Bio-based Materials Market Report 2026

The bio-based materials market size has grown exponentially in recent years. It will grow from $47.42 billion in 2025 to $57.83 billion in 2026 at a compound annual growth rate (CAGR) of 22%. The growth in the historic period can be attributed to environmental awareness growth, rising plastic waste concerns, government sustainability initiatives, early adoption in packaging, bio polymer research advancements.

The bio-based materials market size is expected to see exponential growth in the next few years. It will grow to $126.12 billion in 2030 at a compound annual growth rate (CAGR) of 21.5%. The growth in the forecast period can be attributed to stricter carbon regulations, growth in electric vehicles, rising demand for biodegradable materials, investment in bio refineries, expansion of green manufacturing. Major trends in the forecast period include rising adoption of renewable polymer materials, increasing use in sustainable packaging applications, growing demand for low carbon footprint materials, expansion of bio based plastics in automotive components, higher focus on circular economy material solutions.

Increasing environmental awareness is expected to propel the growth of the bio-based materials market going forward. Environmental awareness involves understanding and recognizing environmental issues, their causes, effects, and possible solutions. The rise in environmental concerns has created favorable conditions for the bio-based materials market, supported by regulatory initiatives, consumer awareness, corporate sustainability efforts, and advancements in eco-friendly technologies. Bio-based materials contribute significantly to environmental awareness by offering sustainable alternatives to traditional materials, lowering carbon emissions, and reducing environmental degradation. For example, in May 2023, the International Energy Agency (IEA), a France-based intergovernmental organization, reported that global investment in clean energy increased from $1.4 trillion to $1.74 trillion in 2023. Therefore, growing environmental awareness is driving the expansion of the bio-based materials market.

Major companies in the bio-based materials market are focusing on developing advanced products and solutions, such as circular propylene glycol solutions, to strengthen their market position. Propylene glycol (PG) solutions are used across various industries for multiple applications. For instance, in September 2023, The Dow Chemical Company (Dow), a US-based multinational producer of raw materials and chemicals, introduced new lower-carbon, bio-based, and circular propylene glycol solutions supported by advanced technologies. This platform utilizes innovations such as Decarbia, Ecolibrium, and Renuva to deliver reduced carbon footprints, increased bio-based content, and circular economy advantages. This development marks a major step forward in the bio-based materials market by providing sustainable alternatives that reduce carbon emissions, promote renewable resources, and support the shift toward a circular economy.

In January 2023, Sumitomo Chemical Co. Ltd., a Japan-based chemical products company, acquired FBSciences Holdings Inc. for an undisclosed amount. This acquisition expanded Sumitomo's bio-based materials portfolio by integrating advanced biostimulants and biopesticides, supporting sustainable practices in agriculture, public health, and forest health. It also contributed to broader growth and innovation within the bio-based materials market. FBSciences Holdings Inc. is a US-based company that offers climate-smart biorational products for agriculture, including bio-based materials such as biostimulants and biopesticides.

Major companies operating in the bio-based materials market are China Petroleum & Chemical Corporation (Sinopec), BASF SE, Sumitomo Chemical, Evonik Industries AG, Covestro AG, Braskem, Toray Industries Inc., Mitsui Chemicals, DuPont de Nemours Inc., Arkema SA, Eastman Chemical Company, DSM, LANXESS, Huntsman Corporation, Tosoh Corporation, Lubrizol, Clariant AG, Plastipak Holdings Inc., Corbion N.V., Japan Polypropylene Corporation, RAMPF Holding GmbH & Co. KG, Manali Petrochemical, RadiciGroup, Biobased Technologies, Virent Inc., TSE Industries Inc., Avantium, Anellotech Inc., Gevo Inc.

Europe was the largest region in the bio-based materials market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the bio-based materials market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the bio-based materials market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The bio-based materials market consists of sales of sustainable foam, renewable fibers, eco-friendly packaging, and green thermoplastics. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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