The increased use of fossil fuels has left the environment in a detrimental state. Their excessive utilization has led to high carbon emissions, which in turn, is the cause for the depletion of the ozone layers. Ascribed to these, the need for shifting to eco-friendly alternatives has increased substantially across the globe. Technological advancements are certainly of importance in such a scenario, as new green technologies can help in decreasing the use of fossil fuels.
All these factors are resulting in the growth of the global renewable chemicals market. Renewable chemicals are derived from sources of carbon that can be replaced swiftly. These chemical are made using renewable feedstock such as microorganisms, biomass, and agricultural raw materials. The use of renewable chemicals is increasing owing to the fact that they can potentially be utilized as a substitute for chemicals that are derived from petroleum.
Consumers these days are also becoming more aware regarding the condition of the environment and therefore are focusing on sustainable products. Due to this, the focus on renewable resources, including renewable chemicals, has been rising. Furthermore, governments of several countries are also implementing regulations for curbing environmental damage. For example, the European Commission has introduced the REACH regulatory mechanism to protect the environment and human health from the risks posed by petroleum-based chemicals. In addition to this, the low-cost and abundant availability of feedstock are also expected to drive the market.
Different renewable chemical types are organic acids, alcohols, platform chemicals, ketones, and biopolymers. These chemicals are utilized for a number of purposes in various industries such as surfactants and lubricants, consumer goods, resins, and plastics. Renewable chemicals are produced utilizing a number of processes including dehydrative transformation, thermo-chemical conversion, fermentation and bioconversion, enzymatic hydrolysis, product separation and bioconversion, production of Fischer-Tropsch diesel, acid hydrolysis, reductive transformation, and gasification/fermentation.
Renewable chemicals are used for a number of applications, such as textiles, transportation, communication, food safety, housing, environment, health & hygiene, recreation, agriculture, and bio-medical. The increasing environmental concerns and strict government regulations are resulting in the growing use of renewable chemicals for applications in environment, agriculture, and bio-medical sectors. Moreover, the rising requirement for chemicals for supporting several industrial processes is creating the need for eco-friendly alternatives.
Apart from this, the adoption of these chemicals is also expected to rise considerably in the Asia-Pacific (APAC) region in the years to come. The need for clean chemicals to support several manufacturing processes is growing in the region. Moreover, the surging pollution levels, increasing greenhouse gases, and faster rate of oil depletion in APAC are driving the demand for renewable chemicals.
In conclusion, the market is being driven by the surging environmental concerns and strict government regulations.