India Bio-Based Chemicals Market Size and Forecast, Country Share, Trend, and Growth Opportunity Analysis Report Coverage: By Derivative Type [Propylene and Ethylene Oxide]

The India bio-based chemicals market is expected to grow from US$ 13.88 million in 2023 and is projected to reach US$ 21.25 million by 2031; it is expected to register a CAGR of 5.5% from 2023 to 2031.

The petrochemical industry is one of the significant contributors to the economic growth of India. In India, the demand for propylene is dominated by the use of polypropylene in automotive components, mechanical parts, containers, fibers, and packaging films. Also, the demand for ethylene oxide is dominated by the growing production of antifreeze, PET bottles, solvents, detergents, adhesives, polyurethane foam, and pharmaceuticals. According to the India Brand Equity Foundation, India holds a strong position in the global heavy vehicles market. The country is the largest tractor producer, the second-largest bus manufacturer, and the third-largest heavy truck manufacturer globally. In FY22, the country produced 22.93 million vehicles.

In FY23, the total passenger vehicle sales reached 3.89 million units. In FY23, the total automobile exports from India increased to 4.7 million units. According to the India Brand Equity Foundation, the country had 30,000 plastic processing units in 2022, of which 85-90% were small and medium enterprises. Various plastic products such as houseware, fishnets, flooring materials, medical products, packaging items, plastic films, and pipes are produced in India. The government aims to develop 10 plastic parks in the country to boost plastic manufacturing output. Therefore, the bio-based chemicals market in India is likely to be bolstered by the growth of the packaging and automotive industries.

However, due to the rising impacts of conventional petroleum-based plastics on the environment, the adoption of bioplastics is increasing across the country. The government of India is also encouraging manufacturers to develop biodegradable versions of plastics due to rising environmental concerns. Moreover, the government has also 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.

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 like 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 India bio-based chemicals market.

A few key players operating in the India bio-based chemicals market are Clariant AG, India Glycols Ltd, Vizag Chemicals Pvt Ltd, Mitsui Chemicals Inc, and The Dow Chemical Co. Players operating in the market are highly focused on developing high-quality and innovative product offerings to fulfill customers' requirements.

The overall India bio-based chemicals market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights into the topic. The participants of this process include industry experts, such as VPs, business development managers, market intelligence managers, and national sales managers - along with external consultants, such as valuation experts, research analysts, and key opinion leaders - specializing in the India bio-based chemicals market.

Reasons to buy:

• Progressive industry trends in the India bio-based chemicals market to help players develop effective long-term strategies
• Business growth strategies adopted by developed and developing markets
• Quantitative analysis of the India bio-based chemicals market from 2021 to 2031
• Estimation of the demand for bio-based chemicals across various industries
• Porter's Five Forces analysis to illustrate the efficacy of buyers and suppliers operating in the industry to predict the market growth
• Recent developments to understand the competitive market scenario and the demand for bio-based chemicals compounds across India
• Market trends and outlook coupled with factors driving and restraining the growth of the India bio-based chemicals market.
• Decision-making process by understanding strategies that underpin commercial interest concerning India bio-based chemicals market growth
• The India bio-based chemicals market size at various nodes of market
• Detailed overview and segmentation of the India bio-based chemicals market as well as its dynamics in the industry
• The India bio-based chemicals market size in different regions with promising growth opportunities