The global renewable chemical market is anticipated to grow at a significant CAGR of 9.8% during the forecast period (2021-2027). The growing demand for green chemicals to suppress the carbon emission is a key factor driving the growth of the global renewable chemical market. Renewable chemical have lower carbon footprint compared to conventional petro-based chemicals. In January 2021, the US Congress has enacted sustainable chemistry legislation in the US. This legislation is anticipated to promote federal agencies to incorporate green chemistry requirements into grants they offer to academic researchers. This legislation will increase innovation, coordination, and investment in green and sustainable chemistry. Such type of cohesive government endeavour to promote green chemistry is anticipated to drive the growth of the global renewable chemical market. 

In March 2021, the University of Bath has become the first UK University to sign the Green Chemistry Commitment. The Green Chemistry Commitment (GCC) is a global initiative to transform chemistry education by preparing chemistry students with a better understanding of green chemistry, developing innovative, environmentally-sound solutions to chemical products and processes. The rising participation of major universities in green chemistry projects is anticipated to offer lucrative opportunities for the advancement in green chemicals; which in turn will drive the growth of the green chemical market. The high cost of renewable chemical as compared to petro-based chemicals is a key factor that may hinder the growth of the renewable chemical market.

Impact of COVID-19 pandemic 

The outbreak of the COVID-19 pandemic is expected to make negative impact on the renewable chemical market growth in 2020 and subsequent years. The major factors that will possibly impact the market growth include the postponement of the ongoing projects across every industry such as buildings and construction and marine. A slowdown in the chemical production practices with the outbreak of COVID-19 has been disrupting the global trade. The whole value chain ranging from raw material supply and manufacturing to marketing of renewable chemical, has been affected by the COVID-19 pandemic. Moreover, the disruptions in the supply chain due to the practice of social distancing, in turn, will considerably impact the market growth in 2020 and subsequent years. 

Segmental Outlook 

The report on global renewable chemical market covers segments including product type, and application. Based on product type, the market is segmented into alcohols, organic acids, ketones, platform chemicals, biopolymers, and others (Bio-based 1,3-PDO, ECH, and 1,4-BDO). Based on application, the market is segmented into individual, and enterprise. Based on application, the market is segmented into transportation, textiles, food safety, housing, bio-medical, agriculture, and other applications. 

Global Renewable Chemical Market Share by Product Type, 2020 (%)

Alcohol held the significant share in the Market

Based on product type, alcohol held considerable market share in 2020. The high adoption of alcohol in several end-user industry such as food & beverage, pharmaceutical, and automobile industry owing to its offered benefits is a key factor driving the growth of this market segment.

Regional Outlooks

The global renewable chemical market is further segmented based on geography including North America, Europe, Asia-Pacific, and the Rest of the World. Europe held considerable share in the renewable chemical market in 2020. According to the European Chemical Chemistry Council (CEFIC), the chemical industry of Europe is among the largest manufacturing sectors; it is the second-largest producer of the chemicals across the globe. The well-established chemical industry, need for sustainable development & high demand for chemicals from end-user industries such as automobile, food industry, and textile industry among others are some of the key factors driving the growth of the regional market. 

Global Renewable chemical Market Growth, by Region 2021-2027

Asia-Pacific is projected to have considerable share in the global renewable chemical market

Asia-Pacific is anticipated to exhibit considerable growth in the global renewable chemical market. The increasing penetration of green chemical companies across the region is driving the growth of the regional market. In Asia-Pacific, China is anticipated to hold major market share during the forecast period. China is one of the key player in the global chemical industry owing to the easy access to raw material & cheap labor. The rising interest of chemical manufacturers in the country towards the potential of the renewable chemicals to gain huge market share is anticipated to offer immense opportunity to the growth of the regional market.   

Market Players Outlook

The global renewable chemical market is at its growing phase. Hence, is composed on only limit number of local and global manufacturers. Some of the key players operating in the global renewable chemical market include Solvay SA, Amyris Inc., BASF SE, Bioamber Inc., Braskem SA, Cargill Inc., Evonik Industries AG, and so on. These players are focusing on development of new & innovative green chemicals suitable for multiple applications. Moreover, these players are also adopting different growth strategies such as mergers & acquisition, strategic partnership, collaboration, and production facility expansion to expand their market share in the global renewable chemical market. 

Recent Development

• In July 2020, Praj Industries Ltd. an Indian process and project engineering company announced to foray into developing technologies to produce bio-based renewable chemicals and materials (RCM). Through RCM, the company has launched a new portfolio called Bio-Prism which comprises variety of bio-industrial products including bio plastics as a priority along with cellulose-lignin refinery products and specialty products. These products will be having their application in automotive, packaging, furnishing, construction, agriculture, and food sectors.

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global renewable chemical market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.