Bio-Based Polyvinyl Chloride Market - Forecasts from 2024 to 2029

The bio-based polyvinyl chloride market is anticipated to register a compound annual growth rate (CAGR) of 4.8% between 2024 and 2029.

Bio-based polyvinyl chloride comes from renewable biological resources, it is a type of bio-based plastic. Polyvinyl chloride (PVC) is one of the most common polymers in the world, used in numerous industries.  In building and construction, PVC piping systems offer high ring stiffness, excellent corrosion and chemical resistance, and a long service life. The non-plastic alternatives of PVC pipes are optimized for product design, transportation, and manufacturing.

The applications for bio-based polyvinyl chloride have been increasing from sports and footwear to automotive, packaging, agriculture, non-wovens, and fiber applications. The demand for plastics use is projected to reach 1.23 billion tonnes (Mt) by 2060 from 459.7459 million tonnes (Mt) in 2019, nearly a three times growth. Global plastic waste is expected to rise from 353.2911 Mt in 2019 to 1014.144 Mt in 2060. This wastage has been creating a huge problem for the environmental crisis. This uncontrolled consumption of plastic has led to a challenge for waste management systems.

Overall, the carbon footprint of the material can be brought down by sourcing. PVC products are sourced from renewable plant-based derivatives. Such as non-food-based biomass sources used in PVC production are sugar cane, wood pulp, or used cooking oil.

According to the OECD, only 9% of the plastic waste is recycled. But 15% was collected for recycling, but about 6% was disposed of as residues. About 50% end up in landfills, creating soil pollution and deterioration of soil quality.

Bio-based flexible PVC compounds use plant-based plasticizers made from renewable feedstock which creates a sustainable raw material that easily gets into the soil rather than traditional petroleum-based plasticizers, which remains unresolved.

BIO-BASED POLYVINYL CHLORIDE MARKET DRIVERS:

Favorable regulatory measures

Governments around the world are phasing out single-use plastics and replacing them with recyclable materials. The New Zealand government has been promoting the phasing out of drink stirrers, plastic-stemmed cotton buds, plastic produce bags, plastic plates, bowls, and cutlery, and plastic straws with compostable and bio-based plastics. In April 2024, the European Parliament adopted the EU's Packaging and Packaging Waste Regulation (PPWR) which required reductions in plastics and other packaging. The rules required a ban on single-use plastic packaging for unprocessed fresh fruit and vegetables and foods and beverages consumed in cafés and restaurants. The rule is starting from 1 January 2030.

Governments and industry are taking steps for a net zero and circular economy. It is the key to energy security, job creation, and socio-economic development. Today almost half the global population lives in cities and by 2070 this is expected to reach 70%.  Infrastructure and working space are needed the sustain such a large population.  Bio-based materials are derived from living organisms, including bio-based polyvinyl chloride, which can be derived from sugarcane, etc.

Bio-based construction is growing among early adopters. One such project is Stockholm Wood City in Sickla, an area in the south of the Swedish capital. The construction would be on the 250,000-square-metre site and begin in 2025, along with 2,000 homes and 7,000 offices, restaurants, and shops. This city is incorporated with natural elements, such as green roofs, in its design.

The growing demand from the construction and building industry

The growth of the building and construction industry has created a related demand for construction materials, the total construction spending in the United States was 1.79 trillion dollars in January 2022, which jumped to 1.88 trillion dollars in January 2023. This growth in the construction industry remains with the challenges in the world where the sourcing of sustainable materials is needed. Several products and innovations are serving to make construction materials and components more sustainable. for instance, Cargill offers plasticizers from bio-based feedstocks that are used as components for flooring. This is to provide an alternative to phthalate and fossil fuel-dependent products.

Innovating solutions like Inovyn by Ineos worked with flooring Paris-based firm Tarkett for its new flooring collection. Further, Biovyn Inovyn (Ineos)  could have numerous value-added applications in many industries in building and construction for pipe, and window frames. They are moving towards automotive and medical applications too. Biovyn is also Roundtable on Sustainable Biomaterials (RSB) certified.

Asia Pacific region to dominate the bio-based polyvinyl chloride market during the forecast period.

The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region such as ASEAN countries. India and China have about 35.5% of the world's population.  In this regard, the rapid growth of the construction and real estate industry with a growing focus on infrastructural development has created the demand for various materials including more sustainable choices.

China is one of the sought-after countries for construction and development around the world. After, a few downturns in 2022-2023, the country is moving towards better government regulations and policies. The concept of green building is growing in the market, with government backing and investments. According to the China Business Review, new regulations could require about 70% of new urban buildings to be certified green buildings. This also includes schools, hospitals, and public buildings. These buildings require low-carbon construction, renewable energy, water conservation, sustainable materials, etc.

Bio-based polyvinyl chloride market challenges:

• The large-scale sourcing and application of the bio-based polyvinyl chloride-based material has been a challenge in replacing traditional plastics. Traditional plastics are easy to manufacture and adopt in the application compared to bio-based polyvinyl chloride. The continuous market adaptation and cost are challenges for polyvinyl chloride.

Bio-based polyvinyl chloride market Key Developments:

• In March 2024, Baerlocher USA announced a new partnership agreement with Innoleics. The deal would lead to the distribution of Innoleics' by Baerlocher USA for the bio-based plasticizers flexible polyvinyl chloride (PVC) applications in the U.S. market. The company could produce customizable bio-plasticizer/liquid mixed metal one-pack solutions. This strategic partnership would help  Baerlocher USA to establish itself as a prominent supplier for the plastics industry. The product could be applied in segments such as wire and cable, synthetic leather, footwear, and flooring. Low carbon footprint materials by  Innoleics, with the baerlocher’s technical expertise, will help in reaching challenging sustainability goals.
• In June 2023, Bio-attributed PVC by Kömmerling is a project moving towards more sustainability. The project was launched by the Royal BAM Group in Steenwijk, in which 19 social rental apartments are being modernized into sustainable solutions. The project in which fossil materials are 100 percent replaced by a renewable alternative, is based on the pine oil-based raw material instead of petroleum in the production of ethylene, leading to the reduction of CO2 production. In the current project in the Netherlands, they produced sustainable building materials saving about 6,000 kilograms of CO2. The project was an assurance of innovative future products for sustainability.
• In December 2022, Wavin Orbia’s Building and Infrastructure business launched a bio-based drinking water solutions portfolio for water utilities and infrastructure. This is a new innovative range of sustainable products. This bio-circular feedstock could reduce the carbon footprint by 75%. KIWA-certified product guarantees the same technical properties and performance as its existing product portfolios. Additionally, International Sustainability and Carbon Certification (ISCC) certified transparency on sourcing practices, ethics, biodiversity, land use, and animal food chain. They are reusing raw material streams, and reducing dependence on fossil-based raw materials.
• In August 2022, Continental selected bio-attributed PVC BIOVYN for the production of surface materials. The company would use  BIOVYN, bio-attributed PVC, from INOVYN for the technical and decorative surface materials for automobiles. BIOVYN is a PVC grade that is certified by the Roundtable on Sustainable Biomaterials (RSB). It is a 100% renewable raw material. 70% of greenhouse gas savings would be saved from this innovative product. As more automotive manufacturers are demanding sustainable raw materials for reducing carbon footprint. 

The bio-based polyvinyl chloride market is segmented and analyzed as follows:

By Application

• Pipes
• Wires And Cables
• Bags, Bins, And Bottles
• Agricultural Films
• Electrical And Electronics
• Other Applications

By Type

• Rigid
• Flexible

By End-user Industry

• Building and Construction
• Automotive
• Healthcare
• Agriculture
• Packaging
• Other End-user Industries

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Rest of South America
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Rest of Europe
• Middle East and Africa
• Saudi Arabia
• United Arab Emirates
• Rest of Middle East and Africa
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Taiwan
• Thailand
• Indonesia
• Rest of Asia-Pacific