SAN JOSE, CA – Publishing company Global Industry Analysts Inc. has released a study that reports the market for renewable chemicals is projected to reach $66.1 billion by 2018. Spiraling petroleum prices, rising demand for eco-friendly products and the growing focus on environmental protection will drive growth.
Rapidly depleting fossil fuels and escalating energy consumption coupled with rising environmental awareness among nations has led to increased focus on alternate, viable eco-friendly and renewable energy sources. The transition towards renewable energy is presenting immense opportunities for renewable chemicals. Growing efforts of governments and organizations directed towards building a bio-based economy is further driving gains in the market.
Produced from renewable feedstocks such as animal, forestry, municipal, household, horticultural, and agricultural waste, renewable chemicals are eliciting interest among investors, technology experts, developers, regulatory authorities, consumers, and corporations. Abundant biomass and renewable feedstocks, increased government focus on reducing dependence upon foreign oil and achieving self-sufficiency, international pressure to reduce greenhouse gas emissions, and the desire to reduce dependency on non-renewable petroleum products through renewable sourcing are all factors poised to benefit the market. Additionally, factors such as sustainability, decreasing landfill space, a strong pipeline of innovative bio-based products, and the low costs of production of bio-based chemicals are also fueling market growth. Advances in industrial biotechnology are helping renewable polymers and bio-based chemicals to compete with petroleum-based polymers in terms of performance and cost.
Renewable alcohols, including ethanol, methanol iso-butanol, 1-propanol, 2-propanol, 1-pental, and 2-ethyl-1-hexanol, among others, represent the largest revenue contributor for renewable chemicals. Renewable ethanol and methanol considerably reduce greenhouse gas emissions and are therefore poised to benefit from the growing concerns over global warming. Ethanol continues to represent the largest segment in the global renewable chemicals market, driven largely by eco-friendliness, cost-efficiency and the ability to meet existing regulations. Developments in environment-friendly production technologies will help drive growth of bio-based feedstock for chemicals manufacturing.
The market for renewable platform chemicals is expected to benefit from the increased investments being made to develop processes for producing renewable intermediates. Rising oil prices, advanced process technologies, and continued changes in regulations and policies will provide growth opportunities to renewable platform chemical manufacturers in the coming years.
The study reports that Europe represents the largest regional market worldwide, while Asia-Pacific represents the fastest-growing market with a CAGR of 7.6 percent over the analysis period.
The research report, titled Renewable Chemicals: A Global Strategic Business Report, provides a comprehensive review of market trends, mergers, acquisitions and other strategic industry activities. For more information about the report, visit www.strategyr.com/Renewable_Chemicals_Market_Report.asp.