Bio-Renewable Chemicals Market Size, Industry Outlook Report, Regional Analysis, Application Development, Price Trends, Competitive Market Share & Forecast, 2025 – 2034

Bio-Renewable Chemicals Market Size

The global bio-renewable chemicals market generated notable revenues in 2024 and is estimated to grow at a notable CAGR during 2025-2034 driven by the rise of environmental concerns, sustainability, and regulatory pressure to reduce carbon emissions. Bio-renewable chemicals are chemicals produced from renewable biomass resources such as agricultural feedstock, cellulosic feedstock, and organic waste. Bio-renewable chemicals demonstrate environmental benefits and performance equal to petrochemical-derived chemicals and are appearing in packaging, agriculture, transportation, paints and coatings, textiles, and many other sectors.
 

For instance, in June 2025, The Association of Directors of Environment, Economy, Planning & Transport (ADEPT) launched a new program that provided funding to local highway authorities, enabling them to measure their carbon emissions and identify effective ways to reduce them. They are increasingly important in the green transition because many bio-renewables have lower environmental footprints compared to conventional chemical products, and they can be biodegradable and offer the same performance as petrochemicals.
 

As governments around the world develop policies in support of decarbonizing industries and building circular economies, businesses, and sectors are implementing bio-based alternatives in place of fossil-based products in their production. Additionally, consumers demand sustainable products and are becoming familiar with eco-labels, resulting in brand owners integrating bio-based renewables into the supply chain. Shifting prices and supply chain uncertainty in the fossilized fuel markets have forced bio-based replacements to appeal to manufacturers. Continued improvements in biotechnology and green chemistry will allow manufacturers to improve the scalability, performance, and cost-effectiveness of bio-renewable chemical and product alternatives and support strong growth in the long term.
 

Bio-Renewable Chemicals Market Trends

The market has reached a “tipping point” influenced by regulatory, technological, and consumer factors. A significant trend in the market is the transition from fossil-based to bio-based production models across various sectors, which is in line with global carbon reduction goals. As countries commit to net-zero emissions targets, sectors are supporting measures to remove carbon from supply chains. This should eventually lead to an increase in the research and development of enzyme catalysis, microbial fermentation, and synthetic biology to produce biobased chemicals more efficiently and for lower costs, without sacrificing quality.
 

Another trend is to utilize “waste” products from agriculture and industry as feedstock (which could be beneficial to the environment and create value in the marketplace from waste). This is also helpful to produce a product that does not compete with the food supply chain and to develop a circular economy model. A growing number of brands are also using food labels to identify and describe their green or non-toxic products that are made with bio-renewable ingredients to improve consumer awareness and market differentiation.
 

 Supply Chains are using digitalization and blockchain as part of a larger effort to trace the origin and sustainability of bio-based chemicals. Furthermore, companies are thinking about multi-functional bio-renewable chemicals that can act as both an improving performance agent and as a carbon-based protectant.
 

Bio-Renewable Chemicals Market Analysis

The bio-solvents segment represented a substantial share in 2024 and is expected to maintain momentum through 2034. Bio-solvents are products derived from renewable sources such as corn, sugarcane, soybean, and cellulose, and are used in a wide range of end-product industries, including coatings, adhesives, cleaning products, and pharmaceuticals. In many cases, bio-solvents are proven to be less harmful to the environment than traditional petroleum-based solvents because they are less toxic, easily biodegradable, and produce less volatile organic compounds (VOCs).
 

Many companies are switching to bio-solvents to avoid regulation of VOC emissions or restrictions on occupational exposure limits. Bio-refining and fermentation technologies have entered the market with a variety of bio-solvents, including ethyl lactate, D-limonene, methyl coyote, and bio-butanol, as each is accessible for multiple industrial uses. As consumers and industry continue to adopt an environmentally responsible operational model, bio-solvents are likely to be one of the most fast-moving and lucrative segments of the bio-renewable chemicals market.
 

The packaging segment will continue to grow significantly during 2025-2034, due to escalating pressure to limit the waste generated by plastics—and the corresponding greenhouse gas emissions across the supply value chain. The packaging segment is expected to grow robustly with brand owners, retailers, and the packaging manufacturing sector more widely contributing to the use of sustainable materials from renewable feedstocks.
 

Bio-renewable chemicals are utilized in the production of biodegradable plastics, biopolymers, coatings, and adhesives which are essential components found in sustainable packaging solutions. The global growth of the e-commerce sector, coupled with consumer demand for eco-conscious brands has increased the need for sustainable yet functional packaging solutions that could be important in attracting new customers and creating customer retention. Brands are seeking bio-renewable inputs to meet their internal corporate sustainability goals, comply with single-use plastic bans, and show certifications like being labeled as compostable or recyclable.
 

Latin America bio-renewable chemicals market held the largest share in 2024 driven by the agricultural abundance, fit climate, and increasing investments in green technology. These nations are capitalizing on their available biomass, which includes sugarcane, soybean, corn, and forest residues, for their range of bio-based chemicals. Brazil, for example, has been an established player in bioethanol and is now expanding its footprint in other bio-renewable areas like bioplastics and bio-solvents.
 

The regional shift toward industrial decarbonization and cleaner production methods has inspired the development of various government incentives and policies to drive renewable chemical innovation. The engagement of multinational chemical companies in joint ventures and establishing local manufacturing around cost-effective feedstock, coupled with increasing local demand, is helping the region grow into a more prominent renewable chemicals producer.
 

The agricultural and food packaging industries in Latin America are particularly active in their adoption of bio-renewable inputs, especially boosted by their growth in export markets and compliance with the emerging environmental frameworks in those customer markets.
 

Bio-Renewable Chemicals Market Share

Major players in the market include:

• Myriant
• BASF SE
• TerraVia Holdings
• LanzaTech
• Gevo
• Amyris
• Solvay
• ZeaChem
• DuPont
• BioAmber
   

In the natural chemicals sector, and bio-renewable chemicals marketplace, companies have a range of options to strengthen their position. Our analysis reflects on possible strategies, and we also note the emphasis companies are placing on research and development, especially in the biotechnology and green chemistry domains. Companies are looking to develop bio-based chemicals, bio-renewable chemicals that "work" in terms of our productivity and functionality. Companies are pursuing several approaches in the agricultural chemicals sectors and bio-renewable chemicals industry. Firstly, companies that continue to invest in research and development effectively have incentives to advance the yield, efficacy, and performance of these bio-based chemicals. Secondly, firms are joining partnerships and creating joint ventures with agriculture producers, biotech firms, or universities (wherever they can find bio-origin innovation and raw materials). Thirdly, some of the firms are expanding capacity, and producing formulation in the locale of the agriculture originating producer.
 

Bio-Renewable Chemicals Industry News

• In August 2023, Origin Materials, Inc. formed a strategic partnership with Sustainea Bioglycols, a joint venture between Braskem and Sojitz Corporation. This collaboration focused on combining the advanced bio-based materials technology with Sustainea’s expertise in bio-based glycol products and market knowledge to drive the global shift toward sustainable materials.

• In November 2024, OQ Chemicals launched OxReduce L7-NPG, a bio-circular synthetic lubricant base oil designed as an alternative to fossil-based Oxlube L7-NPG. Made from palm oil-free, sustainably sourced feedstocks and certified under the ISCC PLUS standard, this product offered up to 84% renewable carbon content, allowing manufacturers to reduce the carbon footprint of their lubricants without sacrificing performance.