The global biocomposite market size reached USD 28.4 billion in 2023. Over the forecast period, the value is anticipated to rise at 15.5% CAGR. The industry is predicted to increase from USD 31.76 billion in 2024 to USD 133.84 billion in 2034. It is set to witness a Y-o-Y growth of 11.8% by 2024.
Biocomposites are considered unique composite materials formed by combining natural fibers in a matrix material. These materials have started gaining immense traction across various end-use industries on account of attractive features, such as biodegradable nature, better thermal stability, lightweight, and low cost.
Increasing demand for eco-friendly materials across end-use industries such as automotive and building and construction is creating lucrative opportunities in the field of biocomposites worldwide. Different types of innovative lightweight materials for a wide range of applications across the construction, aerospace, and automotive industries have paved the way for the development of biocomposites.
| Attributes | Description |
|---|---|
| Estimated Global Biocomposite Market Size (2024E) | USD 31.76 billion |
| Projected Global Biocomposite Market Value (2034F) | USD 133.84 billion |
| Value-based CAGR (2024 to 2034) | 15.5% |
Rising environmental concerns supported by the increasing need for lowering emission levels are anticipated to provide a strong thrust to growth during the forecast period. Demand for biocomposites is predicted to rise by 4.2 times through the forecast period. Emergence of wood plastic and soft magnetic composites as well as strict petroleum-based product regulations is further anticipated to fuel growth.
In June 2024, for instance, Oakio, headquartered in China, launched a unique Stain-resistant WPC (wood plastic composite) Decking line. It was mainly designed for homeowners dealing with outdoor renovation issues outdoors. The new product will help surge the aesthetic appeal of wood while offering the cutting-edge features of WPC.
Increasing global concern about environmental sustainability is a significant factor driving the industry’s growth. Consumers and industries are adopting eco-friendly materials like biocomposites, derived from renewable sources, to reduce carbon footprints and promote resource conservation.
Lanxess, headquartered in Germany, for instance, announced the launch of a new continuous-fiber-reinforced thermoplastic composite under the Tepex range. The company aims to utilize more renewable and bio-based raw materials to restrict the use of fossil-based resources in its own production process. Lanxess has blended bio-based polylactic acid with fabrics made from natural flax fibers to create the new composite.
Governments worldwide are implementing stringent environmental regulations and offering incentives to encourage the use of sustainable materials. Policies promoting the reduction of plastic waste and the adoption of biodegradable alternatives are propelling demand for eco-friendly composites. This regulatory push not only aids sales growth but also accelerates innovation in developing new materials.
As per the United Nations (UN), India alone generates around 15 million tons of plastic waste every year. However, only one-fourth of this is recycled owing to the lack of an advanced solid waste management system.
To reduce plastic waste, the United Nations Development Programme (UNDP) India collaborated with HDFC Bank & Coca Cola India Foundation (CCIF), Hindustan Unilever Limited (HUL), and Hindustan Coca-Cola Beverages Private Limited (HCCBPL). The collaboration focuses on promoting a circular economy in the country.
Eco-friendly composites are being increasingly used in construction, automotive, and consumer goods industries due to their robust mechanical properties and environmental benefits. These are gaining traction for decking, insulation, and reducing vehicle weight, thereby improving fuel efficiency and emissions.
Rapid production of vehicles and favorable government initiatives worldwide are anticipated to further boost the biocomposite industry. Several organizations such as the European Union are encouraging industries to adopt new products that are recyclable and biodegradable.
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The table below presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the market. This analysis reveals vital shifts in performance and indicates revenue realization patterns, thereby providing stakeholders with a better vision of the growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
In the first half (H1) from 2023 to 2033, the industry is predicted to surge at a CAGR of 14.3%, followed by a slightly higher growth rate of 15.3% in the second half (H2) of 2023 to 2033.
| Particular | Value CAGR |
|---|---|
| H1 2023 | 14.3% (2023 to 2033) |
| H2 2023 | 15.3% (2023 to 2033) |
| H1 2024 | 14.8% (2024 to 2034) |
| H2 2024 | 16.2% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 14.8% in the first half and remain relatively high at 16.2% in the second half. In the first half (H1), there was a decrease of 5 BPS while the second half (H2) witnessed a surge of 9 BPS.
Growing Trend for Green Buildings Augmenting Demand Worldwide
Increased consumer concern about the environment is driving demand for sustainable materials. Biocomposites made from natural fibers and biopolymers provide a renewable and cost-competitive alternative to conventional plastics and metals. In construction, bio-composites are set to be utilized as high-quality and sustainable materials for insulation and decking, in compliance with green building standards across the globe.
Compliance with environmental regulations and policies has compelled several key industries to be sustainable. These are fully conformable to the guidelines by being biodegradable and having zero to low carbon footprints.
In the automotive industry, bio-composites are likely to be employed in vehicle interiors and exteriors to reduce weight and improve fuel efficiency. This shift toward light and eco-friendly materials aligns with automotive manufacturers’ goals to meet emission standards and consumer preferences for sustainable products.
Aerospace and Defense Companies Seek Biocomposites to Make Lightweight Components
Increasing demand for lightweight, robust materials in the aerospace and defense industry is a key factor boosting growth. In the sphere of aerospace, bio-based composites are set to be extensively utilized for their lightweight properties in aircraft interiors, structural components, and satellites.
For instance, Boeing's Eco Demonstrator program incorporated biocomposite materials in interior aircraft structures, showcasing their potential to reduce weight and enhance fuel efficiency.
The defense sector is projected to utilize bio-based composites in vehicle components and armor plating for superior strength, reduced weight, and increased maneuverability, making these a cost-effective alternative to traditional materials. Biocomposites are being explored by companies such as BAE Systems for the production of military vehicle components as an alternative to expensive, heavy solutions.
Lower Strength of Biocomposites Compared to Glass Fiber May Hamper Demand
Lower strength of bio-based composites compared to glass fiber poses a significant restraint on their adoption. Glass fiber is renowned for high tensile strength and stiffness, making it indispensable in industries like automotive and construction where robust performance is vital.
For instance, in automotive applications, glass fiber-reinforced plastics (GFRP) are highly preferred for those components requiring exceptional mechanical properties, such as bumpers and structural reinforcements.
Biocomposites, which utilize natural fibers like bamboo or hemp, generally exhibit low mechanical strength and stiffness levels. This limits their use in applications demanding high durability and structural integrity. Despite advancements in fiber treatment and hybridization with synthetic fibers to improve strength, bridging the gap with glass fiber remains a technical challenge.
Principal Consultant
The global biocomposite market recorded a CAGR of 7.2% during the historical period between 2019 and 2023. Growth of the industry was positive as it reached a value of USD 28.4 billion in 2023 from USD 20 billion in 2019. From 2019 to 2023, the industry gained traction due to increasing awareness of environmental sustainability, with bio-composites being explored as eco-friendly alternatives to conventional composites.
Industries such as automotive, construction, and packaging sought to reduce their carbon footprint and enhance the sustainability of products. The industry began to recover and surge, supported by increased investments in research and development.
The automotive industry saw a surging adoption of bio-based composites for interior components due to their lightweight and biodegradable properties. The construction industry also started incorporating biocomposites for insulation and paneling applications.
In 2022, the market continued to surge robustly, driven by stringent environmental regulations and policies promoting sustainable materials. Advancements in materials science led to the development of new types of bio-based composites with enhanced mechanical properties and durability.
The industry was well-established and positioned for continued growth, with increased collaboration between leading companies and regulatory bodies. Over the years, bio-based composites have become ideal alternatives to conventional materials due to their eco-friendly and lightweight features. These materials find application across diverse end-use verticals, including transportation, consumer goods, and building and construction.
Tier 1 companies comprise firms with a revenue of above USD 50 million, capturing a significant share of 10% to 15% worldwide. These leaders are characterized by high production capacity and a wide product portfolio with extensive expertise in manufacturing and distribution across a broad geographical reach, underpinned by a robust consumer base.
Tier 1 companies provide a wide range of bio-based composites products. Prominent companies within Tier 1 include Stora Enso, UPM, Universal Forest Products, Inc., Trex Company, Fiberon LLC, and FlexForm Technologies.
Tier 2 companies include mid-sized firms with revenue of USD 1 to 50 million. These have a considerable presence in specific regions and are highly influencing the local players. These companies have good technology and ensure regulatory compliance but may not have a wide global reach. Prominent companies in Tier 2 include Tecnaro GmbH, Meshlin Composites ZRT, Nanjing Jufeng Advanced Materials Co., Ltd., Bcomp Ltd., Lingrove Inc., Green Dot Bioplastics Inc., and EP Biocomposites Ltd.
Tier 3 includes several small-scale companies operating at the local level and serving niche areas. These have a revenue below USD 1 million. These companies are notably oriented toward fulfilling local demands and are consequently classified within the Tier 3 segment.
Tier 3 are small-scale firms with limited geographical reach. Tier 3 is recognized as an unorganized sector, denoting a segment characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The section below covers the analysis of biocomposite sales for different countries. Demand analysis on key countries in several regions of the globe, including North America, Western Europe, Eastern Europe, East Asia, South Asia, and the Middle East and Africa, is provided. The United States is set to remain at the forefront in North America, with a value share of 14.8% in 2034.
India and Brazil are witnessing significant growth in the industry due to rising demand in the construction, automotive, and consumer goods industries. Growing focus on sustainable materials is set to drive demand, promoting eco-friendly and durable solutions in these countries. The Philippines and Mexico are set to surge through the forecast period, contributing to 1.2 times the global growth.
| Countries | CAGR 2024 to 2034 |
|---|---|
| India | 16.9% |
| Brazil | 16.7% |
| Philippines | 16.5% |
| Mexico | 16.4% |
| Türkiye | 16.2% |
The biocomposite market is anticipated to thrive in the United States due to the presence of well-established automotive and building and construction industries. According to the United States Census Bureau, construction spending in April 2024 was estimated at USD 1,744.8 billion. The bio-based composites industry in the country is also set to surge due to increasing demand for lightweight materials in the automotive industry and advancements in plastic composites.
China is anticipated to hold a significant share in Asia Pacific and is set to surge at a stupendous pace during the forecast period. Booming automotive industry in the country is emerging as a key factor in fueling demand for biocomposites. According to the International Trade Administration (ITA), domestic vehicle production in China is set to reach 35 million vehicles by 2025.
Leading vehicle manufacturers based in the country are continuously focusing on reducing the overall weight of vehicles to make them more efficient and eco-friendly. As a result, they are incorporating materials, such as bio-composites in vehicles. Government regulations to encourage the adoption of eco-friendly materials, such as natural polymer composites, are set to further boost growth in China.
India, which is rich in natural fibers and bio-based resins, offers a competitive advantage for manufacturers associated with bio-based composite production. Increasing demand for eco-friendly construction materials amid rising need for housing is anticipated to bolster growth in the country.
Biocomposites, with eco-friendly properties, are well-positioned to meet this growing demand in India. Biocomposites align with sustainable development goals, promoting resource efficiency and closed-loop recycling in the country.
In February 2024, for instance, the Government of India introduced a new housing scheme for the middle class to develop or purchase homes. It plans to provide homes to the deserving sections of the middle class living in unauthorized colonies, chawls, slums, or rented homes.
The section contains information about the leading segments in the industry. By polymer type, the synthetic polymer composite segment is estimated to account for a 62.3% share in 2034. Based on the end-use industry, the building and construction segment is projected to hold a 46.1% share in 2034.
| Segment | Synthetic Polymer Composites (Polymer Type) |
|---|---|
| Value Share (2034) | 62.3% |
Synthetic polymers, such as polypropylene (PP), polyethylene (PE), and polyethylene terephthalate (PET) have better dimensional stability and are highly resistant to physical impacts. These properties are set to surge their demand in the forecast period.
The synthetic polymer segment is projected to be driven by cost-effectiveness, with bio-composites becoming more cost-competitive due to increased production techniques and economies of scale. Synthetic polymers like polypropylene and polyethylene offer proven production methods and reliable quality, making these ideal for industries, such as automotive and construction.
| Segment | Building and Construction (End-use Industry) |
|---|---|
| Value Share (2034) | 46.1% |
The building and construction segment is set to dominate in terms of the end-use industry, owing to the rapid adoption of biocomposites for various building applications. Architects and developers are focusing on eco-friendly building materials like biocomposites due to their high environmental benefits compared to conventional materials like concrete and wood.
According to the Associated General Contractors of America, in the United States, there were more than 919,000 construction establishments in the first quarter of 2023. The industry creates around USD 2.1 trillion worth of structures and employs about 8.0 million employees every year. These numbers are projected to surge in the forecast period, thereby creating new opportunities for leading companies in the construction sector.
Key companies are investing in more durable and customized biocomposites to gain a competitive advantage in the industry. They are actively launching new products to meet diverse customer needs. Leading companies and manufacturers are investing heavily in research and development to broaden their product lines, boosting the industry.
Reputed manufacturers are also taking strategic initiatives to expand their global presence, including new product launches, contractual agreements, increased investments, mergers and acquisitions, and collaborations. To survive in this competitive business, key players are offering cost-effective products.
Key manufacturers are further adopting local manufacturing techniques to reduce operating costs and benefit clients in the biocomposite industry. Leading companies in the market, such as Stora Enso, UPM, Universal Forest Products, Inc., Trex Company, and Fiberon LLC are working on boosting demand by investing in research and development activities.
Industry Updates
As per fiber types, the industry has been categorized into wood and non-wood fiber composites.
Based on polymer types, the industry is split into natural and synthetic polymer composites.
As per product types, the industry is categorized into hybrid and green bio-composites.
A few end-use industries are building and construction, transportation, consumer goods, and others.
Key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, and the Middle East and Africa have been covered in the report.
The market is projected to witness a CAGR of 15.5% through 2034.
Biocomposites have limitations like poor fire resistance, restricted processing temperature, low thermal resistance, high hydrophilicity, and poor fiber-matrix adhesion.
The business is anticipated to reach USD 133.84 billion by 2034.
Extrusion is a hot melt technique used for producing biocomposites and it consists of thermoplastic resin beads and natural fibers.
Biocomposites are set to enhance manufacturing speed, recycling, and environmental compatibility, with high demand in the automobile industry.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Fiber Type 6.2. Polymer Type 6.3. Product 6.4. End-Use Industry 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Fiber Type 7.1. Wood Fiber Composites 7.2. Non-wood Fiber Composites 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Polymer Type 8.1. Natural Polymer Composites 8.2. Synthetic Polymer Composites 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product 9.1. Hybrid Biocomposites 9.2. Green Biocomposites 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End-Use Industry 10.1. Building & Construction 10.2. Transportation 10.3. Consumer Goods 10.4. Others 11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 11.1. North America 11.2. Latin America 11.3. Western Europe 11.4. South Asia 11.5. East Asia 11.6. Eastern Europe 11.7. Middle East & Africa 12. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 19. Sales Forecast 2024 to 2034 by Fiber Type, Polymer Type, Product, and End-Use Industry for 30 Countries 20. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 21. Company Profile 21.1. Fiberon LLC 21.2. FlexForm Technologies 21.3. Trex Company 21.4. Universal Forest Products, Inc. 21.5. Meshlin Composites ZRT 21.6. Tecnaro GmbH of Germany 21.7. Nanjing Jufeng Advanced Materials Co., Ltd.
Chemicals & Materials
February 2023
REP-GB-167
325 pages
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Biocomposite Market
