What Has Driven the Growth of the Renewable Chemicals Market in Recent Years?
The renewable chemicals market has seen considerable growth due to a variety of factors.
• The size of the renewable chemicals market has expanded quickly in the past few years. The industry will see an increase from $117.68 billion in 2024 to $131.73 billion in 2025, boasting a compound annual growth rate (CAGR) of 11.9%. Factors contributing to the growth over the historic timeframe include increasing awareness about environmental issues, a surge in customer preference for eco-friendly products, fluctuations in the cost of petrochemicals, government encouragement and grants, amplified business sustainability actions, and improved consumer insight and knowledge.
How Will the Renewable Chemicals Market?
The Renewable Chemicals market is expected to maintain its strong growth trajectory in upcoming years.
• The market for renewable chemicals is anticipated to experience a swift expansion in the upcoming years, expected to reach $222.61 billion in 2029, growing at a compound annual growth rate (CAGR) of 14.0%.
Numerous factors are contributing to this anticipated growth during the forecast period, including the rise of bio-based aviation fuels, broader acceptance of renewable solvents, the surge in financial support for renewable chemical projects, and emphasis on ecologically-friendly agricultural methods, alongside the development of sophisticated bio-based materials. Throughout the forecast period, distinctive trends will likely be observed, such as a transition towards bio-based raw materials, the co-production of biofuels, advancements in bioconversion technologies, the proliferation of renewable platform chemicals, collaborations and strategic alliances, growth of the market in the Asia-pacific region, and the advent of renewable lubricants and supplements.
Which Factors Are Boosting Growth In The Renewable Chemicals Market?
The renewable chemicals market looks to be positioned well for growth, driven by an increasing demand stemming from the automotive industry. Biopolymers sourced from renewables have found their application in automobile production. The Society of Indian Automobile Manufacturers (SIAM), a not-for-profit entity based in India that stands for automobile manufacturers, provided data in May 2022 indicating a considerable uptick in automobile production in the last couple of years. Specifically, the total output witnessed a jump from 22,655,609 units in the 2020-21 period to 22,933,230 units in the 2021-22 period. Concurrently, a report released in May 2022 by the China Association of Automobile Manufacturers – a non-profit social organization located in China – noted a 5.4% rise in automobile sales in China, reaching a staggering 27.5 million in 2022. In essence, it is the escalating demand in the automobile industry that is fueling the expansion of the renewable chemicals market.
What Key Areas Define The Segmentation Of The Global Renewable Chemicals Market?
The renewable chemicals market covered in this report is segmented –
1) By Product Type: Ethanol, Ketones, Biopolymers, Platform Chemicals, Other Product Types
2) By Feedstocks: Biomass, Corn, Sugarcane, Algae, Other Feedstocks
3) By End-Use: Automotive, Medical, Food And Beverages, Petrochemicals, Textiles, Agriculture, Other End-Uses
Subsegments:
1) By Ethanol: Bioethanol, Cellulosic Ethanol
2) By Ketones: Acetone, Methyl Ethyl Ketone (MEK), Other Ketones
3) By Biopolymers: Polylactic Acid (PLA), Polyhydroxyalkanoates (PHA), Starch-Based Polymers, Other Biopolymers
4) By Platform Chemicals: Furfural, Levulinic Acid, Succinic Acid, Other Platform Chemicals
5) By Other Product Types: Glycerol, Lactic Acid, Other Renewable Chemicals
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How Are Emerging Trends Reshaping The Dynamics Of The Renewable Chemicals Market?
Product enhancement is a major trend that's gaining traction in the renewable chemicals market. Mainstream companies in this market are concentrating on technology improvement to fortify their market presence. For instance, in March 2022, Germany's specialty chemicals company, Evonik Industries, introduced sustainable isophorone products made entirely from renewable acetone. The enterprise provides goods that exhibit significantly reduced CO2 emissions in every stage. The newly introduced products, belonging to the VESTA eCO Grades series, are formulated to serve as green raw materials for paints, lacquers, bonding agents, and car interiors. This innovative product development marks further progress in the renewable chemicals market.
Who Are the Key Players In The Renewable Chemicals Market?
Major companies operating in the renewable chemicals market include:
• Archer-Daniels-Midland Company
• Amyris Inc.
• BASF SE
• Bioamber Inc.
• Biomethanol Chemie Nederland BV
• Corbion NV
• Metabolix Inc.
• Genomatica Inc.
• NatureWorks LLC
• Novozymes A/S
• Evonik Industries AG
• Cargill Inc.
• Myriant Corporation
• Mitsubishi Chemical Corporation
• Koninklijke DSM NV
• Cobalt Technologies Ltd.
• Solazyme Inc.
• Elevance Renewable Sciences Inc.
• Gevo Inc.
• Avantium Technologies BV
• Virent Inc.
• Anellotech Inc.
• Verdezyne Inc.
• Rennovia Inc.
• Terravia Holdings Inc.
• American Process Inc.
• Clariant AG
• Global Bioenergies SA
• Kiverdi Inc.
• LanzaTech Inc.
What Is The Most Dominant Region In The Renewable Chemicals Market?
North America was the largest region in the renewable chemicals market in 2024. Europe is expected to be the fastest-growing region in the renewable chemicals market report during the forecast period. The regions covered in the renewable chemicals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
