Green Chemical and Material Market - Forecasts from 2024 to 2029

The green chemical and material market is estimated to grow at a CAGR of 10.29% during the forecast period.

Green chemicals and materials are used in place of traditional chemicals and materials because they are more environmentally friendly. The global economy has grown greatly since the Industrial Revolution while pollution levels have increased quickly. For instance, due to its extreme levels, air pollution is now considered to be one of the main causes of fatalities each year. Around the world, 11.65% of deaths are attributed to air pollution. It also significantly increases the impact of disease. The need for food and beverages, as well as the requirement to increase residential and commercial development operations, are all increasing the green chemical and material market size.

Increasing Consumer Awareness of Sustainable Products

Consumers today are more environmentally mindful and knowledgeable about sustainable products. Although green packaging is still in its infancy, people are increasingly accepting of it and using it in new and inventive ways. Growing environmental concerns are to blame for shifting customer preferences toward environmentally friendly products. Paper packaging and other recyclable plastics are in high demand and are the focus of ongoing research and development projects. For instance, in Julu 2022 Pilot Lite and Diageo, a venture capital firm, established the sustainable packaging technology business Pulpex Limited. It developed a paper-based liquor bottle made completely of wood from sustainably managed forests that is 100 % plastic-free.

Governmental programs to spur the market for green chemicals and materials

The green chemical and material market share will rise as a result of rising government investments and programs for infrastructure development with an emphasis on sustainable development. Many economies have been forced to develop laws that can lessen the consequences produced by the use of traditional chemicals due to the volatility in oil costs and rising pollution levels. Due to a rise in consumer spending power, modern consumers are willing to pay more to slow down or reverse environmental damage. The United States, China, and India are expected to lead a worldwide building sector that will be worth USD 15.5 trillion by the year 2030 as per the Chartered Institute of Arbitrators.

Rising shift to bio-based feedstocks

the chemical industry has produced chemicals using fossil fuels. A growing trend, nevertheless, is toward bio-based feedstocks made from renewable resources, like algae, agricultural waste, and plant biomass. Lower carbon emissions, less reliance on fossil fuels, and the ability to develop a circular economy by using waste streams are all benefits of using bio-based feedstocks which is increasing the green chemical and material market share.

The growth of advanced biotechnology:

The green chemical sector has more options thanks to biotechnology advancements. The development of microbes and enzymes that can manufacture valuable chemicals more effectively and sustainably uses genetic engineering and synthetic biology approaches. As a result, bio-based solvents, biofuels, and polymers have been developed as alternatives to traditional chemicals.

Changes in the automotive industry and the introduction of eco-friendly vehicles.

In the green chemicals and materials market, the automotive sector is predicted to increase at a substantial rate during the forecast period. The method by which automobiles and other vehicles obtain their energy from electricity and hydrogen is experiencing a change. A few of the vehicles are also powered by bio-alcohols like ethanol in addition to this. The Fiat 147 is one such instance of a vehicle running on bio-alcohol. Leading automakers have boosted their investments in funding for the production of electric vehicles across a range of categories, as well as in-house battery manufacturing for improved vertical integration. For instance, Tesla is placing more emphasis on the production of batteries and proposing cutting-edge ideas that are meant to reduce costs. For EV and battery manufacturing facilities in the United States alone, Toyota, GM, Hyundai, and Ford are investing USD 2.5 billion, USD 6.6 billion, USD 5.5 billion, and USD 11.4 billion, respectively.

Asia Pacific is projected to dominate the green chemical and material market

Asia Pacific accounted for a sizeable portion of the green chemical and material market and is predicted to continue to develop at a significant rate throughout the anticipated timeframe. Along with other nations like Japan, China and India are the leading players in the region and are responsible for the APAC region's expansion. For instance, the Chinese government has implemented a number of laws and policies to encourage the creation and application of green chemicals. The 13th Five-Year Plan of the nation sets a goal of 15% non-fossil fuel energy consumption in primary energy consumption by 2020, which has raised attention to the creation of renewable energy sources and eco-friendly chemicals.

Market key launches

• In June 2023, The Chemours Company DuPont de Nemours, Inc. and Corteva, Inc. declared that they had achieved an agreement in principle to fully address all PFAS-related drinking water claims of a specified class of public water systems that supply water to the great majority of Americans. The class covers water systems that have been found to contain PFAS at any level in the past and those that are currently obliged to do so by EPA monitoring guidelines or other applicable laws. Systems in the South Carolina aqueous film-forming foam multidistrict litigation are among them, but they are not the only ones. A compensation fund (also known as the "water district settlement fund") will be established by the firms jointly, and they will each contribute $1.185 billion to it.
• In June 2022, JSW Cement Limited joined the construction chemicals market by introducing a new line of water-saving, eco-friendly products. Using screen slag instead of river sand while pouring concrete, preserves natural resources and reduces the risk of landslides, floods, and air pollution.
• In July 2020, Air Products & Chemicals, the US industrial gas giant, unveiled plans to create the world's largest green hydrogen facility in Saudi Arabia, fueled by 4 gigatonnes of wind and solar power. Air Products, Saudi Arabia's ACWA Power, and Neom, a brand-new megacity being built close to Saudi Arabia's borders with Egypt and Jordan, will all share ownership of the $5 billion plant.

Segmentation:

By Type

• Concrete admixtures
• Adhesive and Sealants
• Flame Retardants

By Material

• Bio-polymers
• Bio-organic acids
• Bio-alcohols
• Bio-ketones

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Others