Advanced Materials and Chemicals

Green Chemicals Market is Expected to Reach USD 171.67 Billion by 2031

May 2024

Advanced Materials and Chemicals

As per the report published by Kings Research, the global Green Chemicals Market was valued at USD 94.05 billion in 2023 and is projected to reach USD 171.67 billion by 2031, growing at a CAGR of 7.91% from 2024 to 2031.

The global green chemicals market is undergoing a transformative phase, characterized by a dynamic combination of growth factors and opportunities. While the industry faces obstacles such as higher production costs and regulatory complexities, it also presents a landscape abundant with opportunities for innovation and growth.

The global green chemicals market offers a promising array of opportunities for innovative companies. An increased consumer awareness of environmental issues, coupled with regulatory mandates aimed at reducing carbon footprints, is driving demand for sustainable alternatives. Moreover, technological advancements in biotechnology and green chemistry are offering innovative solutions that address both environmental concerns and economic viability.

Geographically, regions such as Europe and North America are witnessing robust adoption of green chemicals, driven by stringent environmental regulations and a strong emphasis on sustainability. However, emerging economies in Asia-Pacific and Latin America present untapped potential for market expansion, fueled by increasing industrialization and government initiatives promoting sustainable development.

Key Insights

  • Based on product, the bio-alcohols segment held the largest market share of 40.50% in 2023
  • Based on application, the industrial & chemical segment generated the highest revenue of USD 23.68 billion in 2023
  • On the basis of region, Asia-Pacific accounted for the largest market share of 51.05% in 2023

LANXESS and Advent International Form a Premier Global Partnership for High-Performance  Engineering Materials

April 2023: LANXESS, a specialty chemicals company, and private equity investor Advent International successfully established a joint venture in engineering materials. The formation of this new venture resulted from the merger of DSM's Engineering Materials business with LANXESS's former High Performance Materials business. Within the joint venture, LANXESS holds approximately 40 percent ownership, while Advent International holds around 60 percent ownership.

Technological Advancements in Green Chemistry to Drive Market Growth

Technological advancements in green chemistry are playing a pivotal role in shaping the global green chemicals market dynamics. Innovations in biotechnology, catalysis, and process optimization are enabling the development of novel green chemical products and manufacturing processes that are more efficient, cost-effective, and environmentally friendly than traditional methods. For instance, the use of enzymatic and microbial processes allows for the production of bio-based chemicals from renewable feedstocks, reducing reliance on fossil fuels and minimizing environmental impact. Moreover, advancements in green solvents and catalysts are facilitating cleaner and more sustainable chemical reactions, leading to higher yields and reduced waste generation. These technological breakthroughs not only enhance the competitiveness of green chemicals in terms of performance and cost but also open up new opportunities for innovation and market expansion.

Adoption of Circular Economy Approach to Offer Opportunities for Market Expansion

A significant opportunity driving the global green chemicals market growth is the increasing focus on circular economy principles. The concept of a circular economy aims to minimize waste and maximize the efficient use of resources by promoting the reuse, recycling, and regeneration of materials and products. Green chemicals play a pivotal role in enabling the transition toward a circular economy by offering sustainable alternatives to traditional chemicals and facilitating the development of closed-loop systems.

As companies strive to reduce their environmental footprint and achieve greater resource efficiency, there is a growing demand for green chemicals that support circularity goals. For instance, bio-based and biodegradable polymers can replace conventional plastics in various applications, offering a renewable and compostable alternative that aligns with circular economy principles. Similarly, bio-based solvents and chemicals derived from waste streams can enable the repurposing of organic materials into valuable resources, thereby contributing to the circularity of the production process.

Moreover, the adoption of green chemicals in circular economy initiatives presents potential opportunities for collaboration and innovation across diverse industries. By integrating green chemistry principles into product design, manufacturing processes, and waste management strategies, companies can create synergies that drive sustainability and profitability simultaneously. Overall, the growing emphasis on circular economy principles presents a promising opportunity for the green chemicals market to foster innovation, enhance resource efficiency, and create value in a sustainable manner.

Europe to Accrue USD 40.22 Billion by 2031 Owing to Implementation of Stringent Regulations

Based on region, the global Green Chemicals market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

Europe presents a landscape of substantial growth and booming opportunities for the green chemicals market and is projected to experience the highest CAGR of 9.53% over 2024-2031. The region benefits from a strong regulatory framework promoting sustainability and environmental protection, such as the European Green Deal and the Circular Economy Action Plan. This regulatory environment drives demand for green chemicals across industries, including packaging, agriculture, and personal care, as companies strive to comply with stringent standards and reduce their carbon footprint. Additionally, increasing investments in research and development, along with collaborations among industry stakeholders and academic institutions, foster innovation and technological advancements in green chemistry. With a growing emphasis on sustainability and circular economy principles, Europe offers lucrative opportunities for market expansion and investment in green chemicals, positioning the region for robust growth in the forecast years. 

Market Leaders Focus on Collaborations and Acquisitions to Sustain Growth

The global green chemicals market study is fragmented with key players such as McCain Foods Limited, Lamb Weston, Inc., J.R. Simplot Company, Farm Frites, PepsiCo, The Kraft Heinz Company, Cavendish Farms Corporation, Aviko, Pizzoli S.p.A and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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