Biobased chemicals are obtained from biomass feedstocks and offer an alternative to petrochemical products that contribute to planet heating. These biochemicals integrate well in the natural carbon dioxide cycle and their cradle to grave carbon footprint is negligible.
The need for the decarbonization of the economy is driving the growth of this sector. Legislative initiatives around the world are already an important engine for growth in the biochemicals space. In addition, globally coordinated public education on economic sustainability will increase market demand for higher value added biochemicals in business to consumer and public procurement alike.
Biochemicals markets are typically smaller volume and higher price than biofuels and bioplastics. They belong to the fine and speciality chemicals markets and have a wide range of applications in agriculture, food, nutraceuticals, solvents, adhesives, pharmaceuticals etc.
Market studies in biochemicals need to consider political, economic, societal, technological and legal factors that impact their diverse environment of business. These factors create widely different opportunities and threats in different geographic regions, industry verticals and applications.
Actionable market segmentation, correct market size and market trends determination is not trivial in the fragmented biochemicals space. Nevertheless, this is critical information for the strategic choice of the target market and profitable product positioning. In addition, market studies in high value added biochemicals require up to date understanding of the buyer’s value model in each segment. The seller must ensure that his unique selling proposition responds to the buyer’s needs in order to optimize profits.
Companies must adapt to the opportunity and threats in the markets by actively realigning their strengths and weaknesses. Market studies help them close internal capability gaps and back up the company’s unique selling proposition.
By way of example, CMOs supplying biochemical active ingredients to the pharmaceutical industry had to address the reliability of their supply chain in the wake of the Sino American trade war and COVID crisis[1]. In this context, a good market study should signal the resilience of the global suppliers and supply chains as the mission critical point.
Last but not least, biochemicals markets are exposed continuously to new market entrants, M&A activities, new product launches and disruptive technologies. Having a 360-degree view is therefore important.
In conclusion, market studies give a quick understanding or insightful update to all parties with an interest in strategy, purchasing, sales, marketing, sustainability, financing or investment decisions in biochemicals.
With over 150 consultants worldwide, Lee Enterprises Consulting has the diverse experts and geographical reach to collect, process and distill insightful market studies in biochemicals. Our highly qualified teams bring a unique integration of technical, scientific, regulatory and legal insight within the framework of a market study. Look at our experts and the services we provide. Most of our experts are also available to advise and serve as expert witnesses in bioeconomy litigation matters. For the larger projects, we specialize in putting together full service, interdisciplinary teams with one point of contact. See video about LEC here. Call us at 1+ (501) 833-8511 or email us for more information. See also: Biobased Specialty Chemicals PPT
[1] Roger Laforce, Bogdan Comanita, Chemistry Today (38) 4, Sep/Oct 2020, Panel Discussion Custom Synthesis and Manufacturing
