Construction industry, bio-based materials emerging market opportunities will continue to emerge

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China drying wire Reuters as a low-carbon economy and reduce the use of fossil fuels worldwide trend rise in the use of natural raw materials to produce chemicals and materials has aroused great concern. Affected by this trend, the construction industry that once abandoned "milk paint" and "animal blood adhesives" also began to pay attention to bio-based materials. A research report published by Frost & Sullivan, a well-known US growth consulting firm, in October 2012 estimated that the market for biorecycling chemicals and materials in the North American construction industry will increase at an average annual rate of 10.7%, reaching US$11.75 billion by 2018. .

Biorecycling materials refer to building materials made of biomaterials or natural minerals as raw materials. Typical raw materials may be biological products (such as animal blood, milk), regenerated agricultural products (such as soybean oil, linseed oil, soy protein), forestry products (such as wood, cellulose) or other natural raw materials.

The use of biological materials as raw materials is not a new concept. The chemical and materials industries have long used biological or agricultural products as raw materials for production. However, with the advent of synthetic resins and chemicals at the beginning of the last century, the status of chemicals and materials based on biological raw materials gradually declined. The construction industry is also similar. Products such as milk-based coatings and adhesives made of animal blood were also used in the construction industry at the beginning of the 20th century but have gradually faded out of the market due to their inferiority to synthetic materials.

The construction industry has very high requirements for material properties. Compared with traditional materials, poor performance has largely constrained the further development of bio-based materials in the construction industry. In the past few years, bio-based materials have achieved considerable technical results, which has greatly improved product performance and effectively increased the share of bio-based materials in the construction industry. However, the future development of the industry still depends on further technological breakthroughs.

Currently in the construction industry, bio-based materials mainly include four categories: thermal insulation materials, wood-plastic composite materials, bio-based architectural coatings, and bio-based adhesives. In 2011, the scale of the biological recycling chemicals and materials market in the North American construction industry reached US$5.77 billion. Among them, the thermal insulation material market is the largest and most mature market segment, accounting for 45.5% of the market share; spraying polyurethane foam is the only newly launched product in the last ten years. The market share of wood-plastic composites was 41.4%, bio-based architectural coatings accounted for 10.3%, and bio-based adhesives accounted for only 2.8%. The main growth opportunities for the future market are the development of bio-based architectural coatings and bio-based adhesives.

According to a recent research report published by Frost & Sullivan, the main driving forces of the bio-recycling chemicals and materials market in North America's construction industry are as follows:

First, the demand for a low-carbon economy has been increasing, which has driven the development of the bio-based materials market in the construction industry. This can be confirmed by the number of built and planned projects in North American green buildings. The use of bio-based materials can increase the overall sustainability of the construction industry, which is one of the important drivers of market development.

Second, fluctuating crude oil prices have aroused great interest in the development of bio-based materials. In order to avoid the adverse impact of crude oil price fluctuations on the price of construction materials, it is of great significance to find alternative raw materials whose prices and supply are relatively stable, and the use of biological bases as raw materials is an ideal solution.

Third, technological advancements continue to improve the performance of bio-based materials and increase the market opportunities for bio-based materials.

But its market impediment cannot be underestimated. First, poor product performance hinders market development. Take wood-plastic composites as an example, bio-based materials are generally considered to be lower quality products. In the past, the introduction of some inferior products has greatly exacerbated this impression. Therefore, any subsequent appearance of poor quality or poor performance products will further affect the image of bio-based materials, thus hindering the development of bio-based materials in the construction industry.

Second, prices are higher than petroleum-based products. As the development of many bio-based chemical raw materials technologies is not yet mature, considerable technical investment is required, resulting in high product prices. The construction industry is precisely a price-sensitive market, and higher product prices have become a constraint to the development of bio-based materials. The current market acceptance of bio-based materials is mainly from the demand for sustainable materials. If the price of bio-based materials is further increased, its market penetration will be greatly reduced.

Third, the slowdown in growth of the construction industry has inhibited the development of bio-based materials. Bio-based materials are inevitably negatively affected by the declining demand for building materials in the construction industry.

Frost & Sullivan predicts that due to the weak consumer willingness to adopt bio-based materials and difficult market environment, it is expected that the number of smaller companies in the bio-based materials market in the North American construction industry will continue to decline, and the market will be dominated by large companies. . At the same time, with the continuous development of technology, emerging market opportunities for bio-based materials in the construction industry will continue to emerge.

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