Renewable Chemicals Market Size To See Promising Growth | Projected at USD 317 Billion by 2033

Introduction

The global Renewable Chemicals Market is experiencing a significant growth phase, anticipated to expand from USD 116 Billion in 2023 to approximately USD 317 Billion by 2033, with a CAGR of 10.6%. This robust growth is fueled by several factors including heightened environmental awareness, increasing regulatory support for sustainable practices, and advancements in technology that make renewable chemicals more competitive against traditional counterparts.

Demand in the market is particularly strong in sectors such as packaging, agriculture, and transportation, where there is a significant push towards sustainability. The packaging sector, for instance, is seeing rapid growth due to a surge in demand for biodegradable materials driven by consumer preferences and regulatory pressures. In transportation, renewable chemicals are being increasingly utilized in the production of biofuels as a cleaner alternative to fossil fuels.

Regionally, Asia Pacific is leading the market growth, driven by major investments in sustainable practices, particularly in countries like China, which is focusing on reducing its environmental footprint. North America and Europe are also significant contributors to market expansion, with both regions showing a strong commitment to environmental sustainability which, in turn, fuels the demand for renewable chemicals.

Moreover, the market is witnessing considerable innovation, with new products being developed that offer greater efficiency and lower environmental impact. Companies are investing heavily in R&D to explore new feedstocks and improve production processes, which is expected to create further opportunities for growth in this sector.

Key Takeaways

• The renewable chemicals market is projected to grow from USD 116 Billion in 2023 to USD 317 Billion by 2033, at a 10.6% CAGR.
• In 2023, Alcohols (bioethanol, biobutanol) held 39.6% of the market share, dominating due to their role as biofuels and industrial solvents.
• Corn accounted for 33.4% of the feedstock market in 2023, mainly used for bioethanol production, a critical biofuel in renewable energy.
• The petrochemical sector used renewable chemicals in plastics and resins, holding a 35.3% market share in 2023, indicating its shift towards sustainability.
• Asia-Pacific led the renewable chemicals market in 2023, holding a 45.4% share, driven by industrialization and government incentives.

Renewable Chemicals Statistics

• GHG emissions reduction was a commitment made by 66% of Europe’s top chemical end users, including companies in the food, personal care, and automotive sectors.
• Measures that save less than 100 euros per ton of CO2 can be used to make this change. As a result, almost all chemical companies should give employing green energy and improving energy efficiency a priority.
• By 2030, they could cut the overall emissions from the chemical industry by up to 5%, and then much more.
• Keep an eye out for environmental characteristics. It’s possible that both the biobased carbon share and the renewable raw material content are far lower than 100%.
• Oil, natural gas, coal, tar sands, peat, and the decomposition of prehistoric plants and animals have all increased by roughly 30% since preindustrial times.
• Due to the rising demand for chemical fibber products worldwide, China, the world’s largest producer, saw an increase in its overall output from around 23% in 2002 to nearly 70% in 2012. This growth is expected to average 15% annually.
• About 42% of the total volume of industrial hazardous wastes in the United States of America in 2013 came from chemical companies.
• The abundance and structural variety of renewable feedstocks that are readily available, such as terpenes, which have over 55,000 structurally identical molecules.
• According to US Code Section 7, a renewable chemical is one that contains at least 95% biobased material.

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Emerging Trends

• Emerging trends in the renewable chemicals market highlight the increasing demand for sustainable and eco-friendly solutions across various industries. One key trend is the rapid adoption of bio-based polymers and alcohols, which are being used in packaging, automotive, and transportation sectors due to their lower environmental impact. The rise of biopolymers, such as bioplastics, is particularly notable in packaging, where companies are shifting towards sustainable alternatives to reduce plastic waste.
• Another important trend is the development of novel feedstocks, like algae and waste biomass, which are being leveraged to enhance the cost-effectiveness and efficiency of renewable chemical production. This innovation is driving competitiveness with traditional petrochemical-based chemicals. Additionally, governments worldwide are promoting renewable chemical production through policies and incentives, such as tax credits and grants for research and development, further accelerating industry growth.
• Collaboration between stakeholders, including manufacturers, researchers, and governments, is also a growing trend, helping to advance technological innovation and expand market opportunities. Finally, the concept of a circular economy is gaining traction, encouraging the reuse and recycling of renewable chemicals throughout supply chains, further driving demand.

Use Cases

• Packaging Industry: Renewable chemicals, especially biopolymers like polylactic acid (PLA) and polyhydroxyalkanoates (PHA), are increasingly used in sustainable packaging. As the global demand for eco-friendly packaging grows, this sector represents a significant opportunity, with the packaging segment projected to have the largest share of the market.
• Transportation Fuels: Bio-based chemicals such as bioethanol and biodiesel are essential in producing renewable fuels. Bioethanol, for example, is blended with gasoline to reduce carbon emissions, with government programs like India’s Ethanol Blended Petrol initiative driving the adoption of these alternatives.
• Agriculture: Renewable chemicals play a critical role in sustainable agriculture, providing bio-based pesticides, fertilizers, and soil conditioners. These products help reduce the environmental impact of agricultural chemicals while supporting food production.
• Pharmaceuticals: In the pharmaceutical industry, renewable chemicals are used to produce bio-based solvents and feedstocks, which are critical in drug manufacturing and purification processes. As sustainability becomes a priority, the use of renewable chemicals in pharmaceuticals is expected to expand.
• Textiles and Automotive: Bio-based polymers and fibers derived from renewable chemicals are increasingly being adopted in textile manufacturing and automotive components due to their biodegradability and reduced carbon footprint.

Key Players Analysis

3M is actively working to advance renewable chemicals and sustainability through its commitment to the circular economy. The company focuses on integrating renewable and recycled materials into its production processes and products. As part of its long-term strategy, 3M aims to reduce plastic usage, improve water stewardship, and invest USD 1 billion over 20 years to further these environmental goals. Through innovations like the 100% recycled Scotch Cushion Lock Protective Wrap, 3M is addressing sustainability across industries, from packaging to industrial solutions.

Amyris Inc. is a leader in the renewable chemicals sector, utilizing synthetic biology to create sustainable, bio-based ingredients. The company specializes in converting sugarcane into high-performance molecules through precision fermentation technology. These ingredients are used in a wide range of applications, including cosmetics, fragrances, and pharmaceuticals. Amyris’s technology platform has allowed it to produce renewable chemicals that replace petrochemical-based alternatives, contributing to reducing environmental impact. Its renewable ingredients are featured in over 20,000 products globally, reaching millions of consumers.

Archer-Daniels-Midland Company (ADM) is actively involved in the renewable chemicals sector, focusing on creating bio-based solutions from agricultural products like corn and soy. Through its Evolution Chemicals product line, ADM produces sustainable chemicals such as propylene glycol, glycerin, and industrial ethanol, which are used in industries ranging from personal care to automotive. ADM has also partnered with companies like Solugen to develop plant-based specialty chemicals, enhancing its capacity to replace fossil fuel-based materials and supporting the growth of sustainable manufacturing.

Avery Dennison Corporation has made significant strides in the renewable chemicals sector, particularly through its efforts in bio-based solutions. The company uses bio-based materials, such as adhesives derived from renewable sources like tall oil, a byproduct of pulp production. Avery Dennison is also focused on reducing its carbon footprint by incorporating renewable content in its product lines and investing in innovative recycling technologies, including chemical recycling, to support a circular economy. These initiatives align with their broader sustainability goals of reducing greenhouse gas emissions and promoting environmentally friendly solutions.

BASF SE is a global leader in the renewable chemicals sector, focusing on the sustainable production of raw materials like vegetable oils, fats, grains, and sugar. In 2023, the company purchased around 1 million metric tons of renewable raw materials, which are used in various industries, including detergents, cosmetics, and agriculture. BASF integrates renewable feedstocks such as biomethane and bionaphtha into its production processes to reduce reliance on fossil fuels. Through its innovative biomass balance approach, BASF ensures a reduced carbon footprint across its diverse product portfolio.

Biomethanol Chemie Nederland B.V. (BioMCN) is a leading producer of bio-methanol, a renewable fuel derived from sustainable biomass. BioMCN utilizes advanced technology to produce bio-methanol, which significantly reduces carbon emissions compared to traditional fossil-based methanol. This renewable chemical is used as a key component in biofuels and as a feedstock for various industrial applications, contributing to cleaner energy solutions. With a production capacity of 440,000 tons per year, BioMCN plays a crucial role in the transition towards sustainable fuels and chemicals.

Braskem is a leader in the renewable chemicals sector, focusing on bio-based polymers and bioplastics. The company is renowned for its development of I’m Green polyethylene, a plastic made from sugarcane ethanol. This bio-based plastic reduces carbon emissions and is used in packaging, automotive parts, and other applications. Braskem’s commitment to sustainability is reflected in its goal to produce 1 million tons of renewable products annually by 2030, driving the market for eco-friendly chemicals.

Cargill Inc. is a significant player in the renewable chemicals sector, focusing on producing bio-based chemicals from renewable resources like corn and soybeans. The company leverages its expertise in agriculture to manufacture sustainable alternatives to traditional petrochemicals. Cargill’s portfolio includes bio-based polyols, fatty acids, and bio-plastics, which are used in various industries such as packaging, personal care, and automotive. Their commitment to sustainability is evident in their investments in bio-based technologies to reduce reliance on fossil fuels and decrease carbon footprints.

Cobalt Technologies, LLC specializes in developing bio-based chemicals, particularly focusing on biobutanol production. Their technology efficiently converts non-food biomass into renewable chemicals, which serve as sustainable alternatives to petroleum-based products. Biobutanol, one of their key innovations, is used in a wide range of industries, including biofuels, synthetic rubber, and bio-based plastics. Cobalt’s strategic partnerships, including collaborations in Asia, are geared toward large-scale commercialization of these solutions, tapping into high-growth markets such as the USD 40 billion butadiene industry.

Corbion N.V. is a global leader in the renewable chemicals sector, specializing in lactic acid and its derivatives. The company focuses on producing sustainable bio-based solutions used across industries such as food, pharmaceuticals, and bioplastics. Corbion’s collaboration with TotalEnergies has positioned it as a key player in the production of Poly Lactic Acid (PLA), a biodegradable and compostable bioplastic. With operations in the Netherlands and Thailand, Corbion continues to innovate in fermentation and renewable resources, contributing significantly to the circular economy and reducing carbon footprints.

Daikin, primarily known for its HVAC solutions, also engages in the renewable chemicals sector through its fluorine chemistry innovations. Since 1933, Daikin has pioneered over 1,800 types of fluorine compounds, including fluoropolymers and fluoroelastomers, using its proprietary technology. These compounds are crucial in various applications across industries, contributing to energy savings and resource efficiency. Daikin’s ongoing commitment to sustainability is evident in its aim to achieve carbon neutrality by 2050, focusing on reducing greenhouse gas emissions across all stages of its product lifecycle.

DSM is actively transitioning towards sustainability in the renewable chemicals sector. The company is focusing on reducing greenhouse gas emissions through science-based targets and increasing the use of renewable electricity in its operations. DSM also promotes circular and bio-based economy initiatives, developing products that help reduce emissions along their value chains. Furthermore, DSM is reorienting its business strategy away from traditional chemical sectors towards more sustainable sectors, including nutrition and health, reflecting its commitment to environmental and social responsibilities.

DSM E.I., a global science-based company, actively pursues sustainability within the renewable chemicals sector. They are advancing towards a net-zero carbon footprint by integrating bio-based and circular economy principles into their operations. DSM’s approach includes significant investment in renewable energy and bio-based raw materials, aiming to replace conventional resources with more sustainable alternatives. Their initiatives also emphasize reducing greenhouse gas emissions through innovative product solutions and supply chain improvements, demonstrating a strong commitment to environmental stewardship and sustainable development.

DuPont is actively engaged in the renewable chemicals sector, focusing on sustainability and reducing its environmental impact. The company has committed to achieving net-zero carbon emissions by 2050, a goal supported by substantial reductions in greenhouse gas emissions and increased use of renewable energy sources in its operations. DuPont’s sustainability efforts are also demonstrated through its participation in the RE100 initiative, emphasizing its transition towards 100% renewable electricity by 2050. This commitment reflects DuPont’s broader strategy to integrate sustainability into its business operations and develop innovative solutions that contribute to a sustainable future.

Elevance Renewable Sciences excels in the renewable chemicals sector through its innovative use of metathesis technology to transform natural oils into high-performing, environmentally friendly chemicals. These products are pivotal in creating advanced personal care items and other specialty chemicals. Elevance’s collaboration with Clariant to develop greener emollients demonstrates its commitment to sustainable product solutions that meet consumer needs while reducing environmental impact. This strategic approach not only supports the advancement of renewable chemicals but also enhances their application across various industries, reinforcing Elevance’s role in leading eco-friendly innovation.

Evonik Industries AG is actively enhancing its position in the renewable chemicals sector, focusing on innovative technologies such as electrodialysis and green hydrogen production. The company is investing in electrodialysis to improve resource efficiency and reduce CO2 emissions by recycling salts into valuable raw materials. This process aligns with their broader goal of sustainable chemical production. Additionally, Evonik is advancing green hydrogen production, particularly at its Herne site in Germany, which is part of a strategy to transition to cleaner energy sources in the chemical industry. These initiatives demonstrate Evonik’s commitment to integrating eco-friendly technologies and processes into its operations, supporting a greener chemical industry.

Genomatica Inc. is a pioneer in the renewable chemicals sector, developing biotechnology solutions that enable clean manufacturing. They focus on converting plant-based materials into chemical products, reducing reliance on fossil fuels. Genomatica has successfully commercialized technologies for producing sustainable chemicals, such as biodegradable plastics and spandex, and is expanding its portfolio to include nylon and cleaning agents. Their innovative approach has attracted significant investment, allowing them to scale up production and advance new sustainable materials across various industries.

Mitsubishi Chemical Holdings Corporation is actively engaging in the renewable chemicals sector as part of its broader sustainability and environmental initiatives. The company’s commitment to reducing its carbon footprint includes leveraging its advanced materials technology to develop eco-friendly solutions, which align with its KAITEKI philosophy aiming for the sustainable well-being of people, society, and the planet. They are focused on enhancing the production and use of sustainable materials across various industries, including automotive, electronics, and pharmaceuticals, promoting a shift from traditional petrochemical products to more sustainable alternatives.

Mitsui Chemicals Inc. is at the forefront of innovation in the renewable chemicals sector, particularly in producing renewable plastics and chemicals from 100% bio-based hydrocarbons. In collaboration with Neste and Toyota Tsusho, Mitsui Chemicals has initiated Japan’s first industrial-scale production of such materials. This initiative leverages Neste’s renewable hydrocarbons derived from bio-based waste and residue oils, allowing Mitsui Chemicals to produce high-quality plastics and chemicals with significantly reduced greenhouse gas emissions. This endeavor aligns with Mitsui’s broader goals to achieve carbon neutrality and promote a circular economy by 2050.

NatureWorks LLC is a leader in the renewable chemicals sector, specializing in the production of Ingeo polylactic acid (PLA) biopolymers derived from renewable resources like sugarcane. They are known for their commitment to sustainability and innovation, with their products offering a low-carbon alternative to traditional petrochemical-based plastics. The company is expanding its global presence with a new manufacturing facility in Thailand, set to be the first fully integrated PLA site, aiming to support the growing demand for bioplastics. This expansion aligns with NatureWorks’ strategy to enhance supply capabilities while promoting environmentally responsible materials across various industries, including packaging and 3D printing.

Novamont S.p.A. is a leader in the renewable chemicals sector, focusing on the development of bioplastics and biochemicals. The Italian company leverages its expertise to promote a bioeconomy model, which emphasizes the efficient use of resources and territorial regeneration. Novamont is renowned for its Mater-Bi product line, a range of biodegradable and compostable bioplastics derived from renewable sources. These products aim to address specific environmental issues, enhancing ecosystem protection and advancing sustainable consumption. Through ongoing innovation and collaboration, Novamont continues to expand its influence and capabilities within the global green chemistry movement.

Novozymes is a prominent player in the renewable chemicals sector, leveraging its biotechnological expertise to enhance sustainability across various industries. The company has introduced innovations such as Quara LowP, an enzymatic solution that significantly improves the feedstock pre-treatment process for renewable diesel and sustainable aviation fuel production. This solution allows for the flexible processing of diverse feedstocks, enhancing efficiency, reducing operational costs, and minimizing environmental impacts. Novozymes’ efforts are not only focused on improving industrial processes but also on advancing global sustainability goals, making it a key contributor to the renewable chemicals industry.

OCI N.V. is actively expanding its presence in the renewable chemicals sector, particularly through significant projects in green methanol and blue ammonia production. The company is set to double its green methanol capacity in the U.S., utilizing a mix of renewable natural gas and green hydrogen, affirming its position as a leading producer globally. Additionally, OCI N.V. is constructing a large-scale blue ammonia facility in Texas, which will enhance its capabilities in low-carbon ammonia production, a critical component for clean energy applications. These initiatives highlight OCI N.V.’s strategic focus on reducing carbon emissions and supporting sustainable industry practices.

Solvay is actively engaged in the renewable chemicals sector, focusing on sustainable practices and the development of eco-friendly solutions. The company has formed a strategic partnership with Trillium Renewable Chemicals to develop a supply chain for bio-based acrylonitrile (bio-ACN), which is used in carbon fiber production, demonstrating its commitment to reducing reliance on petroleum-based feedstocks. This initiative aligns with Solvay’s broader environmental goals, which include significant investments in reducing greenhouse gas emissions and enhancing the sustainability of their operations globally.

Trucent plays a significant role in the renewable chemicals sector by manufacturing environmentally-friendly, plant-based chemicals derived from bio-based raw materials such as vegetable oils. Their offerings include a variety of oleochemicals, fatty acids, and specialty chemicals, which serve as sustainable alternatives to traditional petroleum-based products. Trucent’s approach emphasizes technical separation capabilities and innovative chemical research to support various industries, including personal care, animal feed, and industrial applications. Their commitment to green chemistry highlights their focus on reducing environmental impact while maintaining high performance in their products.

Conclusion

In conclusion, the renewable chemicals market is positioned for remarkable growth, driven by increasing global demand for sustainable and eco-friendly solutions across various industries. As the world shifts towards reducing carbon footprints and enhancing environmental sustainability, renewable chemicals play a pivotal role. The innovation in biopolymers, bio-based alcohols, and novel feedstocks, supported by advancements in technology and favorable government policies, is setting the stage for a transformative impact on industries ranging from packaging to automotive. With the Asia-Pacific region leading the charge due to its aggressive environmental policies and rapid industrialization, the future of renewable chemicals looks promising. This sector not only offers an opportunity to reduce reliance on fossil fuels but also aligns with global efforts to combat climate change and promote a circular economy. As such, renewable chemicals are not just an alternative but a necessity for a sustainable future in the global chemical market.

Sources:

• https://www.mckinsey.com/industries/chemicals/our-insights/sustainable-feedstocks-accelerating-recarbonization-in-chemicals
• https://www.sciencedirect.com/topics/earth-and-planetary-sciences/renewable-raw-material
• https://www.sciencedirect.com/science/article/pii/S0959652619304986
• https://legislature.maine.gov/statutes/36/title36sec5219-XX.html