May 24, 2024

The Growth of the Renewable Chemicals Market is driven by Environmental Concerns

Renewable chemicals are derived from plant or animal matter and are an increasingly viable alternative to petroleum-based chemicals. Renewable chemicals are widely used in various industries such as transportation, textiles, construction, environment, and health care. Renewable polyesters and polyethylene furandicarboxylate (PEF) are used to manufacture bottles, food packaging, and clothing. They provide properties similar to conventional plastics such as polyethylene terephthalate (PET) but are derived from renewable sources. Renewable chemicals like bio-based 1,4-butanediol, succinic acid, and lactic acid are used in the production of polyurethane foams, coatings, plasticizers, solvents, and other industrial applications. They help reduce dependence on petrochemicals and offer eco-friendly solutions. Growing environmental concerns and stringent regulations pushing the transition toward sustainable solutions are driving the demand for renewable chemicals globally.

The global Renewable Chemicals Market is estimated to be valued at US$ 13.98 4 Bn in 2024 and is expected to exhibit a CAGR of 19. % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

The renewable chemicals market is witnessing increasing investments in research and development around innovative products and manufacturing processes. Companies are investing in developing technologies that enable the production of chemicals from sugars derived from non-food biomass such as corn stover and agricultural residues. Some of the advanced technologies gaining attention include hydrotreating, catalytic hydro processing, gasification, and chemical vapor deposition. With intensifying R&D efforts, there is a growing product pipeline of renewable chemicals like levulinic acid, itaconic acid, and many others which can address a wide range of chemical and material needs. Partnerships between technology developers and established industry players will help commercialize emerging technologies and ensure faster market penetration of new renewable chemicals. The research emphasis on utilizing waste biomass in innovative ways without competing with food production is expected to unlock new opportunities and foster wider market adoption of renewable solutions going forward.

Porter’s Analysis
Threat of new entrants: The renewable chemicals market has moderate threat of new entrants due to its high capital investment requirements. However, the growing environmental regulations and incentives for using sustainable chemicals create opportunities for new players.
Bargaining power of buyers: The bargaining power of buyers is moderate in this market as buyers have numerous product options from different manufacturers. However, the unique properties of renewable chemicals increase their attractiveness to buyers.
Bargaining power of suppliers: The bargaining power of suppliers is low to moderate as raw material suppliers for renewable chemicals have limited bargaining power due to availability of substitute materials and intense competition.
Threat of new substitutes: The threat of new substitutes is moderate to high as the R&D in advanced materials constantly introduces new sustainable substitutes for petroleum-based chemicals.
Competitive rivalry: The competitive rivalry in the market is high due to the presence of numerous global and regional players offering a variety of renewable chemicals.

Key Takeaways
The global renewable chemicals market is expected to witness high growth over the forecast period supported by rising sustainability initiatives. The global Renewable Chemicals Market is estimated to be valued at US$ 13.98 4 Bn in 2024 and is expected to exhibit a CAGR of 19. % over the forecast period 2023 to 2030.

Regional analysis:
North America dominates the global renewable chemicals market and is expected to maintain its leading position during the forecast period supported by stringent environmental regulations in the region. Asia Pacific is expected to display the fastest growth in the market stimulated by increasing production capacities in major Asian countries like China and India along with growing R&D investments.

Key players:
Key players operating in the renewable chemicals market are BASF SE (Germany), Mitsubishi Chemical Holdings Corporation (Japan), DAIKIN (Japan), 3M (U.S.), Braskem (Brazil), Corbion N.V. (Netherlands), NatureWorks LLC (U.S.), Amyris (U.S.), OCI N.V. (Netherlands), Solvay (Belgium), DSM (Netherlands), Genomatica Inc., (U.S.), Cobalt Technology, LLC. (U.S.), Elevance (U.S.), Evonik Industries AG (Germany), DuPont (U.S.), Novamont S.p.A. (Italy), Novozymes (Denmark), AVERY DENNISON CORPORATION (U.S.), Mitsui Chemicals Inc. (Japan). These players are adopting various organic and inorganic growth strategies like mergers & acquisitions, new product launches, and collaborations to strengthen their position in the global market.

*Note:

1.Source: Coherent Market Insights, Public sources, Desk research

2.We have leveraged AI tools to mine information and compile it