Green Chemicals Market

The Global Green Chemicals Market is valued at USD 40.6 Billion in 2023 and is projected to reach a value of USD 80.4 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 10.2% between 2024 and 2030.

Key highlights of Green Chemicals Market

• Europe dominated the market in 2023, obtaining the largest revenue share of 34.2%.
• The Bio-alcohols segment dominated the Green Chemicals market with the largest market share of 30.4% in 2023.
• The Automotive segment dominated the Green Chemicals market with the largest market share of 45.4% in 2023.
• The technological factors consist of the relevant current and future technological innovations. The new and advanced innovations in green chemicals are favorable for the growth of the market.

Green Chemicals Market: Regional Overview

Europe Dominated Sales with a 34.2% share in 2023. Europe is anticipated to drive the growth of the global green chemicals at a significant rate over the forecast period. Due to significant expenditures in R&D, the region is among the pioneers in implementing a greener economy for a variety of purposes. it is anticipated that the backing for these green initiatives from various organizations would further establish this region as the market leader for the foreseeable future. Due to the importance of the automobile industry to the European economy, it is anticipated to be one of the top application segments in this area. Around 12% of Europe's carbon dioxide emissions come from cars, which makes it likely that using eco-friendly chemicals and materials in the continent's thriving automotive industry will be a top priority. Furthermore, a number of original equipment manufacturers (OEMs) are switching to the production of different automobile parts using ecofriendly materials.

Germany Green Chemicals Market Overview

The Green Chemicals market in Germany, with a valuation of USD 4013.7 Million in 2023, is projected to reach around USD 7834.5 Million by 2030. This forecast indicates a substantial Compound Annual Growth Rate (CAGR) of 10.03% from 2024 to 2030. It is anticipated that the market for Green Chemicals in Germany would grow significantly throughout the projection period because a variety of enterprises are receiving more funding, there are more government operations, more environmental concerns, more industrialization, and more. The region's chemical industry is focusing on creating Green Chemicals in order to offer sustainable and environmentally friendly solutions. Two factors causing the target market for the region to grow are the demand for bio-based components across industries and the substantial use of Green Chemicals in the production of intermediate chemicals.

The global Green Chemicals market can be categorized as Product, Application, and Region.

Green Chemicals Market: Product Overview

In 2023, the Bio-alcohols segment dominated the market, with the largest share accounting for 30.4% of the overall market. The Green Chemicals market, segmented by the Product, includes Bio-alcohols, Biopolymers, Bio solvents, organic acids, and Others. The bio-alcohols category is estimated to account for a sizable portion of the global Green Chemicals market. This is due to the increasing use of bioethanol as an alternative fuel in vehicles due to its low cost and environmental friendliness. According to the Energy Information Administration (EIA), the number of automobiles will increase to 1.7 million by 2035, and liquid fuel consumption will increase to 21.9 million gallons per day in 2035, up from 19.1 million barrels per day in 2009. Furthermore, there is an increasing need for bioethanol in manufacturing alcoholic beverages such as beer, brandy, gin, vodka, and whisky.

Green Chemicals Market: Application Overview

In 2023, the Automotive segment dominated the market, with the largest share accounting for 45.4% of the overall market. The Green Chemicals market, segmented by the Application, includes Food & Beverages, Personal care, Packaging, Automotive, Agriculture, and Others (Including Construction, Electrical & electronics, and Textiles). During the period of forecasting in the market for {[Keyword}} and materials, the automotive sector is predicted to rise at a high rate. Using electricity and hydrogen to power cars and other vehicles is revolutionizing the automotive industry. Furthermore, some of the vehicles also run on bio-alcohols like ethanol. The Fiat 147 is an instance of a vehicle that runs on bioethanol. Leading automakers have raised the money they invest in producing electric vehicles in various areas. In contrast to conventional cars, the selection of EV models is currently constrained.

Key Trends

• In 2023, the bio-alcohols category dominate the market and is projected to witness significant growth in the coming years.
• In 2023, the Automotive had a major share. Moreover, personal care category to witness the fastest growth over the forecast period.
• In 2023, Europe category had a major share in the market.

Premium Insights

The enhanced rules and regulations by government for Green Chemicals industry across the globe are favorable for global market growth. The political and government stability across major developed and developing nations is also estimated to enhance the market demand in the years to come. The steady growth in the demand of green chemicals and increased investments by major companies for the adoption of advanced technologies are presumed to be favorable for market growth. Consumers are aware of the end-use products as well technologically advanced products which will support the growth of the market during the forecast period.

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Market Dynamics

Non-Renewable Resource Scarcity to Boost Market Expansion

One of the main factors boosting the growth of the market for green is the absence of nonrenewable resources. Fundamentally speaking, fossil fuels are valuable energy and feedstock sources. The depletion of fossil feedstock supplies, such as those for natural gas, coal, and crude oil, has, however, necessitated the search for alternate energy sources and feeds tocks for the chemical industry due to their high pricing. For instance, the proven resource base (DRB) was predicted by the US Energy Information Administration (EIA) to be roughly 473 billion short tons as of October 2020, with about 69% of that amount being underground mineable coal. Governments have thus been influenced to invest in alternatives like Green Chemicals due to the sharp increase in energy prices and increased awareness of the dangers associated with conventional energy sources. During the anticipated period, these elements will fuel the market's expansion for Green Chemicals.

Green Electronics for a More Sustainable Future will Drive Market Expansion

The major green chemicals industry trend driving the market's expansion is using green electronics for a sustainable future. To expand the use of Green Chemicals in many industries, including textiles, there has been considerable growth in R&D activity. For instance, DowDupont, one of the largest chemical producers, is enhancing its agricultural and innovative materials-related products. As part of its new strategy to enhance its competitive performance, reduce costs, and provide environmental advantages, the corporation is expanding its R&D expenditures on biomaterials. Other producers, including DSM and Cargill, strongly emphasize new product inventions and advancements to maintain competitive advantages and increase market share. With the help of these programs, businesses can produce more environmentally friendly goods for their customers.

High Cost of Green Chemicals could Constrain Market

One of the things impeding the expansion of the market for Green Chemicals is a lack of raw materials. The ability to produce green goods mostly depends on the availability of agricultural and animal products, including vegetable oils, sugars, and animal fats. On the other side, a significant barrier to the manufacture of Green Chemicals is the declining agricultural production brought on by the decline in arable land over time. In addition, growing industrialization, population expansion, and urbanization are to blame for the shrinking arable land area. Therefore, the shrinkage of arable land is projected to impact the supply of raw materials needed to make green chemicals, which could impede the market's expansion over the forecast period.

Competitive Landscape

The global market is a competitive and fragmented market due to the high presence of players in the market. Only a few companies account for a major market share, and hence, the degree of competition among the suppliers is high as the players in the market are active at global, regional, and country level. Also, the increasing rivalry between the players to obtain the majority of the market share for global has played a major role in intensifying the level of competition. The players also have their capabilities beyond the demand, and hence there is a minimal necessity for the new players to enter in the market. The Key players are Cargill Inc, BASF, DuPont, Vertec BioSolvents Inc, Arkema, Mitsubishi Corporation, Evonik, GFBiochemicals, Total Corbion PLA, Plantic Technologies Limited.

Recent Developments

• In December 2022, Evonik has introduced the biodegradable rhamnolipid REWOFERM® RL 100 after investing tens of millions of euros to construct a new biosurfactant facility in Slovakia. The new biosurfactant satisfies market demand for low impact cleaning products, low-emission that facilitate a circular economy. REWOFERM RL 100 is manufactured from locally obtained, renewable feedstocks and is completely biodegradable, all while delivering outstanding cleaning performance.
• In September 2022, BASF and RiKarbon Inc. announced signing a collaboration contract for exclusively licensing and commercializing proprietary technology from RiKarbon. RiKarbon's patented technology allows the recycling of bio-waste to bio based, biodegradable emollients for the global personal care market, supporting the industry's drive to innovative sustainable solutions.