Renewable Chemicals Market Size, Trends and Growth Analysis by 2027

The renewable chemicals sector was valued at approximately US$ 80,566.30 million in 2021 and is anticipated to grow to US$ 176,750.76 million by 2028, reflecting a compound annual growth rate (CAGR) of 11.9% during the period from 2021 to 2028.

Renewable chemicals, also known as bio-based chemicals, are defined as chemicals produced from renewable resources such as agricultural feedstock, organic waste, biomass, and microorganisms. These chemicals are recognized for their sustainability and environmental benefits, as they typically generate lower carbon emissions compared to traditional petrochemical products. Common examples of renewable chemicals include lignin, carbohydrates, oils, plant extractives, hemicellulose, cellulose, starch, and proteins. These substances are utilized across various industries, including food and beverage, agriculture, textiles, automotive, and packaging.

The renewable chemicals market is segmented by product type into several categories: alcohols, organic acids, ketones, platform chemicals, biopolymers, and others. Among these, the biopolymers segment is projected to experience the most rapid growth during the forecast period. This surge in demand is driven by the increasing need for sustainable packaging solutions and the rising application of biopolymers in the automotive sector. Biopolymers encompass a range of materials, including polynucleotides (such as DNA and RNA), cellulose, chitosan, chitin, starch, proteins, polyesters, pectin, collagen, gelatin, and gluten. They represent a promising alternative for reducing greenhouse gas emissions and reliance on non-renewable resources. The growing emphasis on eco-friendly and sustainable materials is expected to further enhance the demand for biopolymers.

The global renewable chemicals market is divided into five key regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, North America held the largest share of the global renewable chemicals market. This dominance can be attributed to a robust industrial base and the presence of major manufacturers that significantly contribute to market expansion. The high demand for renewable chemicals in sectors such as food and beverages, agriculture, textiles, transportation, and packaging, supported by substantial growth in end-use industries, is driving the regional market. Additionally, increased investment in the manufacturing sector and a growing focus on sustainable and eco-friendly solutions present lucrative opportunities for the renewable chemicals market in North America. Favorable government policies promoting the use of bio-based and renewable chemicals over conventional petroleum-based alternatives are also expected to create significant growth prospects in the region.

Key players in the renewable chemicals market include notable companies such as Archer-Daniels-Midland Company (ADM), Cargill Inc., DSM, BASF SE, Amyris Inc., Evonik Industries AG, Solvay, The Dow Chemical Company, Genomatica, Inc., and Braskem. These companies are heavily focused on developing high-quality and innovative products to meet the growing demand in the renewable chemicals sector.

The overall size of the global renewable chemicals market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry participants to validate the findings and gain deeper analytical insights. Participants in this research included industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the renewable chemicals market.