How Has the Renewable Chemicals Market Grown and What Is Its Future Growth Outlook?
The renewable chemicals market has seen considerable growth in recent years, expanding from $117.68 billion in 2024 to an expected $131.73 billion in 2025 at a compound annual growth rate (CAGR) of 11.9%. Prominent reasons for this surge include escalating environmental concerns, rising consumer demand for sustainable products, fluctuating petrochemical prices, government support and incentives, and an increase in corporate sustainability initiatives. Furthermore, growing consumer awareness and education have played a crucial role in driving the market’s growth during this historic period.
Future projections indicate further growth for the renewable chemicals market, which is set to reach $222.61 billion in 2029, with a CAGR of 14.0%. This expected increase is attributed to the emergence of bio-based aviation fuels, wider adoption of renewable solvents, increasing investments in renewable chemical projects, a focus on sustainable agriculture practices, and the development of advanced bio-based materials. Major trends that are forecasted to shape the market include a shift towards bio-based feedstocks, biofuel co-production, advanced bioconversion technologies, the expansion of renewable platform chemicals, collaborations and partnerships, market expansion in Asia-Pacific, and the emergence of renewable lubricants and additives.
What Are The Major Catalysts for The Renewable Chemicals Market?
An uptick in demand from the automotive industry is poised to propel the growth of the renewable chemicals market. The production of automobiles has increasingly incorporated biopolymers from renewable sources, engineered specifically for automotive applications. For instance, May 2022 data from the Society of Indian Automobile Manufacturers indicated a rise in automobile production over the past two years, with overall production increasing from 22,655,609 units in 2020–21 to 22,933,230 units in 2021–22. A similar trend was observed in China, as per a report by the China Association of Automobile Manufacturers, with automobile sales growing to 27.5 million in 2022, a 5.4% increase. Therefore, this upturn in demand from the automobile industry is positively impacting the growth of the renewable chemicals market.
What Are the Main Segments Within the Renewable Chemicals Market?
• Product Type: Ethanol, Ketones, Biopolymers, Platform Chemicals, Other Product Types
• Feedstocks: Biomass, Corn, Sugarcane, Algae, Other Feedstocks
• End-Use: Automotive, Medical, Food And Beverages, Petrochemicals, Textiles, Agriculture, Other End Uses
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 Are the Emerging Trends in the Renewable Chemicals Market?
Product innovation is a noteworthy trend in the renewable chemicals market. Companies are making technological strides to bolster their market position. An example is Germany-based specialty chemicals company Evonik Industries. In March 2022, the company launched sustainable isophorone products derived entirely from renewable acetone. These products significantly reduce CO2 footprint across all stages of production. The VESTA eCO Grades product range is designed for use as sustainable raw materials for paints, lacquers, binders, and automotive interiors, representing a significant step forward in the renewable chemicals market.
Which Region Is Booming in the Renewable Chemicals Market?
North America was the largest region in the renewable chemicals market in 2024, whereas Europe is expected to be the fastest-growing region. Other regions covered include Asia-Pacific, Western Europe, Eastern Europe, South America, Middle East, and Africa.
What Is The Renewable Chemicals Market?
Renewable chemicals are substances derived from renewable resources such as biomass, microorganisms, agricultural waste, agricultural feedstock, and organic waste products. These chemicals, often used as direct replacements for traditional petro-based compounds, have a smaller carbon footprint. These insights, along with global market size, growth rate, regional shares, detailed segments, and opportunities, are all offered in the Renewable Chemicals Market research report from The Business Research Company.
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