United States Bio-Based Chemical Market

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Growing environmental concerns and increasing awareness of using renewable resources for industrial purposes are considered to be the two most important factors which have led to the increasing demand for bio-based chemicals in the United States. Consequently, consumers have shifted their preferences towards more eco-friendly products, which provided an impetus to the rising demand for bio-based chemicals in the country. 

This trend has been observed over the last four to eight quarters, and as a result, many chemical providers have entered into the space to grab a share of the growing market. The demand for oleochemicals, the chemical derived from vegetable oils and animal oils, also grew at a steady rate since these are highly demanded in the personal care, pharmaceutical, and food products space. Moreover, with the increase in the disposable income of consumers, the demand for personal care products has significantly increased, which has further attracted global players to enter the market, in their bid to drive revenue growth.  

Market Opportunities

Global food providers are acquiring bio-based chemical businesses to expand into the bio-based industrial space

With the increasing demand for bio-based products in the United States, global food players are acquiring bio-based chemical businesses to drive growth. For instance,

• In July 2022, Minnesota-based food provider, Cargill Corporation acquired majority shares in the Performance Technologies and Industrial Chemicals business of Croda International. Consequently, this will enable Cargill to expand its portfolio in the renewable and bio-based industrial space, which is seen to be gaining popularity for the past few quarters.
• The bio-industrial division of British specialty chemical maker, Croda International mostly specializes in antistatic, antifog, friction-reducing additives for engine oils, etc. This, in turn, will benefit Cargill's agenda to provide innovative, greener solutions for the customers. 

Cargill, which had been trying to make a strong foothold in the bio-based industrial space, is expected to see growth in this business vertical over the next few quarters in the country post this acquisition.

Global chemical players are entering into innovative partnerships to expand into the bio-based personal care market

The bio-based chemical market is seen to attract innovative partnerships that further help in the production of renewable chemicals and high-performing ingredients. For instance,

• In September 2022, BASF, one of the major players in the global market, entered into an innovative partnership with the United States-based technology start-up, RiKarbon Inc. to exclusively license and commercialize its proprietary technology.
• Notably, RiKarbon’s unique technology helps in upcycling bio-waste into bio-based, biodegradable emollients which are particularly useful for use in personal care products. 
• Consequently, BASF strategized to partner with this startup to drive innovation in the personal care market and intends to launch initial solutions using this new patented technology in 2024.

ConsTrack360 anticipates this innovative partnership will help in providing impetus to the growth of the United States bio-based chemical market from the long-term perspective.

To cater to the high demand for bio-based personal care products, key players are entering into an exclusive engagement with sustainable chemical providers. For instance,

• In June 2022, United States-based Dow Inc., collaborated with Canada-based, EcoSynthetix, to develop bio-based solutions for the personal care industry especially, the hair-styling products.
• Notably, both companies have an engagement to develop a hair styling range that includes MaizeCare Polymer products. This product portfolio is corn-based and helps in providing consumers with better humidity resistance, curl retention, and many more, which suits most customer formats.

Consequently, this partnership is expected to hold the key expertise that matches the growing consumer demand for bio-based and biodegradable personal care products.

Oleochemical providers are expanding their market share by acquiring naturally-derived specialty ingredients providers 

With the rising demand for sustainable solutions in the United States, oleochemical providers are increasingly strategizing to expand the market in the country through acquisitions. For instance,

• In March 2022, United States-based Vantage Specialty Chemicals acquired naturally-derived specialty ingredients and blend provider, JEEN. 
• JEEN, which consists of JEEN International Corporation and Botanicals Plus, Inc., is expected to benefit Vantage to expand its capabilities in the personal care and food ingredients space, which are now almost two/thirds of Vantage's business.
• Notably, JEEN specializes in active ingredients and botanical extracts, which possess exclusive functional applications for skin and hair care.

Consequently, ConsTrack360 projects this strategy will be complementary to Vantage Personal Care’s portfolio of naturally derived ingredients, and help it to drive revenue over the next four to eight quarters in the country.