by Middle East bio-chemicals are processed biological substances that are used in various industries like agriculture, food and beverage, personal care, and pharmaceuticals among others. Some key bio-chemicals produced and consumed in the Middle East region include biodiesel, bioethanol, enzymes, organic acids and its derivatives. These bio-chemicals are sourced from renewable feedstock and have significant demand due to their environmental-friendly properties.
The Middle East Bio-chemicals Market is estimated to be valued at US$ 1,998.5 KT 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 Dynamics:
The growth of the Middle East bio-chemicals market is supported by two major drivers –
Firstly, growing concerns regarding environmental sustainability and depletion of fossil fuel reserves has increased the demand for renewable and eco-friendly bio-chemicals in the region. The governments of various Middle Eastern countries are promoting the production and use of biofuels and other green chemicals to reduce dependency on crude oil.
Secondly, rapid industrialization and economic growth has led to increased consumption of bio-chemicals across different end-use industries such as agriculture, personal care, food processing etc. in the Middle East region. The demand from these growing industries is expected to drive the market during the forecast period.
Segment Analysis
The Middle East bio-chemicals market is dominated by the industrial segment. This segment accounts for over 60% of the total market share owing to high demand for bio-based products from industries like food processing, personal care, textiles and detergents. The industrial segment is the largest consumer of bio-chemicals like enzymes, bio-polymers and organic acids which finds wide application as additives, flavours & fragrances and preservatives across various industrial verticals in the region.
PEST Analysis
Political: The governments in the Middle East region are supporting the development of bio-economy by offering subsidies and fiscal incentives to local manufacturers. This is positively impacting the growth of bio-chemicals market.
Economic: Strong economic growth along with rising disposable income levels have increased the demand for personal and consumer care products in Middle East, driving the consumption of bio-based chemicals which are used as ingredients in these products.
Social: Rising health and environment concerns among consumers have increased the preference for bio-degradable and eco-friendly products. This, along with growing population, acts as a key driver for bio-chemicals market.
Technological: Advancements in biotechnology and fermentation processes have improved the efficiency of production of various bio-based chemicals from renewable feedstock. This is encouraging established players to invest in R&D to develop innovative and customized bio-chemicals.
Key Takeaways
The global Middle East bio-chemicals market is expected to witness high growth, exhibiting CAGR of 6.5% over the forecast period, due to increasing consumption of eco-friendly products across industries. The market size is projected to reach 2,998.5 KT by 2030 from 1,998.5 KT in 2023.
On regional front, Saudi Arabia dominates the Middle East bio-chemicals market owing to presence of large manufacturing base and consumer industry in the country. The market in Saudi Arabia is estimated to grow at fastest CAGR during the forecast period.
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. These players are focusing on capacity expansion and new product launches by making investments in R&D to strengthen their position and tap the growing opportunities in the regional market.
