Bio-based Naphtha Market - By Source (Vegetable Oils, Biomass), By Application (Gasoline, Petrochemicals [Ethylene, Propylene, Butadiene]), By Downstream Application (Bio Polyethylene, Bio Polypropylene, Bio Polyvinyl Chloride) - Global Forecast to 2032

Bio-based Naphtha Market - By Source (Vegetable Oils, Biomass), By Application (Gasoline, Petrochemicals [Ethylene, Propylene, Butadiene]), By Downstream Application (Bio Polyethylene, Bio Polypropylene, Bio Polyvinyl Chloride) - Global Forecast to 2032

Bio-based Naphtha Market will register growth during 2023-2032 owing to its budding use in

bioplastics, specifically olefins, that are deemed to be the building blocks for other aromatics and chemicals used to produce polyester and other packaging materials. Constantly surging demand for bioplastics will positively influence the demand for bio-based naphtha in the market during the estimated timeframe.

Key players operating in the industry are undertaking strategic efforts such as M&A and innovative product launches to expand their presence and business operations across the global market. To cite an instance, in February 2022, Honeywell unveiled a new solution for renewable naphtha production using the commercially demonstrated Honeywell UOP Ecofining™ technology. This new pathway will produce a high yield of naphtha from sustainable feedstocks.

Overall, the bio-based naphtha industry is segmented in terms of source, application, downstream application, and region.

Based on the source, the biomass segment will gain strong momentum during 2023-2032 owing to its easy availability worldwide. The source can be transformed into unique industrial products and bio-based naphtha if used with the correct technology. In addition, compared to fossil fuels, biomass naphtha is relatively affordable.

By application, the bio-phenol segment is expected to depict over 16.5% CAGR through 2032. Growing demand for eco-friendly chemicals will drive the market growth over the coming years. Bio-phenol is a potential green chemical and a viable substitute for phenol derived from petroleum. In addition, it also offers fewer negative environmental effects and lessens the need for fossil fuels as it is made from renewable biomass sources.

Considering the downstream application, the bio-PVC segment will exhibit over 16% CAGR during the estimated timeframe. Increasing consumer preference for goods made with sustainable materials due to the increasing environmental concerns will favor segmental expansion. Moreover, the increasing number of businesses planning to suffice the escalating consumer demand will further support the Bio-PVC market expansion.

According to the regional perspective, the North America bio-based naphtha industry will be valued at over USD 3.8 billion by 2032. The presence of numerous end users has made North America one of the important regional markets across the world for renewable naphtha. Besides, increasing investments in bio-oil projects will also influence industry growth positively over the estimated timeframe.