Bio-based Paraxylene Market Size, Share, Trends, Growth 2032

Bio-based Paraxylene Industry Prospective:

The global bio based paraxylene market size was worth around USD 13.19 billion in 2023 and is predicted to grow to around USD 24.65 billion by 2032, with a compound annual growth rate (CAGR) of roughly 7.20% between 2024 and 2032.

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Bio-Based Paraxylene Market: Overview

Bio-based paraxylene (Bio-PX) is an environmentally friendly alternative to conventionally used paraxylene (PX). The latter is also known as p-Xylene. It is a sweet-smelling, flammable, and colorless liquid used in the production of Polyethylene Terephthalate (PET) and polyester plastics. Thus Bio-PX can be used as a sustainable alternative to conventional PX, which is known to be harmful to the environment.

Moreover, PX is also used widely for the production of several industrial chemicals, such as dimethyl-terephthalate (DMT), purified terephthalic acid (PTA), and terephthalic acid (TPA). Paraxylene is environmentally damaging since it is produced from crude oil sources such as reformate. On the other hand, bio-based paraxylene uses organic waste as an essential raw material.

Some of the most common resources used for producing bio-based PX include glucose from sugarcane and corn. The demand for bio-based paraxylene is expected to grow due to the growing demand to replace synthetic PET plastic with sustainable alternatives. However, the high initial investment cost and changing availability & price value of raw materials will impact the bio based paraxylene industry expansion trends.

Key Insights:

• As per the analysis shared by our research analyst, the global bio based paraxylene market is estimated to grow annually at a CAGR of around 7.20% over the forecast period (2024-2032)
• In terms of revenue, the global bio based paraxylene market size was valued at around USD 13.19 billion in 2023 and is projected to reach USD 24.65 billion by 2032.
• The bio based paraxylene market is projected to grow at a significant rate due to the growing environmental pollution due to synthetic plastic production.
• Based on the end-user, the packaging segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the application, the bio-based Polyethylene Terephthalate (BIO-PET) segment is anticipated to command the largest market share.
• Based on region, Europe is projected to dominate the global market during the forecast period.

Bio Based Paraxylene Market: Growth Drivers

Growing environmental pollution due to synthetic plastic production will drive the market demand rate

The global bio based paraxylene market is expected to grow due to the growing rate of environmental pollution caused due to plastic production and applications.

According to the United Nations Environment Program, the world produces more than 400 million tonnes of plastic waste yearly. Pollution caused by synthetic plastic is one of the more pressing matters concerning the environment at present times. Synthetic plastic is non-biodegradable. It can survive in an environment of more than 500 years.

In addition to this, synthetic plastic is made of highly toxic chemicals. With time, plastic waste starts deteriorating into smaller components that release harmful gasses into the environment, leading to air, soil, and water pollution.

Additionally, plastic-based components in the water bodies are the greatest threat to the biodiversity of marine ecosystems. According to official data, more than 110 million marine animals die every year due to plastic waste.

Such growing statistics about the ill impact of synthetic plastic on the environment, along with surging awareness, will help fuel the revenue in the bio-based PX industry.

Increasing shift toward sustainable clothing solutions to help expand the industry’s total revenue

Bio-based paraxylene can be used as a substitute for polyester, which is widely popular in the global textile and clothing industry. For instance, fast-fashion industry players are some of the leading users of synthetic polyester.

While the product is excellent in terms of use for clothing companies, it also has severe environmental repercussions. In addition, demand in the clothing industry has been gradually rising, leading to increased use of polyester.

However, modern buyers are actively demanding products that are safe for the environment and the body. For instance, synthetic polyester-made clothing products are often associated with skin allergies, itching, and other medical issues. The demand for bio-based paraxylene may grow as consumers become more aware and there is a steady end-user group for bio-based PX.

Bio Based Paraxylene Market: Restraints

High cost of production will restrict the industry’s expansion rate

The global industry for bio based paraxylene is projected to be restricted due to the high initial investment. Bio-based PX is produced using biomass which can be difficult to obtain. Additionally, synthetic paraxylene is abundantly available since it is made of easy-to-access raw materials. Moreover, the existing chemical production infrastructure is more supportive of synthetic PX production thus impacting revenue in the bio-based segment.

Bio Based Paraxylene Market: Opportunities

Surge in demand in the food & beverages industry will generate higher expansion possibilities

The global bio based paraxylene market is expected to generate growth opportunities due to the rising demand in the food & beverages sector. Major food companies, in recent times, have announced new policies that support the limited use of plastic-based PET bottles and the replacement of biodegradable PET solutions 

In October 2023, food giant the Coca‑Cola Company announced a major milestone in terms of its sustainable packaging journey. The company unveiled its first beverage bottle made using 100% plant-based plastic. The new launch comes almost a decade after the company first introduced its PlantBottle™, which was made of 30% plant-based material.

In addition to this, regional governments are enforcing new laws that hold food companies responsible for the growing environmental damage caused due to business operations.

Such initiatives are likely to help drive the demand for bio-based paraxylene. The European Union, for instance, has been taking active steps to reduce the use of single-use plastic in the food industry. According to official data, Europe has banned the use of ‘forever chemicals’ from food products.

Bio Based Paraxylene Market: Challenges

Scalability of bio-based PX is a major challenge for the industry players

The global bio based paraxylene industry is projected to be challenged by concerns over the scalability of the chemical’s production rate. For instance, global demand for PET has been growing at a rapid rate. However, the production rate for bio-based PET solutions is currently limited due to several external factors. The changing availability of raw materials, along with a shift in prices, will impact the industry’s expansion trend over the coming years.

Bio Based Paraxylene Market Report Scope:

Bio Based Paraxylene Market: Segmentation

The global bio based paraxylene market is segmented based on end-user, application, and region.

Based on the end-user, the global market segments are packaging, food & beverages, and others. In 2023, the highest growth was observed in the packaging industry. One of the major segmental growth propellers is the use of sustainable packaging solutions in the industry. According to market estimates, the global packaging industry contributes to around 40.01% of the total plastic waste generated every year. The industry is under pressure to introduce eco-friendly packaging alternatives.

Based on the application, the global market divisions are Polytrimethylene Terephthalate (PTT),  Bio-Terephthalic Acid (BIO-TPA), Polybutylene Terephthalate (PBT), and bio-based Polyethylene Terephthalate (BIO-PET). In 2023, market studies indicate that the highest revenue was generated in the bio-based Polyethylene Terephthalate (BIO-PET) segment.

The growth rate is a result of the increased use of PET bottles across industries, especially in the food & beverages sector. According to market studies, around 580 billion pieces of PET bottles are produced every year. It is a major contributor to the rising plastic pollution levels globally.

Bio Based Paraxylene Market: Regional Analysis

Europe to emerge as a winner during the forecast period

The global bio based paraxylene market will be dominated by Europe during the forecast period. The primary reason for higher regional growth is Europe’s active initiatives toward a sustainable circular economy. The regional countries have been taking strides toward reducing or substituting the use of harmful plastic with sustainable solutions.

In August 2024, Austrian company ALPLA, a leader in packaging and recycling solutions, announced a partnership with SEA ME GmbH, a Zerooo system initiative. The companies have partnered to produce standardized solutions for the growing personal care & cosmetics industry. The plastic solutions offered through the collaboration are fully recyclable and reusable.

In August 2023, European food company Nestle announced a partnership with Mitsubishi Corporation, ENEOS, and Suntory. The companies will work toward the production of PET resin using renewable Neste RE™, which is a novel feedstock for producing polymers. It is made from bio-based raw materials.

Similarly, in May 2024, Carbios, a France-based company, partnered with L’Occitane en Provence, a luxury cosmetics brand for the development of transparent polyethylene terephthalate (PET) bottles made using enzymatic recycling, thus promoting the regional recycling industry.

Bio Based Paraxylene Market: Competitive Analysis

The global bio based paraxylene market is led by players like:

• Avantium
• Anellotech
• BASF
• BP (British Petroleum)
• Toray Industries
• TotalEnergies
• Braskem
• Renmatix
• Virent
• Lanzatech
• Origin Materials
• Ineos
• Gevo Inc.
• Amyris
• Viridos

The global bio based paraxylene market is segmented as follows:

By End-User

• Packaging
• Food & Beverages
• Others

By Application

• Polytrimethylene Terephthalate (PTT)
• Bio-Terephthalic Acid (BIO-TPA)
• Polybutylene Terephthalate (PBT)
• Bio-Based Polyethylene Terephthalate (BIO-PET

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa