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2025 Renewable Chemicals Industry Trends Report: Long-Term Outlook Through 2034
Stay ahead with our updated market reports featuring the latest on tariffs, trade flows, and supply chain transformations.How Large Will the Renewable Chemicals Market Size By 2025?
Over the past few years, there has been a rapid expansion in the size of the renewable chemicals market. The market is predicted to expand from $117.68 billion in 2024 to $131.73 billion in 2025 at a Compound Annual Growth Rate (CAGR) of 11.9%. This significant growth observed in the historic period can be accredited to factors such as heightened environmental concerns, an upsurge in customer demand for sustainable products, volatile petrochemical prices, governmental support and incentives, enhanced corporate sustainability initiatives, and heightened consumer awareness and education.
How Big Is the Renewable Chemicals Market Size Expected to Grow by 2029?
Anticipated to witness swift expansion in the forthcoming years, the renewable chemicals market is projected to hit the $222.61 billion mark in 2029, exhibiting a compound annual growth rate (CAGR) of 14.0%. The surge during this forecast period could be credited to the introduction of bio-based aviation fuels, extensive utilization of renewable solvents, notable upsurge in investments dedicated to renewable chemical ventures, emphasis on eco-friendly agriculture methodologies, and creation of sophisticated bio-based materials. The forecast period will also see key trends such as a growing shift towards bio-based feedstocks, co-production of biofuels, breakthroughs in advanced bioconversion technologies, an enlarged scope for renewable platform chemicals, joint ventures and partnerships. The market is also expected to flourish in the Asia-Pacific region and see the rise of renewable lubricants and additives.
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Which Key Market Drivers Powering Renewable Chemicals Market Expansion and Growth?
The surge in need from the auto industry is anticipated to bolster the renewable chemicals market's expansion. Biopolymers derived from renewable resources are utilized in automobile manufacturing designed specifically for automotive uses. For example, data from May 2022 by the Society of Indian Automobile Manufacturers (SIAM), a non-profit organization based in India that represents automobile manufacturers, revealed an escalation in automobile production in the past two years, with total production rising from 22,655,609 units in 2020-21 to 22,933,230 units in 2021-22. A report from May 2022 by the China Association of Automobile Manufacturers, a non-profit social organization based in China, recorded an increase in automobile sales to 27.5 million in 2022, marking a 5.4% hike. Hence, the escalating demand in the automobile sector is fuelling the advancement of the renewable chemicals market.
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Which Fast-Growing Trends Are Poised to Disrupt the Renewable Chemicals Market?
Product innovation is becoming an increasingly prevalent trend in the renewable chemicals market. Companies majorly involved in this market are prioritizing technological advancements to solidify their market standing. For example, Evonik Industries, a Germany-based specialty chemicals company, launched sustainable isophorone products in March 2022, which are made entirely from renewable acetone. These products have considerably less CO2 footprint at every stage and they are part of the new range, VESTA eCO Grades. They are intended to serve as sustainable raw materials for paints, lacquers, binders, and auto industry interiors. This innovative product development marks further progress in the renewable chemicals market.
What Are the Emerging Segments in the Renewable Chemicals Market?
The renewable chemicals market covered in this report is segmented -
1) By Product Type: Ethanol, ket*ones, Biopolymers, Platform Chemicals, Other Product Types
2) By Feedstocks: Biomass, Corn, Sugarcane, Algae, Other Feedstocks
3) By End-Use: Automotive, Medical, Food And Beverages, Petrochemicals, Textiles, Agriculture, Other End-Uses
Subsegments:
1) By Ethanol: Bioethanol, Cellulosic Ethanol
2) By ket*ones: Acetone, Methyl Ethyl ket*one (MEK), Other ket*ones
3) By Biopolymers: Polylactic Acid (PLA), Polyhydroxyalkanoates (PHA), Starch-Based Polymers, Other Biopolymers
4) By Platform Chemicals: Furfural, Levulinic Acid, Succinic Acid, Other Platform Chemicals
5) By Other Product Types: Glycerol, Lactic Acid, Other Renewable Chemicals
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Who Are the Global Leaders in the Renewable Chemicals Market?
Major companies operating in the renewable chemicals market are Archer-Daniels-Midland Company, Amyris Inc., BASF SE, Bioamber Inc., Biomethanol Chemie Nederland BV, Corbion NV, Metabolix Inc., Genomatica Inc., NatureWorks LLC, Novozymes A/S, Evonik Industries AG, Cargill Inc., Myriant Corporation, Mitsubishi Chemical Corporation, Koninklijke DSM NV, Cobalt Technologies Ltd., Solazyme Inc., Elevance Renewable Sciences Inc., Gevo Inc., Avantium Technologies BV, Virent Inc., Anellotech Inc., Verdezyne Inc., Rennovia Inc., Terravia Holdings Inc., American Process Inc., Clariant AG, Global Bioenergies SA, Kiverdi Inc., LanzaTech Inc.
Which are the Top Profitable Regional Markets for the Renewable Chemicals Industry?
North America was the largest region in the renewable chemicals market in 2024. Europe is expected to be the fastest-growing region in the renewable chemicals market report during the forecast period. The regions covered in the renewable chemicals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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