by Renewable chemicals are environment friendly chemicals produced from biomass sources like agricultural raw materials through fermentation processes. They are used as an alternative to petroleum-based chemicals in various industries like automotive, construction, textiles etc. Some key renewable chemicals include ethanol,butanol,succinic acid,lactic acid,levulinic acid etc. Renewable chemicals not only provide environmental benefits by reducing dependence on fossil fuels but also have performance properties comparable or superior to conventional petrochemicals. They enhance product safety, sustainability and biodegradability in end products. Rapid industrialization and stringent regulations promoting green production is fueling the demand for renewable chemicals globally.
The global Renewable Chemicals Market is estimated to be valued at US$ 13.98 Bn or Mn in 2023 and is expected to exhibit a CAGR of 19. % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The key trend in the renewable chemicals market is growing focus on bio-based production processes by major companies. Companies are heavily investing in R&D initiatives to develop innovative bio-refining technologies for commercial scale production of various renewable chemicals from biomass feedstock. For example, BASF has developed a process to produce butanediol from sugars utilizing genetically engineered E.coli bacteria. Similarly, Corbion has developed a patented bio-based lactic acid production process from glucose. Additionally, governments across regions are supporting the market through incentives and subsidies. For instance, US Department of Energy provides funding support through grants and loan guarantees for renewable chemicals production plants. Stringent eco-labeling norms also compel manufacturers to adopt bio-based chemicals in formulations.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as renewable chemicals have high barriers to entry including high capital investment, established customer base of existing players and strong branding.
Bargaining power of buyers: The bargaining power of buyers is high due to presence of large number of established players providing diverse product portfolio giving buyers options to switch.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitute raw materials and dependency of suppliers on few large buyers.
Threat of new substitutes: Threat of substitutes is high with advancement in technology new sustainable alternatives for chemicals are being developed steadily increasing pressure.
Competitive rivalry: Intense competition exists among existing players to gain market share.
Key Takeaways
The global renewable chemicals market is expected to witness high growth, exhibiting CAGR of 19% over the forecast period, due to increasing government support and regulations towards cleaner and greener technologies.
Regional analysis: Asia Pacific dominates the global renewable chemicals market and is estimated to grow at the fastest rate during the forecast period owing to rapid industrialization and growing awareness regarding sustainability in the region. China and India are the major markets in the Asia Pacific region.
Key players operating in the renewable chemicals market are BASF SE (Germany), Mitsubishi Chemical Holdings Corporation (Japan), DAIKIN (Japan), 3M (U.S.), Braskem (Brazil), Corbion N.V. (Netherlands), NatureWorks LLC (U.S.), Amyris (U.S.), OCI N.V. (Netherlands), Solvay (Belgium), DSM (Netherlands), Genomatica Inc., (U.S.), Cobalt Technology, LLC. (U.S.), Elevance (U.S.), Evonik Industries AG (Germany), DuPont (U.S.), Novamont S.p.A. (Italy), Novozymes (Denmark), AVERY DENNISON CORPORATION (U.S.), Mitsui Chemicals Inc. (Japan). Key players are focusing on product development and expansion to strengthen their market position.
