Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Renewable Chemicals Market size was estimated at USD 128.5 billion in 2024 and is expected to surpass USD 481.5 billion by the end of 2037, rising at a CAGR of 10.7% during the forecast period, i.e., 2025-2037. In 2025, the industry size of renewable chemicals is assessed at USD 142.2 billion.
The renewable chemicals market is anticipated to expand due to the growing need for consumer goods packaging materials, green packaging materials, and ethanol and methanol. As these market chemicals are consistently produced and consumed in many parts of the world, there is a significant demand for them. For instance, the market for sustainable packaging, which was estimated to be worth over USD 270 billion in 2024, is expected to continue growing and reach USD 490 billion by 2034.
The need for the personal care sector has grown as a result of its expansion. Over the course of the forecast period, biosurfactants are anticipated to be used more frequently in coatings, paints, and varnishes. The market for renewable chemicals has grown faster due to the expansion of public infrastructure and the strengthening of the construction industry.
Renewable Chemicals Market: Growth Drivers and Challenges
Growth Drivers
- Developments in biodegradable substances: Eco-conscious chemistry also emphasizes biodegradable materials. The natural breakdown of these materials lessens the impact of trash disposal on the environment. Non-biodegradable materials were used in many industrial processes in the past, which increased pollution and the amount of waste that ended up in landfills. Biodegradable materials are becoming more popular in a variety of sectors, including packaging and pharmaceuticals.
In the industry, polylactic acid (PLA) is a biodegradable material causing a stir. Medical devices, textiles, and packaging are just a few of the many uses for PLA, which is made from renewable materials like corn starch. As it is biodegradable, it does not contribute to long-term environmental pollution, which makes it a crucial component of the sustainable chemical movement.
- The function of green catalysis in sustainable chemistry: A major topic in green chemistry, green catalysis seeks to allay these worries by creating catalysts that are safe for the environment and effective. Green catalysis can be achieved by the use of bio-catalysts, which are biological entities such as enzymes that aid in chemical reactions. Bio-catalysts eliminate the need for energy-intensive procedures and dangerous components since they are made from renewable resources and function in mild environments. Further improving the sustainability of chemical processes, bio-catalysts can be designed to be extremely selective, reducing the generation of undesirable byproducts.
- New developments in green solvents: Many chemical processes require solvents; however, conventional solvents can contain dangerous substances that are bad for the environment and people's health. By encouraging the use of ecologically friendly solvents made from renewable resources, eco-conscious chemistry is transforming this area of chemical manufacturing. The use of supercritical carbon dioxide as a green solvent is one such invention.
The fluid form of carbon dioxide, known as supercritical CO2, functions as a solvent at high temperatures and pressures. As it is non-flammable, non-toxic, and readily recyclable, it is a perfect substitute for conventional organic solvents. Applications for supercritical CO2 are numerous and include cleaning electronic components, decaffeinating coffee, and extracting natural compounds.
Challenges
- Huge capital investment: Growth and adoption of renewable chemicals may be hampered by the higher initial costs of building and technology investment, especially in places where there is potential but a lack of investors. A negative attitude toward renewables that potentially affects thousands of lives is a result of institutions in many areas viewing renewable chemical projects as dangerous due to the greater development costs. The renewable chemicals market expansion may be hampered by the setbacks and unforeseen effects.
- Fierce rivalry: Young businesses and startups are eager to take on difficulties and successfully execute renewable chemical projects, but it is very challenging to overcome the obstacles given by conventional or current energy sources due to the market power of the established competitors. Throughout the projection period, the renewable chemicals market growth rate for renewable chemicals may be challenged by such technological constraints and development roadblocks.
Renewable Chemicals Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
10.7% |
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Base Year Market Size (2024) |
USD 128.5 billion |
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Forecast Year Market Size (2037) |
USD 481.5 billion |
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Regional Scope |
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Renewable Chemicals Segmentation
Type (Alcohols, Biopolymers, Organic Acids, Ketones)
The alcohols segment is projected to gain about 39.9% renewable chemicals market share through 2037. Among other industries, the transportation, food and beverage, industrial, and medicinal sectors all make extensive use of alcohol. Due to their sustainability and skin-friendly qualities, consumers are gravitating toward cosmetics and personal care items made from bio-alcohols. The use of bioethanol as a gasoline additive to achieve a high engine compression ratio and thermal efficiency has grown dramatically.
Initiatives to reduce carbon emissions and increased passenger car sales both contribute to this segment's expansion. The energy and electricity industries have also seen a rise in the use of alcohol. The expansion of this market is aided by stricter environmental rules and growing public awareness of environmental issues.
Application (Petrochemical, Pharmaceutical, Packaging Products, Cleaning & Detergent products, Automotive, Others)
Based on the application, the petrochemical segment is likely to hold a 35.9% renewable chemicals market share by the end of 2037. The segment expansion has been driven by the chemical industry's explosive growth in China and India, which is a result of the growing demand for chemicals from a variety of end-use industries, including consumer products, food and beverage, pharmaceutical, and agriculture.
The use of renewable chemicals in the manufacture of plastics and resins greatly benefits this market, which reflects a considerable shift in traditional petrochemical processes toward sustainability.
Our in-depth analysis of the global renewable chemicals market includes the following segments:
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Type |
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Feedstock |
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Application |
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Customize this ReportRenewable Chemicals Industry - Regional Scope
Asia Pacific Market Analysis
Asia Pacific is expected to lead the renewable chemicals market with a share of 45.9% during the forecast period. The manufacture of ecologically friendly chemicals and products is being encouraged by the local governments. For instance, more over 75% of China's chemical exports are organic compounds, making them the country's top chemical export category. As a result, the items are in higher demand, which is driving the growth of the Asia Pacific market.
China's growing chemical industry, rising production of bio-polymers, and rising R&D expenditures are the main factors driving the country's need for bio-based chemicals. Based on initial projections, China's overall investment in research and experimental development (R&D) surpassed USD 49 billion in 2024, representing an 8.3 percent rise from the year before.
In India, due to a rising need for safe chemicals to support a range of production processes. The country’s ongoing problems with high environmental pollution, accelerating oil depletion, and rising greenhouse gas concerns will all have a favorable impact on market expansion. In 2023, India's GHG emissions increased by 6.1% to 4.2 GtCO₂e, a new high.
North America Market Analysis
North America renewable chemicals market is expected to experience a stable CAGR during the forecast period due to the stricter environmental laws and more customer awareness of sustainable goods. To encourage the creation and use of renewable chemicals, the government has put in place advantageous laws and incentives. Furthermore, the region's market expansion has been aided by substantial investments in research and development as well as the existence of a well-established bio-based chemicals sector.
Canada is a major contributor in North America as the growth of the food and beverage and e-commerce sectors. This raises the need for use of ketones and biopolymers in beverages and packaging. The product's increasing demand in Europe is linked to the expansion of the automotive sector. Regional expansion is being fueled by the growing use of ethylene glycol as an engine coolant due to its superior protection against corrosion, erosion, cavitation, freezing, and boil-over.
In the U.S., people are becoming more concerned about sustainability. The government is putting more effort into reducing greenhouse gases like carbon dioxide, methane, nitrous oxide, and others. Additionally, businesses like BASF SE, Genomatica, and Biosynthetic Technologies are pursuing a range of expansion strategies, including mergers and acquisitions, strategic partnerships, collaboration, and the creation of manufacturing facilities, to enhance their market share in the renewable chemical industry.
Companies Dominating the Renewable Chemicals Market
- BASF
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Corbion N.V.
- Genomatica
- Metabolix Inc.
- Godavari Biorefineries Limited
- Braskem
- BioMCN
- NatureWorks LLC
- Trillium Renewable Chemicals
- DuPont Tate & Lyle Bio Products
- Cobalt Technologies
The renewable chemicals market will continue to grow as a result of major players in the industry making significant R&D investments to broaden their product ranges. Important market developments include new product releases, contractual agreements, mergers and acquisitions, increased investments, and cooperation with other organizations. Market participants are also engaging in a variety of strategic initiatives to broaden their presence. To grow and thrive in a more competitive and growing market environment, the renewable chemicals sector needs to provide affordable products.
Here are some leading players in the renewable chemicals market:
In the News
- In December 2024, Godavari Biorefineries Limited, a leader in biofuels and renewable chemicals, announced an investment in corn-based ethanol. As part of its ongoing activities, the business intends to invest about USD 15.3 million in a new 200 KLPD distillery based on corn and grains, increasing flexibility through dual-feedstock capability to enhance its capacity to produce ethanol. The business's operational strength and emphasis on sustainable growth were demonstrated in H1FY25, when it announced a 25% year-over-year rise in revenue growth.
- In June 2024, Trillium Renewable Chemicals announced that INEOS Nitriles' Green Lake facility in Port Lavaca, Texas, has been chosen to launch the first demonstration plant in history for the conversion of plant-based glycerol into acrylonitrile. The plant under demonstration is called Project Falcon.
Author Credits: Rajrani Baghel
- Report ID: 7654
- Published Date: May 12, 2025
- Report Format: PDF, PPT
