Global Renewable Chemical Manufacturing Market Overview
The renewable chemicals sector is witnessing a significant upswing in growth, fueled by increasing demand driven by sustainability efforts, biotechnology innovations, and substantial investments in pilot and large-scale production plants. Past challenges have instilled caution about the widespread adoption of bio-based chemicals, but there's now a clear increase in investment activity evident throughout the industry and its target markets. Stakeholders at every stage of the supply chain are realizing the importance of sustainable operations and are actively pursuing goals aligned with environmental responsibility. This growing sense of urgency highlights a shared dedication to transitioning toward eco-friendlier practices.
Market Introduction
The renewable chemicals sector is seeing swift expansion, fueled by rising interest in bio-based polymers, advancements in technology and innovation, and supportive government policies and regulations. This transition toward renewable chemicals presents a host of environmental and economic advantages, such as lower carbon emissions, improved resource efficiency, and reduced dependence on fossil fuels. With global sustainability becoming increasingly important, the renewable chemical manufacturing market is set for continued growth. Furthermore, industry players must address challenges such as cost-effectiveness, scalability of production, and maintaining sustainability in feedstock supply chains to drive revenue growth in this sector.
Industrial Impact
Key players in the renewable chemical manufacturing market are heavily investing in research and development to broaden their product offerings, driving further growth in the sector. These market participants are engaging in various strategic initiatives, such as launching new products, forming contractual agreements, pursuing mergers and acquisitions, increasing investments, and fostering collaborations with other organizations. To thrive in an increasingly competitive market environment, the renewable chemicals industry must deliver cost-effective solutions to expand its reach and sustain growth.
One crucial business strategy employed by manufacturers in the renewable chemicals sector is local manufacturing to reduce operational costs, ultimately benefiting customers and bolstering market presence. Renewable chemicals have recently demonstrated significant medical benefits, further fueling market demand. Major players such as BioAmber (Canada), Corbion (Netherlands), Myriant Corporation (U.S.), Braskem (Brazil), Metabolix Inc. (U.S.), Mitsubishi Chemical Group Corporation (Japan), and BASF SE (Germany) are actively investing in research and development to stimulate market demand.
Established in 1983 and headquartered in Pune, Maharashtra, India, Praj Industries Limited is an Indian multinational company specializing in process and project engineering. With offices in South Africa, North America, Thailand, and other countries, Praj Industries offers a range of products, including ethanol plants, water and wastewater solutions, bioproducts, and research services. In July 2020, Praj Industries introduced its Bio-Prism portfolio, which is focused on manufacturing bio-based renewable chemicals and materials (RCM). This portfolio includes various bio-industrial products, with bioplastics being a primary focus, along with cellulose-lignin refinery products and specialty items. The launch of the Bio-Prism portfolio expands Praj Industries' product offerings and is expected to contribute to revenue growth.
Market Segmentation
Segmentation 1: by Application
•    Transportation
•    Agrochemical
•    Food and Beverage
•    Personal Care
•    Pharmaceuticals
•    Paints and Coatings
•    Detergents and Cleaners
•    Industrial 
•    Others
Transportation to Dominate the Global Renewable Chemical Manufacturing Market (by Application)
In 2022, the bio-based chemicals market was primarily driven by the transportation sector, spurred by the increasing demand for bio-based fuels. As the world's third-largest oil producer and largest oil exporter, Russia's conflict with Ukraine caused a surge in crude oil prices, escalating fuel and gas costs globally. Consequently, nations are increasingly seeking alternatives to fossil fuels to expedite the green transition and reduce dependency. Bioethanol has emerged as a promising solution due to its renewable nature and ability to enhance fuel efficiency while reducing emissions when blended with gasoline and petrol. In response, various countries are considering raising the bioethanol blending mandate to lower fuel prices and promote sustainability. For instance, to reduce the skyrocketing fuel prices in the U.S. caused by the Russian war in Ukraine, Joe Biden presented a new plan to increase the availability of gasoline blended with ethanol derived from corn in April 2022.
Segmentation 2: by Product Type
•    Alcohols
•    Organic Acids
•    Polymers
•    Others
Alcohol to Dominate the Global Renewable Chemical Manufacturing Market (by Product Type)
In 2022, the alcohol segment emerged as the dominant force in the renewable chemical manufacturing market, fueled by the escalating demand for alcohol, such as ethanol and methanol, across various sectors. Notably, the transportation and mobility segment has witnessed a notable shift toward the adoption of green methanol, driven by the pressing need to decarbonize the marine industry. Major players such as A.P. Moller – Maersk and Stena have made significant investments in embracing green methanol as a primary fuel for marine vessels. For instance, A.P. Moller – Maersk's substantial agreement with Ørsted in March 2022, securing 300,000 tons of e-methanol annually for its fleet of 12 methanol-powered vehicles, underscores the industry's commitment to sustainability. This strategic move not only addresses the imperative to reduce carbon emissions but also reflects a broader momentum toward greener solutions in the transportation sector.
Segmentation 3: by Feedstocks
•    Plant Oil
•    Ligno
•    Sugar
•    Starch
•    Biomass
•    Others
Plant Oil Segment to Dominate the Global Renewable Chemical Manufacturing Market (by Feedstocks)
Segmentation 4: by Region
•    North America: U.S., Canada, and Mexico
•    Europe: France, Germany, Italy, Spain, U.K., and Rest-of-Europe
•    Asia-Pacific: China, Japan, India, Australia and New Zealand, Indonesia, and Rest-of-Asia-Pacific 
•    Rest-of-the-World: South America and Middle East and Africa
Leading Companies in the Renewable Chemical Manufacturing Market
•    BASF SE
•    CropEnergies AG
•    DSM
•    amyris
•    Braskem
•    Evonik
•    Novozymes A/S
•    Cargill, Incorporated
•    NatureWorks LLC
•    ADM
•    ARD
•    OCI
•    Mitsubishi Chemical Group Corporation
•    Carbon Recycling International
•    Corbion