Bio-renewable chemicals market size is expected to gain remarkable returns over the years 2023–2032. The market growth is expected to come from the product advantages such as their low environmental footprint compared to traditional petrochemicals and the rising consumer demand for products derived from renewable resources. Furthermore, the rapid transition towards the bioeconomy and renewable feedstocks to produce low-carbon alternatives for industries, including chemical, will also drive the market outlook in the upcoming years.
Bio-based or renewable chemicals are obtained from agricultural feedstock and waste, biomass, organic waste products, and other renewable sources. These renewable bio-based chemicals are known to have a lower carbon footprint, unlike conventional petrochemicals, and boast of wide application scope in industries such as food and beverage packaging and transportation.
The Ukraine-Russia war, volatile financial markets, growing trade tensions, a stricter regulatory environment, and pressure to mainstream climate change into economic decisions are anticipated to adversely impact the growth of the global bio-renewable chemicals industry in the coming years.
However, high interest in the use of biofuels due to strict automotive vehicle emission norms, coupled with the rising deployment of bio-based polymers in the textile industry, will propel the bio-renewable chemicals market value.
The bio-renewable chemicals market from the bio-solvents segment will register a strong revenue growth by 2032. The segmental share can be ascribed to the surging deployment of bio-based raw materials across the paint and adhesives industries. Furthermore, the emergence of greener, environment-friendly alternatives to harmful solvents, including Cyrene, for the pharmaceutical sector is also projected to facilitate segmental growth in the coming years.
Latin America bio-renewable chemicals market will account for a commendable share by 2032, owing to the rising cultivation of soybeans for bio-based products in countries such as Brazil and Mexico. With the growing usage of soybeans in biodiesel, the need for renewable chemicals for biological crop production will increase in the region. Likewise, the upcoming projects, including Mexico's proposed ETS (Emissions Trading Scheme) and other GHG emission reduction missions, will also stimulate bio-renewable chemicals production over the forthcoming years.
The competitive landscape of the global bio-renewable chemicals market consists of companies such as Gevo, LanzaTech, DuPont, BioAmber, Myriant, Solvay, BASF SE, TerraVia Holdings, ZeaChem, and Amyris, among others. These industry players are focusing on business expansions, new product launches, and acquisitions to gain a competitive edge across the global market.
For instance, in 2023, Gevo, Inc. announced inking Hydrogen Development Services Agreement with Zero6 Energy for developing a 20-megawatt hydrogen production facility in Lake Preston, South Dakota, using Cummins Inc.’s electrolyzer technology. The facility, known as the Dakota Renewable Hydrogen Project (DRH), will be an important part of Gevo's Net-Zero 1 renewable hydrocarbon plant (NZ1), which is currently under development.