The global renewable chemicals market is projected to grow from USD 66.7 Billion in 2020 to USD 169.4 Billion in 2028 at a CAGR of 12.1% in forecast period
Renewable Chemicals Market
The global Renewable Chemicals market accounted for USD 66.7 Billion in 2020 and is expected to reach USD 169.4 Billion by 2028, growing at a CAGR of around 12.1% between 2021 and 2028.
Renewable chemicals or bio-based chemicals consist of various chemicals which are obtain from renewable sources such as agricultural feedstock, organic waste products, agricultural waste, biomass, and microorganisms. These chemicals are used in surfactants and lubricants, resins, consumer goods, and plastics for environmental purposes. Key players across renewable chemicals market are focusing aggressively on innovation, as well as on including advanced technologies in their existing products. Over the coming years, they are also expected to take up partnerships and mergers and acquisitions as their key growth strategy across renewable chemicals market, states the renewable chemicals market study.
Citing an instance, in August 2018, Ryze Renewables, a manufacturer of renewable fuels based in the U.S., entered into partnership with Phillips 66 Company, a U.S. based multinational energy firm, to construct two next-gen renewable diesel fuel units in Nevada. Sources cite that the two renewable diesel fuel manufacturing facilities are projected to produce 11,000 barrels quantity of renewable diesel fuel per day. Analysts forecast that the strategic initiative will encourage other industry participants to follow the suit and this is likely to promote the renewable chemicals market demand in the next few years.
The global Renewable Chemicals market has witnessed a significant decline during the pandemic. This is mainly attributed to the fact that the COVID-19 pandemic situation has led to reduced demand for chemicals is across end-markets.
The restrictions imposed by various nations to contain COVID had stopped the production resulting in a disruption across the whole supply chain. However, the global markets are slowly opening to their full potential and theirs a surge in demand. The market would remain bullish in upcoming year. The significant decrease in the global renewable chemicals market size in 2020 is estimated on the basis of the COVID-19 outbreak and its negative impact on the economies and industries across the globe. Various scenarios have been analyzed on the basis of inputs from various secondary sources and the current data available about the situation.
Massive depletion of sources of fossil fuels and growing environmental damage along with oscillations witnessed in crude oil costs will anchor the lucrative growth for renewable chemicals market over the coming years. Apart from this, favorable government policies and high product applications in various sectors such as food & beverages, farming, textiles, and biomedicine will foster the growth of renewable chemicals market in the ensuing years.
Lower output and lack of technological innovations, however, can hinder the growth of renewable chemicals market over the years to come. Nevertheless, extensive R&D activities for achieving higher output along with devising of cost-effective methods of producing renewable energy chemicals is anticipated to accelerate the renewable chemicals market development in the years ahead, normalizing the impact of hindrances on the renewable chemicals market.
The main products available in renewable chemicals market are alcohols, ketones, biopolymers, platform chemicals, and organic acids. Among them, the demand for alcohol is relatively higher and the trend is anticipated to remain so over the next few years. However, biopolymers segment is projected to witness highest growth rate during the forecast period growth of the segment is mainly attributed to growing demand for the product in the automotive and packaging sectors.
Regionally, Europe has been leading the worldwide renewable chemicals market and is anticipated to continue on the dominant position in the years to come, states the renewable chemicals market study. Escalated concerns about environmental pollution along with the sense of corporate responsibility prevailing among the manufacturers leading them to produce renewable chemicals based products is the main factor behind the dominance of the Europe renewable chemicals market. The high number of market players being headquartered in Europe is another significant factor that is supporting the growth of renewable chemicals market across the region.
Key Market Players & Competitive Landscape
Some of the major players of the global Renewable Chemicals market include Corbion N.V., Mitsubishi Chemical Corporation, Myriant Corporation, Genomatica, Metabolix Inc., BASF, Braskem, BioMCN, NatureWorks LLC, DuPont Tate & Lyle Bio Products, Cobalt Technologies and BioAmber among others.
The global Renewable Chemicals Market was valued at USD 66.7 Billion in 2020.
The global Renewable Chemicals Market is expected to reach USD 169.4 Billion by 2028, growing at a CAGR of 12.1% between 2021 to 2028.
Some of the key factors driving the global Renewable Chemicals Market growth are massive depletion of sources of fossil fuels and growing environmental damage.
Europe has been leading the worldwide renewable chemicals market and is anticipated to continue on the dominant position in the years to come.
Some of the major players of global Renewable Chemicals market Corbion N.V., Mitsubishi Chemical Corporation, Myriant Corporation, Genomatica, Metabolix Inc., BASF, Braskem, BioMCN, NatureWorks LLC, DuPont Tate & Lyle Bio Products, Cobalt Technologies and BioAmber among others.