Renewable Chemicals Market Size & Share Report, 2022, 2028

The renewable chemicals market was valued at US$ 80,566.30 million in 2021, it is expected to grow at a CAGR of 11.9% from 2021 to 2028.

Renewable chemicals or bio-based chemicals are defined as those categories of chemicals, which are synthesized from renewable sources such as agricultural feedstock, agricultural waste, organic waste products, biomass, and microorganisms. Renewable chemicals are categorized as sustainable and environment-friendly chemicals which emits fewer carbon footprints as compared to traditional petro-based chemicals. Some of the most widely available renewable chemicals are lignin, carbohydrates, oils, plant extractives, hemicellulose, cellulose, starch, protein, and others. Such chemicals find application in diverse application bases such as food and beverage, agriculture, textiles, automotive, packaging and others.

In 2021, North America contributed to the largest share in the global renewable chemicals market. The dominance of the renewable chemicals market in this region is primarily attributable to the presence of strong industrial base with prominent manufactures significantly contributing to market growth. High demand of renewable chemicals from applications such as food & beverages, agriculture, textiles, transportation, packaging, and other industries backed by significant growth in end-use industrial bases is stimulating the demand for renewable chemicals in regional market. The rise in investment in manufacturing sector along with growing focus over eco-friendly and sustainable solutions, provides lucrative opportunities for the growth of the renewable chemicals market in North America. Further, favorable policies to promote the use of biobased and renewable chemicals over conventional petroleum-based chemicals is further expected to create lucrative growth opportunities in the region.

 

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Renewable Chemicals Market: Strategic Insights

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Impact of COVID-19 Pandemic on Renewable Chemicals Market

The ongoing pandemic has drastically altered the status of the industrial sector and have negatively impacted the growth of the renewable chemicals market. The implementation of measures to combat the spread of the virus has aggravated the situation and have impacted the growth of several industrial sectors. Industries such as food and beverages, agriculture, textiles, transportation, packaging, pharmaceuticals have been impacted by the sudden distortion in operational efficiencies and disruptions in the value chains attributable to the sudden closure of national and international boundaries. The significant decline in the growth of the several industrial sectors negatively impacted the demand for renewable chemicals in the global market. The disruptions in terms of sourcing of raw materials from suppliers as well as temporarily closures of manufacturing base due to indefinite lockdowns and temporary quarantines have impacted the growth of the market during pandemic period. Nevertheless, as the economies are planning to revive their operations, the demand for renewable chemicals is expected to rise globally. Although the focus over just in time production is another concerning factor hindering market growth. The expanding demand of renewable chemicals across food and beverages, agriculture, textiles, transportation, packaging, pharmaceuticals, and other industries along with significant investment by prominent manufacturers is, expected to drive the growth for renewable chemicals.

 

Market Insights

Growing Awareness Regarding Renewable Chemicals Backed by Increasing Environmental Concerns

Renewable sciences have been regarded as one of the effective ways to promote the quality of air, water, and soil and contribute to sustainability by commercializing the use of eco-friendly bio-based chemicals in diverse applications. Eco-friendly sustainable renewable chemicals can be sourced from renewable feedstocks such as biomass, agricultural residues or feedstock, and microorganisms with the help of green chemistry synthesis or biorefineries. The governments of several economies have implemented strict regulations related to carbon and greenhouse gas emissions to promote high quality environment. For instance, the European Commission aims to achieve 80% reduction in the carbon emission by 2050 by phasing out ~ 81Mt of carbon dioxide to be used in clinker production. Regulatory bodies, such as REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals), EPA (Environmental Protection Agency), and European Commission impose strict environment regulations on the production and disposal of petrochemicals. Also, the growing focus of European Union on the establishment of ‘Green Economy’ coupled with its ’20-20-20’ initiative is phasing out the demand for petrochemicals. The reduction in petroleum resources along with political instability in the leading oil producing nations and volatility in the price of petroleum product increase preference for renewable chemicals.  Global warming and climate change are creating demand for healthy, green, and clean products. Additionally, the circular economy is creating over US$5.6 trillion worth of novel opportunities for the development of eco-friendly technologies including the technology associated with renewable chemicals. Such collaborative efforts, regulations, and initiatives drive the growth of the renewable chemicals market.

Product Insights

Based on product, the renewable chemicals market is categorized into alcohols, organic acids, ketones, platform chemicals, biopolymers, and others. Biopolymers segment is expected to be the fastest growing segment in the global renewable chemicals market during the forecast period. The expanding demand for green packaging materials coupled with the increasing use of biopolymers in automotive industry is projected to drive the growth of the biopolymers in renewable chemicals market. Biopolymers includes polynucleotides (DNA, RNA), cellulose, chitosan, chitin, starch, proteins, polyesters, pectin, collagen, gelatin, and gluten, among others. They are an innovative and promising alternative to reduce greenhouse gas and toxic emissions, and the use of non-renewable resources. The rising focus toward environment-friendly and sustainable materials is expected to promote the demand for biopolymers.

Application Insights

Based on application, the renewable chemicals market is categorized into food and beverages, agriculture, textiles, transportation, chemical intermediates, packaging, bio-medical & pharmaceuticals and others. In 2021, the transportation segment is dominating the Renewable chemicals market. The biomass, wood chips, crop residues etc. are converted to renewable transportation fuels. The various types of bio-based alcohols like bio-butanol, bioethanol, and bio-methanol are used as fuel in jets. Bioethanol is the most widely used source of energy for transportation. The use of bioethanol is projected to increase significantly in coming years and remain high. This shift toward more bio-ethanol usage will provide more opportunities in future. Methane is another renewable chemical used as transportation fuel and is the major component of compressed natural gas. It is produced from biomass by a biochemical process called anaerobic digestion. Biodiesel is a renewable diesel fuel substitute produced by mixing any natural oil or fat with an alcohol (usually methanol). Different vegetable oils, animal fats, and recycled cooking greases can also be transformed into biodiesel.

A few of the major key players operating in the Renewable chemicals market are BASF SE.; Amyris Inc; DSM.; Archer-Daniels-Midland Company (ADM); and The Dow Chemical Company. These market players are highly focusing on the development of high quality and innovative product offerings.

Renewable Chemicals Market Regional Insights

The regional trends and factors influencing the Renewable Chemicals Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Renewable Chemicals Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Renewable Chemicals Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Renewable Chemicals Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Renewable Chemicals Market are:

1. Archer-Daniels-Midland Company (ADM)
2. Cargill Inc
3. DSM
4. BASF SE.
5. Amyris Inc.

Disclaimer: The companies listed above are not ranked in any particular order.

 

Report Spotlights

• Progressive industry trends in the renewable chemicals market to help players develop effective long-term strategies
• Business growth strategies adopted by developed and developing markets
• Quantitative analysis of the renewable chemicals market from 2019 to 2028
• Estimation of global demand for renewable chemicals
• PEST analysis to illustrate the efficacy of buyers and suppliers operating in the industry
• Recent developments to understand the competitive market scenario
• Market trends and outlook as well as factors driving and restraining the growth of the renewable chemicals market
• Assistance in decision-making process by highlighting market strategies that underpin commercial interest, leading to the market growth
• Detailed overview and segmentation of the market, as well as the renewable chemicals industry dynamics
• Size of the renewable chemicals market in various regions with promising growth opportunities

Renewable Chemicals Market, by Product

• Alcohols
• Organic Acids
• Ketones
• Platform Chemicals
• Biopolymers
• Others

Renewable Chemicals Market, by Application

• Food and Beverages
• Agriculture
• Textiles
• Transportation
• Chemical Intermediates
• Packaging
• Bio-Medical & Pharmaceuticals
• Others

Company Profiles

• Archer-Daniels-Midland Company (ADM) 
• Cargill Inc
• DSM
• BASF SE
• Amyris Inc
• Evonik Industries AG
• Solvay
• The Dow Chemical Company
• Genomatica, Inc
• Braskem