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Rising Environment Awareness Influences the Green Chemicals Market Growth

Posted in Chemicals by Adolf on Sep 12,2022 244

Green chemicals or bio-based chemicals are renewable chemicals produced from bio-based feedstock. They are less harmful to the environment than the petroleum-based production of chemicals. Green chemicals are produced primarily using raw materials, which uses fewer natural resources, maintaining the environmental balance. The major bio-based raw materials used in the production of green chemicals are vegetable oils, animal fats, sugar and starch, and bio-ethanol.

The growing concerns related to the limited availability of fossil fuels for future generations and the government's support for the environment across the globe are curtailing their fossil fuel consumption, which are likely to trigger the growth of global green chemicals market size. The evolution of green chemistry in the chemical industry will influence the growth of the global green chemicals industry in the analysis timeframe. In today's world, the increased sense of energy crisis and the increased awareness of social, environmental protection pose new challenges to the chemical industry. Under this background, the green chemical industry has become the forefront of international chemical research. The government's surge in funding and initiatives on account of the increasing demand for green chemicals in various applications to produce sustainable end-products will boost the market growth.

Moreover, the upsurge in environmental concerns, the adoption of bio-based packaging materials, and the increasing demand for renewable chemicals is expected to foster the global market growth. The rise in the adoption of ready-to-go food and the growing demand for bio-based packaging and organic packaged foods propels the growth of global green chemicals market share in the estimated periods. The development of the green chemical industry has dramatically reduced the adverse impact of the traditional chemical industry on the environment and society. The upsurge in the adoption of packaging materials, made up of renewable sources, such as plant and animal waste, on account of their environment-friendly nature will propel the growth of the green chemicals market.

The Green Chemicals Market is expected to reach $217.18 billion by 2029, at a CAGR of 11.6% during the forecast period, 2022–2029. The growth of this market is mainly attributed to the scarcity of non-renewable resources, growing awareness regarding sustainable products, rising government initiatives to promote the use of green chemicals, growing environmental concerns & the rising demand for bioethanol, and the growing demand for biodiesel as an alternative fuel. Moreover, the regulations & legislation supporting the use of bioplastics and the growing focus on R&D for algae-based biofuel production provide significant opportunities in this market.

The green chemicals market is mainly segmented by product (bio-alcohols {bio-ethanol, bio-butanol, bio-methanol, and other bio-alcohols}, bio-organic acids {bio-lactic acid, bio-acetic acid, bio-citric acid, bio-adipic acid, bio-acrylic acid, bio-succinic acid, and other bio-organic acids}, bio-ketones, bio-polymers {polylactic acid, bio-polyethylene, and other bio-polymers}, and other green chemicals), application (industrial & chemicals, food & beverages, pharmaceuticals, packaging, construction, automotive, and other applications), and geography.

Based on product, the green chemicals market is mainly segmented into bio-alcohols, bio-polymers, bio-organic acids, bio-ketones, and other green chemicals. The bio-polymers segment is expected to witness significant growth due to the consumer preference for bio-based products over synthetic products, rising R&D in bio-polymers, adoption of bioplastics by the packaging industry, and increased utilization of flexible packaging by the food & beverages industry. Additionally, regulations & legal acts supporting bioplastics usage hold attractive growth opportunities for players operating in the bio-polymers market.

Based on type, the bio-alcohols market is mainly segmented into bio-ethanol, bio-butanol, bio-methanol, and other bio-alcohols. The bio-ethanol segment is expected to account for the largest share of the bio-alcohols market, as it is mainly attributed to the growing environmental concerns that lead to an inclination of manufacturers towards bio-ethanol production, low cost and abundant raw material availability.

Based on type, the bio-lactic acid segment is expected to account for the largest share of the bio-organic acids market. It also produces oxygenated chemicals, plant growth regulators, and special chemical intermediates. Additionally, the growing demand for Poly Lactic Acid (PLA) in packaging applications, especially food packaging, is anticipated to drive the demand for bio-lactic acid in the next few years.

Based on application, the green chemicals market is mainly segmented into industrial & chemicals, food & beverages, pharmaceuticals, packaging, construction, automotive and other applications. The industrial & chemicals segment is expected to account for the largest share of the green chemicals market, as it is mainly attributed to the growing industrialization and urbanization, increasing energy demand across the globe, increase in chemical transparency across the supply chain, and ban on the production and usage of hazardous substances.

Geographically, Europe is expected to account for the largest share of the green chemicals market in 2022. The large share of this region is primarily attributed to the growing demand for sustainable products, coupled with the presence of prominent players in the region and the rising adoption of green chemicals across different industries, including food & beverages, personal care, automotive, and packaging. In addition, the chemicals industry of the region is increasingly focusing on the production of green chemicals to develop sustainable and eco-friendly solutions.

The key players operating in the green chemicals market are Cargill, Incorporated (U.S.), Mitsubishi Chemical Holdings Corporation (Japan), BASF SE (Germany), DuPont de Nemours, Inc. (U.S.), Koninklijke DSM N.V. (Netherlands), Evonik Industries AG (Germany), SECOS Group Ltd. (Australia), Braskem SA (Brazil), Aemetis, Inc. (U.S.), and Albemarle Corporation (U.S.), among others.


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