by Some of the major bio-based chemicals produced in the region include bio-alcohols, carbohydrates, biopolymers and plant extracts among others. These bio-based chemicals are used in a variety of applications in industries like food and beverages, pharmaceuticals and personal care. The growing environmental consciousness and depleting fossil fuel reserves are contributing towards the increasing demand for sustainable and renewable bio-based chemicals in the region.
The global Middle East Bio-chemicals Market is estimated to be valued at US$ 1,998.5 KT or Million tonnes in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the Middle East Bio-chemicals Market is the shifting focus towards green and sustainable chemicals. Stringent environmental regulations regarding carbon emissions and use of petrochemicals are propelling research towards development of bio-based alternatives. Additionally, increasing R&D activities for large-scale production of advanced bio-fuels like bio-ethanol and bio-methanol from agricultural residues is also gaining traction. Moreover, expanding end-use industries like food and personal care provide substantial growth opportunities.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the Middle East bio-chemicals market requires high capital investment and has strict regulations restricting new players to enter. However, steady market growth and high demand create opportunities.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of many established suppliers for bio-chemical products in the region. Buyers can negotiate price discounts or switch to substitutes easily.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as top key players operate the market and dominant suppliers can influence pricing strategy to an extent. However, regional demand volume creates stable supplier presence.
Threat of new substitutes: The threat of substitutes is low as bio-chemicals have limited substitutes and find applications across many end-use industries like food and beverages, personal care, and healthcare. However, technological advancements may lead to new green substitutes.
Competitive rivalry: Intense competition exists between key players to gain market share through product innovation, strategic partnerships and expansion of production facilities.
Key Takeaways
The Middle East bio-chemicals market size was valued at USD 1,998.5 KT in 2023 and is expected to witness high growth, exhibiting CAGR of 6.5% over the forecast period due to increasing food processing and personal care industries in the region.
Regional analysis: The Middle East region dominates the global bio-chemicals market with over 35% share due to high grow rates in GCC countries like Saudi Arabia and UAE. Saudi Arabia is the largest market owing to major government investments supporting local manufacturing and strong chemical industry growth.
Key players analysis: Key players operating in the Middle East bio-chemicals market are BASF SE, Clariant A.G., Evonik Industries A.G., Total S.A., Cargill Inc., Biolive, Saudi Biodiesel, Saudi Bio-Acid Company, Sain Bag, and Neutral Fuels. BASF SE is the market leader with wide product portfolio and regional production facilities. Cargill Inc specializes in bio-chemicals for food and beverage applications.
