The global green chemicals market was valued at 92.0 Billion in 2020 and is projected to reach USD 173.3 Billion by 2027, expanding at a CAGR of 9.5% during the forecast period. Demand for green chemicals is driven by the 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 utilised 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.
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.
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.
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.
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.
Key Segments Covered
Key Market Players Profiled in the Report
Some frequently asked quetions about this report!
Additional company profiles are provided on request.
Yes, the report provides supply chain analysis along with a list of raw material suppliers, manufacturers, distributors, and customers.
According to the Growth Market Reports, the market for green chemicals is likely to register a CAGR of 9.5% during forecast period 2020-2027, with an anticipated valuation of USD 173.3 million by the end of 2027.
In addition to market size (in USD Billion) and, company market share (in % for base year 2019), other data such as macro-economic factors and COVID-19 impact on the value chain are available in the final report.
Applications in the global green chemicals market includes construction, healthcare, pharmaceuticals, packaging, food & beverages, paints & coatings, automotive, agriculture, and other applications.
Demand for Green Chemicals is expected to continue to increase over the forecast period, taking into account increasing government initiatives and encouragement, rising adoption of green cities and green construction, technology advancement, and sustainable and eco-friendly alternatives.
Factors such as competitive strength and market positioning are key areas, which are considered while selecting top companies to be profiled.
The market is expected to decrease around XX% between 2019 and 2020, owing to the negative impact of COVID-19 pandemic on the global green chemicals market.
The base year considered for the global green chemicals market report is 2019. The complete analysis period is 2017 to 2027, wherein, 2017 & 2018 are the historic years and the forecast is provided from 2020 to 2027.
Major Manufactures are Arkema, InKemia Green Chemicals, Inc., BASF SE, BiologiQ, Inc., Danimer Scientific, Plantic, Eastman Chemical Company, Global Green Chemicals Public Company Limited, Conagen, Inc., and Cardia Bioplastic.
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