PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1663458
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1663458
Bio-Renewable Chemicals Market size was valued at US$ 3,851.6 Million in 2024, expanding at a CAGR of 12.20% from 2025 to 2032.
Bio-renewable chemicals are those that come from renewable sources, such as biomass, microorganisms, organic waste products, agricultural waste, and agricultural feedstock. Compared to conventional chemicals derived from petroleum, bio-renewable chemicals have a lower carbon footprint. Among the often utilized bio-renewable chemicals are lactic acid, succinic acid, propanol, acetone, and bio-glycerol. Both developed and developing economies' environmental regulatory bodies have increased their efforts to reduce environmental footprints as a result of growing awareness of sustainability and eco-friendly practices. The European Union (EU), the State Pollution Board (SPB), the Central Pollution Control Board (CPCB), the United States Environmental Protection Agency (U.S.EPA), and other organizations are always working to reduce environmental footprints through the implementation of various laws and regulations. Additionally, customers are increasingly choosing products made from renewable resources due to a number of variables, including greater technology breakthroughs, an increase in the dynamics of renewable energy, improvements in the economics of renewable energy, and growing concern for environmental protection initiatives. This will boost the bio-renewable chemicals market.
Bio-Renewable Chemicals Market- Market Dynamics
Growing Government Incentives
Government incentives greatly aid the growth and development of the worldwide market for bio-renewable chemicals. Many governments have implemented a range of regulations and incentives to encourage the development and use of bio-renewable chemicals as nations work to satisfy sustainability goals and lessen their reliance on fossil fuels. These incentives, which are frequently tax credits, grants, and subsidies, are meant to lessen the financial strain on businesses making investments in bio-renewable infrastructure and technology. To promote the use of bio-renewable chemicals, governments are enacting regulations in addition to financial incentives. The demand for bio-renewable chemicals may be influenced, for example, by-laws and regulations requiring a specific proportion of bio-based content in goods or bio-renewable feedstocks in industrial operations. These rules not only open up a market for these chemicals but also encourage technological development and innovation in the industry.
Bio-Renewable Chemicals Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 12.20% over the forecast period (2025-2032)
Based on type segmentation, glycerol was predicted to show maximum market share in the year 2024
Based on application segmentation, the chemical industry was the leading application in 2024
On the basis of region, North America was the leading revenue generator in 2024
The Global Bio-Renewable Chemicals Market is segmented on the basis of Type, Application, and Region.
On the basis of type, the market is segregated into Glycerol, Lactic Acid, Acetone, Succinic Acid, and Others. In 2024, the market was dominated by the glycerol category. Because of increased disposable money and understanding of skin care procedures, the cosmetics sector has grown significantly in both developed and developing countries. Glycerin is widely utilized as a humectant, fragrance component, denaturant, hair conditioner, and other ingredient in a wide range of cosmetic products. This can be one of the main factors propelling the market expansion for glycerin-type bio-renewable chemicals. Furthermore, the pharmaceutical industry has seen tremendous expansion due to factors including increased R&D activities, reduced production costs, and a large workforce. Glycerol is employed in this industry to improve the taste and smoothness of medications. For instance, a report released by the India Brands Equity Foundation states that between April and June of 2021, Indian pharmaceutical exports totalled $5.78 billion. This is expected to boost the market for glycerol-type bio-renewable chemicals in the expanding pharmaceutical industry.
Based on application, the market is divided into Food and Beverages, Packaging, Chemical Industry, Personal Care and Cosmetics, and others. In 2024, the chemical industry category held a dominant market share. Population expansion and the growing demand for a wide range of consumer products have led to an increase in the development of chemical manufacturing facilities that employ bio-renewable chemicals to manufacture a wide range of consumer goods in both industrialized and developing nations. This element can be one of the main forces behind the market expansion for bio-renewable chemicals throughout the predicted year. Furthermore, due to environmental protection efforts and increased awareness of sustainability, the main chemical manufacturing companies have switched from producing synthetic chemicals to bio-renewable ones. This element might increase the use of bio-renewable chemicals in the expanding chemical production industry, which would open up lucrative market potential.
Bio-Renewable Chemicals Market- Geographical Insights
In 2024, North America held a dominant position in the global market for Bio-Renewable Chemicals. Growing government restrictions and initiatives to encourage the use of bio-based products, along with an ongoing emphasis on research and development, are mostly to blame for this. This has led to a major growth in the usage of bio-renewable chemicals in many industrial applications. The region's regulatory bodies are working on a number of projects pertaining to the manufacture and application of bio-renewable chemicals. Among the programs governing the use and manufacture of chemicals in North America are the "Federal Bio-preferred and Toxic Substitute Program" in the United States and the "Toxic Chemical List and Alternatives Initiatives" in California and Canada. It is anticipated that these measures will improve the way that bio-based products are seen, which will support the expansion of the market for bio-renewable chemicals in several North American nations.
However, throughout the projected period, the Asia-Pacific region is anticipated to see the fastest CAGR. The largest economies in Asia-Pacific, including China and India, are primarily responsible for the growth of the bio-renewable chemicals market. This increase is ascribed to the expansion of the packaging industry, textiles, personal care and cosmetics, and other industries in the region. China's packaging industry is growing quickly, which has compelled producers of bioplastics to create premium bioplastics using bio-renewable materials like polylactic acid. Furthermore, the food and beverage industry is expanding quickly, and bio-renewable chemicals are utilized in food packaging, food additives, and other areas. A survey released by Interpack in 2021, for example, predicted that China's use of food packaging would rise from 3,99,858 million package items in 2018 to 4,47,066 million in 2023. In the expanding food packaging industry, this could increase demand for bio-renewable chemicals.
Prominent suppliers of bio-renewable chemicals are actively working to address the growing need for sustainable solutions across industries by funding research, creating cutting-edge bio-based goods, and establishing strategic alliances for market expansion and increased product diversity. Key players such as Vizag Chemical, Amyris, DuPont de Nemours, Inc., BASF SE, Gevo, Inc., and others have been concentrating on sustainable practices, creative bio-based solutions, and strategic partnerships to meet the demand for environmentally friendly substitutes in a variety of industries. For instance, in February 2023, Gevo, Inc. announced a Hydrogen Development Services agreement with Zero6 Energy to use Cummins Inc.'s electrolyzer technology to build a 20-megawatt hydrogen production facility in Lake Preston, South Dakota.