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![Renewable Chemicals Market: Harnessing Nature's Potential for Industrial Growth](https://s3.us-west-2.amazonaws.com/timessquarereporter.com/upload/media/posts/2024-02/21/renewable-chemicals-market-harnessing-nature-s-potential-for-industrial-growth_1708512666-b.jpg)
Renewable chemicals are bio-based chemical products produced from biomass including vegetable oil, animal fats, sugar and starch. They are used for various applications such as bio-plastics, bio-lubricants, bio-solvents, bio-surfactant and biochemicals. These chemicals offer various advantages over petroleum-based chemicals including lower carbon intensity, non-toxicity, and biodegradability. Due to these advantages, renewable chemicals are increasingly being used as substitutes for petroleum-based chemicals in various end-use industries.
The global Renewable Chemicals Market is estimated to be valued at US$ 13.98 4 Bn in 2023 and is expected to exhibit a CAGR of 19% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity of lower carbon footprint is expected to drive the growth of the renewable chemicals market during the forecast period. Renewable chemicals have significantly lower carbon footprint as compared to petroleum-based chemicals. They help reduce greenhouse gas emissions and provide sustainability benefits. With growing concerns regarding climate change and global warming, companies and consumers are increasingly adopting renewable chemicals to lower their carbon footprint. Various regulations worldwide are also promoting the use of renewable chemicals over conventional petroleum-based chemicals. As awareness regarding sustainability increases, the demand for renewable chemicals from various end-use industries is also expected to rise significantly, thereby driving the market growth over the forecast period.
Porter's Analysis
Threat of new entrants: The renewable chemicals market requires high R&D investments and is dominated by large established players. This poses barriers for new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives. However, stringent environmental regulations favor renewable chemicals.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitutes and differentiated requirements of buyers.
Threat of new substitutes: Threat of new substitutes is high as petroleum-based chemicals can perform similar functions. However, environmental concerns increase the threat of renewable substitutes.
Competitive rivalry: The market is consolidated with large players differentiating based on product portfolios and innovation. Sustainable strategies and collaboration further intensifies competition.
SWOT Analysis
Strengths: Growing environmental regulations and initiatives favor adoption. Strong R&D enhances product differentiation.
Weaknesses: Higher costs compared to alternatives. Limited raw material sources increases dependency on a few suppliers.
Opportunities: Increasing need for sustainable solutions across industries. Favorable government subsidies and standards boost market growth.
Threats: Challenges in producing raw materials at commercial scale. Economic slowdowns may impair future investments.
Key Takeaways
The global renewable chemicals market is expected to witness high growth during the forecast period due to stringent environmental norms and initiatives favoring sustainable solutions. The global Renewable Chemicals Market is estimated to be valued at US$ 13.98 4 Bn in 2023 and is expected to exhibit a CAGR of 19% over the forecast period 2023 to 2030.
Asia Pacific dominates the market currently due to high production levels in major economies like China, Japan and India. Countries like India and Indonesia are expected to be the fastest growing regional markets.
Key players in the renewable chemicals market are BASF SE, Mitsubishi Chemical Holdings Corporation, DAIKIN, 3M, Braskem, Corbion N.V., NatureWorks LLC, Amyris, OCI N.V., Solvay, DSM, Genomatica Inc., Cobalt Technology, LLC., Elevance, Evonik Industries AG, DuPont, Novamont S.p.A., Novozymes, AVERY DENNISON CORPORATION, Mitsui Chemicals Inc. BASF SE dominates the market with its strong R&D capabilities and innovative product portfolio. NatureWorks LLC and Corbion N.V focus on PLA and organic acids respectively. Collaboration between firms is allowing exploitation of synergies for rapid capacity expansion.
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