Green Chemicals Market: Current Analysis and Forecast (2022-2030)

A green chemical is one that provides higher performance and functionality while being more environmentally friendly throughout its entire life-cycle. It is an area of chemistry and chemical engineering focused on the design of products and processes that minimize or eliminate the use and generation of hazardous substances. It focuses on the environmental impact of chemistry, including lowering consumption of nonrenewable resources and technological approaches for preventing pollution. The booming demand for environmentally friendly products and increasing government focus on conserving the environment is acting as a catalyst for the growth of green chemical market.

The GREEN CHEMICALS Market is expected to grow at a steady rate of around 9.5% owing to the increasing demand for clean energy coupled with the growing attention to carbon emissions. Factors such as replacement of hazardous chemicals and rising consumption of petrochemical products including their derivatives are acting as drivers for the growth of the chemical market. Furthermore, increasing demand for green chemicals from both individual and institutional buyers due to strict government regulations to lower the potential of global warming, ozone depletion, and smog formation is fueling the sales of green chemicals in the global market. Many key competitors in the green chemical industry are investing heavily to innovate new techniques to produce products from biochemicals that are less toxic in nature, easy to transport and release less hazardous chemical wastes resulting in rising demand. For instance, in 2021, Arkema S.A. announced a new advanced bio-circular medical polymer for the manufacture of surgical tools and medical devices.

Based on product, the green chemicals market is segmented into Bioalcohols, biopolymers, solvents, organic acids, and others. The Bioalcohols category is expected to grow at a considerable growth rate owing to countries adopting a higher blend of bioethanol in gasoline. This increased blend would mitigate carbon emissions from vehicles and conserve fossil fuels. Moreover, due to rising environmental concerns and strict government regulations, the adoption of bio-based packaging materials such as plant and animal waste is likely to witness a rise in the future, which in turn, is expected to fuel the demand for green chemicals for their production. For instance, in India, in October 2020, the Cabinet Committee on Economic Affairs approved mandatory packaging of 100% food grains and 20% sugar in jute bags.

Based on application, the green chemicals market is divided into food & beverages, personal care, packaging, automotive, agriculture, and others. The automotive sector captured a significant market share in the green chemical market. The transportation sector contributes to a significant amount of greenhouse gas emissions globally therefore, automotive flex-fuel engines which are compatible with higher blends of bioethanol in gasoline are being adopted. There is rising demand for flex fuel engines in the logistics industry which would lead to an increase in the transportation sector thereby increasing the demand for bioethanol from automotive sector.

For a better understanding of the market adoption of the GREEN CHEMICALS industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Rest of Europe), Asia-Pacific (China, India, Japan, Australia, Rest of Asia-Pacific), Rest of World. Asia Pacific captured an extensive share of the GREEN CHEMICALS market and is expected to show an influential growth rate in the forecasted period as well. India and China are a dominant player in the region and is driving the growth of the APAC region along with countries such as Japan. For instance, the Chinese government has introduced a range of policies and regulations aimed at promoting the development and use of green chemicals. The country's 13th Five-Year Plan includes a target to increase the share of non-fossil fuel energy in primary energy consumption to 15% by 2020, which has led to an increased focus on the development of renewable energy sources and green chemicals.

Some of the major players operating in the market include: Arkema S.A., BASF SE, Evonik Industries AG, GF Biochemicals Ltd., Koninklijke DSM N.V., Mitsubishi Chemical Corporation, Toray Industries Inc., Cargill, Total Corbion PLA and Vertec BioSolvents Inc.