Renewable Chemicals Market is projected to be worth USD 300 Billion by 2030, registering a CAGR of 13% during the forecast period (2022 - 2030)
Renewable Chemicals Market Overview
Renewable Chemicals Market is projected to be worth USD 300 Billion by 2030, registering a CAGR of 13% during the forecast period (2022 - 2030), The market was valued at USD 98 billion in 2021.
There has been a major advancement in the growing demand for renewable chemicals in an array of market fields like transportation, food processing, pharmaceuticals, textiles, and the construction sectors amongst others. This is expected to be a significant factor that can help in the growth of the renewable chemicals market during the forecast period that will be ending in 2030.
COVID 19 Analysis
The renewable chemicals market size was expected to develop at an amazing rate before the end of the forecast period in 2028. As the spread of the coronavirus was one of the significant worries for the market, defeating these challenges and issues on the way of worldwide development is a major rising concern. The covid pandemic struggles are real and delaying the processes. The pandemic has brought along functional limitations with it as a standard of social distancing to contain the spread of the novel pandemic. Henceforth, the pandemic has introduced changes and lifestyle variations that are hampering the renewable chemicals market functioning in the forecast period. The pandemic is taking into account the remote access reality and working for the everyday functions and transportation capacities in the global market premises.
Virtual meetings and work-from-home scenarios are dominating the trends in the global functioning locations. The lockdown implications are not just protecting the worker’s wellbeing and checking the spread of the infection but on a similar scale, there has been a rising requirement to keep the production and manufacturing units functioning to meet the little audience needs better. The rising degree of innovation and product portfolios in the market is likely to have better growth and development attributes for the renewable chemicals market share.
The rising degree of competition in the global market premises during the forecast period of 2021-2028 is because of the contribution of the following companies:
Corbion N.V. (The Netherlands)
Myriant Corporation (U.S.)
Metabolix Inc. (U.S.)
Mitsubishi Chemical Corporation (Japan)
BASF SE (Germany)
The propelling rate of the market for renewable chemicals is in its infancy rate and is projected to witness a rising and dynamic growth at a global CAGR of over 10.0% between 2015 and 2020. For each chemical that is put to use, some limited players are functional in the global market, and hence, they do not pose a high or worrisome threat for each other. The rising demand for these market chemicals is high because of the dependable production volumes that are being consumed in various global locations. The renewable chemicals market is at the propelling stage and the market companies are yet to stabilize their business.
The rapid rate of fossil fuels’ depletion and the increasing greenhouse gas emissions are projected to increase the need for biomaterial, which is likely to benefit the market in a series of ways. The rising market concerns towards the protection of the environment and protocols, and the increasing demand for the renewable chemicals industry is likely to popularize the prevailing concept of “Green Chemistry” that is projected to enhance the market share.
The factors that are resulting in hindering the growth of the renewable chemicals market share are emerging at a high price when compared to the conventional polymers that are available in the market and associated performance issues. However, the increasing rate of undergoing research and innovation might lead to improvement shortly. Also, the complex manufacturing process that is associated with the manufacturing of renewable chemical market products and services is likely to hinder the projected market growth during the forecast period ending in 2028.
The growth opportunities are propelling for the development of the renewable chemicals market size as there is an increasing scope in end-user segments, new raw materials, under penetration in the Asian-Pacific countries followed by the potential for cost reduction through economies of scale.
Also, the various secondary sources belonging to the market, such as directories, technical handbooks, company annual reports, industry association publications, chemical magazine articles, trade websites, and databases that have been referred to identify and collect information suggest that the advent of technology has an excellent role to play and help the market grow at an excellent CAGR during the forecast period.
The renewable chemicals industry report conducts a qualitative market study and analyzes the speed of the growth of market factors that will enhance the growth and expansion stances of the market during the forecast period. The report covers the possible factors that might emerge as challenges for the global market as well.
The report understands and discusses the basis of the global market segmentation that is well functioning and meeting the rising needs of the target audience at market prices that meets their disposable income.
The report helps in understanding the competitive market graph that is based on the developments that have been undertaken by the prominent players of the market in various global locations that welcome the market functioning and production.
The renewable chemicals market trends suggest that the market has been segmented to perform in variations and comply with the rising and developing needs of the target audience and result in organic customer expansion. The renewable chemicals market segments are:
By End-Use Industry
In the end-use industry of the renewable chemicals market, the automotive segment is likely to emerge as the fastest-growing segment of the market during the forecast period. The growth of the segment components can be attributed to the growing application requirement and employment of biodiesel, bioethanol, and biopolymers in the industry.
In the feedstock segment of the global renewable chemicals market, the biomass segment is likely to emerge as the leading market segment and hence, showcase notable attainment of CAGR during the forecast period ending in 2028. The growth of the market is because of the growing demand for biodiesel and bioethanol. Besides, there has been a rising usage of biomass-based products in several end-use sectors that is another significant factor that is projected to boost the growth of the market.
In the product segment of the global renewable chemicals market, the bio-polymers segment is likely to emerge and witness a promising CAGR. The applications that make use of the market products include:
The renewable chemicals market value is likely to witness the emergence of the APAC region as the fastest-growing region during the forecast period of 2021-2028. The APAC is anticipated to lead the global market operations during the forecast period owing to the growing concerns regarding environmental conditions. Various economies such as; China, India, Japan, as a part of the APAC region are anticipated to play a significant role in the development of the market owing to the increased demand for such products in various end-user industries and sectors. Besides, there are ongoing developments in the extraction techniques along with the presence of multiple opportunities in the growth-centric countries is predicted to be other reliable factors that can actuate the market size during the forecast period.
The renewable chemicals market report discusses the market dynamics followed by the basis of the global market segmentation that has a better hand at helping the market grow at a good and dependable market rate and value during the forecast period. The market is witnessing the emergence of global competition owing to a series of factors that are also covered in the market report.
June 2019 - LyondellBasell Industries N.V., along with Neste, will start with the production of bio-based polypropylene and bio-based low-density polyethylene. The project made use of renewable hydrocarbons extracted from sustainable bio-based raw materials like residue oils and waste.October 2021- Mitsubishi Chemical Holdings, based in Japan, targets to aims to achieve net-zero greenhouse gas emissions across the group by 2050, fractionally via eco-friendly production and renewable energy processes. The Japanese company believes that the road to carbon-free production consists of lucrative opportunities. The plan's core is 100 billion yen, i.e., USD875 million in capital investment through 2030. The funds will be used to deploy on-site solar panels and build a plastics plant, which uses spent vegetable oils.October 2021- RUDOLF HUB1922, an Italian company, revealed the OFFUEL product series, a liberal array of chemical auxiliaries for denim finishing consisting of a minimum of 90 percent of substitutes to crude oil/or components based on recycled materials. The OFFUEL range by RUDOLF HUB1922 has consisted of 11 finishing auxiliaries. All of these are either brand new RUDOLF's technologies or selected existing solutions. Available, renewable raw materials are the popular denominator all over the RUDOLF HUB1922 OFFUEL range. Those renewable sources do not contend with human and/or animal nutrition nor compete with manufacturing any fuel. The renewable raw materials to be used are divided into five distinct groups:o Substances recycled from plastics — either post-consumer or industrial wasteo Substances recycled from the waste of biological origino Salts, water, basic acids, and alkaliso Substances of biological origin or produced through biotechnologieso Substances of botanical origin
Global Renewable Chemicals Market, By-Products
Polylactic Acid (PLA)
Global Renewable Chemicals Market, By End-Use Industry
Food & Beverage
Global Renewable Chemicals Market, By Products Feedstock
|Market Size||2030: USD 300 Billion|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Feedstock, Product, End-User|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Archer Daniels Midland Company, Amyris, BASF SE, BioAmber Inc., BioMCN, Braskem, Cargill, Royal DSM, DowDuPont, and Evonik AG industries|
|Key Market Opportunities||Growing Popularity of Biopolymers to Offer Significant Opportunities for Market Expansion|
|Key Market Drivers||Growing Demand for Renewable Chemicals in Various End-Users to Boost the Market Growth|
In 2018, the global renewable chemicals market was valued at USD 88 billion.
The increasing awareness about the environmental impact of the chemical industry is likely to remain the major driver for the renewable chemicals market.
Ethanol accounts for the largest share in the global renewable chemicals market, accounting for USD 75.6 billion in 2018.
The biomass segment dominates the global renewable chemicals market by feedstock.
The automotive industry is the major end user of renewable chemicals.