Bio-Acrylic Acid Market

The Bio-Acrylic Acid market size is projected to grow from USD 0.4 billion in 2022 to USD 0.9 billion by 2027, at a CAGR of 15.6% during the forecast year. The growth of this market is ascribed to the growing demand for more sustainable and environmentally friendly products, and bio-acrylic acid offers a more sustainable alternative to traditional acrylic acids. Countries such as India, Taiwan, and Indonesia are also witnessing a fast-growing end-use application industry. These countries are welcoming foreign investments and global manufacturers to set up manufacturing facilities is a major opportunity in the market. However, the main challenge for bio-acrylic acid is the cost of production may hinder the growth of the market.

Attractive Opportunities in the Bio-Acrylic Acid Market

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Bio-Acrylic Acid Market Dynamics

Drivers- Rapid expansion and growing applications of superabsorbent polymers

• Increasing demand from end-use applications and newer applications due to extensive research & development are the major driving forces for strategic expansions, such as the deliberate and well-planned approach to expanding the production, distribution, and/or sales of bio-acrylic acid to capture a larger share of the market. The bio-acrylic acid market is expected to witness steady growth over the forecast period as economies around the world accelerate. The market for acrylates and superabsorbent polymers is rapidly expanding with the increasing demand from existing and emerging end-use applications. Superabsorbent polymers are plastics that have the capability to absorb and hold up the weight of salty body fluids, including urine, even under pressure. They are used in the form of grainy white powder in baby diapers and agricultural mulching. The US Environmental Protection Agency estimates that 16 billion disposable nappies are used every year in the US. Consumers have been showing a growing demand for superabsorbent materials. This has created a platform for the key producers of bio-acrylic acids to invest in expansions to meet the increasing demands.

Restraints- High production cost

• The technology for producing bio-acrylic acid is still relatively new and requires significant research and development. This research and development can be expensive, which can drive up the cost of bio-acrylic acid production. The feedstocks used to produce bio-acrylic acid, such as sugar and corn, can be more expensive than the petrochemicals used to produce traditional acrylic acid. The yield of bio-acrylic acid production is still relatively low, which means that more raw materials are required to produce the same amount of bio-acrylic acid as traditional acrylic acid. This can drive up the cost of bio-acrylic acid production.

Opportunities- Opportunities with new applications

• One of the main factors influencing the market is the rising demand for to produce sustainable coatings for various applications, such as automotive coatings, architectural coatings, and industrial coatings. Bio-acrylic acid can offer similar performance to traditional acrylic acid coatings while being more environmentally friendly. Bio-acrylic acid can be used to produce bio-based adhesives for applications such as woodworking, paper and packaging, and construction. Bio-acrylic acid can offer better adhesion properties and improved sustainability compared to traditional acrylic acid adhesives. These new applications can help to differentiate bio-acrylic acid from traditional acrylic acid and create new market opportunities. As companies seek to reduce their environmental footprint and meet sustainability goals, the demand for bio-acrylic acid-based products is expected to increase.

Challenges - Competition from traditional acrylic acid

• Traditional acrylic acid, also known as petroleum-based acrylic acid, is a well-established product in the market and is widely used in various applications, including coatings, adhesives, superabsorbent polymers, and plastics. As a result, bio-acrylic acid faces significant competition from traditional acrylic acid.
  One of the main challenges for bio-acrylic acid is the cost of production. Bio-acrylic acid is currently more expensive to produce than traditional acrylic acid due to the high cost of feedstocks and the complex fermentation process required to produce it. This makes it difficult for bio-acrylic acid to compete on price, especially in applications where cost is the primary consideration.

Bio- Acrylic Acid Market: Ecosystem

The Butyl Acrylate segment to register the highest CAGR during forecast period.

Demand for silanes to be driven by increasing investment in major infrastructure projects across the world especially in asia pacific region. Building & construction is a major end user of silanes. Silanes are widely used in buildings for the protection of the building environment from deterioration. This sector includes coating materials for construction areas such as food & beverage production facilities, hospitals, pharmaceutical manufacturing areas, and kitchens. Because of advancements in silanes coatings making it suitable for various infrastructure construction.

By Type, mono/chloro silanes segment accounted for the highest CAGR during the forecast period

The use of bio-based acrylic acid to produce butyl acrylate offers an opportunity to develop more sustainable and eco-friendly products, which can help meet the growing demand for sustainable solutions across various industries. Several companies and research institutes are working on developing new and innovative technologies to produce bio-based acrylic acid and its derivatives, including butyl acrylate. These technologies include fermentation-based and chemical catalysis-based processes. They offer the potential to produce bio-based chemicals in a more sustainable and eco-friendly way.

The Paint and coatings segment accounted the largest market share in 2022.

Bio-acrylic acid and its derivatives are increasingly being used as raw materials in the production of paints and coatings. Bio-acrylic acid is commonly used in the production of acrylic emulsion paints, which are water-based paints that are widely used in the construction industry. These paints are valued for their low odor, low VOC emissions, and easy clean-up with water. Acrylic emulsion paints made from bio-acrylic acid are also more resistant to fading and chalking, and they have excellent adhesion to various surfaces. Overall, the use of bio-acrylic acid in paints and coatings offers a promising pathway toward more sustainable and eco-friendly products, which can help meet the growing demand for sustainable solutions in the construction, automotive, and industrial sectors.

The Asia Pacific is the largest Bio- Acrylic Acid market during the forecast period.

The Asia Pacific market includes China, Japan, India, South Korea, Indonesia, Thailand, and Malaysia as major markets for bio-acrylic acid. Paints & coatings and sanitary products are the largest applications of bio-acrylic acid in terms of volume. The Asia Pacific recovered faster to the pre-COVID bio-acrylic acid market size than other regions due to the early opening of the Chinese economy, which is a major consumer of bio-acrylic acid. Growing industrial activities have increased the demand for bio-acrylic acid. Developments in the country’s economic activities have led to the increasing demand for bio-acrylic acid in paints and coating, surfactants, adhesives and sealants, and other applications. This trend is expected to continue in the future with the establishment of new plants and capacity additions in the present plants.

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Key players such as Arkema SA (France), BASF SE (Germany), LG Chem Ltd.(Korea), China Petroleum and Chemical Corporation (China), NIPPON SHOKUBAI CO., LTD(Japan), The Dow Chemical Company (US), Evonik Industries AG (Germany), and SIBUR (Russia) have adopted various growth strategies, such as acquisitions, contracts, agreements, and new projects to increase their market shares and enhance their product portfolios.

Arkema SA manufactures and distributes chemical products. High-performance Materials, Industrial Specialty, and Coating Solutions are the company’s business segments. The High-performance Materials segment, which includes the Technical Polymers, Filtration and Adsorption, and Organic Peroxides business units, offers high-value solutions used in a variety of industries, including transportation, oil extraction, renewable energies, consumer goods, electronics, construction, coatings, and water treatment. Thiochemicals, fluorochemicals, polymethyl methacrylate, and hydrogen peroxides are all part of the Industrials Specialty category. The Coating Solutions segment offers solutions for ornamental paints, industrial coatings, adhesives, and high-growth acrylic applications.

The Dow Chemical Company, commonly referred to as Dow, manufactures and supplies various chemicals used primarily as raw materials for manufacturing processes in industries such as appliance, automotive, agricultural, building & construction, electronics, furniture, chemical processing, houseware, oil & gas, packaging, paints, coatings & adhesives, personal care, pharmaceutical, processed foods, pulp & paper, textile & carpet, utilities, and water treatment. The company’s global operations are carried out through six global businesses, which are organized into the following operating segments: Industrial Intermediates & Infrastructure, Performance Materials & Coatings, and Packaging & Specialty Plastics. Bio-based plasticizers, ethylene copolymer resins, methacrylic acid copolymer resins, low-density polyethylene (LDPE), high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), ethylene vinyl acetate (EVA), polyethylene (PE), and elastomers are among the products offered by its packaging and specialty plastics business. Dow has over 109 manufacturing facilities in 31 countries across the globe. The strong global presence has allowed the company to develop strong value chains that have helped in the company’s survival.

Evonik Industries AG is engaged in the manufacturing of specialty chemical products. It operates through key business segments, including Nutrition & Care, Performance Materials, Smart Materials, Specialty Adhesives, and Technology & Infrastructure. The company’s Performance Materials division comprises the Performance Polymers and Intermediates business units. This segment serves various end-use industries, such as electronics, automotive, aviation, and photovoltaic (PV). The subsidiaries of the company are Evonik Degussa GmbH (Germany), Evonik Degussa Antwerpen NV (Belgium), and Evonik Degussa Canada, Inc. (Canada). It has manufacturing operations in 102 locations across 27 countries and a global footprint in 100 countries.

Recent Developments

• In March 2022, Evonik launched its first renewable isophorone-based products. The new eCO series helps to reduce CO2 emissions and enables more sustainable solvents, composites, and coatings.
• In February 2022, Mitsubishi Chemical announced plans to build a pilot plant for plant-based MMA monomers. Mitsubishi Chemical Corporation and its subsidiary Mitsubishi Chemical Methacrylates developed a manufacturing technology for methyl methacrylate (MMA) monomers that use plant-derived materials.
• In August 2021, As part of Dow’s efforts to improve reliability and access to raw materials through larger, centralized capacity, the company announced that it is making an investment in methyl acrylate production in the US Gulf Coast.

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