COVID 19 Impact Analysis: Bio-Based Chemicals Market
Pre Covid-19, the global bio-based chemicals market was witnessing arise in production. Some of the most widely used bio-based chemicals include biomethanol, bioethanol, glycerol, acetone, lactic acid, 1-butanol, and succinic acid. Bio-based production is slowly and steadily gaining importance globally. Feedstock for bio-based chemicals includes cellulosic feedstock, corn, sugar, etc. Regionally, Asia-Pacific accounts for the largest market share owing to availability of agricultural feedstocks and cheap labour.
The shift in global eating habits during this pandemic has resulted in high demand for basic staples and canned foods. With the strict lockdowns and curfews all across the globe, the stockpiling of long-lasting foods such as wheat, rice, sugar, and others has been witnessed. With the rising demand for agricultural products, including wheat, rice, potatoes, as well as edible oils, the use of agricultural raw materials for production of bio-based chemicals is expected to decline. The companies operating in the global bio-based chemicals market are facing short-term operational issues due to supply chain constraints and lack of site access due to the COVID-19 outbreak.
The pandemic has had a mixed impact on the bio-based sector, with some businesses helping with technological solutions to help fight the outbreak. However, in general, many production lines have closed because of the crisis. The outbreak of COVID-19 has brought effects on many aspects such as flight cancellations, travel bans and quarantines, closed restaurants, massive slowing of the supply chain, stock market volatility, growing panic among the population, and uncertainty about future. In response to COVID-19, major players in this market have started production of PPE products such as masks, hand sanitizers, hospital gowns, and others.
For instance, Italy-based fibre manufacturer Aquafil produces ocean plastic-based nylon via its Econyl brand in China and is one bio-based firm that has kept production lines running despite the Covid-19 outbreak.
In April 2020, NatureWorks has donated the Ingeo biopolymer needed to produce as many as 2 million reusable N95 masks per week from a new spunbond nonwoven structure.
Moreover, The Brooklyn-based design duo of Garrett Benisch and Elizabeth Bridges have developed a prototype face mask grown from microbial cellulose.
For post COVID-19 scenario, bio-based chemicals market remains a long-term opportunity for the chemical industry players.