The "Renewable Chemical Manufacturing Market - A Global and Regional Analysis: Focus on Application, Product, and Region - Analysis and Forecast, 2023-2033" report has been added to ResearchAndMarkets.com's offering.

The global renewable chemical manufacturing market is estimated to reach $254.15 billion by 2033. The study highlights that the market is set to witness a CAGR of 10.49% during the forecast period 2023-2033.

The renewable chemicals sector is witnessing a significant upswing in growth, fueled by increasing demand driven by sustainability efforts, biotechnology innovations, and substantial investments in pilot and large-scale production plants. Past challenges have instilled caution about the widespread adoption of bio-based chemicals, but there's now a clear increase in investment activity evident throughout the industry and its target markets. Stakeholders at every stage of the supply chain are realizing the importance of sustainable operations and are actively pursuing goals aligned with environmental responsibility. This growing sense of urgency highlights a shared dedication to transitioning toward eco-friendlier practices.

North America has emerged as a leader in the renewable chemical manufacturing market due to a convergence of influential factors. The region's robust research and development infrastructure, particularly in biotechnology and chemical engineering, enables it to drive innovation and pioneer new products and processes. Moreover, the region benefits from supportive regulatory policies that incentivize sustainability and reduce reliance on fossil fuels, fostering investment and market growth.

Market Introduction

The renewable chemicals sector is seeing swift expansion, fueled by rising interest in bio-based polymers, advancements in technology and innovation, and supportive government policies and regulations. This transition toward renewable chemicals presents a host of environmental and economic advantages, such as lower carbon emissions, improved resource efficiency, and reduced dependence on fossil fuels.

With global sustainability becoming increasingly important, the renewable chemical manufacturing market is set for continued growth. Furthermore, industry players must address challenges such as cost-effectiveness, scalability of production, and maintaining sustainability in feedstock supply chains to drive revenue growth in this sector.

Industrial Impact

Key players in the renewable chemical manufacturing market are heavily investing in research and development to broaden their product offerings, driving further growth in the sector. These market participants are engaging in various strategic initiatives, such as launching new products, forming contractual agreements, pursuing mergers and acquisitions, increasing investments, and fostering collaborations with other organizations. To thrive in an increasingly competitive market environment, the renewable chemicals industry must deliver cost-effective solutions to expand its reach and sustain growth.

One crucial business strategy employed by manufacturers in the renewable chemicals sector is local manufacturing to reduce operational costs, ultimately benefiting customers and bolstering market presence. Renewable chemicals have recently demonstrated significant medical benefits, further fueling market demand. Major players such as BioAmber (Canada), Corbion (Netherlands), Myriant Corporation (U.S.), Braskem (Brazil), Metabolix Inc. (U.S.), Mitsubishi Chemical Group Corporation (Japan), and BASF SE (Germany) are actively investing in research and development to stimulate market demand.

Established in 1983 and headquartered in Pune, Maharashtra, India, Praj Industries Limited is an Indian multinational company specializing in process and project engineering. With offices in South Africa, North America, Thailand, and other countries, Praj Industries offers a range of products, including ethanol plants, water and wastewater solutions, bioproducts, and research services.

Transportation to Dominate the Global Renewable Chemical Manufacturing Market (by Application)

In 2022, the bio-based chemicals market was primarily driven by the transportation sector, spurred by the increasing demand for bio-based fuels. As the world's third-largest oil producer and largest oil exporter, Russia's conflict with Ukraine caused a surge in crude oil prices, escalating fuel and gas costs globally. Consequently, nations are increasingly seeking alternatives to fossil fuels to expedite the green transition and reduce dependency.

Bioethanol has emerged as a promising solution due to its renewable nature and ability to enhance fuel efficiency while reducing emissions when blended with gasoline and petrol. In response, various countries are considering raising the bioethanol blending mandate to lower fuel prices and promote sustainability. For instance, to reduce the skyrocketing fuel prices in the U.S. caused by the Russian war in Ukraine, Joe Biden presented a new plan to increase the availability of gasoline blended with ethanol derived from corn in April 2022.

Alcohol to Dominate the Global Renewable Chemical Manufacturing Market (by Product Type)

In 2022, the alcohol segment emerged as the dominant force in the renewable chemical manufacturing market, fueled by the escalating demand for alcohol, such as ethanol and methanol, across various sectors. Notably, the transportation and mobility segment has witnessed a notable shift toward the adoption of green methanol, driven by the pressing need to decarbonize the marine industry.

Major players such as A.P. Moller - Maersk and Stena have made significant investments in embracing green methanol as a primary fuel for marine vessels. For instance, A.P. Moller - Maersk's substantial agreement with Orsted in March 2022, securing 300,000 tons of e-methanol annually for its fleet of 12 methanol-powered vehicles, underscores the industry's commitment to sustainability. This strategic move not only addresses the imperative to reduce carbon emissions but also reflects a broader momentum toward greener solutions in the transportation sector.

Plant Oil Segment to Dominate the Global Renewable Chemical Manufacturing Market (by Feedstocks)

In 2022, plant oil feedstock emerged as the dominant force in the bio-based chemical market, driven by several key factors. Plant oils derived from renewable sources, such as soybean, palm, rapeseed, and sunflower, offer a promising solution due to their renewable nature and lower environmental footprint. Moreover, advancements in biotechnology and chemical engineering have enhanced the efficiency and cost-effectiveness of converting plant oils into bio-based chemicals.

Innovative processes, such as enzymatic hydrolysis and fermentation, have enabled the production of a wide range of bio-based products, including bioplastics, biofuels, and biochemicals, from plant oil feedstocks. These factors collectively propelled plant oil feedstock to the forefront of the bio-based chemical market in 2022, driving its widespread adoption and market dominance.

How can this Report add value to an Organization?

Product/Innovation Strategy: The product segment helps the reader understand the different applications of renewable chemical manufacturing in the market. The market is poised for significant expansion with ongoing technological advancements, increased investments, and growing awareness of the use of renewable chemical manufacturing. Therefore, renewable chemical manufacturing is a high-investment and high-revenue generating model.

Growth/Marketing Strategy: The global renewable chemical manufacturing market is growing at a rapid pace. The market offers enormous opportunities for existing and emerging market players. Some of the strategies covered in this segment are mergers and acquisitions, product launches, partnerships and collaborations, business expansions, and investments. The strategies preferred by companies to maintain and strengthen their market position primarily include partnerships and collaborations.

Competitive Strategy: The key players in the global renewable chemical manufacturing market analyzed and profiled in the study include renewable chemical manufacturing projects. Additionally, a comprehensive competitive landscape such as partnerships, agreements, and collaborations are expected to aid the reader in understanding the untapped revenue pockets in the market.

Key Attributes:

Market Dynamics Overview

Trends: Current and Future Impact Assessment

• Growing Interest in Bioplastics for Sustainable Packaging Solutions
• Regulatory Support Driving Investment and Market Growth in Renewable Chemicals

Market Drivers

• Rising Awareness of Sustainable Products to Reduce Pollution
• Increasing Demand for Renewable Alcohol

Market Restraints

• High Cost of Production Expenses in Renewable Chemicals
• Lack of Standardized Regulations and Stringent Regulations Associated with Environment Safety

Market Opportunities

• Growth of the Electric Vehicle (EV) Industry
• Growth in Technological Innovations

Supply Chain Overview

• Value Chain Analysis
• Pricing Forecast
• Global Pricing Forecast
• Regional Pricing Forecast

Research and Development Review

• Patent Filing Trend (by Company)
• Patent Filing Trend (by Country)

Regulatory Landscape

Stakeholder Analysis

Startup Funding Summary

Global Chemical Manufactured using Renewable Energy Source

• Hydropower
• Wind
• Solar Energy
• Others

Key Market Players and Competition Synopsis

• BASF SE
• CropEnergies AG
• DSM
• amyris
• Braskem
• Evonik
• Novozymes A/S
• Cargill, Incorporated
• NatureWorks LLC
• ADM
• ARD
• OCI
• Mitsubishi Chemical Group Corporation
• Carbon Recycling International
• Corbion

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