Bio-renewable Chemicals Emerge as the Building Blocks of the Chemical Industry, Finds Frost & Sullivan

LONDON - The change from a non-renewable to a renewable feedstock base in the
chemical industry is accelerating. This is not only due to the increase in
the prices of non-renewable feedstock but also because of the growing ability
of certain microorganisms to yield higher productivity of the desired
chemicals.

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New analysis from Frost & Sullivan (www.chemicals.frost.com),
Strategic Analysis of the Worldwide Market for Biorenewable Chemicals, finds
that the market earned revenues of US$1.63 billion in 2008 and estimates this
to reach US$5.01 billion in 2015. In this research, Frost & Sullivan’s expert
analysts thoroughly examine the applications for lactic acid, succinic acid,
glycerol and 1,3 propanediol in bio plastics, bio composites and green
chemicals.

If you are interested in a virtual brochure, which provides a brief
synopsis of the research and a table of contents, then send an e-mail to
Katja Feick, Corporate Communications, at katja.feick@frost.com, with your
full name, company name, title, telephone number, company e-mail address,
company website, city, state and country. Upon receipt of the above
information, a brochure will be sent to you by e-mail.

“The stability and predictability of feedstock prices is motivating the
chemical industry to shift its feedstock base,” notes Frost & Sullivan Senior
Research Analyst Phani Raj Kumar Chinthapalli. “Ready availability is another
reason influencing the chemical industry to investigate bio renewable
feedstock options.”

Companies are evaluating the environmental benefits of using
bio-renewable feedstock. For instance, emission levels are reduced with the
use of bio-based feedstock in chemical manufacture. The manufacturing process
of sorona bio plastic from renewable feedstock lowers green house gases by up
to 50 per cent, compared to the manufacturing process of Nylon 6 from
non-renewable feedstock.

Crude oil prices rose spectacularly from US$30 per barrel in 2004 to
US$145 in mid-2008, a rise in excess of 350 per cent per barrel. The current
cost of crude oil per barrel stands at US$43. This fluctuation in oil prices
is having an impact on the price of the feedstock necessary for chemical
production. This variation is not evident in the renewable feedstock industry
covering wheat and sugar.

Like the mature petrochemical industry, the bio renewable chemicals
market does not have perfect business-to-business integration. This is only
because two completely distinct supply chains must merge in order to provide
a positive result.

“The food industry and the chemical industry have two different supply
chains,” explains Chinthapalli. “The food industry can play its role half
way, till the production of the chemical by fermentation or other processes
from bio feedstock, while the other half is led by the chemical industry
supporting the application market for the bio renewable chemicals.”

However, the lack of smooth business-to-business integration is
restraining the bio renewable chemicals market. This challenge will resolve
over the long term as awareness of the benefits accrued from partnering
grows. Companies producing bio-renewable chemicals at the initial stages are
expressing their willingness to partner rather than compete.

The bio-renewable chemicals market presents the food industry with an
opportunity to gain a foothold in the chemicals markets, which have
comparatively higher profit margins. On the other hand, chemical industries
can enter the bio-renewable chemicals market and be a part of completely
different supply chain.

“This will support greater sustainability in the chemical industries in
terms of using renewable rather than non renewable resources, while showing a
way for the industry to turn green,” notes Chinthapalli. “The perfect
business-to-business integration of food and chemical industries will be the
ultimate goal for both the industries to succeed in the market place.”

Strategic Analysis of the Worldwide Market for Biorenewable Chemicals is
part of the Chemicals & Materials Growth Partnership Service programme, which
also includes research in the following markets: Biodegradable Packaging
Market - Opportunity Analysis, Brazilian and Mexican Paints and Coatings
Markets, European Market for Catalysts and Strategic Analysis of the Asia
Pacific Biodiesel Industry. All research included in subscriptions provide
detailed market opportunities and industry trends that have been evaluated
following extensive interviews with market participants. Interviews with the
press are available.

Frost & Sullivan has expanded its flagship Global Congress on Corporate
Growth - GIL Global - into several major cities around the world including
London. For the first time ever in Europe, Frost & Sullivan will be hosting
the Growth, Innovation and Leadership Congress ‘GIL 2009: Europe’ on 19-20
May, at the Sofitel St James in London. GIL Global is the industry’s only
event designed to support senior executives in their efforts to achieve
sustainable, top-line growth. To register, obtain a programme agenda, explore
sponsorship opportunities, or attend as a member of the media for GIL 2009:
Europe, please contact Katja Feick, Corporate Communications Europe, at
katja.feick@frost.com. One-on-One interviews with Frost & Sullivan senior
growth consultants are also being scheduled. For more information you can
also visit www.frost.com/gilglobal

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Strategic Analysis of the Worldwide Market for Biorenewable Chemicals
(M2F2)

Contact:
Katja Feick
Corporate Communications - Europe
P: +49-(0)-69-7703343
E: katja.feick@frost.com

www.frost.com

Source: Frost & Sullivan

Katja Feick, Corporate Communications - Europe of Frost & Sullivan, +49-(0)-69-7703343, katja.feick at frost.com ; Photo: https://www.newscom.com/cgi-bin/prnh/20081117/FSLOGO