Green Chemicals Market Forecasts to 2030 - Global Analysis By Product (Bio-Polymers, Bio-alcohols, Bio-organic Acids and Other Products), Application (Food & Beverages, Pharmaceuticals, Packaging, Automotive and Other Applications) and By Geography

According to Stratistics MRC, the Global Green Chemicals Market is accounted for $157.35 billion in 2024 and is expected to reach $341.75 billion by 2030 growing at a CAGR of 13.8% during the forecast period. Green chemicals, also known as sustainable or eco-friendly chemicals, are substances designed and produced with minimal impact on the environment and human health. These chemicals are derived from renewable resources, such as plants or waste, and are created through processes that reduce the use of hazardous substances, minimize waste, and lower energy consumption. Green chemistry principles guide their development, aiming to reduce pollution at the source and promote safer alternatives to traditional chemicals.

According to the International Association for Soaps, Detergents and Maintenance Products (A.I.S.E.), in 2020, the European household care industry registered a growth of 4.7% from 2019.

Market Dynamics:

Driver:

Growing adoption of circular economy models

The adoption of circular economy models is significantly enhancing the green chemicals industry by promoting resource efficiency, waste reduction, and sustainability. Unlike traditional linear models, which rely on the "take, make, dispose" approach, the circular economy focuses on reusing, recycling, and regenerating resources. In the green chemicals sector, this translates to using renewable feedstocks, reducing reliance on fossil fuels, and minimizing harmful emissions. By reprocessing waste materials and converting them into valuable chemicals, companies are not only reducing environmental impact but also creating economic opportunities.

Restraint:

Regulatory uncertainty

Regulatory uncertainty hinders the green chemicals industry by creating an unpredictable environment for companies and investors. Governments often have unclear or inconsistent policies regarding sustainability standards, environmental regulations, and incentives for adopting green technologies. This inconsistency makes it difficult for businesses to plan long-term investments in research, development, and production of eco-friendly chemicals. Regulatory frameworks may vary significantly between regions, leading to confusion and increased compliance costs for companies operating globally.

Opportunity:

Increased investment in green technologies

Increased investment in green technologies is driving significant advancements in the green chemicals sector, promoting sustainable and eco-friendly solutions. Green chemicals, derived from renewable sources or produced with minimal environmental impact, are gaining attention due to growing concerns over climate change, resource depletion, and pollution. This investment is fostering innovations in bio-based chemicals, biodegradable materials, and cleaner production methods, reducing the reliance on fossil fuels and toxic substances. The shift is also spurred by advances in biotechnology, which enable the production of chemicals using plant-based feedstocks and microbial processes.

Threat:

Competition from conventional chemicals

Green chemicals, despite their environmental benefits, face significant competition from conventional chemicals, which hinders their widespread adoption. Conventional chemicals are often cheaper due to established production processes, economies of scale, and widespread market availability. They have a long-standing infrastructure that supports their manufacture and distribution, making them more accessible and cost-effective for industries. In contrast, green chemicals typically involve more expensive raw materials, newer technologies, and less mature supply chains, resulting in higher costs. These elements are hindering the market growth.

Covid-19 Impact:

The COVID-19 pandemic significantly impacted the green chemicals industry, both positively and negatively. Supply chain disruptions and reduced industrial activity led to a temporary decline in the production and demand for green chemicals. Many companies had to slow or halt operations, affecting projects aimed at developing sustainable alternatives. However, the crisis also heightened awareness of the need for sustainability and resilient supply chains. As industries sought to recover, many adopted more eco-friendly practices, prioritizing green chemicals in response to increasing consumer and regulatory demands for sustainability.

The Bio-Polymers segment is expected to be the largest during the forecast period

Bio-Polymers segment is expected to be the largest during the forecast period. Bio-polymers, derived from renewable resources like plants and microorganisms, are significantly advancing the field of green chemicals by offering eco-friendly alternatives to conventional petroleum-based polymers. These bio-based polymers, including polylactic acid (PLA) and polyhydroxyalkanoates (PHA), are designed to be biodegradable or compostable, which reduces environmental impact and waste. Their production typically involves less energy and generates fewer greenhouse gases compared to traditional plastics.

The Pharmaceuticals segment is expected to have the highest CAGR during the forecast period

Pharmaceuticals segment is expected to have the highest CAGR during the forecast period. The pharmaceuticals sector is increasingly focusing on green chemicals to foster sustainability and reduce environmental impact. Green chemistry, which emphasizes the design of products and processes that minimize hazardous substances, is transforming the industry by encouraging the development of more eco-friendly alternatives to traditional chemical processes. By adopting green chemistry principles, pharmaceutical companies are not only improving their ecological footprint but also enhancing the efficiency and safety of their manufacturing processes.

Region with largest share:

North America region commanded the largest market share over the extrapolated period. International agreements and initiatives are significantly enhancing the North American region's green chemicals sector by fostering collaboration, standardization, and innovation. For instance, agreements like the Paris Agreement drive countries to commit to reducing greenhouse gas emissions, which encourages the development of environmentally friendly chemicals. Additionally, North American countries are engaging in regional pacts, such as the Canada-United States-Mexico Agreement (CUSMA), which include provisions for environmental protection and sustainable chemical management. These international frameworks facilitate the sharing of best practices, stimulate research and development, and provide financial incentives for green technology across the region.

Region with highest CAGR:

Europe region is poised to hold profitable growth during the projection period. The European Union has implemented stringent regulations such as the REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) and the European Green Deal, which set high standards for chemical safety and environmental performance. These regulations encourage the development and use of environmentally friendly chemicals by enforcing stricter controls on hazardous substances and incentivizing innovation in green technologies. As a result, companies are increasingly investing in research and development of eco-friendly alternatives to traditional chemicals, which helps in reducing carbon footprints and fostering a circular economy.

Key players in the market

Some of the key players in Green Chemicals market include Albemarle Corporation, BASF SE, BioAmber Inc, Clariant AG, DuPont de Nemours, Inc, Eastman Chemical Company, Evonik Industries AG, INEOS Group and Solenis LLC.

Key Developments:

In January 2024, NTPC Limited, India's largest integrated power utility, has signed a non-binding MoU with Numaligarh Refinery Limited (NRL), for partnership opportunities in the proposed bamboo-based Bio-Refinery at NTPC Bongaigaon, and other green chemical project to enhance their footprint in green chemicals and foray into sustainable solutions to advance the efforts towards achieving the nation's net-zero targets and be partners in the development of North Eastern Region.

In December 2022, Evonik has introduced the biodegradable rhamnolipid REWOFERM(R) RL 100 after investing tens of millions of euros to construct a new biosurfactant facility in Slovakia. The new biosurfactant satisfies market demand for low impact cleaning products, low-emission that facilitate a circular economy. REWOFERM RL 100 is manufactured from locally obtained, renewable feedstocks and is completely biodegradable, all while delivering outstanding cleaning performance.

In September 2022, BASF and RiKarbon Inc. announced signing a collaboration contract for exclusively licensing and commercializing proprietary technology from RiKarbon. RiKarbon's patented technology allows the recycling of bio-waste to bio based, biodegradable emollients for the global personal care market, supporting the industry's drive to innovative sustainable solutions.

In May 2022, Verdant Innovations, a division of Cellulose Solutions, launched its first line of specialty green sustainable chemicals, initially targeting the hemp, pulp, textile, and nonwovens sectors. As it develops new chemical solutions to satisfy the demands of all clients involved in the production and delivery of consumer goods, the company will distribute all environmentally friendly options.

Products Covered:

• Bio-Polymers
• Bio-alcohols
• Bio-organic Acids
• Other Products

Applications Covered:

• Food & Beverages
• Pharmaceuticals
• Packaging
• Automotive
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances