Green Chemicals Market Size, Analysis, Share & Forecast 2031

Report Description

The Global Green Chemicals Market size was valued at USD 110.31 Billion in 2022 and is expected to surpass USD 249.66 Billion by 2031, expanding at a CAGR of 9.5% during the forecast period, 2023–2031. Demand for green chemicals is driven by increasing government initiatives and encouragement, rising adoption of green cities and green construction, technology advancement, and sustainable and eco-friendly alternatives.

Green chemicals, known as bio-based chemicals, are made from renewable feedstock. They are largely made from raw materials that consume less natural resources and help to maintain environmental balance. Vegetable oils, animal fats, sugar and starch, and bio-ethanol are common bio-based raw materials utilized in the synthesis of green chemicals. Green chemicals improve performance and functionality while being eco-friendly throughout their full life cycle. The Twelve Principles of Green Chemistry, which give a framework for innovation and design, codified this approach.

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Green Chemicals Market Dynamics

Increasing government initiatives and encouragement by governments urging regional manufacturers to use sustainable components in production are factors that boost the market over the forecast period. Global public-private partnership bridges the gap between science-based innovation and real-world application of green chemistry in developing countries and economies in transition. UNIDO's major initiative on green chemistry aims to address the challenges posed by hazardous chemicals through holistic, wide-ranging actions and the preventive design and management of chemicals and waste.

Rising adoption of green cities and green construction of buildings for residential, industrial, and commercial housing across the globe is expected to expand the market during the forecast period. Biopolymer modification based on green chemistry principles yields a wide range of products for use in home and personal care goods, industrial cleaning products, water treatment, and food ingredients.

This helps reduce waste during construction, create energy-efficient, water-saving homes, and promote the use of sustainable materials. Use of green chemicals in cleaning products is increasing, as consumers look for natural cleaning products for facilities, businesses, and offices, while reducing their environmental footprint. This factor helps consumers to shift towards green cleaning products.

Technological developments in this field include mattresses from sugars or lactic acid. Some synthetic materials are created from greenhouse gases. Green chemicals, which are environmentally beneficial, are the basis for a variety of plastics used by automotive, aviation, toy, computer, and mobile phone manufacturers. Some of these technologies are already in use, while others are still in the works.

Technology and chemical methods improved and the bio-based chemical industry became increasingly profitable and is now poised to take over a large share of the market. Sustainability-minded manufacturers and consumers are adopting environment-friendly alternatives, hence, the demand for sustainable chemicals is increasing.

Difficulties in the availability of technology is an intellectual property barrier. Industrial research resulted in the development of new reactions or green routes for chemicals; however, the knowledge is not available readily in the industry. The firms which develop it often protect it as an intellectual property to achieve competitive advantage, resulting in low transmission of knowledge and technology within the industry. Many people are unaware that green chemical science is available and provides significant benefits. There is a widespread belief that all environment-friendly initiatives are costly and ineffective.

Green chemical is an opportunity to create a safe and efficient world with less waste. It helps create solutions to curb global warming and meet the goal of 30% reduction in greenhouse gas emissions by 2020. Consumers are expected to be protected against adverse effects of toxic substances in the products they use. Less floating non-biodegradable debris helps marine life and makes beaches clean. Less landfills and hazardous waste sites are expected to be passed on to future generations.

Green Chemicals Market Segment Insights

On the basis of types, the market is segmented into bio-surfactants, bio-alcohols, bio-organic acids, biopolymers, platform chemicals, and others. The bio alcohol segment is anticipated to hold a significant share of the market during the forecast period, owing to its consistent performance, increased productivity, and enhanced sustainability.

Demand for bio-based organic acids is steadily increasing, due to the environmental impact of conventional organic acids. To meet this rising demand, organic acid is increasingly being manufactured from renewable sources such as feedstock. Organic acids, which usually contain at least one carboxyl group, are highly versatile compounds with a wide range of applications for industries such as consumer goods, food and beverage, pharmaceuticals, and chemicals.

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In terms of application, the market is divided into construction, healthcare, pharmaceuticals, packaging, food & beverages, paints & coatings, automotive, agriculture, and other applications. The packaging segment held a sizeable market share in 2019 and is expected to account for a substantial share of the market during the forecast period. Packaging made from sustainable materials and plant by-products such as cornstarch or sugarcane are eco-friendly. Cornstarch-based packaging, in particular, led to a surge in interest over the last decade, as it is eco-friendly and recyclable in nature, which contributes a significant share in the market.

Regional Outlook

On the basis of regions, the global green chemicals market is fragmented into North America, Europe, Latin America, Asia Pacific, and Middle East & Africa. The market in Germany is expected to grow at a rapid pace, due to increasing number of flourishing automotive industries, which is driving the use of green chemicals in the country.

North America is expected to grow at a faster rate than the rest of the world, due to the introduction of low-cost and abundant feedstock, shift in emphasis toward the usage of environmentally sustainable goods, and the implementation of numerous government programs. The EPA imposed supportive regulations on the adoption of bio-based chemicals in the US, which is expected to increase the demand for bio-based chemicals in North America. Brazil in Latin America accounts for the second largest producer of green chemicals in the world.

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Key Benefits for Industry Participants & Stakeholders

• In-depth analysis of the global green chemicals market
• Historical, current, and projected market size in terms of value (USD million)
• Potential & niche segments and regions exhibiting promising growth covered
• Industry drivers, restraints, and opportunities covered in the study
• Recent industry trends and developments
• Competitive landscape & strategies of key players