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Opportunities for the fermentation-based chemical industry
Assessing the global market potential of Northwestern Europe
Study by Deloitte Netherlands into the competitive position of North-Western European (NW-EU) crops, such as sugar beet as a raw material for the fermentation based chemical industry.
This study assesses the competitiveness of bio-based feedstock from Northwest Europe (NW-EU) for the fermentation-based chemical industry. Key highlights include:
- NW-EU and sugar beets are surprisingly competitive
- Due to de-regulation, additional volumes will come on the market from 2017 onwards
- Current market for bio-based chemicals is still relatively small, but expected to grow with 6.5% CAGR until 2020
- Bio-based chemicals are an attractive market with high economic value-add (US$12 billion/year) in 2013
- Vertical and horizontal integration provide synergies, and strategic partnerships will be formed
- Business case for selected products shows that NW-EU is on par with the other regions and crops as a prime location of choice
- Given that non-financial factors can easily “flip the coin” for investors, regulators need to pay close attention to a level playing field