Global Green Chemicals Market Report and Forecast 2024-2032

Global Green Chemicals Market Size

The global green chemicals market value reached nearly USD 112.88 billion in 2023. The market is projected to grow at a CAGR of 9.7% between 2024 and 2032 to reach a value of around USD 259.70 billion by 2032.

Global Green Chemicals Market Growth

Green chemicals are chemicals manufactured using processes that eliminate harmful substances, ensuring environmental friendliness throughout their life cycle. This environmentally benign approach is a key driver behind the growth of the green chemicals market.

With growing concerns regarding rapid climate change, depleting fossil fuel reserves, and high chemical pollution, the demand for green chemicals that are eco-friendly and do not originate from petrochemical resources is surging. The increasing focus on sustainability in various end-use sectors, including food and beverage and packaging among others is also propelling the green chemicals market demand.

Global Green Chemicals Market Analysis

Green chemical production can reduce air pollution and support clean water management. In this regard, stringent regulations of multiple governments aimed towards curbing the emission of hazardous industrial gases to achieve carbon neutrality are crucial green chemicals market trends.

Growing research and development activities by leading chemical manufacturers to create innovative sustainable production methods for the development of economical green chemicals are likely to propel the growth of the green chemicals market.

Global Green Chemicals Industry Outlook

As per Eurostat, in 2023, the European Union's agricultural sector achieved a total output of USD 581.4 billion, with crops accounting for 51.3% of this value, reflecting their dominant role in the industry. Vegetables and horticultural plants constitute the largest segment within crops at 13.4%, followed by cereals at 11%, and fruits at 6.5%, indicating a diversified crop production. Secondary activities and agricultural services add 4.2% and 4.6% respectively to the total output, emphasising the importance of supporting services in the agricultural value chain driving the green chemicals industry revenue.

As per FAO, in 2021, regional GDP growth rates exhibited notable variations, with Eastern Africa achieving a growth rate of 5.8%, significantly outperforming Middle Africa's modest 2.1% growth. Northern Africa and Southern Africa reported growth rates of 5.1% and 4.2% respectively, while Western Africa saw a robust increase of 6.7%. In the Americas, Latin America and the Caribbean recorded a growth rate of 6.5%, surpassing Northern America's 5.3%.

Asia demonstrated diverse economic performances, with South-eastern Asia leading at 7.6%, followed by Central Asia at 6.4%, Eastern Asia at 6.0%, Southern Asia at 6.2%, and Western Asia at 5.1%. Europe's growth varied, with Eastern Europe and Northern Europe both experiencing high growth rates of 7.0% and 6.5%, respectively, while Western Europe and Southern Europe grew at 4.5% and 5.1%.

The green chemicals market dynamics and trends contribute to Oceania's GDP growth rate of 3.5%, which is lower than the global average of 6.0%. This difference underscores regional economic challenges and highlights the uneven recovery patterns observed across regions in the post-pandemic period. These variations are influenced by differing impacts of the pandemic, diverse policy responses, and structural economic conditions.

Key Players in the Global Green Chemicals Market and their Key Initiatives

BASF SE

• Launched bio-based polyols for sustainable polyurethane production, reducing emissions. 

• Partnered with Quantafuel for chemical recycling, enhancing the circular economy. 

Arkema Group

• Expanded production capacity for renewable feedstock-based specialty chemicals.

• Introduced a new line of bio-based polyamide products aimed at sustainable high-performance materials to meet the green chemicals market demand.

Mitsubishi Chemical Corporation

• Launched bio-based polymers for sustainable packaging solutions globally.

• Invested in renewable energy projects to power chemical production.

InKemia Green Chemicals, Inc.

• Launched eco-friendly bio-based lubricants targeting automotive industry needs.

• The increasing demand in the green chemicals market led the company's development of biodegradable solvents for sustainable industrial applications worldwide.

Global Green Chemicals Industry Segmentation

“Global Green Chemicals Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product

• Bio-alcohols

• Bio-organic Acids

• Bio-ketones 

• Biopolymers 

• Others

Market Breakup by Application

• Food and Beverages

• Paints and Coating

• Packaging

• Automotive 

• Construction

• Pharmaceuticals 

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Green Chemicals Market Share

The green chemicals industry revenue growth is fuelled by the substantial market share held by bio-alcohols. This is primarily due to rising requirements for bioethanol across diverse sectors including pharmaceuticals, cosmetics, and food and beverages.

The growing use of bioethanol as a fuel source for aviation biofuel production is also driving the segment’s growth. Moreover, the rising application of bio-alcohols in the production of gasoline is further propelling the growth of the green chemicals market.

Leading Companies in the Green Chemicals Market

The companies are prominent global chemical enterprise that specialises in cutting-edge materials and solutions. They place a strong emphasis on sustainability and drives technological advancements in industries such as electronics, healthcare, and environmental conservation.

• BASF SE  

• Arkema Group  

• Mitsubishi Chemical Corporation  

• InKemia Green Chemicals, Inc.  

• BioLogiQ, Inc. 

• GFBiochemicals Ltd.  

• Plantic Technologies Limited  

• VertecBioSolvents Inc.  

• Conagen, Inc.  

• Global Green Chemicals Public Company Limited

Key Highlights of the Report

Green Chemicals Market Report Snapshots

Green Chemicals Market Size

Green Chemicals Market Growth

Green Chemicals Market Analysis

Green Chemicals Market Share

Green Chemicals Companies