May 23, 2024

The global Renewable Chemicals Market is estimated to Propelled by increasing use of bio-based plastics

Renewable chemicals are chemical products that are created from biological materials or waste products rather than from fossil fuels. Renewable chemicals serve as alternatives to traditional petrochemical-based materials and are used in a variety of applications including plastic production, solvents, fibers and bio-based polymers. The increasing use of bio-based plastics has propelled growth in the renewable chemicals market. Bio-based plastics can degrade more easily and produce less greenhouse gas emission compared to traditional plastics.

The global Renewable Chemicals Market is estimated to be valued at US$ 13.98 4 Bn in 2023 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 increasing use of bio-based plastics has been a major driver of the renewable chemicals market over the recent years. Bio-based plastics are derived from renewable feedstocks such as agricultural raw materials including sugars, starch and vegetable oils as opposed to petrol-based plastics. They provide an eco-friendly alternative to traditional plastics. Rising environmental concerns regarding plastic waste and its impact on the planet has propelled demand for sustainable and biodegradable bio-based plastics. Major companies are focusing on developing advanced bio-plastics using renewable chemical feedstocks and recycling technologies that can facilitate a more circular plastics economy. Expanding applications of bio-based plastics in packaging, textiles, automotive and construction industries are expected to boost the renewable chemicals market during the forecast period.

SWOT Analysis

Strength: Renewable chemicals provide sustainability benefits as they are produced from renewable feedstocks such as sugars, biomass, plant and vegetable oils etc. rather than fossil fuels. This reduces dependence on petroleum-based resources.

Weakness: High capital investment is required for building new production plants and infrastructure for renewable chemicals. The production of some renewable chemicals is complex, technology-intensive and has higher costs compared to traditional petrochemicals currently.

Opportunity: Strict regulations around the world for limiting the use of plastics made from fossil fuels will drive demand for sustainable and eco-friendly renewable chemicals. Growing consumer preference for green chemicals also offers opportunities.

Threats: Availability of raw materials is crucial for the production of renewable chemicals. Fluctuations in agricultural commodity prices and potential shortages could impact the prices of renewable chemicals. Established petrochemical industry is a major competitor with significant economies of scale.

Key Takeaways

The global renewable chemicals market is expected to witness high growth over the forecast period owing to supportive government policies and regulations favoring sustainable chemicals. The global Renewable Chemicals Market is estimated to be valued at US$ 13.98 4 Bn in 2023 and is expected to exhibit a CAGR of 19% over the forecast period 2023 to 2030.

The Asia Pacific region currently dominates the market due to presence of emerging economies like China and India with growing industrial and manufacturing sectors. countries in the region like China, India, Japan, South Korea are major producers and consumers of renewable chemicals. North America region is also growing owing to factors such as presence of major players and favorable government policies promoting use of bio-based and sustainable chemicals. Countries like the US and Canada have implemented various federal level programs to encourage production and usage of renewable chemicals to replace fossil fuel-based chemicals.

Key players operating in the renewable chemicals market include BASF SE, Mitsubishi Chemical Holdings Corporation, DAIKIN, 3M, Braskem, Corbion N.V., NatureWorks LLC, Amyris, OCI N.V., Solvay, DSM, Genomatica Inc., Cobalt Technology, LLC., Elevance, Evonik Industries AG, DuPont, Novamont S.p.A., Novozymes, AVERY DENNISON CORPORATION and Mitsui Chemicals Inc. These companies are focusing on capacity expansion as well as developing novel and innovative production technologies to decrease costs and improve efficiencies of renewable chemical production.

*Note:

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

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