Renewable chemicals are bio-based chemicals that are produced from biomass including agricultural by-products and wastes. They provide environmental benefits such as reduced dependence on petroleum and lower greenhouse gas emissions. They serve as viable sustainable alternatives to petroleum-based chemicals across various industries.
The global Renewable Chemicals Market is estimated to be valued at US$ 13.98 4 Bn or Mn 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 key trends:
The increasing adoption of renewable chemicals by various end use industries such as textiles, transportation, construction and packaging owing to stringent regulatory policies promoting eco-friendly products is one of the major trends in the market. Many governments across regions have implemented regulations to curb greenhouse gas emissions and reduce dependence on petroleum which is fueling the demand for renewable chemicals from industries seeking compliance.
SWOT Analysis
Strength: The renewable chemicals market is expected to witness significant growth due to stringent environmental regulations restricting the use of conventional petrochemicals. Their biodegradability and renewability also make them more environmentally friendly alternatives.
Weakness: High production costs and low availability of feedstock are major challenges restricting large-scale adoption of renewable chemicals. Their production requires expensive technologies and infrastructure.
Opportunity: Increasing R&D investments to develop more sustainable and cost-effective methods of producing renewable chemicals from biomass and agricultural waste offer lucrative growth opportunities. Growing consumer preference for green products further boosts the demand.
Threats: Volatility in raw material prices due to factors like changing climate conditions can increase the costs. Dependence on agricultural crops as raw materials also exposes the market to threats from Changing agricultural practices.
Key Takeaways
The global renewable chemicals market size is expected to witness high growth, exhibiting CAGR of 19.% over the forecast period, due to increasing environmental regulations restricting the use of conventional petrochemicals.
Regional analysis
North America dominates the global renewable chemicals market, accounting for more than 30% of the overall share. This is attributed to stringent regulations limiting the use of non-renewable resources and high R&D investments in the US and Canada. Asia Pacific exhibits the fastest growth on account of rapid industrialization, growing population, and supportive government policies promoting green chemicals in countries like China and India.
Key players
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)
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.