The Renewable Chemicals Market is estimated to be valued at US$ 13.98 4 Bn in 2023 and is expected to exhibit a CAGR of 19% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Renewable chemicals are bio-based chemicals that are produced from renewable feedstock such as agricultural residues, food waste, forestry residues and sugarcane. The main products derived are alcohols, ketones, organic acids and esters which serve as building blocks for various end-use industries including food packaging, textiles, construction and automotive. They offer lower volatile organic compound (VOC) emissions, lower toxicity and biodegradability compared to fossil fuel based chemicals.
The Renewable Chemicals Market is estimated to be valued at US$ 13.98 4 Bn in 2023 and is expected to exhibit a CAGR of 19% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing environmental concerns regarding waste management and sustainable development are fueling the demand for renewable chemicals globally. Government policies and regulations in various countries are promoting the shift towards bio-based materials to reduce dependence on petrochemicals. For instance, the European Commission aims to increase the production and use of bio-based plastics to 1 million tons annually by 2025. Furthermore, depletion of fossil fuel reserves and volatile crude oil prices are encouraging companies to adopt renewable and sustainable production methods. Research and development in bio-refineries for conversion of lignocellulosic biomass into bio-based building blocks offers growth opportunities for renewable chemical producers over the forecast period.
Segment Analysis
The renewable chemicals market is dominated by the bio-based polymers and bioplastics sub-segment. This sub-segment holds around 30% share of the overall renewable chemicals market owing to high demand for sustainable and eco-friendly plastics from various end-use industries like packaging, textiles, automotive and others. The increasing concerns regarding plastic waste accumulation and stringent regulations have shifted the focus towards bio-based and biodegradable plastics.
PEST Analysis
Political: Governments across regions are supporting development and commercialization of renewable chemicals through various policies and initiatives to promote sustainable development. Growing regulations on petro-based chemicals also promote renewable chemicals.
Economic: Volatile crude oil prices and growing dependency on imports make renewable chemicals an economically viable option. Continuous technological advancements are expected to reduce production costs of renewable chemicals.
Social: Rising consumer demand for green and sustainable products along with increasing environmental awareness drive the renewable chemicals market.
Technological: Advancements in fermentation and catalysis technologies have enabled large-scale production of bio-based chemicals from renewable feedstock like sugars and plant oils at competitive costs.
Key Takeaways
The global renewable chemicals market is expected to witness high growth, exhibiting 19% CAGR over the forecast period, due to increasing concerns about environmental sustainability. The market size for 2023 is estimated at USD 13.98 billion.
The Asia Pacific region dominates the global renewable chemicals market with over 35% share owing to rapid industrialization in major emerging economies. Strong government support to promote renewable energy and chemicals in China, India, Japan, South Korea etc. drives market growth in the region.
Key players operating in the renewable chemicals market are BASF SE (Germany), Mitsubishi Chemical Holdings Corporation (Japan), DAIKIN (Japan), 3M (U.S.), Braskem (Brazil), Corbion N.V. (Netherlands), NatureWorks LLC (U.S.), Amyris (U.S.), OCI N.V. (Netherlands), Solvay (Belgium), DSM (Netherlands), Genomatica Inc., (U.S.), Cobalt Technology, LLC. (U.S.), Elevance (U.S.), Evonik Industries AG (Germany), DuPont (U.S.), Novamont S.p.A. (Italy), Novozymes (Denmark), AVERY DENNISON CORPORATION (U.S.), Mitsui Chemicals Inc. (Japan). Major players focus on R&D to develop novel renewable chemical production technologies and expand offerings to cater to various end-use segments.
