The Green Chemicals Market is expected to reach a value of $217.18 billion by 2029, at a CAGR of 11.6% during the forecast period 2022–2029. Scarcity of non-renewable resources, growing awareness regarding sustainable products, rising government initiatives to promote the use of green chemicals, growing environmental concerns & the rising demand for bioethanol, and the growing demand for biodiesel as an alternative fuel are the key factors driving the growth of the green chemicals market. The regulations & legislation supporting the use of bioplastics and the growing focus on R&D for algae-based biofuel production provide significant growth opportunities for market players in the coming years.
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COVID-19 has had a favorable impact on some industries. The demand and use of green chemicals increased in industries like home care products, food, animal feeds, and pharmaceuticals due to increased awareness of a healthy lifestyle. Green cleaning products do not contain chemicals that cause air or water pollution and are often in recyclable or recycled packaging. The impact on some home care products, like surface disinfectants and laundry care, nutraceuticals & dietary supplements, and some pharmaceuticals was particularly high during 2020 and 2021. The sale of these products went up to 96%.

Based on product, the green chemicals market is segmented into bio-alcohols, bio-polymers, bio-organic acids, bio-ketones, and other green chemicals. In 2022, the bio-alcohols segment is expected to account for the largest share of the green chemicals market. The large market share of this segment is attributed to the abundant availability of raw materials, rapid urbanization, rising crude oil prices, stringent emission regulations imposed by governments worldwide, and increasing global energy consumption.
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Based on type, the bio-alcohols market is segmented into bio-ethanol, bio-butanol, bio-methanol, and other bio-alcohols. In 2022, the bio-ethanol segment is expected to account for the largest share of the bio-alcohols market. The large market share of this segment is attributed to factors such as the growing inclination of manufacturers toward bio-ethanol production due to the growing environmental concerns, low cost, and abundant raw material availability. However, the bio-butanol segment is expected to grow at the highest CAGR during the forecast period. The rapid growth of this segment is mainly attributed to its higher energy content and lower Reid vapor pressure.
Based on application, the green chemicals market is segmented into industrial & chemicals, food & beverages, pharmaceuticals, packaging, construction, automotive, and other applications. In 2022, the industrial & chemicals segment is expected to account for the largest share of the green chemicals market. The large market share of this segment is attributed to growing industrialization and urbanization, increasing global energy demand, an increase in chemical transparency across the supply chain, and the ban on the production and usage of hazardous substances.
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Based on geography, in 2022, Europe is estimated to account for the largest share of the green chemicals market. The large market share of Europe is attributed to the growing demand for sustainable products, the presence of prominent players in the region, and the rising adoption of green chemicals across different industries, such as food & beverage, personal care, automotive, and packaging.
In addition, companies operating in the chemicals industry in Europe are increasingly focusing on the production of green chemicals to develop sustainable and eco-friendly solutions. Germany is expected to dominate the green chemicals market in Europe during the forecast period. The high market growth in Germany is attributed to factors such as the growing health awareness among consumers, the growth in the chemical and pharmaceutical industries, the excellent research landscape, state-of-the-art logistics, and world-class infrastructure in the country.
Key Players:
The key players operating in the green chemicals market include Cargill, Incorporated (U.S.), Mitsubishi Chemical Holdings Corporation (Japan), BASF SE (Germany), DuPont de Nemours, Inc. (U.S.), Koninklijke DSM N.V. (Netherlands), Evonik Industries AG (Germany), SECOS Group Ltd. (Australia), Braskem SA (Brazil), Aemetis, Inc. (U.S.), and Albemarle Corporation (U.S.).
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Scope of the Report
Green Chemicals Market, by Product
• Bio-alcohols
o Bio-ethanol
o Bio-butanol
o Bio-methanol
o Other bio-alcohols
• Bio-organic acids
o Bio-lactic acid
o Bio-acetic acid
o Bio-citric acid
o Bio-adipic acid
o Bio-acrylic acid
o Bio-succinic acid
o Other bio-organic acids
• Bio-ketones
• Bio-polymers
o Polylactic acid
o Bio-polyethylene
o Other bio-polymers
• Other Green Chemicals
Green Chemicals Market, by Application
• Industrial & Chemical
• Pharmaceuticals
• Packaging
• Food and Beverages
• Construction
• Automotive
• Other Applications
Green Chemicals Market, by Geography
• Europe
o Germany
o France
o U.K.
o Italy
o Spain
o Rest of Europe (RoE)
• North America
o U.S.
o Canada
• Asia-Pacific (APAC)
o China
o Japan
o India
o Rest of Asia-Pacific (RoAPAC)
• Latin America
• Middle East & Africa (MEA)

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