Renewable Chemicals Market Report 2025

The renewable chemicals market size has grown rapidly in recent years. It will grow from $117.68 billion in 2024 to $131.73 billion in 2025 at a compound annual growth rate (CAGR) of 11.9%. The growth in the historic period can be attributed to growing environmental concerns, rise in consumer demand for sustainable products, volatility in petrochemical prices, government support and incentives, increased corporate sustainability initiatives, consumer awareness and education.

The renewable chemicals market size is expected to see rapid growth in the next few years. It will grow to $222.61 billion in 2029 at a compound annual growth rate (CAGR) of 14%. The growth in the forecast period can be attributed to emergence of bio-based aviation fuels, wider adoption of renewable solvent, increasing investments in renewable chemical projects, focus on sustainable agriculture practices, development of advanced bio-based materials. Major trends in the forecast period include shift towards bio-based feedstocks, biofuel co-production, advanced bioconversion technologies, expansion of renewable platform chemicals, collaborations and partnerships, market expansion in Asia-pacific, emergence of renewable lubricants and additives.

The surge in demand from the automotive sector is poised to drive the expansion of the renewable chemicals market. Within automobile production, the integration of biopolymers sourced from renewable origins, specifically engineered for automotive applications, has become a notable practice. As indicated by data from the Society of Indian Automobile Manufacturers (SIAM) in May 2022, the production of automobiles has experienced growth over the past two years. Notably, total production increased from 22,655,609 units in 2020-21 to 22,933,230 units in 2021-22. Similarly, a report by the China Association of Automobile Manufacturers in May 2022 revealed a 5.4% growth in automobile sales in China, reaching 27.5 million units in 2022. Consequently, the heightened demand from the automotive industry is a driving force behind the expansion of the renewable chemicals market.

The proliferation of renewable feedstock sources is a catalyst for the growth observed in the renewable chemicals market. Renewable feedstock sources, derived from sustainable raw materials like plants or waste, offer a replenishable alternative to finite fossil resources. This expansion of renewable feedstock sources presents a sustainable and economically feasible solution for producing renewable chemicals. Notably, data from the International Energy Agency (IEA) in December 2022 projected a 56% surge in demand for vegetable oil, waste, and residue oils and fats, reaching 79 million metric tons during the 2022-2027 forecast period. The utilization of waste and residues for biofuel production is expected to rise from 9% in 2021 to 13% in 2027, while vegetable oil consumption for biofuel production is anticipated to increase by 46%, reaching 54 million metric tons from 2022 to 2027. This expansion of renewable feedstock sources is set to propel the renewable chemicals market forward.

Product innovation emerges as a prominent trend gaining traction in the renewable chemicals market. Leading companies within the sector are strategically investing in technological advancements to fortify their market positions. Notably, in March 2022, Evonik Industries, a Germany-based specialty chemicals company, introduced sustainable isophorone products crafted entirely from renewable acetone. This innovation significantly reduces the CO2 footprint at all stages of production. The newly launched products in the VESTA eCO Grades range are tailored for use as sustainable raw materials in paints, lacquers, binders, and interiors within the automotive industry. This advancement marks a significant stride in the continuous evolution of the renewable chemicals market.

Prominent enterprises within the renewable chemical market are strategically directing their efforts toward the development of innovative products, such as bio-based surfactants, to meet the evolving needs of industries and accommodate changing consumer preferences. Bio-based surfactants, derived from renewable biological sources like plant-based materials, are manufactured using sustainable feedstocks. The primary objective is to minimize the environmental impact associated with traditional surfactants typically sourced from fossil fuels. A noteworthy example is Clariant AG, a Switzerland-based specialty chemical company, which in February 2022, introduced a groundbreaking range of 100% bio-based surfactants named Vita surfactants and polyethylene glycols (PEGs). This initiative signifies a transformative shift toward renewable carbon, as these products are exclusively derived from renewable plant-based carbon sources. Notably, they contribute to a substantial reduction of up to 85% in CO₂ emissions per ton of product compared to their fossil-based counterparts, representing a significant stride toward environmental sustainability.

In April 2023, Versalis, an Italy-based chemical company, completed the acquisition of Novamont S.p.A. for an undisclosed amount. This strategic move by Versalis is geared towards accelerating its overarching goals by integrating a distinctive and complementary technological platform. The incorporation of Novamont S.p.A., an Italy-based renewable chemicals company, is expected to play a pivotal role in advancing the decarbonization efforts within Versalis' product portfolio. This strategic acquisition is aligned with the broader industry trend of fostering technological synergies to drive sustainability and innovation in the renewable chemical sector.

Major companies operating in the renewable chemicals market are Archer-Daniels-Midland Company, Amyris Inc., BASF SE, Bioamber Inc., Biomethanol Chemie Nederland BV, Corbion NV, Metabolix Inc., Genomatica Inc., NatureWorks LLC, Novozymes A/S, Evonik Industries AG, Cargill Inc., Myriant Corporation, Mitsubishi Chemical Corporation, Koninklijke DSM NV, Cobalt Technologies Ltd., Solazyme Inc., Elevance Renewable Sciences Inc., Gevo Inc., Avantium Technologies BV, Virent Inc., Anellotech Inc., Verdezyne Inc., Rennovia Inc., Terravia Holdings Inc., American Process Inc., Clariant AG, Global Bioenergies SA, Kiverdi Inc., LanzaTech Inc.

North America was the largest region in the renewable chemicals market in 2024. Europe is expected to be the fastest-growing region in the renewable chemicals market report during the forecast period. The regions covered in the renewable chemicals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the renewable chemicals market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Renewable chemicals encompass substances sourced from renewable outlets such as biomass, microorganisms, agricultural waste, feedstock, and organic waste materials. These chemicals serve as direct substitutes, boasting a reduced carbon footprint compared to conventional petroleum-based compounds.

Among the primary categories of renewable chemicals are ethanol, ketones, biopolymers, platform chemicals, and other variations. Ethanol, an alternative fuel derived from raw materials containing sugar or starch, serves as an additive to gasoline or a standalone motor fuel, exhibiting minimal adverse environmental effects. Various feedstocks like biomass, corn, sugarcane, algae, and others support its production, finding applications across automotive, medical, food and beverage, petrochemical, textile, agricultural, and other industries.

The renewable chemicals market research report is one of a series of new reports that provides renewable chemicals market statistics, including renewable chemicals industry global market size, regional shares, competitors with a renewable chemicals market share, detailed renewable chemicals market segments, market trends and opportunities, and any further data you may need to thrive in the renewable chemicals industry. This renewable chemical market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The renewable chemicals market consists of sales of alcohols, organic acids, and biopolymers. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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