Global Renewable Naphtha Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Renewable Naphtha Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Renewable naphtha is a by-product of renewable diesel, derived from oils and fats. Compared with petroleum-based naphtha, it reduces harmful emissions. The properties of renewable naphtha allow it to be used as a raw material for the production of renewable chemicals and bioplastics, and it can also be used as a biological component of gasoline.

Market Overview:

The latest research study on the global Renewable Naphtha market finds that the global Renewable Naphtha market reached a value of USD 146.36 million in 2022. It’s expected that the market will achieve USD 755.35 million by 2028, exhibiting a CAGR of 31.46% during the forecast period.

Influence of COVID-19 Outbreak on Renewable Naphtha Industry Development

The global outbreak of COVID-19 has a negative impact on the renewable naphtha industry. The outbreak of the epidemic has caused countries to enter a state of lockdown, and the demand for transportation fuel has dropped sharply. The demand for ethanol and biodiesel has also been hit, and the demand for renewable naphtha has also fallen. With the relaxation of national restrictions, demand is expected to rebound. At the same time, supply difficulties are affected by the epidemic, and it is more difficult for manufacturers to operate under conditions of weak demand and tight profits. In addition to the energy and fuel industries, another application market for renewable naphtha, the chemical raw material industry is also hit by the epidemic, with demand declining and production constraints.

The growing demand for renewable plastics will be an opportunity for the development of renewable naphtha

Renewable naphtha significantly reduces carbon emissions. Naphtha is a key material for the production of plastics, and Dow currently uses renewable naphtha to produce bio-based polyethylene in its factories. The polyethylene can be used in packaging fields such as food packaging to reduce food waste. The use of renewable naphtha as a raw material for plastics can realize the development of plastics business to a circular economy. The world is paying more and more attention to environmental protection, and the growing demand for renewable plastics will be an opportunity for the development of renewable naphtha.

The application of renewable naphtha in the gasoline industry is promoting the development of this market

Renewable naphtha can be used as a biological component of gasoline, which reduces harmful emissions and is more environmentally friendly. At the same time, cost-effective renewable naphtha has attracted the attention of oil producers and their end-use industries. The gasoline industry has made great strides in using more renewable fuels and is promoting the development of the renewable naphtha market.

As the demand for renewable naphtha rises, so does the cost of renewable naphtha

Renewable naphtha is an intermediate product that can be converted into gasoline, plastic and other products. Renewable naphtha is a by-product produced when a refinery converts renewable raw materials into diesel. In the past, the production of renewable naphtha was not high due to low prices and low demand. However, in recent years, the demand and cost of renewable naphtha have increased.

Unstable downstream demand for renewable naphtha

Renewable naphtha can be used as a biological component of gasoline or as a raw material in bioplastics. It is also a valuable product. The biggest risk associated with renewable naphtha is that renewable naphtha may lack a viable buyer. Although renewable naphtha has many uses, buyers of bio-naphtha are not allowed to sign long-term purchase contracts. Renewable naphtha is purchased on the spot market, so when demand decreases, there may be a surplus of renewable naphtha.

Region Overview:

In 2022, the share of the Renewable Naphtha market in Europe stood at 48.03%.

Company Overview:

UPM-Kymmene Oyj is one of the major players operating in the Renewable Naphtha market, holding a share of 24.63% in 2023.

UPM-Kymmene Oyj

UPM-Kymmene Oyj engages in the provision of forestry services and the manufacture of paper products. Its principal activities are manufacturing paper and converting materials and wood products. The company operates its business through segments: Pulp, Timber, Biofuels, Energy, Label, Specialty Papers, Communication Papers, Plywood, Bio-composites and Other operations.

Neste Oyj

Neste Oyj operates as an independent northern European oil refining and marketing company. The Company focuses on traffic fuels and other value-added petroleum products with reduced environmental impact.

Segmentation Overview:

Among different product types, Light segment is anticipated to contribute the largest market share in 2028.

Application Overview:

The market's largest segment by application is the segment Chemical Feedstock, with a market share of 57.29% in 2022.

Key Companies in the global Renewable Naphtha market covered in Chapter 3:

Renewable Energy Group, Inc.
Neste Oyj
East Kansas Agri Energy
World Energy
UPM-Kymmene Oyj
Diamond Green Diesel

In Chapter 4 and Chapter 14.2, on the basis of types, the Renewable Naphtha market from 2018 to 2029 is primarily split into:

Light
Heavy

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Renewable Naphtha market from 2018 to 2029 covers:

Chemical Feedstock
Energy and Fuel

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)