Sustainable Chemical Feedstocks Market to Reach USD 58,263 Million by 2031 Top 10 Company Globally

Sustainable chemical feedstocks are nonfossil, lower-carbon raw materials derived from renewable biomass, recycled waste, captured CO2, or other circular sources used to manufacture chemicals and materials. These feedstocks comprising biobased sugars, oils, lignocellulosic biomass, CO2 conversion, and recycled plastics are increasingly replacing petrochemical inputs in chemicals, polymers, pharmaceuticals, energy, and consumer goods. Their adoption reflects growing regulatory, ESG, and consumer pressures for decarbonized supply chains and circular economy alignment.

In 2024, the global sustainable chemical feedstocks market was valued at approximately USD 25,359 million. Unit volumes defined in feedstock equivalent tons (e.g. biomass, waste oil, CO2 derivatives) are roughly 45 million tons, with an average selling price (ASP) of around USD 560 per ton. Over the 2024-2031 period, the market is projected to grow at a robust 12.7% CAGR, reaching USD 58,263 million by 2031. This growth significantly outpaces broader chemical industry growth and reflects major global investment in renewable feedstock pathways.
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Latest Trends and Technological Developments
On February 2025, oil refiners including in India are increasingly blending renewable feedstocks, like used cooking oil and biomass residues, to produce cleaner fuels. This has heightened demand for catalysts and additives capable of processing bio-based feedstocks. Then on May 2025, major Asian petrochemical producers in China, South Korea, and Thailand began modifying crackers to run at up to 90% ethane feedstock reflecting broader feedstock flexibility trends toward lower-carbon sources like bio or shale-derived ethane

Asia-Pacific is the largest regional market for sustainable chemical feedstocks, accounting for approximately 50-55% of global value in 2024 (~USD 12.7-14 billion). The region's biorefinery capacity was valued at USD 25.1 billion in 2024 and is expected to grow at around 7.7% CAGR to 2031. Drivers include abundant biomass supply (sugarcane, rice husk, palm residue), supportive government policies, and rapid expansion in biofuels and green chemical capacity across China, India, Southeast Asia, and Australasia. Companies such as BASF, LanzaTech, Neste, Dow, Clariant, Gevo, and LyondellBasell are scaling sustainable feedstock initiatives across the region.

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Sustainable Chemical Feedstocks by Type:
Bio Based Feedstock

Recycled Feedstock

Carbon Capture and Utilization

Others

Sustainable Chemical Feedstocks by Application:
Chemicals and Petrochemicals

Pharmaceuticals

Energy

Paper and Pulp

Others

Global Top 10 Key Companies in the Sustainable Chemical Feedstocks Market
LanzaTech Global Inc.

BASF SE

Neste Corporation

LyondellBasell Industries N.V.

Dow Inc

Clariant AG

Avantium N.V.

Gevo, Inc.

Novamont S.p.A.

Cathay Biotech Inc.

Regional Insights
Southeast Asia including Malaysia, Indonesia, Thailand, Vietnam, and the Philippines is emerging as a strategic frontier in feedstock sourcing, particularly via palm oil residual biomass, used cooking oil (UCO), and rice husk feedstocks. Recent industry forums highlighted the region's potential to produce up to 500 million metric tons of palmbased residues annually for use in sustainable aviation fuel and chemicals. While this region's share of feedstock value was modest (~USD 1.5-2 billion in 2024), growth is accelerating with estimated 12-14% CAGR, driven by biofuel mandates, petrochemical diversification, and circular feedstock agreements.

Sustainable Chemical Feedstocks by Region:
North America
Europe
China
Japan
India
South East Asia

The greatest obstacles include high production and conversion costs for bio-based feedstocks, limited collection infrastructure for agricultural residue or UCO, and inconsistent regulatory frameworks across countries. Chemical refiners face technical integration issues when blending biomass-derived streams with conventional ethylene or propylene feed systems, as well as evolving tariffs and policy uncertainties. The chemical industry also grapples with slow decarbonization; only a few major producers have credible credible plans for carbon neutrality by 2050, and clean feedstock substitution remains nascent in many markets.
Players should prioritize integrated supply chains from biomass sourcing and collection to conversion and distribution in regions with abundant agricultural residues. Partnerships with palm processors, refineries, or utility firms in Southeast Asia can deepen feedstock access. Investing in flexible cracker configurations (ethane, biomass, CO2 capture) will future-proof capacity. Key strategies include building local biorefinery hubs, securing feedstock offtake agreements, promoting renewable fuel mandates, and collaborating with regional policymakers on sustainability certification and carbon credit frameworks.

Product Models
Sustainable chemical feedstocks are alternative raw materials used in chemical manufacturing that reduce dependence on fossil fuels and minimize environmental impact. These feedstocks are central to creating greener, circular production systems across industries like plastics, fuels, textiles, and pharmaceuticals.
Bio-Based Feedstocks derived from renewable biomass like plants or algae. Notable products include:
Braskem I'm Green Bio-based Polyethylene: Produced from sugarcane ethanol, used for packaging and plastic products with reduced carbon footprint.
Neste RE: 100% renewable and bio-based feedstock used in polymers and chemicals, derived from waste and residue oils.
TotalEnergies Corbion Luminy® PLA: Bio-based polylactic acid resin made from sugar beets and corn, used in biodegradable plastics.
BASF Ecoflex®: Compostable and bio-based feedstock for flexible packaging applications.
DSM Arnitel® Eco: Thermoplastic copolyester elastomer made partly from bio-based rapeseed oil.
Recycled Feedstocks sourced from post-consumer or post-industrial waste streams. Examples include:
Eastman Naia Renew: Feedstock-recycled cellulosic fiber made from post-consumer textile waste.
BASF ChemCycling: Chemical recycling of mixed plastic waste into new virgin-quality feedstocks for plastics.
LyondellBasell CirculenRecover: Mechanical recycling feedstock used in caps, bottles, and automotive applications.
Dow PCR-Based Polyethylene: High-quality recycled polyethylene feedstock for film and flexible packaging.
Loop Industries PET Monomers: Produces purified terephthalic acid (PTA) and monoethylene glycol (MEG) from PET plastic waste.
Carbon Capture and Utilization Feedstocks which transform captured CO2 into valuable chemicals or fuels. Products examples include:
Covestro Cardyon®: Polyols made by reacting captured CO2 with epoxides, used in flexible polyurethane foams.
LanzaTech CarbonSmartTM Ethanol: Ethanol made from captured industrial CO2 emissions, used in fuels and consumer goods.
Twelve CO2Made® CO Feedstock: Converts CO2 into carbon monoxide as a feedstock for jet fuel and chemicals.
SkyNano Nanotube Feedstock: Produces carbon nanotubes directly from CO2, used in electronics and materials.
Carbon Recycling International Emissions-to-Liquids®: Converts CO2 and hydrogen into methanol feedstock for plastics and solvents.
Sustainable chemical feedstocks represent a rapidly growing niche valued at USD 25,359 million in 2024 and forecast to exceed USD 58,263 million by 2031 at a 12.7% CAGR. Asia-Pacific dominates supply and demand dynamics, while Southeast Asia is a rising force thanks to abundant biomass residues and emerging policy supports. Technological shifts such as catalyst-enabled bio-feedstock conversion, ethane-cracker flexibility, and circular chemical platforms are accelerating adoption. While cost and infrastructure constraints remain, strategic alignment with sustainability mandates and feedstock innovation positions this market for mainstream scale by the early 2030s.

Investor Analysis
Sustainable chemical feedstocks comprise a fast-growing segment USD 25,359 M, 12.7% CAGR within the chemicals industry, underpinned by decarbonization trends, circular supply streams, and regulatory impetus.
Investors can support companies and infrastructure in feedstock aggregation, biorefinery development, catalyst technology, and cracker capability flexibility in Asia. Equity stakes in firms like LanzaTech, Neste, or local biomass aggregators in SE Asia may yield strong returns.
Transitioning the chemical industry away from fossil-derived feedstock is central to global emission reduction strategies. Asia-Pacific and Southeast Asia, with ample biomass supply and evolving policies, offer strategic growth corridors. Early investment in sustainable feedstock pathways unlocks clean-tech alignment, long-term contract potential, and value creation in an industry undergoing fundamental transformation.
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5 Reasons to Buy This Report
Detailed global market sizing and forecast for the emerging feedstock segment worth USD 25,359 M today.
Regional breakdown with Asia-Pacific leadership and Southeast Asia's rapid biomass-based growth.
Volume, ASP, and unitlevel analysis for modeling investment or pricing strategies.
Insights into breakthrough trends: UCO blending, palm residue utilization, and cracker feedstock flexibility.
Strategic profiler on leading global sustainable feedstock innovators and regional supply chain players.
5 Key Questions Answered
What was the global sustainable chemical feedstocks market size, volume, and ASP in 2024?
What are the projected CAGR and total market value by 2031?
How do Asia-Pacific and Southeast Asia compare in adoption drivers and feedstock availability?
What recent developments support bio-feedstock blending in refineries and chemical plants?
Who are the key companies leading sustainable feedstock innovation and scaling in global and regional contexts?
Chapter Outline
Chapter 1: Introduces the report scope of the report, executive summary of different market segments (by region, product type, application, etc), including the market size of each market segment, future development potential, and so on. It offers a high-level view of the current state of the market and its likely evolution in the short to mid-term, and long term.
Chapter 2: key insights, key emerging trends, etc.
Chapter 3: Manufacturers competitive analysis, detailed analysis of the product manufacturers competitive landscape, price, sales and revenue market share, latest development plan, merger, and acquisition information, etc.
Chapter 4: Provides profiles of key players, introducing the basic situation of the main companies in the market in detail, including product sales, revenue, price, gross margin, product introduction, recent development, etc.
Chapter 5 & 6: Sales, revenue of the product in regional level and country level. It provides a quantitative analysis of the market size and development potential of each region and its main countries and introduces the market development, future development prospects, market space, and market size of each country in the world.
Chapter 7: Provides the analysis of various market segments by Type, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments.
Chapter 8: Provides the analysis of various market segments by Application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.
Chapter 9: Analysis of industrial chain, including the upstream and downstream of the industry.
Chapter 10: The main points and conclusions of the report.

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