COVID-19 IMPACT SURVEY MAY 2020
The global Renewable Chemicals market is projected to reach US$125. 6billion by 2025, driven by rising concerns over the growing carbon footprint of chemicals right from production to its use in downstream applications. Global warming and climate change are stepping up the urgency in migrating towards healthier, greener, and cleaner products. The many disadvantages of traditional petrochemicals driving interest in renewable chemicals include major role in contributing towards environmental pollution; resource limitations; and generation of toxic byproducts and effluents. As the circular economy becomes the new normal, renewable chemicals will become mainstream feedstock`s in production activities. The circular economy flaunts the potential to create over US$5. 6 trillion worth of new opportunities for eco-friendly technologies among which renewable chemicals stands strong. Ozone depleting use of chemicals such as CFCs are already being phased out as the focus shifts to biosphere integrity. The circular transition impacts all industries and the use of renewable chemicals will expand far and wide across the manufacturing space. The market stands to benefit from technology innovations such as development of new renewable chemical platforms; evolving supply chains to support demand for alternative feedstock`s; innovation in production processes; continuous scaling up of commercial production; and increased research and development interest in green chemistry. Biomass is currently a rich renewable source for developing eco-friendly chemicals for industrial applications. Pyrolysis is an emerging technology that promises commercial level success in converting biomass into bio-oil, char and gases. While alcohols have been the major product segment that has achieved tremendous success over the years, other renewables such as polymers are growing in prominence in recent years.
Demand for renewable chemicals in the polymers segment is growing rapidly primarily driven by growing applications of bio-polymers in the production of biodegradable and compostable plastics and in various consumer goods such as laptops and cell phones. Thanks to increasing fossil fuel feedstock prices, chemical commodities including platform chemicals, such as itaconic acid and succinic acid, intermediates and polymers have emerged as economically viable options for producing renewable chemicals. Other noteworthy trends in the market include expanding role of renewable chemicals in consumer products as a result of the unprecedented popularity of organic and natural products; steadily growing market for bio-based chemicals and the promise it brings in cost reductions via economies of scale as manufacturers scale up production capacities to meet projected demand; focus on sustainable textile manufacturing and strong consumer demand for organic fibers and the ensuing adoption of renewable chemicals in the textile industry; biotechnological improvements in the production of bio-based succinic acid production; development of bio-isoprene to replace the use of traditional isoprene in tire and rubber production. Flaunting the world`s highest environmental standards, Europe represents the largest market worldwide. Asia-Pacific ranks including China is a major market led by factors such as rising governmental support for renewable chemicals, abundant biomass availability at low costs; growing pressure on developing markets to meet climate change goals and the resulting policy led support for promoting a sustainable environmental framework for renewable.