Global market for renewable chemicals to grow with rising focus on carbon emission reduction, demand rise

12-Mar-15

The global market for Renewable Chemicals is projected to reach US$73.8 billion by 2020, driven by the rising focus on reducing carbon emissions, and increasing demand for healthier, greener, and cleaner products, as per Global Industry Analysts (GIA). Renewable chemicals are chemicals produced from renewable feedstocks such as animal, municipal, household, horticultural, and agricultural waste. Bio-based chemicals are expected to bring a revolution in the way modern day wastes are managed. Green chemistry is eliciting massive interest among investors, technology experts, developers, regulatory authorities, consumers, and corporations. Future growth in the market will be driven by the rapid depletion of traditional sources of fossil fuel. The market’s shift towards renewable sources will also be driven by consumers’ increasing preference for environment friendly products, growing need to curb greenhouse gas emissions, escalating costs of petroleum feedstock, and landfill depletion. Large scale availability of naturally occurring cheap feedstock is encouraging governments and businesses worldwide to focus resources into the development of renewable chemicals. Growth in the market will be driven by technology innovations, emerging new applications, and stringent regulations to curb emissions. The strong pipeline of innovative bio-based chemicals and lower costs of production of bio-based chemicals represent other important long term growth drivers. Advances in industrial biotechnology are helping renewable polymers and bio-based chemicals to compete with petroleum-based polymers in terms of performance and cost. The market for renewable platform chemicals is expected to benefit from the strong demand for succinic acid, glycerol, aspartic acid, and itaconic acid, as raw materials in various applications such as polymers, solvents, resins, and detergents/surfactants. As stated by the new market research report on Renewable Chemicals, Europe represents the largest regional market worldwide. Asia-Pacific ranks as the fastest growing market with a CAGR of 7.8% over the analysis period. Growing demand for eco-friendly products, mounting production volume, chemical waste control regulations, increasing support from the government and industry in terms of promoting the use of bio-based chemicals, represent major factors driving growth in the region.