Green Chemical And Material Market Size, Share, Opportunities, And Trends By Type (Concrete Admixtures, Adhesive And Sealants, Flame Retardants), By Material (Bio-polymers, Bio-organic Acids, Bio-alcohols, Bio-ketones), And By Geography - Forecasts From 2024 To 2029

The green chemical and material market is expected to grow at a CAGR of 10.77% reaching a market size of US$156.421 billion in 2029 from US$76.442 billion in 2022.

Green Chemical And Material Market Trends:

Green chemicals and materials are used in place of traditional chemicals and materials because they are more environmentally friendly. The global economy has grown greatly since the Industrial Revolution while pollution levels have increased quickly. For instance, due to its extreme levels, air pollution is now considered to be one of the main causes of fatalities each year. Around the world, 11.65% of deaths are attributed to air pollution. It also significantly increases the impact of disease. The need for food and beverages, as well as the requirement to increase residential and commercial development operations, are all increasing the green chemical and material market size.

Growing consumer demand for eco-friendly products, laws supporting sustainability, and increased awareness of environmental issues are what are driving the market. Green chemicals play a crucial role in the global transition towards more sustainable and responsible chemical manufacturing practices. They are utilized in a wide range of industries, such as agriculture, packaging, automotive, and cosmetics.

Green Chemical And Material Market Drivers:

Rising awareness for sustainable products

Consumers are more aware of sustainable products and have grown more conscientious. While green packaging is still in its infancy, consumers are beginning to accept, adopt, and innovate with it more and more. Consumer trends are shifting in favour of eco-friendly options due to growing environmental concerns. Recyclable plastics, such as paper packaging, are highly sought after and the focus of ongoing research and development projects.

The technological and regulatory landscape is changing quickly as a result of these shifts, making it challenging for producers of chemicals and petrochemicals to continue producing traditional goods. These factors are pressuring producers to increase their R&D expenditures and create eco-friendly substitutes. For example, Pulpex Limited, a sustainable packaging technology company, was established by Pilot Lite and venture management firm Diageo. It produced a paper-based spirits bottle that is entirely composed of wood that is sourced sustainably, eliminating the need for plastic. Early in 2021, the bottle is probably going to be released alongside Johnnie Walker scotch whiskey.

Rising government initiatives

Throughout the forecast period, the market will grow as a result of rising government investments and initiatives for infrastructure development with a focus on sustainable development. Many economies have been forced to adopt policies that can lessen the effects caused by the use of conventional chemicals as a result of rising pollution levels and volatile oil prices. The economy will become less reliant on fossil fuels and more likely to adopt environmentally friendly alternatives thanks to these government initiatives.

Due to an increase in their purchasing power, modern consumers are willing to pay a higher price to lessen or stop environmental damage. This has encouraged manufacturers to employ environmentally friendly materials and chemicals, which will ultimately pay off despite their high initial costs. By the end of 2030, the world's construction industry is expected to be valued at USD 15 trillion, with the United States, China, and India leading the way. One of the main factors contributing to the growth of the construction industry is the easy access to credit, along with loans and housing schemes. The need for green chemicals and materials, like fly ash bricks and concrete, has increased as a result of construction activities raising pollution levels.

Increased demand from the automotive industry

The way that automobiles and other vehicles run on hydrogen and electricity is undergoing a revolution in the automotive industry. Furthermore, a portion of the cars are powered by bio-alcohols like ethanol. The Fiat 147 is one vehicle that uses bioethanol as an example. Prominent automakers have boosted their financial commitments to the production of electric vehicles across multiple market segments. When compared to conventional cars, there is still a limited selection of EV models.

High demand for renewable green chemicals

As renewable energy chemicals are essential to the shift to a sustainable future, the market for green chemicals is seeing a surge in demand. As the world moves toward renewable energy sources, green chemicals are crucial to energy conversion and storage systems like solar panels and batteries. This increases the need for chemicals that make these technologies more efficient and sustainable. For example, batteries with advanced electrolyte materials—a green chemical innovation—are essential for powering electric cars and storing energy from renewable sources. This propels the creation and uptake of environmentally friendly chemicals.

Further, Renewable energy chemicals and bio-based polymers work together to drive the green chemicals market's expansion and supply the fundamental components needed for a future that is more environmentally friendly and sustainable.

Green Chemical And Material Market Geographical Outlook:

Asia Pacific is witnessing exponential growth during the forecast period

Asia Pacific accounted for a sizeable portion of the green chemical and material market and is predicted to continue to develop at a significant rate throughout the anticipated timeframe. Along with other nations like Japan, China and India are the leading players in the region and are responsible for the APAC region's expansion. For instance, the Chinese government has implemented several laws and policies to encourage the creation and application of green chemicals. The 13th Five-Year Plan of the nation sets a goal of 15% non-fossil fuel energy consumption in primary energy consumption by 2020, which has raised attention to the creation of renewable energy sources and eco-friendly chemicals.

Green Chemical And Material Industry Updates:

• In November 2023, the second factory for sustainable molecules, to be built by Houston-based Solugen, was revealed. The business declared that it is constructing Bioforge 2, a new 500,000-square-foot biomanufacturing facility in Marshall, Minnesota. The construction of Solugen's second commercial facility, slated for phase-one launch in the first half of 2025, heralds a new era in the chemicals industry—one in which a large variety of chemicals can be produced at scale at a single plant without generating waste or carbon emissions.
• In October 2023, to develop a method for making propylene directly from ethanol—which is gaining popularity as a sustainable chemical raw material—Sumitomo Chemical has started building a pilot plant. One project funded by the NEDO* Green Innovation (GI) Fund is the development of this technology. By the first half of 2025, the Company hopes to have finished building the pilot facility at the Sodegaura site of its Chiba Works in Japan. It will also accelerate efforts to integrate the technology into society. It has also been working on creating a novel, proprietary method to produce propylene using ethanol. The direct ethanol-to-propylene production process has the advantage of being more affordable and compact than other processes that require several intermediates. Furthermore, it simultaneously produces hydrogen as a byproduct and propylene, which has a steady demand.

Green Chemical And Material Market Scope:

Segmentation:

• By Type
  • Concrete admixtures
  • Adhesive and Sealants
  • Flame Retardants
• By Material
  • Bio-polymers
  • Bio-organic acids
  • Bio-alcohols
  • Bio-ketones
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others