BIO BASED ETHYLENE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Global bio based ethylene market growth can be hampered due to high production cost of bio-ethylene as compared to conventionally produce petroleum-based ethylene. Producing ethylene from biomass requires pretreatment of the feedstock, complex production processes such as fermentation and thermal cracking, and separation and purification of the product. All these steps are capital intensive and increases the cost of bio-ethylene. Production cost of bio-ethylene is estimated to be 2-3 times higher than petroleum-derived ethylene. This high cost makes it difficult for bio-ethylene producers to compete with petrochemical companies and reduces its market acceptance. However, continued research and development in developing low-cost production technologies through technological advancements and economic production at large commercial scales can help reduce the cost gap.

Market Opportunity - Potential substitute for petroleum-based ethylene

Global bio based ethylene market can witness growth opportunities due to its potential to emerge as a substitute for petroleum-based ethylene. Ethylene is a widely used basic petrochemical that serves as a building block for various plastics and polymers. However, over-reliance on non-renewable petroleum feedstock exposes the ethylene market to price volatilities in oil markets. Bio based ethylene produced from renewable biomass feedstocks such as sugarcane, corn, and agricultural residues provides an opportunity to partially substitute petrol-ethylene and decrease dependence on oil imports. This substitution can help insulate the ethylene market from oil price shocks. Moreover, bio-ethylene is considered more environment-friendly with a lower carbon footprint. This boosts its marketability among manufacturers targeting sustainability. Large multinational corporations have started exploring bio-ethylene production to diversify their feedstock sources.