Renewable chemicals are biobased chemicals which are derived from renewable biomass sources like vegetable oils and animal fats. Renewable chemicals provide alternatives to petroleum-based chemicals and reduce dependence on fossil fuels. They are eco-friendly, non-toxic and biodegradable as compared to conventional chemicals.Renewable chemicals find applications in various industries like agricultural, textiles, automotive and packaging due to their properties.
The Renewable Chemicals Market is estimated to be valued at US$ 13.98 Bn or bn 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 renewable chemicals market is driven by the rising trend towards biodegradable and environmentally sustainable chemicals. Consumers and industries are increasingly preferring eco-friendly chemical products over petrochemical derivatives owing to stringent environmental regulations regarding carbon emissions. Furthermore, depleting fossil fuel reserves and fluctuating crude oil prices encourage the development of renewable alternatives. The growing biofuels and green chemistry movement promote the production of chemicals from renewable biomass. In addition, supportive government policies and incentives in various countries promote research and development activities in the renewable chemicals domain.Major players are investing in innovative technologies to develop large scale and commercial production processes of renewable chemicals using various biorefinery approaches. This is expected to significantly increase the supply and adoption of renewable chemicals during the forecast period.
Porter’s Analysis
Threat of new entrants: renewable chemicals market provides a number of barriers for new companies to enter such as high capital investment requirements for research and production facilities.
Bargaining power of buyers: buyers have moderate bargaining power in the renewable chemicals market due to the presence of numerous established manufacturers however growing environmental concerns are increasing buyer demand for renewable products.
Bargaining power of suppliers: suppliers have moderate bargaining power due major raw material suppliers and technology providers hold some control over pricing however established manufacturers attempt to diversify supplier bases to reduce dependency.
Threat of new substitutes: threat from new substitutes is moderate as renewable chemicals can replace conventional fossil fuel based products however renewable chemical production processes still require improvements to compete on performance and price.
Competitive rivalry: competition in the market is high and expected to increase further with growing production capacities and diversifying product portfolios by established players.
SWOT Analysis
Strengths: growing environmental regulations driving demand, innovative production technologies, diversified product applications
Weaknesses: high initial investment costs, limited economies of scale currently
Opportunities: expanding into developing markets, product innovation, partnerships along value chain
Threats: reliance on government incentives and subsidies, fluctuations in oil prices impacting competitiveness
Key Takeaways
The global renewable chemicals market is expected to witness high growth, exhibiting CAGR of 19. % over the forecast period, due to increasing environmental concerns and stringent regulations regarding fossil fuel based chemicals.
Regional analysis The Asia Pacific region dominates the global renewable chemicals market and is expected to grow the fastest during the forecast period owing to high production capacities and growth of end use industries such as automotive, construction, packaging in major economies like China and India.
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)
