Green Chemicals Market Report 2025

The green chemicals market size has grown rapidly in recent years. It will grow from $120.43 billion in 2024 to $133.85 billion in 2025 at a compound annual growth rate (CAGR) of 11.1%. The growth in the historic period can be attributed to regulatory push for sustainable practices, consumer demand for eco-friendly products, increased awareness of environmental impact, adoption of renewable feedstocks, expansion of bio-based polymers and plastics.

The green chemicals market size is expected to see rapid growth in the next few years. It will grow to $203.1 billion in 2029 at a compound annual growth rate (CAGR) of 11%. The growth in the forecast period can be attributed to demand for safer and non-toxic chemicals, integration of circular economy principles, rise of sustainable packaging solutions, expansion of green solvents and surfactants, focus on carbon-neutral chemical manufacturing, emphasis on transparency and eco-labeling, expansion of bio-based adhesives and sealants, adoption of plant-based chemicals in pharmaceuticals, growth in green chemistry education and training. Major trends in the forecast period include integration of machine learning in green chemistry, advances in green chemistry technologies, technological innovations in biotechnology, development of biodegradable and compostable plastics, utilization of artificial intelligence in green chemistry.

The increasing demand for bioethanol is anticipated to drive the growth of the green chemicals market in the future. Bioethanol, a fuel additive derived from agricultural products such as sugar cane and corn, has become popular as a green chemical due to its eco-friendly characteristics. It is a clean-burning fuel that produces lower greenhouse gas emissions compared to fossil fuels. For example, in March 2023, The German Bioethanol Industry Association, a Germany-based organization that advocates for the interests of companies and associations in the biofuel sector, reported that Germany's bioethanol production rose by 2%, increasing from 701,000 tons in 2021 to 715,000 tons in 2022. Consequently, the growing demand for bioethanol is propelling the expansion of the green chemicals market.

The growth of the beauty and cosmetics industry is also driving the expansion of the green chemicals market. This sector, which includes the production and sale of products for personal appearance and skincare, is increasingly utilizing green chemicals to align with consumer preferences for sustainable and eco-friendly options. For instance, in 2023, Cosmetics Europe, a Belgium-based association for personal care, reported that 500 million consumers use personal care products daily to enhance their well-being and safeguard their health. Moreover, the personal care industry contributes approximately USD 31.23 billion (€29 billion) annually to the European economy. The integration of green chemicals in beauty and cosmetics reflects consumer demand for natural ingredients and encourages environmentally responsible practices in the manufacturing of personal care products.

Technological advancements are a prominent trend in the green chemicals market, with major companies adopting innovative solutions to sustain their market position. For instance, in May 2022, VelocityEHS launched the Green Chemistry Offering, leveraging Praedicat's unique technology to evaluate and update the risk profile of in-use chemicals in real-time. This technology enables customers to access predicted risk profiling for chemicals swiftly, facilitating informed decision-making and promoting the selection of safer options.

Leading companies in the green chemicals market are focusing on technological innovations, such as bio-based production methods, to provide eco-friendly alternatives that enhance sustainability and minimize carbon footprints across various sectors. Renewable dimethyl ether (DME) technology involves producing DME from renewable resources, positioning it as a sustainable substitute for conventional fossil fuels. For example, in May 2024, Lummus Technology LLC, a US-based firm specializing in developing and licensing process technologies and energy solutions, announced the commercial launch of CDDMESM, a new renewable DME technology enhanced through catalytic distillation (CD). The CDDME technology can process various types of methanol to generate renewable DME, which can then be blended to create liquefied petroleum gas or utilized as a hydrogen carrier. This technology requires fewer unit operations, achieves high conversion rates, and lowers utility and operating costs, leading to reduced CAPEX and OPEX.

In April 2023, Eni S.p.A, an Italy-based energy company, acquired Novamont, a manufacturer of green chemicals specializing in bioplastics and biochemicals of vegetable origin. This strategic acquisition is expected to strengthen Eni's position in the green chemicals market, fostering the development of bio-based products and increasing the use of renewable raw materials in production.

Major companies operating in the green chemicals market include Cargill Inc., BASF SE, Mitsubishi Chemical Holdings Corporation, BioAmber Inc., DuPont de Nemours Inc., Arkema Group, Koninklijke DSM N.V., Evonik Industries AG, Total Corbion PLA, Elevance Renewable Sciences Inc., Amyris Inc., Genomatica Inc., LanzaTech Inc., Novomer Inc., Verdezyne Inc., Myriant Corporation, Sila Nanotechnologies Inc., Bayer Material Science AG, Ambient Photonics Inc., NatureWorks LLC, Gevo Inc., Checkerspot.

Europe was the largest region in the green chemicals market in 2024. The regions covered in the green chemicals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the green chemicals market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Green chemicals encompass environmentally friendly substances that are designed to minimize or eliminate the use and generation of hazardous materials throughout their entire life cycle, emphasizing the reduction of dangerous substances, pollution prevention, and the promotion of sustainability.

The primary categories of green chemicals include bio-alcohols, bio-organic acids, bio-ketones, biopolymers, and others. Bio-alcohols, for instance, are beverages produced by fermenting cellulosic biomass, sugars, or starches. Various technologies, such as bioprocessing, fermentation, enzymatic processes, and metabolic engineering, are employed with diverse raw materials such as agricultural waste, biomass, microorganisms, sugar and starch crops, among others. Applications span across construction, healthcare, pharmaceuticals, personal care products, packaging, food and beverages, paints and coatings, automotive, agriculture, and more.

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

The green chemicals market consists of sales of green solvents, metal surface treatment chemicals, green surfactant, green catalysts, and green additives. 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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