Renewable Chemicals Market Analysis - Global Industry Size, Share, Trends and Forecast 2022 - 2030

The global renewable chemicals market is anticipated to grow at a CAGR of around 11.4% during the forecast period 2021 to 2028 and to reach around US$ 198.5 Bn by 2028.

Report coverage

Market Dynamics

Renewable chemicals are considered sustainable sources of carbon since, compared to conventional petro-based chemicals and also they offer less carbon footprints. Two of the most widely known green chemicals are monomeric (carbohydrates, plant extracts, amino acids) and polymeric (linenine, 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 target market. Renewable chemicals demand has also been boosted in recent years by strict rules concerning 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 petrochemicals 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 on 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 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 Asia Pacific and Africa.

Segment Analysis by Region

North America is anticipated to grow at the significant CAGR in terms of production and use of biorenewable chemicals due to policies and the emphasis on the use of sustainable chemicals. The 'Federal Bio Recommended and Toxic Substitute Program' in the US, 'toxic drug register and substitute measures' in Canada form part of the schemes that control the production and usage of chemicals in North American countries. Several European and Middle Eastern countries are also focused on environmental issues and the application of associated chemicals environmental regulations.

COVID-19 Impact

Pandemic situation across the globe has disrupted the business flow worldwide. In 2020 every industry vertical in its 2nd, 3rd, 4th quarter has witnessed substantial drop on production and revenue, this was majorly due to lockdown. The restriction on the operations is impacting the production side and also impacting the supply chain of products. The disrupted supply of raw materials and low operational factories efficiency has contributed in the slower growth of the global market. Moreover, there is an urgent need for a rapid acceleration in the manufacturing process at high operational efficiency, better supply chain models, and effective distribution network. These factors to some extent will help the industry vertical to flourish and aid market growth.

Competitive Landscape

The global market is highly competitive due to presence of large number of players and innovative product offerings. In addition, business expansion activities through partnerships and agreements are factors expected to further increase the competition.

The global renewable chemicals market is segmented into feedstock, product type, end use. The end use segment is bifurcated into textiles, agriculture, environment, communication, transportation, food & beverage packaging, bio-medical, and other. Among end use the textiles segment is expected to account for significant revenue share in the global market. The players profiled in the report BASF SE, Archer-Daniels-Midland Company, Bioamber Inc., Amyris Inc., Biomethanol Chemie Nederland B.V., Cargill Inc., Braskem, E. I. DU Pont DE Nemours & Company, DSM, and Others. 

Market Segmentation

Renewable Chemicals Market By Feedstock

Algae
Corn
Biomass
Sugarcane
Others

Renewable Chemicals Market By Product

Ethanol
Ketones
Platform Chemicals
Methanol
Bio-Polymers
Glycerol
Organic Acids
Others

Renewable Chemicals Market By End Use

Textiles
Agriculture
Environment
Communication
Transportation
Food & beverage packaging
Bio-medical
Other

Renewable Chemicals Market By Geography

North America
•    U.S.
•    Canada

Europe
•    U.K.
•    Germany
•    France
•    Spain
•    Rest of Europe

Asia-Pacific
•    China
•    Japan
•    India
•    Australia
•    South Korea
•    Rest of Asia-Pacific

Latin America
•    Brazil 
•    Mexico
•    Rest of Latin America

Middle East & Africa
•    GCC
•    South Africa
•    Rest of Middle East & Africa