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Bio-based Naphtha Market: Current Analysis and Forecast (2025-2033)
Emphasis on Source (Vegetable Oil, Biomass, Used Cooking Oil, Animal Fat, Others), Application (Gasoline, Petrochemical, Fertilizer, Construction, Bio Benzene, Bio Phenol, Others), and Region/Country
Global Bio-based Naphtha Market Size & Forecast
The Global Bio-Based Naphtha Market was valued at USD 1,642.17 million in 2024 and is expected to grow to a strong CAGR of around 17.59% during the forecast period (2025-2033F), owing to increasing demand for sustainable production of petrochemicals and gasoline.
Bio-based Naphtha Market Analysis
The global bio-based naphtha market is anticipated to witness rapid growth in the coming years. As consumers and governments across the globe are becoming more conscious of the usage of environment-friendly products, the usage of bio-based naphtha for the production of bio-fuel, petrochemicals, etc. Its application is mainly in generating biofuels, petrochemicals, and other green products. The change in preference by the industry from fossil fuels to bio-based naphtha is driven by the shift toward renewable sources of energy and green technologies. Furthermore, the rising investments in renewable energy building projects and growing environmental regulations would further fuel demand for bio-based naphtha as the next critical ingredient in the global transition to a more sustainable and low-carbon economy. Accelerated market growth would also be expected under the greater trend of circular economy practices and reduced carbon footprint requirements, as bio-based naphtha is critical to reducing dependency on fossil fuels.
Global Bio-based Naphtha Market Trends
This section discusses the key market trends that are influencing the various segments of the global Bio-based Naphtha market, as found by our team of research experts.
Increasing Adoption of New-Age Renewable Feedstock:
The majority of the production of Bio-based naphtha is done through vegetable oil, biomass, etc. However, there is a growing need to use fuel that is renewable in nature could help companies to achieve a circular economy in their production abilities. Additionally, these kinds of shifts also offer a comprehensive measure against the already observed shift towards sustainable production. In line with this, many of the companies have announced their plans to introduce revolutionary technologies in order to increase their focus on using new-age renewable feedstock. These renewable feedstocks are majorly wood-based pulp, Lignocellulosic Biomass, Forestry Residues, Algae Oil, etc. For instance,
In 2025, a consortium of Japan Airlines Co., Ltd. (JAL), Marubeni Corporation, Mitsubishi Chemical Corporation, Chugoku Lumber Co., Ltd., Boeing Japan KK, and Obayashi Corporation concluded their study based on the business feasibility of sustainable aviation fuel and bio-based naphtha from forest-based residue.
Considering these shifts, the research and development of such technologies are further anticipated to rise among the leading bio-naphtha producers and promote market growth in the forecasted years.
Bio-based Naphtha Industry Segmentation
This section provides an analysis of the key trends in each segment of the global Bio-based Naphtha market report, along with forecasts at the global, regional, and country levels for 2025-2033.
The Vegetable Oil Category has shown promising growth in the Bio-based Naphtha Market.
On the basis of source, the global bio-based naphtha market is segmented into vegetable oil, biomass, used cooking oil, animal fat, and others. Of these, vegetable oil has held a sizable market share. This supremacy can be attributed to a few major causes, which include the production and availability of vegetable oils being massive around the globe and, therefore, constituting a reliable and uniform feedstock for biobased naphtha production. With big agricultural economies, like the U.S., Brazil, Indonesia, and Malaysia, palm, soybean, and rapeseed oils are available and can easily be used in bio-naphtha processing. Secondly, vegetable oils have a very high yield of hydrocarbons, which contributes to ease of conversion and low production costs compared with other sources like used cooking oils and animal fats. Supply chain stability is another factor that encourages their use. Extraction and refining technologies of vegetable oils have remained well-established, and most other feedstocks are affected by their turndown.
Petrochemical Market Dominates the Bio-based Naphtha Market.
Based on the Application, the market is segmented into gasoline, petrochemicals, fertilizer, construction, bio benzene, bio phenol, and others. The petrochemical sector has maintained a significant market share and dominates as a high demand for sustainable raw materials exists in the production of plastics, synthetic rubber, and chemical derivatives. Bio-based naphtha may be viewed as a substitute for fossil naphtha and, therefore, represents an attractive option for petrochemical manufacturers wishing to minimize their carbon footprint while not requiring radical modifications to their existing infrastructure. Increasingly, the adoption of circular economy models encourages a fast-tracked shift toward bio-based plastic in petrochemical applications due to ever-increasing environmental regulations in Europe and North America. The companies are being directed toward sustainable sourcing and refining technology investments to increase production, satisfy regulatory requirements, and consumer demand. Similarly, the automotive and packaging industries, which consume large amounts of petrochemical inputs, support green supply chains, further fueling the segment's growth.
Europe is expected to grow at a considerable rate during the forecast period.
Europe Bio-based naphtha market has held a prominent market share owing to the large focus of the industry as well as the government towards increasing the adoption of sustainable and low-carbon emitting products and solutions. Additionally, the region is also home to a large number of companies producing renewable naphtha, which has helped the market to shift from conventional naphtha to bio-based naphtha easily.
Some of the recent developments in the Europe region are:
In 2024, France-based gas utility network operator GRDF installed Bio-based HDPE (High-Density Polyethylene) produced by INEOS. According the HDPE is produced by using wood processing residue from the paper industry, which is transformed into tall oil, a bio-based naphtha.
Additionally, many companies such as are also assessing their capability to produce sustainable products with the help of bio-based naphtha that will play a crucial role in increasing its demand in the European region. Additionally, many of the new government policies will also support the uptick in the demand for bio-based naphtha in its role in the production of sustainable products.
Germany held a sizeable share of the European bio-based Naphtha market in 2024
Germany bio-based naphtha market is witnessing a rise as the country strives to avert fossil fuels and draw on renewable resources. Bio-based naphtha, usually produced from feedstocks such as vegetable oils or used cooking oils and animal fats, is a clean alternative to regular fossil-derived naphtha for applications in plastics, synthetic rubber, and fuel blending. The petrochemical industries in Germany are incorporating more bio-based inputs in order to meet regulatory requirements and consumer demand for greener products.
The German government’s push for a circular economy and the EU's strict environmental policies have promoted research, investments, and partnerships directed at scaling bio-based production. Leading energy and chemical companies in Germany are working on advanced technologies like pyrolysis and hydro processing to convert biomass into high-grade naphtha. Bio-based naphtha will have an important role to play as sustainability becomes the core theme of industrial strategy in Germany's energy and materials transition.
Bio-based Naphtha Industry Competitive Landscape
The global Bio-based Naphtha market is competitive, with several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions.
Top Bio-based Naphtha Companies
Some of the major players in the market are UPM BioVerno, Eni Sustainable Mobility, BP Plc, Shell, S-Oil, Neste Oil Corporation, BASF, Honeywell International Inc., Repsol S.A., and Montana Renewables LLC.
Recent Developments in the Bio-based Naphtha Market
In 2023, Platts, part of S&P Global Commodity Insights, proposed to assess bio-naphtha in Northwest Europe. The planned production capacity assessment is anticipated to be 1000-2000 mt of bio-naphtha.
In 2024, Suntory announced the introduction of commercialized PET bottles with the usage of bio-naphtha.
In 2022, Honeywell International announced to launch of a new solution for producing renewable naphtha with its Honeywell UOP Ecofining technology. The technology can yield a high amount of renewable naphtha using sustainable feedstock such as cooking oil and animal fats.
Global Bio-based Naphtha Market Report Coverage
Report Attribute | Details |
Base year | 2024 |
Forecast period | 2025-2033 |
Growth momentum | Accelerate at a CAGR of 17.59% |
Market size 2024 | USD 1,642.17 Million |
Regional analysis | North America, Europe, APAC, Rest of the World |
Major contributing region | Europe is expected to dominate the market during the forecast period. |
Key countries covered | U.S., Canada, Germany, U.K., Spain, Italy, France, China, Japan, and India |
Companies profiled | UPM BioVerno, Eni Sustainable Mobility, BP Plc., Shell, S-Oil, Neste Oil Corporation, BASF, Honeywell International Inc., Repsol S.A., and Montana Renewables LLC. |
Report Scope | Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Demand and Supply Side Analysis; Competitive Landscape; Company Profiling |
Segments Covered | by Source, by Application; By Region/Country |
Reasons to Buy the Bio-based Naphtha Market Report:
The study includes market sizing and forecasting analysis confirmed by authenticated key industry experts.
The report briefly reviews overall industry performance at a glance.
The report covers an in-depth analysis of prominent industry peers, primarily focusing on key business financials, type portfolios, expansion strategies, and recent developments.
Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
The study comprehensively covers the market across different segments.
Deep dive regional level analysis of the industry.
Customization Options:
The global Bio-based Naphtha market can further be customized as per the requirements or any other market segment. Besides this, UnivDatos understands that you may have your own business needs, hence feel free to contact us to get a report that completely suits your requirements.
Table of Content
Research Methodology for the Global Bio-based Naphtha Market Analysis (2023-2033)
We analyzed the historical market, estimated the current market, and forecasted the future market of the global Bio-based Naphtha market to assess its application in major regions worldwide. We conducted exhaustive secondary research to gather historical market data and estimate the current market size. To validate these insights, we carefully reviewed numerous findings and assumptions. Additionally, we conducted in-depth primary interviews with industry experts across the Bio-based Naphtha value chain. After validating market figures through these interviews, we used both top-down and bottom-up approaches to forecast the overall market size. We then employed market breakdown and data triangulation methods to estimate and analyze the market size of industry segments and sub-segments.
Market Engineering
We employed the data triangulation technique to finalize the overall market estimation and derive precise statistical numbers for each segment and sub-segment of the global Bio-based Naphtha market. We split the data into several segments and sub-segments by analyzing various parameters and trends by Source, by Application, and by Regions within the global Bio-based Naphtha market.
The Main Objective of the Global Bio-based Naphtha Market Study
The study identifies current and future trends in the global Bio-based Naphtha market, providing strategic insights for investors. It highlights regional market attractiveness, enabling industry participants to tap into untapped markets and gain a first-mover advantage. Other quantitative goals of the studies include:
Market Size Analysis: Assess the current and forecast market size of the global Bio-based Naphtha market and its segments in terms of value (USD).
Bio-based Naphtha Market Segmentation: Segments in the study include areas by Source, by Application, and by Region.
Regulatory Framework & Value Chain Analysis: Examine the regulatory framework, value chain, customer behavior, and competitive landscape of the Bio-based Naphtha industry.
Regional Analysis: Conduct a detailed regional analysis for key areas such as Asia Pacific, Europe, North America, and the Rest of the World.
Company Profiles & Growth Strategies: Company profiles of the Bio-based Naphtha market and the growth strategies adopted by the market players to sustain in the fast-growing market.
Frequently Asked Questions FAQs
Q1: What is the global Bio-based Naphtha market’s current market size and growth potential?
The global Bio-based Naphtha market was valued at USD 1,642.17 million in 2024 and is expected to grow at a CAGR of 17.59% during the forecast period (2025-2033).
Q2: Which segment has the largest share of the global Bio-based Naphtha market by source?
The vegetable oil segment led the market in 2024. Production and availability of vegetable oils are massive around the globe and, therefore, constitute a reliable and uniform feedstock for bio-based naphtha production.
Q3: What are the driving factors for the growth of the global Bio-based Naphtha market?
• Rising Number of Partnerships to Promote Market Growth: The increasing trend in multi-stakeholder strategic partnerships has been instrumental in the growth of the global bio-based naphtha market. Collaborations of biofuel producers with petrochemical companies, technology providers, and government agencies will assist in scaling production, reducing costs, and accelerating commercialization. These partnerships provide opportunities for joint research, technology transfer, and co-investment in production infrastructure and pilot plants. Additionally, these public-private partnerships assist with possible regulatory challenges and supply chain barriers.
• Technological Advancement in Bio-Naphtha Production: The bio-based naphtha market is witnessing strong growth due to advances in technology. Catalytic pyrolysis, hydro processing, and biomass conversion technologies allow for better yields, lower production costs, and more flexibility with feedstock. In this context, agricultural residues, waste oils, and algae can be efficiently processed to give high-quality bio-naphtha. This is further facilitated by integration into existing refinery infrastructure. Automation and digital monitoring systems are being used to optimize operations, selecting controls for quality.
Q4: What are the emerging technologies and trends in the global Bio-based Naphtha market?
• Expansion of Biorefineries Capacity: To meet the rising demand for renewable fuels, companies are aggressively expanding their biorefinery infrastructure. New facilities are being established, and existing plants are being upgraded to increase the output of renewable diesel, SAF, and bio-based naphtha. This expansion ensures greater feedstock processing capabilities, improved operational efficiency, and better scalability to serve industrial needs. For example, several major energy players have announced dedicated biorefineries focused on multi-product outputs using waste oils and agricultural byproducts. These investments are critical in reducing dependency on fossil fuels and building a resilient supply base, ultimately supporting the long-term growth of the bio-naphtha market.
• Increasing Adoption of New-Age Renewable Feedstock: The shift toward using advanced renewable feedstocks such as lignocellulosic biomass, forestry residues, algae oil, and wood-based pulp is emerging as a critical trend in the bio-based naphtha market. These non-food, sustainable resources support the circular economy while minimizing environmental impact. Companies are increasingly moving away from traditional vegetable oils in favor of these next-generation inputs to enhance sustainability and regulatory compliance. The use of diverse feedstocks also improves supply chain resilience and opens new avenues for innovation. As global sustainability targets tighten, the demand for bio-naphtha derived from new-age feedstocks is expected to rise sharply.
Q5: What are the key challenges in the global Bio-based Naphtha market?
• High Production Costs: One of the key challenges facing the global bio-based naphtha market is the high cost of production. Advanced processing technologies, stringent quality standards, and the use of sophisticated equipment contribute significantly to capital and operational expenses. Additionally, the need for continuous R&D to improve efficiency and yield further increases overall costs. These high production expenses often make bio-naphtha less price-competitive compared to its fossil-based counterparts, especially in regions lacking strong policy support or subsidies. This limits adoption in cost-sensitive sectors and presents a barrier for smaller producers trying to scale operations or enter the market.
• Feedstock Availability and Competition: Feedstock availability remains a critical constraint in the bio-based naphtha market. Sourcing sufficient quantities of renewable materials like waste oils, agricultural residues, and lignocellulosic biomass is often hindered by regional supply limitations and seasonal variability. Moreover, these feedstocks are in high demand across multiple bio-industries, including biofuels, bioplastics, and biochemicals, creating competition and driving up prices. Inconsistent supply chains and logistical challenges further complicate the procurement process. Without stable and affordable access to raw materials, bio-naphtha producers face production disruptions and cost fluctuations, which impact their ability to meet growing market demand sustainably.
Q6: Which region dominates the global Bio-based Naphtha market?
The Europe region dominates the global Bio-based Naphtha market due to the increased focus of the region on increasing circular economy and sustainable production.
Q7: Who are the key players in the global Bio-based Naphtha market?
Some of the leading companies in Bio-based Naphtha includes:
• UPM BioVerno
• Eni Sustainable Mobility
• BP Plc.
• Shell
• S-Oil
• Neste Oil Corporation
• BASF
• Honeywell International Inc.
• Repsol S.A.
• Montana Renewables LLC
Q8: What strategic advantages can investors and stakeholders gain from entering the Bio-based Naphtha market now?
Entering the bio-based naphtha market now offers investors a timely opportunity to align with the global push for carbon neutrality and sustainable industrial practices. With governments enforcing stricter emissions regulations and industries seeking green alternatives, early entrants can secure competitive advantages in emerging supply chains. Strategic positioning now allows stakeholders to shape future standards, form key partnerships, and access incentive programs and funding. Additionally, as demand for renewable chemicals and fuels grows, investors can diversify their portfolios into a rapidly expanding sector with applications across petrochemicals, plastics, and transportation, ensuring long-term returns and sustainability-focused brand positioning.
Q9: What are the key opportunities in the global Bio-based Naphtha market?
The petrochemical industry is experiencing a growing shift toward sustainable raw materials, creating a major opportunity for bio-based naphtha producers. As companies seek to lower their carbon footprints and align with regulatory standards, demand for renewable feedstocks in the production of plastics, solvents, and other chemicals is accelerating. Bio-naphtha is a drop-in replacement for fossil naphtha, making it highly attractive for existing petrochemical infrastructure. With increasing pressure on petrochemical companies to adopt circular economy practices and improve ESG performance, the use of bio-based inputs offers a competitive advantage, opening doors for long-term supply contracts and market expansion.
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