company Partnerships
Archer Daniels Midland
Overview
Performance
Figure 6-1: ADM Revenue, FY2007-FY2010 (in billion $)
Table 6-2: ADM Biorenewable Chemicals, 2010
Production
New Developments
DNP Green Technology
Overview
Performance
Production
New Developments
DuPont
Overview
Performance
Figure 6-2: DuPont Revenue, 2006-2009 (in billion $)
Table 6-3: DuPont Biorenewable Chemical Products, 2010
Production
New Developments
Genomatica

8. Overview
Performance
Production
New Developments
Gevo
Overview
Performance
Figure 6-3: Gevo Revenue, 2006-2009 (in thousand $)
Production
New Developments
Metabolix
Overview
Performance
Figure 6-4: Metabolix Revenue, 2006-2009 (in million $)
Production
New Developments
NatureWorks
Overview
Performance
Production
New Developments
Procter & Gamble
Overview
Performance
Figure 6-5: P&G Revenue, FY2007-FY2010 (in billion $)
Production
New Developments
Purac
Overview
Performance
Figure 6-6: Purac Revenue, 2006-2009 (in million $)
Production
New Developments
Appendix A: Acronyms Used in the Report
Appendix B: Company Contact Information
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