Over the last century, fossil fuels have been contributing significantly to environmental damage. Production of chemicals using fossil feedstocks releases high concentration of hazardous gases into the atmosphere, the repercussions of which the world is facing in the form of global warming and ozone depletion. 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, strong pipeline of innovative bio-based products, and low costs of production of bio-based chemicals are also fuelling 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. As stated by the new market research report on Renewable Chemicals, Europe represents the largest regional market worldwide, while Asia-Pacific represents the fastest growing market with a CAGR of 7.6% over the analysis period.
Key players covered in the report include Abengoa Bioenergy, Amyris Inc., Archer Daniels Midland Company, Arkenol Inc., Avantium Technologies, BASF SE, Beta Renewables SpA, BioAmber Inc., Braskem, Cargill Incorporated, NatureWorks LLC, Ceres, Inc., Chevron Corporation, Cobalt Technologies, Codexis Inc., Corbion Purac, Coskata Inc., Dow Chemical Company, E. I. Dupont De Nemours & Company, Eastman Chemicals, Elevance Renewable Sciences Inc., Enerkem Inc., Evonik Industries, Genencor International Inc., Genomatica Inc., Gevo Inc., GreenField Ethanol Inc., Honeywell UOP, Ineos Bio, Iogen Corporation, LS9 Inc., Metabolix Inc., Myriant Corporation, Novozymes A/S, OPX Biotechnologies Inc., PureVision Technology Inc., Rivertop Renewables Inc., Royal DSM NV, Sapphire Energy Inc., Solazyme Inc., Solvay Chemicals, Verdezyne Inc., Verenium Corporation and ZeaChem, Inc., among others.