Market potential of biobased chemicals : a qualitative network analysis of adoption dynamics in South Africa’s bioeconomy

Abstract

The premise of a bioeconomy is the replacement of nonrenewable and unsustainable fossil-derived resources and associated technologies with more sustainable alternatives. The adoption of biobased chemicals contributes toward the growth of a bioeconomy and is dependent on market and industry requirements. A network analysis-based qualitative study was conducted to understand the drivers and barriers that influence the adoption of biobased chemicals in South Africa, the largest and most industrialized economy in Africa. Stakeholders were selected based on their knowledge and experience in the biobased chemicals sector in South Africa and were interviewed on key themes that affect acceptance and adoption of biobased chemicals: business opportunities for biobased chemicals, market forces, product value chains, competitiveness, supply chain collaboration, financing, value chain governance, and policy. Network analysis identified bioethanol, lactic acid, and acetic acid as key products. Major drivers of the adoption of biochemicals included global market demand and the availability of biobased feedstock. Key barriers related to product price competitiveness and weaknesses in national policy implementation. The results indicate that substantial institutional investment across the biobased value chain is required to foster local and regional market demand.