PÖYRY INSIGHT

The Dynamics of the Advanced Bio-based Materials Business

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From trend to existing and new growth businesses

Globalisation, urbanisation and demographic changes are general drivers that not only affect the markets and products but also the roles of the industrial players and public perceptions. There have been increasing concerns over climate change and demands to grow the share of renewables. This has created a new situation outside the energy and traditional food and forest products sector. Now, novel end uses for biobased materials, or biomaterials, are the focus in a number of different areas. Innovative first mover companies have already turned these megatrends to business by unlocking the potential through new sustainable solutions.

Looking beyond the hype

THE ADVANCED BIOMATERIALS BUSINESSBiomaterials are here defined as materials produced from biobased sources. Paper, timber, and food are very common day-to-day examples. Now, a new class of advanced biomaterials - from biobased substitutes for fossil materials to advanced fibre products - is growing. There is no global coordinated drive. Various factors from business to politics and scarcity of resources create diverse developments in different sectors. It is not a vision, it is already a business. However, it is emerging from its “hidden” position as a more and more visible element of industrial growth and market trends.At the same time, getting a grip on the parallel developments in the key end use sectors is difficult. The complex interactions of regulations, business, raw material prices and availability and consumer trends are hard to master. On the other hand, to ride the wave of success, it is high time to jump into the advanced biomaterials stream.

The future, indeed, looks promising for biomaterials. To take just one example: The biobased chemicals market is predicted to grow from current (2008) 21 billion EUR to 40 billion EUR in 2020. This growth corresponds to reaching a production volume of 2.1 Mt (5.3% growth pa). Biobased chemicals can be used as raw materials and enablers in many biomaterials areas for very diverse needs. Our focus here is on the materials. Pöyry foresees that this new advanced biomaterials industry will be a key new growth factor in developed economies and increasingly in developing economies.

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A PÖYRY INSIGHT MULTICLIENTThis is the first in a series of “Pöyry Insight” multiclients. Pöyry hopes to establish a benchmark for understanding and benefiting from the developments in this growing area. Four key questions addressed are:

WHAT is the advanced biomaterials business: not a fragment here and there, but a growing industry making an impact across all key sectorsHOW does the advanced biomaterials business develop; what are the key processes and applications, what are likely scenarios for development from now to 2020WHO are the key players making a difference in the business and what are the rules of the gameWHERE to place the stakes to benefit from this growth

END USE SECTORS EXAMINEDWe paint the full range of advanced biomaterials applications and then focus on selected end use key sectors of the greatest importance. These are• packaging• personal care• construction• consumer electronics• automotive• a concise narrow look at pharma and

medical textiles• a concise narrow look at furniture and

design

For each end use sector, we will examine value chain, drivers, consumer trends, legislation, key players, success case stories and business models. The focus is global; our “Biomaterials Hot Spot Map” highlights key producer and consumer geographical areas.

CONTENTSThe key elements of the multiclient are:• THE BIOMATERIALS LANDSCAPE• DRIVING BIOMATERIALS • THE ADVANCED BIOMATERIALS SECTOR

AS A BUSINESS • THE ADVANCED BIOMATERIALS

BUSINESS BY END USE SECTOR • Packaging • Personal care • Construction • Consumer electronics• Automotive• Others: Pharma, medical textiles,

furniture and design• THREE SCENARIOS FOR BUSINESS

DEVELOPMENT• CONCLUSIONS

The multiclient provides profiles of companies driving the development in the advanced biomaterials business placed in a “Biomaterials Player Map”. Each profile contains:• Key business information• Why the player is important• What it is doing in the biomaterials area• Its current and potential impact

WHO SHOULD BUY THISInvestors and companies active in the financial sector – to understand a growing area for profitable investmentsPaper, packaging, pulp, tissue and mechanical wood products companies – to understand end use applications and business opportunities in current and new sectorsChemical industry – to see the potential for chemicals as parts of biomaterials in the most varied applicationsEnd users such as consumer electronics, retail chains, automotive industry, personal care – to understand the dynamics of the emerging biomaterialsResearch and development organisations – to understand potential end uses and value chainsAuthorities and governmental agencies – to gain input to business policy

INTERACTIVE MODELAs an option, subscribers to this multiclient can acquire a real-time interactive scenario model giving the possibility to experiment with some key variables and modify the three scenarios for advanced biomaterials business development provided and analysed by Pöyry. The interactive model can be run as a live PowerPoint presentation slide or a live PDF-file.

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Pöyry is a global consulting and engineering company dedicated to balanced sustainability. We offer our clients integrated management consulting, total solutions for complex projects and efficient, best-in-class design and supervision. Our in-depth expertise extends to the fields of industry, energy, urban & mobility and water & environment. Pöyry has 7000 experts operating in about 50 countries, locally and globally.

Dr Petri Vasara, PrincipalGlobal Head of Consulting Practice “New Technology and Biovalue”tel. + 358 10 33 22611petri.vasara@poyry.com

Ms Katja Bergroth, Senior ConsultantHead of Chemicals and Bio-based Materialstel. +358 10 33 22434katja.bergroth@poyry.com

Ms Susanna Kurkinen, Consultanttel. +358 10 33 22059susanna.kurkinen@poyry.com

Poyry Management Consulting OyP.O.Box 4 (Jaakonkatu 3)FI-01621 Vantaa, FinlandTel: +358 10 3311Fax: +358 10 33 21031

PÖYRY INSIGHT AND EXPERIENCEPöyry has for the last few years used its experience in biomass and the forest, energy and chemical sectors to expand into consumer end uses and the whole of the emerging biomaterials business. The global consulting practise area “New Technologies and Biovalue” operates in all the areas described in this multiclient, combining biomass and fibre understanding, consumer analysis, technology monitoring and understanding of sectoral business dynamics.

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Ms. Susanna KurkinenTel: +358 10 33 22059Fax: +358 10 33 21031susanna.kurkinen@poyry.com

Ms. Katja BergrothTel: +358 10 33 22434Fax: +358 10 33 21031katja.bergroth@poyry.com

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The Dynamics of the Advanced Bio-based Materials Business

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The Dynamics of the Advanced Bio-based Materials Business (1 hard copy and pdf file) EUR 7000 (excl. VAT)

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Contact:Ms Susanna Kurkinen or Ms Katja BergrothPöyry Management Consulting OyP.O.Box 4 (Jaakonkatu 3)FI-01621 Vantaa, FinlandTel: +358 10 3311 Fax: +358 10 33 21031susanna.kurkinen@poyry.com; katja.bergroth@poyry.com

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The Dynamics of the Advanced Bio-based Materials Business

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The publication date is March 1, 2011