Renewable Chemicals Market Size

Global Renewable Chemicals Market Overview

Renewable Chemicals Market Size was valued at USD 115.93 Billion in 2023. The Renewable Chemicals industry is projected to grow from USD 131.00 Billion in 2024 to USD 308.21 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.29% during the forecast period (2024 - 2032). The rising rates of fossil fuels depletion and increase in greenhouse gas emissions which increase the need for biomaterial are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Renewable Chemicals Market Trends

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  Growing demand for bio-based polymers is driving the market growth

  
  

The rising demand for bio-based polymers drives market CAGR for renewable chemicals. Bio-based polymers are derived from renewable feedstocks such as starch, cellulose, and vegetable oils, offering a sustainable alternative to conventional polymers derived from fossil fuels. The rise in awareness regarding the environmental impact of conventional plastics has led to a surge in demand for bio-based alternatives, especially in industries such as packaging, automotive, and textiles. Bio-based polymers possess properties similar to their petrochemical-based counterparts, including strength, durability, and versatility, while offering reduced carbon footprint and improved end-of-life disposal options. The market for bio-based polymers is expected to witness quick growth in the coming years, driven by increased adoption of sustainable packaging solutions, government regulations promoting bio-based materials, and consumer preference for eco-friendly products.

Technological advancements play a crucial role in driving the growth of the renewable chemicals market. Researchers and companies continuously invest in R&D to develop innovative processes and technologies for producing renewable chemicals. One significant area of focus is the development of advanced bio-refineries that utilize various feedstocks to produce a wide range of renewable chemicals. These refineries employ cutting-edge technologies such as enzymatic conversion, fermentation, and thermochemical processes to convert biomass into value-added chemicals. Furthermore, biotechnology and genetic engineering advancements have facilitated the development of novel enzymes and microorganisms, enhancing the efficiency and yield of bio-based chemical production. Such technological advancements improve the cost-effectiveness of renewable chemical production and enable the production of a broader range of chemicals, expanding the market potential.

Government support and regulatory frameworks have been instrumental in driving the growth of the renewable chemicals market. Governments worldwide are implementing various policies and regulations to promote renewable chemicals and reduce dependence on petrochemicals. These initiatives include tax incentives, grants, subsidies, and renewable portfolio standards, encouraging companies to invest in renewable chemical production and adopt sustainable practices. Moreover, stringent environmental regulations, such as greenhouse gas emissions and waste disposal restrictions, push industries to adopt renewable chemicals as part of their sustainability strategies. The government's role in supporting and incentivizing the renewable chemicals market will continue in the coming years, further propelling its growth.

The renewable chemicals market is experiencing rapid growth, driven by increasing demand for bio-based polymers, technological advancements and innovation, and government support and regulatory frameworks. The shift towards renewable chemicals offers numerous environmental and economic benefits, including reduced carbon emissions, enhanced resource efficiency, and decreased reliance on fossil fuels. As the world continues prioritizing sustainability and environmental consciousness, the renewable chemicals market is poised for further expansion. However, challenges such as cost competitiveness, production scalability, and ensuring feedstock supply chain sustainability remain key focus areas for industry stakeholders, driving the Renewable Chemicals market revenue.

A long-term supply agreement for North America was announced in 2023 by Dow and New Energy Blue. Under the terms of the agreement, New Energy Blue will produce bio-based ethylene from renewable agricultural leftovers. Dow plans to buy this bio-based ethylene, which will lower carbon emissions from the production of plastic and be used in recyclable packaging, footwear, and transportation applications. The first deal of its kind in North America to produce plastic source materials from maize stover is Dow's with New Energy Blue, a company staffed by specialists with extensive experience in bio-conversion initiatives. Additionally, this is Dow's first deal in North America to produce plastic from agricultural leftovers.

Renewable Chemicals Market Segment Insights

Renewable Chemicals Product Insights

The Renewable Chemicals market segmentation, based on product, includes ethanol, methanol, ketones, glycerol, organic acids, bio-polymers, platform chemicals, and others. The bio-polymers category generated the most income. Bio-based polymers, including polyethylene, polylactic acid (PLA), and polyhydroxyalkanoates (PHAs), are gaining traction as sustainable alternatives to traditional petroleum-based plastics. These polymers find applications in packaging, automotive, construction, and textiles, offering reduced carbon footprint and enhanced biodegradability.

Renewable Chemicals End-Use Industry Insights

The Renewable Chemicals market segmentation, based on the end-use industry, includes petrochemical, food & beverage, automotive, chemical, agricultural packaging, textile, medical, and others. The automotive category generated the most income. The automotive industry is embracing renewable chemicals for producing biofuels and bio-based polymers, contributing to developing lightweight and sustainable vehicles. Bio-based materials are used in interior components, exterior panels, and bio-based lubricants.

Renewable Chemicals Feedstock Insights

The Renewable Chemicals market segmentation, based on feedstock, includes corn, sugarcane, biomass, algae, and others. The biomass segment dominated the market. Biomass feedstock, such as corn, sugarcane, wheat, and soybeans, is widely used to produce renewable chemicals. These feedstocks offer high carbon content, making them suitable for synthesizing biofuels, bio-based plastics, and chemicals.

Figure 1:  Renewable Chemicals Market, by Feedstock, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Renewable Chemicals Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Renewable Chemicals market area will grow significantly due to the stringent environmental regulations and growing consumer awareness regarding sustainable products. The U.S. government has implemented favorable policies and incentives to promote the development and adoption of renewable chemicals. Additionally, the presence of a well-established bio-based chemicals industry, along with significant investments in research and development activities, has boosted the market growth in this region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  RENEWABLE CHEMICALS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's Renewable Chemicals market accounts for the second-largest market share due to the region's strong commitment to sustainability and green initiatives. The European Union has set targets to deduct greenhouse gas emissions and raise the use of renewable resources, driving the demand for bio-based chemicals in various sectors, including automotive, packaging, and construction. Moreover, the region's well-developed infrastructure and advanced technologies have further facilitated market growth. Further, the German Renewable Chemicals market held the largest market share, and the UK Renewable Chemicals market was the rapid-growing market in the European region.

The Asia-Pacific Renewable Chemicals Market will dominate the CAGR from 2023 to 2032. It is due to witness rapid growth in the renewable chemicals market, primarily driven by the increasing industrialization and urbanization in countries like China and India. The rising population and growing middle-class consumers in these countries have led to a surge in demand for sustainable products, creating favorable market conditions for renewable chemicals. Moreover, the availability of abundant biomass resources and government initiatives to promote bio-based industries have contributed to market growth in the region. Moreover, China’s Renewable Chemicals market held the largest market share, and the Indian Renewable Chemicals market was the rapid-growing market in the Asia-Pacific region.

Renewable Chemicals Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Renewable Chemicals market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Renewable Chemicals industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Renewable Chemicals industry to benefit clients and increase the market sector. Renewable Chemicals have recently offered some of the most significant medical advantages. Major players in the Renewable Chemicals market, including BioAmber (Canada), Corbion N.V. (The Netherlands), Myriant Corporation (U.S.), Braskem (Brazil), Metabolix Inc. (U.S.), Mitsubishi Chemical Corporation (Japan), BASF SE (Germany), and others, are attempting to raise market demand by investing in research and development operations.

Praj Industries Limited, founded in 1983, located in Pune, Maharashtra, India, is an Indian international process and project engineering company. It also has offices in South Africa, North America, Thailand, and other countries. The products include ethanol plants, water & wastewater solutions, bioproducts, research services, etc. In July 2020, Praj Industries launched a new Bio-Prism portfolio that manufactures bio-based renewable chemicals and materials (RCM). Praj's Bio-Prism portfolio comprises various bio-industrial products, including bioplastics as a priority, cellulose-lignin refinery products, and specialty products. This launch expands its product portfolio and will help in revenue generation.

LyondellBasell Industries N.V., founded in 2007, located in Houston, Texas, United States, is an international chemical company that is the largest licensor of polyethylene and polypropylene technologies. It produces ethylene, propylene, and oxyfuels. In June 2019, LyondellBasell Industries N.V. and Neste will start producing bio-based polypropylene and low-density polyethylene. The project used renewable hydrocarbons from sustainable bio-based raw materials like residue oils and waste.

Key Companies in the Renewable Chemicals market include

• BioAmber (Canada)


• Corbion N.V. (The Netherlands)


• Myriant Corporation (U.S.)


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  Braskem (Brazil)


• Metabolix Inc. (U.S.)


• Mitsubishi Chemical Corporation (Japan)


• BASF SE (Germany)

Renewable Chemicals Industry Developments

October 2021: Mitsubishi Chemical Holdings, based in Japan, aims to achieve zero greenhouse gas emissions across the group by 2050, fractionally via eco-friendly production and renewable energy processes. The Japanese company believes the road to carbon-free production consists of lucrative opportunities. The plan's core is 100 billion yen or USD 875 million in investment through 2030. The funds will be used to supply on-site solar panels to build a plastics plant that uses spent vegetable oils.

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 is developed for nonwoven, textiles, and pulp industries.

Renewable Chemicals Market Segmentation

Renewable Chemicals Feedstock Outlook

• Corn


• Sugarcane


• Biomass


• Algae


• Others

Renewable Chemicals Product Outlook

• Ethanol


• Methanol


• Ketones


• Glycerol


• Organic Acids


• Bio-Polymers


• Platform Chemicals


• Others

Renewable Chemicals End-Use Industry Outlook

• Petrochemical


• Food & Beverage


• Automotive


• Chemical


• Agricultural


• Packaging


• Textile


• Medical


• Others

Renewable Chemicals Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


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


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America