This chapter takes a closer look at the global market for bio-based products and resources and its interactions with agricultural and food markets. In particular, it describes the effect of increasing demand for bio-based products on market prices and thus the quantity of agricultural resources demanded and supplied. Furthermore, we discuss factors that may drive or limit the demand and supply of bio-based products. We analyse the market for bio-based resources and products, considering products that are already established in the market, such as biofuels, as well as products that could acquire a substantial market acceptance in the future, such as biochemicals and bioplastics. In addition, we briefly introduce selected policy instruments applied to support bio-based products. The chapter provides a simple example of a perfectly competitive market for bio-based products to introduce the market model. It starts by presenting the supply and demand curves and discussing the differences between price changes and those of other determinants of supply and demand with respect to their effects on the respective curve. It then explains how the supply and demand curves jointly determine the equilibrium price and quantity on the market and how the market price regulates surpluses and shortages under the assumption of an autarkic country. We apply this market model to demonstrate the effect of one particular policy for promoting the production of bio-based products on the equilibrium market price and quantity.