The Green chemicals refer to chemicals that do not cause direct or indirect harm to people and do not cause direct or indirect pollution to the environment during production and use. Green chemicals are the products of chemical greening. The green chemicals should have three major elements: the starting materials of this product should come from renewable raw materials, such as agricultural waste. The product itself must not cause environmental protection or health problems, including no damage to wildlife, beneficial insects, or plants. When the product is used, it should be recyclable or easily degraded into harmless substances in the environment.
The global green chemicals market estimated to grow at a significant CAGR of over the forecast period, 2020-2027. The growth of the market is driven by rising awareness among consumers for sustainable products. Additionally, the availability of land, economical labor, low transportation costs, and government initiatives will spur the growth of global green chemicals market size in future periods. The low maintenance and operational costs and government initiatives & policy in many developed countries have implemented related to the environment that will trigger the growth of the global green chemicals industry. The growing adoption of bio-based packaging, harmful effects of inorganic chemicals, and swelling concerns regarding the fast-paced fossil fuel depletion will foster the growth of the green chemicals market. Further, the growing government initiatives and investments for the green city in developed and developing countries will complement the industry growth.
Moreover, the surge in the application of green chemicals to promote the preservation of non-renewable natural resources and reduces the certain environmental impact regarding recycling, disposal, transportation, installation, processing, and fabrication will boost the growth of the green chemicals industry. With the deepening of global economic integration and people’s demand for environmental protection, the chemical industry is constantly carrying out green technologies. The upsurge in demand for green chemicals is particularly high from the textile industry that will propel the green chemicals demand globally. The pressure on safety and environmental protection in the development of the industry and the constraints on factor costs are becoming increasingly prominent factors for the growth of the green chemicals market.
Multinational chemical companies are launching sustainable construction chemicals and related technologies to seize the opportunities in the energy-saving and environmentally friendly construction market. In the future, new buildings in the developed countries will have zero energy consumption. The commercial potential of sustainable building materials is affected by many factors such as energy, environment, society, legislation, and management, and the market will expand rapidly in the next few years.
Previously, the demand for green building chemicals was mainly from developed countries. The recent recovery of the construction market will be mostly concentrated in emerging economies led by China, India, Brazil, and Russia. The changes in architectural styles and increasing awareness of energy saving in developing countries have made it a major application market for green building chemicals and materials. The construction industry in emerging economies such as Asia-Pacific, South America, and the Middle East will lead the developed countries.
Based on the product type, the global green chemicals market segregated into bio-alcohols, bio-organic acids, bio-ketones, biopolymers, platform chemicals, and others. The bio-alcohols segment held a higher market share in 2019 and projected to dominate the global green chemicals market by 2027, due to its broad usage in various applications and eco-friendly properties. Additionally, bioethanol’s high-volume adoption for biofuels and the growing usage of bio-alcohol as an intoxicating agent in alcoholic beverages will spur the bio-alcohols green chemical market.
The bio-ketones will grow at a significant CAGR in the forecast period due to the surge in bio-ketones’ role in pharmaceutical, agrochemical, and chemical industries.
Based on the application, the global green chemicals market segmented into construction, healthcare, pharmaceuticals, packaging, food & beverages, paints & coatings, automotive, agriculture, personal care, and others. The construction segment accounted for the largest market share in 2019 due to the surge in demand for green chemicals in the construction industry. It is sustainable and can be easily recycled. It enhances the performance of emerging building technologies like new thermoset hotmelts, structural tapes, and multi-purpose adhesives.
Personal care will grow at a noteworthy rate during the analysis timeframe due to the rise in awareness regarding the benefits of bio-based beauty and personal hygiene products, over synthetic chemical-based beauty products.
By geography, the global green chemicals market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America held for the highest market share in 2019 and will witness to gain maximum market revenue by 2027. Due to the growing demand for sustainable products, rising demand for eco-friendly packaging, and the upsurge in demand for green chemicals in intermediate chemical production.
Europe will capture a prominent share of the green chemicals market by 2027 due to the growing environmental concerns in the region, and government support for the adoption of environment-friendly chemicals.
Companies such as BASF SE, Cargill Inc., DowDuPont Inc., INEOS AG, Koninklijke DSM NV, Arkema Group, Abengoa, Aura Biotechnologies, Avantium N.V., BioAmber Inc., Cardia Bioplastics, Dongguan Xinhai Environmental-Friendly Material Co. Ltd., Mitsubishi Chemical Corporation, Plantic Technologies Ltd., and Toray Industries Inc are the key players in the global green chemicals market.
By Product Type