Renewable Chemicals Market Advances: Improving Metal

Renewable chemicals are chemical products produced from biomass which includes vegetable oils and animal fats. Key applications of renewable chemicals include production of bio-plastics such as polylactic acid (PLA) and polyhydroxyalkanoates (PHA), bio-lubricants, bio-solvents and other green chemicals. Increasing demand from packaging, automotive, construction and other end-use industries is driving the growth of renewable chemicals market. Market Dynamic The renewable chemicals market is estimated to be valued at US$ 13.98 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.

The renewable chemicals market is driven by growing demand for sustainable and environment friendly products from end users. Stringent government regulations regarding use of petrochemical-based plastics is further fueling the demand for bio-based and biodegradable chemicals. Second major driver is increasing R&D investments by key players in development of innovative biochemicals using agriculture residues, municipal solid waste and other organic waste. For instance, research is ongoing for production of bio-based nylon and polyethylene furanoate (PEF) using renewable feedstock. SWOT Analysis Strength: Renewable chemicals market has strong growth prospects due to growing environmental concerns. The renewable chemicals are eco-friendly and help reduce dependence on petroleum. Many major companies are investing in R&D to develop new renewable chemical products. Weakness: High initial costs associated with setting up production facilities for renewable chemicals. Dependency on availability of raw materials which are agricultural in nature involves supply chain risks. Opportunity: Stringent government regulations regarding use of fossil fuels and plastics provide major growth opportunities. Rising consumer preference for green and sustainable products also offers opportunities for market expansion. Threats: Technology challenges in commercial production of some renewable chemicals. Potential supply issues due to changes in agricultural harvests and climatic conditions pose threats. Key Takeaways The global renewable chemicals market is expected to witness high growth, exhibiting CAGR of 19.% over the forecast period, due to increasing consumer awareness about green chemicals and stringent government regulations against petrochemical products. Regional analysis Asia Pacific dominates the renewable chemicals market and is expected to maintain its lead throughout the forecast period. This is attributed to large production capacities and high consumption in countries like China, Japan, and India. North America is projected to grow at a substantial rate during 2023-2030 due to shifting consumer preferences towards sustainable chemicals in countries like the US and Canada. Key players 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.