Bio-based Epoxy Resin Market Overview (2024 - 2030)

As of 2023, the Bio-Based Epoxy Resin Market demonstrated a valuation of USD 191.82 million, poised to ascend to USD 357.47 million by 2030. Projections for the period spanning 2024 to 2030 anticipate a compound annual growth rate (CAGR) of 9.3%.

Industry Insights:

Epoxy resins, classified as advanced thermosetting resins, encompass a diverse array of crosslinking polymers, alongside unsaturated polyester resins, phenol-formaldehyde resins, and amino resins. Derived from plant-based carbon in lieu of petroleum-based sources, bio-based epoxy resins constitute a sustainable alternative.

Curing agents, pivotal in facilitating polymerization reactions to yield resins, hinge upon crucial parameters such as viscosity and glass transition temperature (Tg). Enabled by binders and catalyst agents, curing agents engender 3D structures.

Green chemistry principles underpin bio-based epoxy resins, engendering reduced energy consumption and minimized hazardous by-products, thereby mitigating greenhouse gas emissions by 50%. Dispensing with the need for volatile reactive diluents like styrene, deemed hazardous per OSHA and ECHA guidelines, enhances safety standards. Exhibiting robust corrosion resistance and structural integrity, epoxy resins cater to diverse applications, from adhesives to coatings, sealants, and composites, fostering growth prospects.

COVID-19 Impact on the Bio-based Epoxy Resin Market

The global upheaval induced by the COVID-19 pandemic has prompted a paradigm shift in global supply chains, necessitating recalibration of relationships with suppliers and ecosystem stakeholders. Notably, the China bio-based epoxy resin market has witnessed accelerated capacity expansions. As industries adapt to the post-pandemic landscape, the bio-based epoxy resin market is poised for robust growth.

The Bio-based Epoxy Resins market, akin to other sectors, encountered formidable challenges amid the COVID-19 pandemic. Disruptions reverberated across supply chains, precipitating operational constraints and economic losses. Stringent precautionary measures imposed by governments prolonged the ordeal, impeding workforce mobility and business continuity.

Market Drivers:

Escalating adoption across diverse industries propels market expansion.

Bio-based epoxy resin finds application in construction, serving as a protective coating against environmental degradation. Its utility extends to adhesives, ensuring superior bonding and water resistance. Favorable environmental attributes position bio-based epoxies as the material of choice for applications such as boat construction. Reduced VOC emissions and reliance on fossil fuels further underscore their appeal.

Stringent regulatory frameworks stimulate market growth.

Global initiatives to curb carbon emissions underscore the imperative for eco-friendly solutions, bolstering demand for bio-based epoxy resins. Manufacturers pivot towards renewable resources like starch and plant oils, capitalizing on their eco-friendly and cost-effective attributes.

Market Restraints:

The prevalence of respiratory ailments poses a significant constraint to market growth.

Exposure to uncured epoxy particulates can precipitate severe respiratory complications, necessitating caution during handling. Moreover, shortages of raw materials and skilled technicians impede market expansion.

Market for Bio-based Epoxy Resin - Types:

• Vegetable Oil-based
• Soybean Oil-based
• Cardanol-based
• Furan-based
• Lignin-based
• Others (including Rosin, Gallic Acid, and Vanillin based)

The global bio-based epoxy resin market witnessed dominance in 2021 within the soybean oil-based category. This was primarily driven by an increased demand for soybean oil-based epoxy resin across various applications such as adhesives, composites, laminates, among others. Soybean oil-based epoxy resin has historically been a major constituent in the production of bio-based epoxy resin, mainly due to its cost-effectiveness compared to other variants. It finds extensive usage across industries including adhesives & sealants, food & beverages, and healthcare & pharmaceuticals.

Furan-based epoxy resin, on the other hand, is utilized in specific applications, hence its growth is expected to be steady throughout the forecast period.

Market for Bio-based Epoxy Resin - Applications:

• Paints & Coatings
• Adhesives
• Composites
• Laminates
• Others (including Flooring, Primers, and Sealers)

In residential construction, bio-based epoxy resins find applications in paints & coatings, adhesives, and composites. These resins serve as primary binders in paints and coatings, offering superior adhesion and protective sealing against moisture damage, especially on wooden surfaces. Moreover, bio-based epoxy coatings contribute to decorative finishes, enhancing surface aesthetics. With attributes such as stability, chemical resistance, low VOC emissions, and non-toxicity, bio-based epoxy resin demonstrates versatility across various applications. The adhesive segment is expected to witness consistent growth during the forecast period.

Market for Bio-based Epoxy Resin - Regions:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East
• Africa

Currently, North America and Europe lead the bio-based epoxy resin market, spurred by recent bans on fossil fuel-derived epoxy resins in food packaging, particularly in Canada and France. This regulatory shift towards sustainable products is expected to drive market growth in these regions. North America hosts several chemical companies with robust supply chain networks, facilitating the transition from fossil fuels to plant and vegetable oil-based feedstocks. The increasing penetration of consumer electronics, with a 22% rise observed in 2021, further fuels demand for bio-based epoxy resins in these regions.

In the Asia Pacific (APAC) region, the market is experiencing significant growth, attributed to favorable business environments, large consumer bases, and increasing focus of multinational corporations on expanding their presence in the bio-based epoxy resin market. The influx of electronics and communication devices in APAC regions, coupled with cost-effective labor, further contributes to market expansion.

Bio-based Epoxy Resin Market Share by Company:

1. Pond ApS
2. Kukdo Chemical
3. Bitrez Ltd
4. Sicomin Epoxy Systems
5. Huntsman Corporation
6. Entropy Resins
7. ALPAS
8. Chang Chun Group
9. Nagase ChemteX Corporation
10. LEUNAHarze GmbH
11. Spolchemie
12. Specific Polymers
13. ATL Composites
14. Stahl Holdings B.V.
15. Change Climate
16. Wessex Resins

In January 2020, Bitrez Ltd., a UK-based manufacturer, introduced a novel class of bio-based resins, "Poly-furfuryl alcohol," derived from biomass waste. These resins, possessing similar properties to phenolic resins but with lower carbon emissions, are targeted towards the composite market. The competitive landscape of the market encompasses various factors including company profiles, financials, market presence, research and development investments, product portfolios, and application dominance.

SIGNIFICANT DEVELOPMENTS IN THE GLOBAL BIO-BASED EPOXY RESIN MARKET IN RECENT TIMES:

Merger and Acquisition - In March 2020, Bitrez Ltd, a prominent European producer of specialized polymers and chemicals, introduced a novel range of bio-based resin products tailored for the composites sector, ensuring compliance with regulatory standards.