Seattle, WA -- (SBWIRE) -- 09/20/2019 -- Renewable chemicals are known as bio-based chemicals. These chemicals are obtained from various renewable sources such as organic waste products, agricultural waste, agricultural feedstock, microorganism, and biomass. The concentration of carbon in renewable chemicals is low and these chemicals have environment-friendly characteristics. This in turn has increased the use of renewable chemicals as potential alternatives to petroleum-based chemicals. Increasing demand for methanol and ethanol in the pharmaceutical industry is a major factor fueling growth of the renewable chemicals market during the forecast period.
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The market in Europe is expected to hold dominant position, followed by North America. This is majorly attributed to increasing adoption of novel and technologically advanced green products. The market in Asia Pacific is expected to witness rapid growth, owing to supportive government policies and low labor cost. Renewable chemicals are used in a wide range of applications such as agriculture, food & beverages, packaging, and biomedical. Production of renewable chemicals from biomass is done through thermo chemical conversion, enzymatic hydrolysis, dehydrative transformation, fermentation and bioconversion, production of Fischer Tropsch diesel, and acid hydrolysis.
Renewable chemicals Market Taxonomy
On the basis of product type, the global market is classified into:
Bio polymer
Alcohols
Ketones
Organic acids
Others
On the basis of applications, the global market is classified into:
Agriculture
Food & beverages packaging
Bio medical
Textiles
Others
On the basis of geography, the global market is classified into:
North America
-U.S.
-Canada
Europe
-U.K.
-Germany
-Italy
-France
-Spain
-Russia
-Rest of Europe
Asia Pacific
-China
-India
-Japan
-ASEAN
-Australia
-South Korea
-Rest of Asia Pacific
Latin America
-Brazil
-Mexico
-Argentina
-Rest of Latin America
Middle East
-GCC Countries
-Israel
-Rest of Middle East
Africa
-Northern Africa
-Central Africa
-South Africa
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Renewable Chemicals Market Outlook – Increasing End User Demand is expected to Boost the Market Growth
Development of new technologies, increasing preference for eco-friendly products, and supportive government policies are some of the factors that boost growth of the renewable chemicals market. Moreover, increasing demand for ethanol & methanol, green packaging materials, and consumer goods packaging materials is also expected contribute to the market growth during the forecast period. Presence of huge deposits of raw materials, cheap labor cost, and high demand for renewable chemicals in China and India is expected to boost growth of the market. Moreover, growing urbanization and industrialization in emerging economies of Asia Pacific is also expected to increase demand for renewable chemicals from various end-use industries. Various government bodies such as the EU are focused on imposing stringent regulations on the use of fossil fuels, which has led manufacturers and researchers to research and develop novel technologies that can be alternatives to fossil fuels.
Renewable Chemicals Market Challenges – High Cost for Commercialization
The market for renewable chemicals is very niche and includes a few number of players. Moreover, increasing environmental concerns is expected to increase the preference of green and eco-friendly chemicals. Therefore, pilot projects have to be commercialized and significant investments is required to be made in research and development to upgrade the existing production technology and develop new products to cater to this increasing demand of renewable chemicals. Although the market offers lucrative growth opportunities to the market players, high capital investment in production of renewable chemicals as compared to other conventional chemicals and polymers, is expected to be a key challenge for market growth. The viability of renewable chemicals in terms of matching performance of conventional chemicals is still to be conclusively proved, which dissuades end-use industries from adopting these chemicals. Moreover, abundant petroleum reserves in Middle East and Latin America is expected to lead to least growth in the regions during the forecasted period.
Renewable Chemicals Market – Regulatory Scenario:
- 2009, Federal Legislation enthusiastic support for bio based products development and promotion.
- As per The Biomass Research and Development Act of 2000, established the biomass research and development initiative to promote and develop bio based products, which consist of representatives from the white house, US Department of Agriculture (USDA) and US Department of Energy
The key players in the market include Archer-Daniels-Midland Company (ADM), Amyris Inc., BASF SE, Bioamber Inc., Biomethanol Chemie Nederland B.V., Braskem, Cargill Inc., DSM, E. I. DU Pont DE Nemours & Company, Evonik Industries AG, Genomatica Inc., Metabolix, Inc., Myriant Corporation, Natureworks LLC, Novozymes A/S, OPX Biotechnologies, Solazyme Inc., Solvay, and The Dow Chemical Com.
Key Developments
1. Major companies are adopting business expansion strategy, in order to gain competitive edge in the global market. For instance, in April 2018, Braskem, a Brazil-based petrochemical company, expanded its research and development activities of renewable chemicals in Boston, U.S. This will include material science and biotechnology R&D.
2. Key players in the market are focused on various growth strategies such as merger and acquisition, in order to enhance their market presence. For instance, in June 2019, Genomatic, Inc., a biotechnology company, acquired selected assets of Renewable Energy Group, which is the largest supplier of biofuels in North America. It will help Genomatic, Inc. to develop wider range of renewable chemicals.
3. Major companies in the market are involved in various business strategies such as product launches, in order to expand their product portfolio and gain competitive advantage in the market. For instance, in July 2019, Braskem, a Brazilian petrochemical company, launched first solvent HE-70S, which is made from renewable resources. The solvent will be used in various applications such as adhesives, thickeners, and inks.
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