The South America bio-based platform chemicals market is estimated to grow at a higher rate during the forecast period (2018 - 2023). Brazil is leading the regional market supported by the ongoing surge in demand owing to government’s regulations and increasing customer’s preference of eco-friendly products over traditional harmful products.
Platform chemicals are basically composed of 2-6 carbons, which are used as an intermediate in the production of various chemicals. In 2017, C3 chemicals (bio-glycerol and bio-3-hydroxypropionic acid) together accounted for the highest consumption among all the bio-based platform chemicals owing to their unique properties and usage as different alcohols, acids, and resins. Bio-based glycerol is increasing replacing synthetic alternatives that is produced from propene, as a drop-in alternative. 3-hydroxypropionic acid (HPA) can be majorly used as a raw material for the production of bio-based acrylic acid. Other potential applications include the production of 1,3-propanediol, acrylamide and acrylonitrile.
The stricter regulations for the usage of petro-based products owing to their harmful environmental effects, and continuous decreasing fossil fuel reserve has driven the demand for bio-based platform chemicals. Crude glycerol is the major by-product in the manufacturing of bio-diesel. Continuous R&D and technological advancements are providing opportunities for the bio-based platform chemicals.
Brazil has accounted the highest market share among other South American countries in this market in 2017 and is expected to continue its dominance in the region at a moderately high CAGR during the forecast period. The market in this region is driven by the availability of raw materials, growing awareness against traditional petro-based products, and other factors.
Major Players: BASF SE, Lucite International, BioAmber, Cargill, DSM, Novozymes, Myriant Corporation, among others.
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