What Has Been the Growth of the Green Chemicals Market So Far?
The green chemicals market has seen considerable growth due to a variety of factors.
•The scale of the green chemicals industry has seen a swift expansion in the past few years. It is projected to surge from a market size of $120.43 billion in 2024 up to $133.85 billion in 2025, boasting a compound annual growth rate (CAGR) of 11.1%.
Several factors have underpinned this growth during the historic period, such as regulatory pressures for sustainable practices, the rising consumer preference for green products, heightened awareness about environmental effects, the use of renewable raw materials, and the broader adoption of bio-based polymers and plastics.
What Are the Future Growth Projections for the Green Chemicals Market?
The green chemicals market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for green chemicals is anticipated to experience considerable expansion in the forthcoming years. The market forecasts predict a rise to $203.1 billion in 2029 with a compound annual growth rate (CAGR) of 11.0%.
This expected growth during the prediction period can be credited to the growing demand for safer and non-toxic chemicals, the implementation of a circular economy, the increase in environmentally friendly packaging alternatives, the proliferation of green solvents and surfactants, dedication to carbon-neutral chemical manufacturing processes, the emphasis on transparency and eco-labeling, the growth of bio-based adhesives and sealants, increased use of plant-derived chemicals in pharmaceuticals, and the expansion of green chemistry education and training. Emerging trends for this forecast period encompass the incorporation of machine learning in green chemistry, advancements in green chemistry technologies, technological breakthroughs in biotechnology, the creation of biodegradable and compostable plastics, and the application of artificial intelligence in green chemistry.
Which Factors Are Boosting Growth In The Green Chemicals Market?
The green chemicals market growth is forecasted to escalate due to the increasing demand for bioethanol. An environmentally friendly compound, bioethanol is a type of fuel additive produced from agricultural commodities such as corn or sugar cane. Its acceptance as a green chemical is owing to its eco-friendly attributes. It’s a clean fuel source that emits greenhouse gases far less than fossil fuels. For example, The German Bioethanol Industry Association, an organization based in Germany that advocates for the biofuel sector’s businesses and associations, revealed that in March 2023 there was a 2% increase in German bioethanol production, rising from 701,000 tons in 2021 to 715,000 tons in 2022. Thus, it's evident that the soaring demand for bioethanol is fueling the growth of the green chemicals sector.
What Key Areas Define The Segmentation Of The Global Green Chemicals Market?
The green chemicals market covered in this report is segmented –
1) By Type: Bio-Alcohols, Bio-Organic Acids, Bio-Ketones, Biopolymers, Other Types
2) By Technology: Bioprocessing, Fermentation, Enzymatic Processes, Metabolic Engineering, Other Technologies
3) By Raw Materials: Agricultural Waste, Biomass, Microorganisms, Sugar And Starch Crops, Other Raw Materials
4) By Applications: Construction, Healthcare, Pharmaceuticals And Personal Care Products, Packaging, Food And Beverages, Paints And Coatings, Automotive, Agriculture, Other Applications
Subsegments:
1) By Bio-Alcohols: Ethanol, Butanol, Propanol
2) By Bio-Organic Acids: Lactic Acid, Acetic Acid, Citric Acid
3) By Bio-Ketones: Acetone, 2-Pentanone
4) By Biopolymers: Polylactic Acid (PLA), Polyhydroxyalkanoates (PHA)
5) By Other Types: Surfactants, Solvents, Lubricants
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How Are Emerging Trends Reshaping The Dynamics Of The Green Chemicals Market?
Technological innovation is a key trend that is currently trending in the green chemicals market. Several large businesses within this market are leveraging emerging technologies, including Praedicat's unique technology, to maintain their competitive edge. For example, in May 2022, VelocityEHS, an American software firm, unveiled the Green Chemistry Offering. This offering constantly assesses and updates the hazard profiles of chemicals in use based on potential harm. This is achieved through the use of Praedicat’s unique technology which can actively scan thousands of scientific publications in real time. This provides clients with fast and direct access to anticipated chemical risk profiles, enabling them to select safer alternatives ahead of their competitors.
Who Are the Key Players in the Green Chemicals Market?
Major companies operating in the green chemicals market include:
• Cargill Inc.
• BASF SE
• Mitsubishi Chemical Holdings Corporation
• BioAmber Inc.
• DuPont de Nemours Inc.
• Arkema Group
• Koninklijke DSM N.V.
• Evonik Industries AG
• Total Corbion PLA
• Elevance Renewable Sciences Inc.
• Amyris Inc.
• Genomatica Inc.
• LanzaTech Inc.
• Novomer Inc.
• Verdezyne Inc.
• Myriant Corporation
• Sila Nanotechnologies Inc.
• Bayer Material Science AG
• Ambient Photonics Inc.
• NatureWorks LLC
• Gevo Inc.
• Checkerspot
What Is The Most Dominant Region In The Green Chemicals Market?
Europe was the largest region in the green chemicals market in 2024. The regions covered in the green chemicals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
