The Global Renewable Chemicals Market Size accounted for USD 111.4 Billion in 2022 and is projected to achieve a market size of USD 316.6 Billion by 2032 growing at a CAGR of 11.2% from 2023 to 2032.
Renewable Chemicals Market Key Highlights
Renewable chemicals are chemicals that are produced from renewable resources such as biomass, agricultural waste, and other natural materials. These chemicals are sustainable and have a lower carbon footprint compared to traditional chemicals that are derived from fossil fuels. Renewable chemicals are used in various industries such as pharmaceuticals, agriculture, food and beverages, and packaging. The production of renewable chemicals has gained importance in recent years due to the increasing demand for sustainable and eco-friendly products.
The market for renewable chemicals is expected to grow significantly in the coming years. The increasing focus on sustainability and the need to reduce carbon emissions is driving the demand for renewable chemicals. The demand for bio-based products is also contributing to the growth of the renewable chemicals market. The pharmaceutical industry is one of the major consumers of renewable chemicals. The use of renewable chemicals in the production of drugs is expected to increase in the coming years. The agricultural industry is another major consumer of renewable chemicals, as these chemicals are used in the production of fertilizers and pesticides. The growth of the renewable chemicals is also supported by government regulations and policies that promote the use of renewable resources.
Global Renewable Chemicals Market Trends
Renewable Chemicals Market Report Coverage
|Market||Renewable Chemicals Market|
|Renewable Chemicals Market Size 2022||USD 111.4 Billion|
|Renewable Chemicals Market Forecast 2032||USD 316.6 Billion|
|Renewable Chemicals Market CAGR During 2023 - 2032||11.2%|
|Renewable Chemicals Market Analysis Period||2020 - 2032|
|Renewable Chemicals Market Base Year||2022|
|Renewable Chemicals Market Forecast Data||2023 - 2032|
|Segments Covered||By Product, By Feedstock, By End Use, And By Geography
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||BASF SE, Corbion NV, Dow Inc., Archer Daniels Midland Company, Braskem SA, Cargill, Inc., BioAmber Inc., Elevance Renewable Sciences, Inc., Genomatica, Inc., Metabolix, Inc., Myriant Corporation, and NatureWorks LLC.
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Covid-19 Analysis, Regulation Analysis|
Renewable chemicals are considered sustainable sources of carbon since, compared to conventional petro-based chemicals and also they offer fewer carbon footprints. Two of the most widely known green chemicals are monomeric (carbohydrates, plant extracts, amino acids) and polymeric (line nine, cellulose, hemicellulose). Such products are commonly used to supplement traditional petrochemicals.
Rising consumer awareness and increasing environmental issues by using renewable chemicals are major growth contributors for the target market. Renewable chemicals demand has also been boosted in recent years by strict rules concerning the environment related to the processing and removal of petrochemicals by regulatory bodies including EPA, REACH, and the European Commission. Volatile crude oil and high finished petrochemical rates are expected to accelerate demand growth. Increased commercial and industrial preference for renewable resources in the manufacture of finished products such as medicinal products, pharmaceuticals, food additives, and plastics should also complement the demand for renewable chemicals. Global chemical producers rely on using natural products to produce specific chemicals to minimize their reliance on the energy of fossil fuels. Specific state and national governments have placed stringent controls on the use and storage of petrochemicals in the mitigation of dangerous human and environmental impacts. The long-term growth of renewable chemicals in the product market can be hindered by high processing costs and complex production processes. In contrast with their conventional materials, certain green alternatives to existing petrochemicals have been exceptionally strong. Lower purchasing power, coupled with a lack of consumer knowledge of these chemicals, may also hinder renewable chemicals' entry into these areas over the next few years, especially in emerging markets in the Asia-Pacific and Africa.
Renewable Chemicals Market Segmentation
The global renewable chemicals market segmentation is based on product, feedstock, end use, and geography.
Renewable Chemicals Market By Product
According to the renewable chemicals industry analysis, the ethanol segment accounted for a significant market share in 2022. Ethanol is a renewable chemical that is produced from biomass, such as corn, sugarcane, and other agricultural waste. Ethanol is widely used as a biofuel additive in gasoline and as a solvent in various industries. The production of ethanol has gained importance in recent years due to the increasing demand for biofuels and the need to reduce greenhouse gas emissions. The increasing demand for biofuels and the growing focus on reducing carbon emissions are the key factors driving the growth of the ethanol segment. In addition to its use as a biofuel additive, ethanol is also used in the production of various chemicals such as ethylene, acetaldehyde, and acetic acid. The demand for these chemicals is expected to increase in the coming years, further driving the ethanol segment growth.
Renewable Chemicals Market By Feedstock
In terms of feedstocks, the sugarcane segment is expected to witness significant growth in the coming years. Sugarcane-based renewable chemicals are produced through the fermentation of sugarcane juice or molasses, which yields a range of products including ethanol, bioplastics, and biochemicals. Sugarcane-based renewable chemicals have gained significant attention in recent years due to their potential to reduce greenhouse gas emissions and provide sustainable alternatives to traditional chemicals. The increasing demand for bio-based products and the growing focus on reducing carbon emissions are the key factors driving the sugarcane segment growth. The use of sugarcane-based renewable chemicals is widespread in industries such as packaging, textiles, and cosmetics.
Renewable Chemicals Market By End Use
According to the renewable chemicals market forecast, the textiles segment is expected to witness significant growth in the coming years. Renewable chemicals such as bio-based polymers, enzymes, and natural dyes are increasingly being used in the textile industry as sustainable alternatives to traditional chemicals. The textile industry is a major contributor to pollution, with significant amounts of chemicals and water being used in the production process. The use of renewable chemicals can help reduce the environmental impact of the textile industry and provide sustainable alternatives. The increasing demand for sustainable textiles and the growing focus on reducing carbon emissions are the key factors driving the growth of the textiles segment. Renewable chemicals such as bio-based polymers are being used in the production of eco-friendly textiles such as biodegradable fabrics and textiles made from renewable resources.
Renewable Chemicals Market Regional Outlook
The Middle East & Africa
Renewable Chemicals Market Regional Analysis
The Asia-Pacific region is dominating the renewable chemicals market due to several factors. The region has a high population and a rapidly growing middle class, which has led to an increase in demand for eco-friendly and sustainable products. The governments of many countries in the region have implemented policies and regulations to promote the use of renewable resources and reduce greenhouse gas emissions, which has further boosted the demand for renewable chemicals. Additionally, the region has abundant natural resources, including sugarcane, palm oil, and other biomass, which are used as feedstocks in the production of renewable chemicals. China is one of the major contributors to the growth of the renewable chemicals industry in the Asia-Pacific region. The country has a large population and a rapidly growing economy, which has led to an increase in demand for renewable chemicals. The Chinese government has implemented policies and regulations to promote the use of renewable resources and reduce pollution, which has further boosted the regional growth.
Renewable Chemicals Market Player
Some of the top renewable chemicals market companies offered in the professional report include BASF SE, Corbion NV, Dow Inc., Archer Daniels Midland Company, Braskem SA, Cargill, Inc., BioAmber Inc., Elevance Renewable Sciences, Inc., Genomatica, Inc., Metabolix, Inc., Myriant Corporation, and NatureWorks LLC.
The market size of renewable chemicals was USD 111.4 Billion in 2022.
The CAGR of renewable chemicals is 11.2% during the analysis period of 2023 to 2032.
The key players operating in the global market are including BASF SE, Corbion NV, Dow Inc., Archer Daniels Midland Company, Braskem SA, Cargill, Inc., BioAmber Inc., Elevance Renewable Sciences, Inc., Genomatica, Inc., Metabolix, Inc., Myriant Corporation, and NatureWorks LLC.
Asia-Pacific held the dominating position in renewable chemicals industry during the analysis period of 2023 to 2032.
North America region exhibited fastest growing CAGR for market of renewable chemicals during the analysis period of 2023 to 2032.
The current trends and dynamics in the renewable chemicals industry include increasing focus on sustainability and need to reduce carbon emissions, growing demand for bio-based products, and rising demand in various industries such as pharmaceuticals, agriculture, and food and beverages.
The ethanol product held the maximum share of the renewable chemicals industry.