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Powering Prosperity: Bioeconomy Policy OBIC
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polymers & specialty chemicals
agriculture polymers & specialty chemicals OBIC OBIC, the Bioproducts Innovation Center located at The Ohio State University, was created in 2005 to integrate academia and industry linking expertise from two major industries, agriculture and polymers/specialty chemicals.
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Expedite Bioproduct Commercialization
OBIC’s Mission Expedite Bioproduct Commercialization Original Pathway Expedite Bioproduct Commercialization
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Agricultural Producer
Policy Point #1 Bioproducts represent an important economic development opportunity, especially for rural America. “Cell to Sell”® Innovation Pipeline Agricultural Producer Processor Biomaterial Producer Product Manufacturer Consumer Post Consumer
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The “Advanced Bioeconomy”
Feedstocks Technologies Markets agriculture/ forestry crops/residue wood residue livestock manure extraction/ separation mechanical, chemical food oil proteins carbohydrates additives bioconversion microbes, algae fuels/energy ethanol/butanol biodiesel heat electricity hydroloysis acids, enzymes industrial/ municipal solid waste CO2 emissions food/industrial by-products materials plastics fibers adhesives rubber paints/coatings dyes/pigments/ink detergents/solvents gasification high heat, low oxygen pyrolysis catalysis, heat, pressure
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USDA BioPreferred 2,363 companies, 18,442 products
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Policy Point #2 A consortium effort is needed to increase market pull.
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B4 Branding: Survey of Biobased Market
A total of 800 respondents completed the online survey that was conducted during the second half of 2014: 600 Nationally representative respondents 200 Ohio-specific respondents Respondents met the following criteria: Adults 18 – 74 years old Target of 50% male / 50% female Made purchases from a grocery store or mass-merchandise retailer within the past 30-days Intellectual Property of OBIC at The Ohio State University
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Unaided Awareness of Biobased Products
Are you aware of any biobased products? What biobased products are you aware of? You may list up to three such products in the blanks below: Claimed Awareness Category Recall Respondents think they are aware of products, but evidence falls apart quickly when asked to elaborate. Familiarity with Biobased Items: National 2014 Ohio 2014 Strong familiarity 0% No familiarity 45% 47% Brand Recall
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Unprompted Purchase of Biobased Products
Have you purchased any biobased products? What biobased products have you purchased? Claimed Awareness Category Recall More of the same. Interesting note comparing Years 1 and 2 of study. Brand Recall
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Unaided Benefits Associated with Biobased Products
What do you think are the primary benefits from using biobased products or packaging? You may list up to three benefits in the blanks below: Biobased Benefits: National 2014 National 2013 Ohio 2014 Ohio 2013 Better for environment 49% 43% 55% 48% Fewer toxins 18% 11% 13% 15% Produces less waste 16% 12% 17% 14% Safer to use 9% Biodegradable Recyclable 10% Healthier 8% 7% Renewable Natural 6% Doesn’t use petroleum 5% 1% 3% Don’t know 47% 53% 44%
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Biobased Products Making a Difference
Do you believe that buying biobased products or products using biobased packaging make a difference? (Coded open-ended responses) Yes No Don’t Know
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Benefits Influencing Purchase of Biobased Products
Please rank the following benefits as to their importance in influencing your purchase consideration of biobased products or biobased packaging: Environmental Sustainability Opportunities for recycling Reduces oil dependence Reduces global warming Boosts American Economy Supports farm income Percent in Top-2 Boxes
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Interest in Purchasing Biobased Categories
Please rate your level of interest in buying biobased products in the following categories: (Rating based upon 7-point scale) Household cleaners Laundry products Hand sanitizers Lawn Care Packaging Office supplies Building materials Interior paints Cutlery/ Tableware Bedding/ linens Lubricants Carpeting Percent in Top-2 Boxes
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Price Sensitivity to Biobased Products
Assuming comparable performance to its petroleum-based equivalent, how much more would you be willing to pay for a biobased product? At least 5% more At least 10% more At least 15% more At least 20% more Unwilling to pay more
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Marketing Implications
Research Observations Marketing Implications Increased awareness of biobased products and packaging More consumers are interested in using biobased items because of their presumed environmental benefits Respondents still having little familiarity with what they are, what brands to look for or why they should specifically care about biobased products. Awareness alone is not enough. Stakeholders need to build familiarity with the marketplace by educating consumers why biobased makes a difference Industry needs to demonstrate the effectiveness of biobased products and packaging to create brand relevance and to convince consumers that they are not sacrificing performance when they use a biobased product.
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OBIC Sustainable World Tour
Inaugural event was at the Ohio FFA Convention in Columbus where we interacted with approximately 350 students, teachers, and parents and passed out reusable grocery bags and biobased product samples
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Bioproducts World 2014 “We can virtually make everything and anything from biobased materials. It’s a new economy. It’s a new way of doing business.” Secretary of Agriculture, Tom Vilsack
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OBIC Clusters Policy Point #3
Bioproduct commercialization is not something that you do alone. OBIC Clusters
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Cluster Agent Activities
Prospecting Market Data Needs & Opportunities Technology & Feedstock Assets Resources Networking Industry Outreach Collaborator Input & Ideation Assessment Technical & Economic Analysis Application & Market Analysis Value Proposition/Business Case Leverage Resources Talent – Public & Corporate Facilities Strategic Investments Grant Proposal Development Program Oversight Partnerships & Agreements Project Development Project Deployment Goal: Increase probability of success OBIC Common Good Focus Client/ Project Focus Activities
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Catalyzing Cluster Formation
Stages of Cluster Development ELEMENTS Assets Feedstocks Facilities Technology Talent Fund$ Drivers Industry Markets Policy Nascent Immature Mature OBIC Public Private Discover Connect Assess Assist Steward
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Policy Point #4 “Waste-based” represents a new approach to commercialization for bioproducts. “Sell to Cell” Beginning with End in Mind
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Anaerobic digestion as an enabling technology
Program focused on Sustainable Packaging and Food Service Also targets low value biomass waste streams as feedstock for biorefining Interesting statistic: 31% of all food (133 billion pounds) is wasted at the retail and consumer levels worth $161 billion. (2010, USDA ERS) 26
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Even Smarter for Today”
The Biobased Promise Biobased innovations offer consumers intelligent, sustainable choices because they use renewable materials derived from plants. “Smart for Tomorrow… Even Smarter for Today”
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work to advance the Bioproducts Industry
Thank you for your work to advance the Bioproducts Industry Denny Hall, OBIC Director
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