 "New bio-materials offer performance edge over petro-based products")
Despite a checkered past, bio-based materials and chemicals today offer a clear value proposition when compared with their petro-based counterparts, but smart business execution is critical to eventual success, according to Lux Research.
“With demonstrated performance benefits over petroleum-derived incumbents in uses from lubricants to personal care, opportunities exist for companies to utilise improved bio-based options. Specialty chemicals, biopolymers, and advanced materials are all promising areas of technology development, but smart business execution is just as critical - so we set out to highlight downstream applications where these innovations offer concrete value propositions,” said Ross Kozarsky, senior analyst, Lux Research, and co-author of the report titled, ‘Hunting for value and performance in the bio-based materials and chemicals space’.
For the study, Lux Research analysts evaluated bio-based players focusing on six areas - advanced materials, adhesives, coatings, lubricants, personal care and cosmetics, and packaging.
As per the Lux Research report, mature lubricants space offers partnership and acquisition targets. Biosynthetic Technologies recently got a $ 115 million loan from the US Department of Agriculture, and would be a good fit for partners pursuing an established company generating products with existing market traction.
Similarly, environmental concerns are expected to drive the coatings market. Regulators are pushing to cut volatile organic compounds (VOC) in coatings, creating opportunity for diverse bio-based technologies that reduce or even eliminate VOC. In this space BioAmber is considered to be a major player, while TopChim and Novomer boast of having promising technology.
According to Lux Research, sustainability programs are bolstering packaging sector. Biopolymers offer niches for companies seeking sustainable packaging solutions in markets like the $ 6.2 billion market for petroleum-based PET in bottles, jars and tubs. Avantium is one to watch for its technology as much as for its partnerships with Coca-Cola and Danone. Micromidas also shows long-term promise for its catalytic process that may be quicker and simpler than incumbent methods.