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renewable chemicals market

Renewable Chemicals Market Share, Size, Trends, Industry Analysis Report, By Product Type (Alcohols, Biopolymers, Polyhydroxy Alkanoates (PHA), Starch Blends, Polylactic Acid (PLA), Regenerated Cellulose, Platform Chemicals, Organic Acids, Others); By End-Use; By Region; Segment Forecast, 2022 - 2030

  • Published Date: Aug 2022
  • Pages: 118
  • Format: PDF
  • Report ID: PM2541
  • Base Year: 2021
  • Historical Data: 2018-2020

Report Summary

The renewable chemicals market was valued at USD 117.86 billion in 2021 and is expected to grow at a CAGR of 11.4% during the forecast period. The renewable chemical is obtained using natural feedstock such as plants or forestry materials. They are increasingly being used as a replacement for petrochemicals to reduce carbon emissions. Some of them commonly used include alcohols, biopolymers, polyhydroxy alkanoates, starch blends, and polylactic acid, among others.

Renewable Chemicals Market Size
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Several industries are adopting it as an alternative to fossil fuels to achieve net-zero emission targets. The climate change crisis and rise in focus on circular economy encourages research and advancements in the development of renewable chemical. Countries across the globe are taking initiatives to promote the use of chemical to decrease dependency on fossil fuel imports. These chemicals are developed for affordable and energy-efficient recycling.

Organic acids are used in surfactants, food ingredients, and pharmaceutical sectors, among others. Biosurfactants are obtained from renewable feedstock. These are used as emulsifiers, foaming agents, and wetting agents. A wide range of cosmetics and personal care products use biosurfactants.

The growth in the personal care industry has increased the demand for the industry. The application of biosurfactants is expected to increase in coatings, paints, and varnishes during the forecast period. Strengthening the construction sector and the development of public infrastructure has accelerated the adoption of the renewable chemical market.

The use of chemicals such as bio-alcohol is expected to increase in the automotive and transportation sector during the forecast period. The adoption of bioethanol has experienced growth in petrol engines. Bioethanol offers a high engine compression ratio and thermal efficiency in vehicles. Bioethanol is being used in existing vehicles with up to 5% bioethanol without alterations to the engine.

The COVID-19 outbreak has influenced the growth of the renewable chemicals market due to lockdown restrictions and limited manufacturing activities. The industry was affected by supply chain disruptions and transportation delays. The pandemic resulted in a decline in the transportation and industrial sectors. Availability of workforce and raw materials and limited import and export activities also hampered the market during the pandemic. The negative impact on industries such as automotive, agriculture, and textiles caused reduced demand for the industry during the COVID-19 outbreak.

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Industry Dynamics

Growth Drivers
The rise in population, industrialization, and urbanization are factors driving the growth of the renewable chemicals market. Greater application of renewable chemicals across industries such as automotive, pharmaceutical, and food & beverage has been observed. The introduction of regulations regarding greenhouse emissions and the greater inclination of consumers toward sustainable solutions supports the growth of the industry. Depletion of fossil fuels and technological advancements in green chemistry has resulted in greater demand for the renewable chemicals market.

Economic growth in emerging countries, greater demand for automobiles, and increasing environmental concerns are factors expected to offer growth opportunities in the coming years. Governments across the world are taking initiatives to promote the use of sustainable chemicals. Greater investments in research and development enable the development of new products by industry players.

There has been an increasing focus on the adoption of renewable energy and the decarbonization of transportation. Market players, as well as governments across the globe, are investing in sustainability and a circular economy. The investments by environmental, social, and government organizations have experienced an increase since the beginning of the pandemic.

Report Segmentation

The market is primarily segmented based on product, end-use, and region.

By Product

By End-Use

By Region

  • Alcohols
  • Biopolymers
  • Polyhydroxy Alkanoates (PHA)
  • Starch Blends
  • Polylactic Acid (PLA)
  • Regenerated Cellulose
  • Platform Chemicals
  • Organic Acids
  • Others
  • Chemical
  • Agriculture
  • Textiles
  • Environment
  • Transportation
  • Food and Beverage
  • Packaging
  • Bio-Medical
  • Others
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia. South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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The alcohols segment accounted for a major share in 2021

The alcohol segment accounted for a significant share of the global market in 2021. Alcohols are widely used in the industrial, food and beverage, transportation, industrial, and pharmaceutical sectors, among others. Consumers are increasingly turning toward cosmetics and personal care products based on bio-alcohols owing to their sustainability and skin-friendly properties.

The adoption of bioethanol has increased significantly as an additive for petrol to obtain a high engine compression ratio and thermal efficiency. Greater sales of passenger cars coupled with initiatives to control carbon emissions support the growth of this segment.

The adoption of alcohol has also increased in the energy and power sector. Growing awareness regarding environmental concerns and implementation of stringent environmental regulations supports the growth of this segment.

The packaging segment is expected to witness significant growth during the forecast period

The demand for renewable chemical from the packaging industry is expected to increase during the forecast period. Greater application of renewable chemical in the packaging of consumer goods and food and beverages is expected to boost the demand during the forecast period. The rise in population across the globe, urbanization, and greater inclination of consumers toward the use of sustainable packaging solutions supports the growth of this segment.

Improving the lifestyle of consumers, rising concerns regarding packaging waste, and the introduction of sustainable packaging solutions by leading market players accelerate the demand for renewable chemical in the packaging industry. Significant growth in e-commerce platforms and the proliferation of food delivery platforms are factors expected to provide numerous growth opportunities in the coming years.

Asia-Pacific is expected to experience significant growth during the forecast period

The demand for renewable chemicals is expected to increase in Asia-Pacific during the forecast period owing to the industrial growth in the developing countries of the region. Greater demand for sustainable chemical from industries such as packaging and pharmaceuticals supports the market growth in the region.

Rising inclination toward the use of sustainable products owing to increasing environmental concerns and the introduction of stringent environmental regulations accelerate the adoption of renewable chemical. There have been greater initiatives taken by market players to reduce dependence on fossil fuels. Growing prices associated with crude oil and the introduction of policies associated with emissions and the environment drive market growth.

Competitive Insight

Some of the major players operating in the global renewable chemicals market include Amyris, BASF, BioAmber, Bio methanol Chemie Nederland B.V, BioMCN, Braskem, Cobalt Technologies, Corbion Nv, DSM, DuPont Tate & Lyle Bio Products, Genomatica, Metabolix Inc., Mitsubishi Chemical Corp, Myriant Corporation, and NatureWorks LLC. The leading players are working toward the development of new products to expand their offerings in the market. Partnerships and collaborations enable major market players to strengthen their market presence and cater to the growing consumer demands.

Recent Developments

In May 2022, Verdant Specialty Solutions introduced its new range of green specialty chemicals. The company is a subsidiary of Cellulose Solutions. The new range of chemicals are developed for applications such as nonwovens, textiles, and pulp industries.

In July 2020, Praj Industries introduced its Bio-Prism portfolio to expand its offerings in renewable chemicals and materials sector. The new range of renewable chemicals and materials are manufactured using bio-based feedstocks to address the growing market demand for sustainable chemicals across construction, packaging, automotive, furnishing, agriculture and food sectors.

In February 2022, Clariant launched Vita 100% bio-based surfactants and polyethylene glycols (PEGs). The product launch is aimed at eliminating fossil carbon from the value chain of products developed by the company. The products are developed to address the rising demand for renewable chemicals across various industries.

Renewable Chemicals Market Report Scope

Report Attributes

Details

Market size value in 2021

USD 117.86 billion

Revenue forecast in 2030

USD 296.71 billion

CAGR

11.4% from 2022 - 2030

Base year

2021

Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD billion and CAGR from 2022 to 2030

Segments covered

By Product, By End-Use, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

Key companies

Amyris, BASF, BioAmber, Bio methanol Chemie Nederland B.V, BioMCN, Braskem, Cobalt Technologies, Corbion Nv, DSM, DuPont Tate & Lyle Bio Products, Genomatica, Metabolix Inc., Mitsubishi Chemical Corp, Myriant Corporation, and NatureWorks LLC.

Key Take-Away
Polaris Market Research
Renewable Chemicals Market Size Global Report, 2022 - 2030