Global Bio Naphtha Market Report and Forecast 2024-2032

Global Bio Naphtha Market Outlook

The global market size for bio naphtha reached an approximate size of 645.41 thousand tonnes by volume in 2023. The global bio naphtha market is expected to grow at a CAGR of 19% between 2024 and 2032, to reach a volume of 3099.02 thousand tonnes by 2032.

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News and Development in the market

In September 2023, Keenan Recycling, a national food waste recycling business, unveiled its new hybrid vehicle at RWM & Letsrecycle Live in Birmingham. This vehicle replaces fossil diesel fuel with a mixture of hydrotreated vegetable oil (HVO) and hydrogen gas, resulting in a reduction in carbon dioxide emissions. This allows the company to draw further economic and environmental utilisation from food waste.

In February 2023, Honeywell UOP, using its Ecofining technology, that it jointly developed with Eni SpA, formulated a process for producing high yields of bio naphtha from bio based feedstock such as cooking oil and animal fats. It claims that this process reduces greenhouse gas and carbon dioxide emissions. 

In December 2021, Mitsui Chemicals, a Japanese petrochemical producer, announced that it started producing 3000t of bio naphtha as its contribution to 2050 decarbonisation goal. It plans to combine bio naphtha with conventional naphtha to manufacture bio-petrochemical products, supplementing the global bio naphtha market.

In June 2021, Neste announced a long-term agreement with LyondellBasell, one of the world’s largest plastics and chemicals companies. Under the agreement, LyondellBasell would source Neste’s 100% renewable feedstock Neste RE™, made from bio-based sources. The feedstock would be processed by LyondellBasell in Germany to produce polymers under the brand CirculenRenew.

 
In January 2021, UPM BioFuels announced the expansion of its biofuel capabilities, starting the engineering phase of a next generation biorefinery. The new refinery is expected to have an annual production capacity of 500,000 tonnes, scaling up the capabilities of UPM BioFuels. The new biorefinery would introduce multiple sustainable feedstocks and lower CO2 emissions. 

Key Trends in the Market

Naphtha is a flammable liquid hydrocarbon mixture, and bio naphtha refers to naphtha produced by the hydro treatment of the renewable sources. It consists of mainly paraffin and is obtained from exhausted food oils, vegetable oils, or any organic waste such as petroleum distillates. They are used as a feedstock for petrochemical crackers. 

• The key drivers of the bio naphtha market are the rising demand for home decor materials, consumer electronics and automotive vehicles. The promotion of bio-based petrol and diesel by governments worldwide is also helping in the upsurge of demand in the market. 

• Several experiments highlight the progress made in the cracking of naphtha, which is a key trend in the bio naphtha market. The demand for increased light olefin yields has encouraged the study of steam cracking of renewable naphtha and also paved new roads in the market, helping in the overall growth of the market globally.

• Strict implementation of government policies regarding pollution, fuel blending practices, and fuel composition by regulatory bodies has encouraged the majority of the population to accept the use of renewable fuels such as bio naphtha. These developments will increase the growth of the bio naphtha market year-over-year at a fast rate.

• Increase in adoption of advanced technology such as NExBTL helps in the production of bioplastics which in turn can be used in industries that use renewable raw materials like automotive industries. Bioplastics can be recycled with conventional fossil-based plastic products, and then used in energy generation as a fuel.  

Market Analysis

Based on source, the global bio naphtha market is divided into hydrogenated vegetable oil (HVO), sustainable aviation fuel (SAF), and others. On the basis of end use the market can be segmented into petrochemicals, transportation, utilities, and others. Based on distribution channels, it is divided into direct and indirect. By region, the market is categorised into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. 

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The comprehensive EMR report provides an in-depth assessment of the market based on Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global bio naphtha market, covering their competitive landscape and latest developments.

• Neste Oil

• UPM Corporation

• Eni S.p.A.

• Total Energies SE

• Royal Dutch Shell Plc

• Sunshine Kaidi New Energy Group Co., Ltd.

• Preem AB

• OMV Group

• Repsol, S.A.

• Phillips 66

• Others

Market Share by Source

Bio naphtha is a by-product of hydrogenated vegetable oil and sustainable aviation fuel. Due to the nature of hydrogenated vegetable oil technology it finds wide applications in conventional petroleum refineries. This technology can be easily adapted and used to produce conventional equipment and logistics for ships. It also has low capital costs due to high credit values. These plants are actively spread across North America, Europe and Asia and are slowly expanding in South America too, supporting the growth of the bio naphtha market.

Sustainable aviation fuel acts as a replacement for jet fuel. It is an essential contributing factor to the decarbonisation of the aviation industry. Although it’s still lacking in terms of legislative support from the world, European countries have already made it mandatory to blend sustainable aviation fuel for conventional jets. 

Market Share by Region

The Asia Pacific has been leading the global bio naphtha market by region because of the rising consumption of plastic by the countries of the region and also due to rapid growth in end-user industries such as petrochemical, transportation and utilities. China, India and Japan are the major countries influencing the market in the Asia Pacific. Technological developments such as increase in chemical factories in China and rise in enhanced distillation methods is another factor influencing the market. 

Moreover, Arab Gulf countries also play a major role in global biofuels supply by exporting a large volume of feedstock for bio naphtha, mainly as used cooking oil and hydrogenated vegetable oil. The steady feedstock supply is contributing in the progress of the bio naphtha market regionally and globally. 

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Competitive Landscape

Neste Oil is the world’s largest producer of renewable diesel and was established in 1948. It is an oil refining and marketing company located in Finland. It is the world’s first company to supply bio naphtha on a commercial scale. It concentrates on low-emission and high-quality traffic fuels for better functioning of society. NExBTL was launched by the company to produce bioplastics that can be beneficially used in various industries. 

UPM Biofuels was established in 2015 in Finland and has a strong presence in the bio naphtha market. Its products can be used in place of fossil-fuel raw materials in numerous innovative products such as plastics, glue, and films. UPM BioVerno is a key product line of the company. It assures to be 100% bio-based and offer products with similar properties to fossil-based naphtha. 

Eni, a global energy company, was founded in 1953 in Milan, Italy. They work to support changes that create long-term value and provide an opportunity for all to have access to dependable and clean energy. It focuses on issues such as decarbonisation while working to protect the environment. They believe to be getting closer to their goal of decarbonisation by 2040 by providing their clients with decarbonised products and services. 

Other market players include Total Energies, Royal Dutch Shell, Kaidi Finland (Sunshine), Preem, OMV, Repsol, Phillips 66 and others. 

Key Highlights of the Report

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Bio Naphtha Market Report Snapshots

Bio Naphtha Market Size

Bio Naphtha Market Trends

Bio Naphtha Market Analysis

Bio Naphtha Market Share

Bio Naphtha Market Regional Analysis

Bio Naphtha Companies