EPOXIDIZED SOYBEAN OIL MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Epoxidized Soybean Oil Market Size and Trends

The global epoxidized soybean oil market is estimated to be valued at USD 1.2 Bn in 2024 and is expected to reach USD 1.6 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.

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The market is expected to witness positive growth over the forecast period. Epoxidized soybean oil is increasingly being used as a plasticizer in PVC formulations owing to its advantages over conventional phthalate plasticizers. It is considered a safer alternative to phthalates due to its easy dispersibility, low volatility and non-toxic nature. Growing regulatory push towards non-phthalate plasticizers along with increasing demand from end-use industries such as adhesives, automotive, and medical devices is expected to drive the demand for epoxidized soybean oil. Furthermore, positive outlook in the construction industry across major economies will further aid the market growth during the forecast period.

Growing demand from construction industry

The construction industry has been a major driving force contributing to the growth of the global epoxidized soybean oil market. For instance, according to data published by the U.S. Census Bureau in 2021, in the U.S., public construction expenditure increased significantly in 2021 as compared to 2017. In 2021, the government spent approximately USD 9.06 billion on residential construction. This is due to increased public spending on residential buildings as a result of the post-pandemic work-from-home culture.  Epoxidized soybean oil (ESBO) finds widespread application in sealants, coatings, and adhesive formulations across residential and non-residential construction projects. It is increasingly replacing petroleum-based alternatives due to its superior performance properties and environment-friendliness.

ESBO exhibits excellent flexibility and adhesion qualities along with high stability against UV light and moisture. These properties make it extremely useful in formulations of sealants and caulk guns applied on walls, floors, windows, and other parts of buildings. The ability of ESBO to adhere strongly to various surfaces such as wood, concrete, ceramic/stone tiles without primer has helped to boost its popularity. Furthermore, epoxidized soybean oil imparts toughening and flexibility to coatings suitable for applications inside buildings, floors, driveways and other exterior surfaces.

The rising health, environmental, and sustainability concerns among consumers have augmented the demand for bio-based and natural ingredients across various industries in recent years. For instance, according to the data published by the Biotechnology Industry Research Assistance Council (BIRAC) in 2023, India’s BioEconomy experienced robust growth in 2022, surging by 29% to reach a substantial value of USD 137.24 billion. This sector, encompassing economic activities derived from biological resources, played a pivotal role in India’s economy, by contributing 4% to the gross domestic product (GDP) and employing over 2 million people. The growth was propelled by escalating demand for bio-based products and services, supportive government initiatives, and decreasing costs in biotechnology and biomanufacturing. This transition towards green and clean-label products is positively impacting the global epoxidized soybean oil market.

ESBO is derived from soybean oil through epoxidation, which is a much cleaner process as compared to methods that are used to produce competing petrochemical-derived epoxies. Being completely natural and plant-based, it poses negligible threats to human or environmental health. The biodegradable and renewable attributes of epoxidized soybean oil are appealing to many commercially sensitive companies wanting to boost their sustainability credentials.