Bio-Based Epoxy Resins Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2031

Market Scenario 

The Global Bio-Based Epoxy Resins Market is poised for significant growth, with revenue expected to jump from US$ 177.1 Mn in 2022 to US$ 271.1 Mn by 2031. The market is projected to register a CAGR of 4.9% during the forecast period of 2023-2031. In terms of volume, the market was valued at 25833.7 tons in 2022 and is expected to grow at a CAGR of 4.4% over the forecast period.

Bio-based epoxies are a relatively new class of bio-sourced resins that are produced by the epoxidation of renewable precursors such as unsaturated vegetable oils, saccharides, tannins, cardinals, terpenes, resins, and lignin. The primary end-user industries for epoxy resins include electronics and paints & coatings, followed by adhesives, composites, laminates, and others. Currently, 75% of epoxy polymers worldwide are made from petrochemicals, which use a reprotoxic chemical that is being closely monitored, and whose usage in certain applications may be banned in the future. As a result, bio-sourced epoxy polymers could serve as a substitute for renewable and non-harmful epoxy polymers.

The market's growth is mainly driven by government regulations aimed at curbing carbon emissions and the increased use of bio-based epoxy resins in various applications. The newest generations of bio-based epoxy resins reduce the environmental impact of epoxies by replacing a portion of the petrochemicals with renewable, bio-based materials. Epoxy resins are one of the most widely used thermosets in different engineering fields due to their chemical resistance and thermo-mechanical properties.

Bio-based thermoset resin systems have recently garnered significant attention due to their environmental benefits, including the wide variety of available natural resources, as well as the resulting reduction in the use of petroleum feedstock. Additionally, epoxy composites are of potential interest for the aerospace and transportation industries as a lightweight material that can improve fuel efficiency and add impact strength. However, the market's growth is restricted by the fluctuating cost of raw materials. 

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Market Dynamics

 Drivers:

Growing Demand for Sustainable Products

The increasing awareness among consumers and businesses about the environmental impact of traditional petroleum-based epoxy resins has led to a growing demand for sustainable products such as bio-based epoxy resins. The eco-friendliness of these resins has led to their widespread adoption across various end-use industries, driving the growth of the global bio-based epoxy resins market.

Supportive Government Regulations

Governments across the world are enacting regulations and policies to promote the use of eco-friendly products and reduce carbon emissions. This has led to favorable policies and initiatives supporting the growth of the bio-based epoxy resins market. For instance, the EU's bioeconomy strategy aims to increase the production of bio-based products, including bio-based epoxy resins, to promote sustainable economic growth.

Restraints:

High Production Cost

The production cost of bio-based epoxy resins is higher compared to petroleum-based resins due to the high cost of raw materials, limited availability of feedstocks, and complex production processes. This has limited their adoption in some industries and restrained the growth of the global bio-based epoxy resins market.

Limited Availability of Raw Materials

The availability of raw materials such as plant oils and sugars, which are used as feedstocks in the production of bio-based epoxy resins, is limited. The limited availability of these feedstocks has resulted in supply chain disruptions, which have hindered the growth of the global bio-based epoxy resins market.

Trends:

Increasing R&D Activities

Manufacturers are investing heavily in R&D activities to develop innovative bio-based epoxy resins with improved properties, such as high strength, durability, and versatility. This trend is expected to drive the growth of the global bio-based epoxy resins market, as these improved resins find increasing applications across various end-use industries.

Growing Application in 3D Printing

The adoption of 3D printing technology is increasing across various industries, and bio-based epoxy resins are finding increasing applications in this field. Bio-based epoxy resins are being used as feedstocks for 3D printing filaments due to their eco-friendliness and improved properties. This trend is expected to drive the growth of the global bio-based epoxy resins market in the coming years.

Segmental Analysis of Global Bio-Based Epoxy Resins Market 

Bio-based epoxy resins have gained significant attention in recent years due to their eco-friendly nature and versatile applications. This report analyzes the current market trends and provides insights into the key factors driving the growth of the global bio-based epoxy resins market in 2022.

By Bio-based Carbon Content:

The bio-based carbon content: 28-50% segment is estimated to have the highest market share in 2022 owing to its highest purity property which has led to its wide scope in various applications. Bio-based epoxy resins with high purity are in demand due to the growing environmental concerns related to the disposal of packaging materials and the need for eco-friendly packaging solutions. This has augmented the growth of the segment, thereby driving the overall market growth.

By Ingredients:

In terms of ingredients, the plant oil segment contributed the major share in the global bio-based epoxy resins market in 2022. Plant oils dominate the market owing to their wide availability as a feedstock or raw material. Soybean oil has the highest share among the plant oils in the bio-based epoxy resins market. The availability of plant oils as a feedstock has made them a cost-effective option for bio-based epoxy resins manufacturers.

By Form:

Based on form, liquid and solution has the highest market share in 2022 and also registers the fastest CAGR during the forecast period 2023-2031. Liquid bio-based epoxy resin has high application in coatings, adhesives, composites, laminates, and electronic materials such as potting compounds. The ease of handling and processing of liquid bio-based epoxy resins has increased their demand in various end-use applications.

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By Application:

The coatings segment has the highest share in the bio-based epoxy resins market in 2022. The segment was valued at US$ 40.4 million in 2022, which is expected to reach US$ 62.1 million by 2031. As, bio-based epoxy resin is widely used as primary binder in paints and coatings owing to its high adhesion. It is used on wood surfaces to create a protective seal that prevents moisture damage. Additionally, bio-based epoxy coatings are often decorative and can add color and texture to a surface.

By End-User:

Consumer goods are the highest end-users of bio-based epoxy resins in 2022 and also register the fastest CAGR over the projection period. The growing e-commerce sector acts as a key growth factor for the packaging market. As consumers purchase more retail goods and perishables online, there is a strong demand for sustainable packaging solutions. The use of bio-based epoxy resins in packaging provides an eco-friendly solution for the growing packaging market. 

Regional Analysis 

North America is the dominant region in the Global Bio-Based Epoxy Resins Market, accounting for a significant share of the market. The region's increasing number of infrastructure projects, growth in the construction industry, and high demand for coatings have fueled the bio-based epoxy resins market. Additionally, the region's rising demand for commercial vehicles and dependency on e-commerce, coupled with technological advancements, will continue to spur demand in the upcoming years.

The United States is a key contributor to the growth of the North American bio-based epoxy resins market. The country's construction industry has been expanding at a steady pace, which has led to an increased demand for coatings and adhesives, subsequently driving the demand for bio-based epoxy resins. Moreover, the US government's initiatives to promote green buildings and infrastructure projects have further fueled the market's growth.

In addition to the construction industry, the transportation sector in North America is also a major consumer of bio-based epoxy resins. The region has a well-established automotive industry, and the rising demand for electric vehicles and lightweight materials is expected to drive the market's growth. Additionally, the region's reliance on e-commerce has led to increased demand for packaging materials, further driving the demand for bio-based epoxy resins.

Furthermore, the increasing focus on sustainability and environmental regulations in North America is expected to drive the demand for bio-based epoxy resins. The region's stringent regulations on carbon emissions and hazardous materials have led to an increased interest in eco-friendly materials. The use of bio-based epoxy resins offers a sustainable alternative to traditional petroleum-based epoxy resins, thus promoting a greener and more sustainable future.

Competitive Landscape

Chang Chun Group, Entropy Resins, Greenpoxy, Sicomin Epoxy Systems, Amroy Europe Oy, and Wessex Resins & Adhesives Ltd among others. These players are focused on adopting various competitive strategies to strengthen their market position and gain a competitive edge in the market.

List of Key Companies Profiled:

• ALPAS
• Bitrez Ltd.
• Chang Chun Group
• COOE (Change Climate)
• EcoPoxy
• Entropy Resins
• Gougeon Brothers
• Greenpoxy
• Huntsman Corporation
• Kukdo Chemical
• Nagase ChemteX Corporation
• Resin Research Bio Epoxy
• Resoltech
• Sicomin Epoxy Systems
• Other Prominent Players

Segmentation Overview 

The following are the different segments of the Global Bio-Based Epoxy Resins Market:

By Type Segment of the Global Bio-Based Epoxy Resins Market is sub-segmented into:

• Bio-based Carbon Content: 28-50%
• Bio-based Carbon Content: ≥50%

By Ingredient Segment of the Global Bio-Based Epoxy Resins Market is sub-segmented into:

• Glycerol
• Hemp
• Vegetable
• Plant Oil
  • Soybean Oil
  • Linseed Oil
  • Canola Oil
  • Karanja Oil
• Others

By Form Segment of the Global Bio-Based Epoxy Resins Market is sub-segmented into:

• Liquid & Solution
• Solid

By Application segment of the Global Bio-Based Epoxy Resins Market is sub-segmented into:

• Coatings
• Electronics
• Adhesives
• Others (Food industries, Composites, etc.)

By End-Use Segment of the Global Bio-Based Epoxy Resins Market is sub-segmented into:

• Aerospace
• Building & Construction
• Consumer Goods
• Electrical & Electronics
• Marine
• Wind Power
• Others

By Region Segment of the Global Bio-Based Epoxy Resins Market is sub-segmented into:

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The U.K.
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Russia
    • Poland
    • Rest of Eastern Europe
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Rest of South America
• Middle East
  • UAE
  • Saudi Arabia
  • Egypt
  • Rest of the Middle East
• Africa
  • South Africa
  • Nigeria
  • Rest of Africa