Global Renewable Chemicals Market to Reach $115.6 Billion by 2024

Renewable chemicals are chemicals produced from renewable feedstocks such as crop waste, animal waste, forestry waste, municipal waste, household waste, horticultural waste, and agricultural waste. Bio feedstocks such as starch, cellulose, oil, fat, protein and lignin are used for manufacturing renewable chemicals. Biochemical, physical and chemical processes are used for converting renewable resources such as starch from potatoes and cereals, cellulose from wood and straw, and oils from oilseed crops, into specialty chemicals, surfactants, solvents, lubricants and polymers. Amid the COVID-19 crisis, Global Renewable Chemicals market is projected reach US$115.6 Billion by 2024, registering a compounded annual growth rate (CAGR) of 10.4% over the analysis period. Europe represents the largest regional market for Renewable Chemicals, accounting for an estimated 33.0% share of the global total. The market is projected to reach US$38.5 Billion by the close of the analysis period. China is expected to spearhead growth and emerge as the fastest growing regional market with a CAGR of 14.2% over the analysis period.

With increasing commercial as well as scientific interest in developing chemicals from renewable feedstock, efforts are underway to develop new and innovative technologies and platforms for converting green carbon feedstock into bio-based chemicals, which are used as intermediate and platform chemicals in the production of other chemicals and as base chemicals in several industrial manufacturing processes. Advancements in industrial biotechnology enable renewable polymers and bio-based chemicals to be competitive with petroleum-based polymers in terms of performance, cost, and other additional benefits such as ability to reduce greenhouse gas (GHG) emissions. In addition, renewable chemicals assist the chemical industry in garnering economic benefits and move away from price volatility associated with crude oil used in the production of traditional, petroleum-based chemicals.

Product quality, scale of operation, product performance and economic viability play a significant role in shaping the commercialization spectrum of the market. Renewable chemicals are growing in popularity worldwide as a result of rapidly depleting conventional fuel resources, spiraling fuel/petroleum prices, increasing customer demand for eco-friendly products, increasing focus on environmental pollution and stringent emission norms/environmental regulations. Other factors responsible for driving interest in renewable chemicals are abundance of biomass and renewable feedstock, increasing government focus on reducing dependence on foreign oil and achieving self-sufficiency, international pressure to reduce greenhouse gas emissions and carbon footprint, and the desire to reduce dependency on non-renewable petroleum products through renewable sourcing. Volatile petroleum product prices, and lack of supply security due to unstable political environment in leading oil producing nations are also contributing to the increasing popularity of renewable chemicals, worldwide.