The renewable chemicals market has been forecast to increase at a compound annual growth rate (CAGR) of 7.7% over the next five years, increasing from a value of around $57 billion at the beginning of 2013, to hit a total of $83.4 billion by 2018.
According to a new report, titled 'Renewable Chemicals Market: Global Trends & Forecasts to 2018,' the key category in the industry through to 2018 looks set to be biopolymers sector. While not the largest category; currently alcohols; biopolymers is forecast to register a CAGR of 14.3% and will grow to a value of $4.8 billion in 2018, from $2.4 billion in 2013.
The renewable chemicals industry has gone through turbulent times at least since early 2012 when the eurozone debt crisis sparked risk aversion among investors globally and macroeconomic jitters spread through all major financial markets.
Several major players were suffering from these economic jitters. However, not all of their difficulties at the time were caused by outside factors but were rooted in internal structural problems and technological issues that needed to be solved.
Key players within the market include U.S. based Cargill, DuPont, Metabolix, Inc, Genencor International, Inc., Novozymes (Denmark), Germany based BASF, DSM (The Netherland).
Partnerships and expansion are a few of the most popular strategies being deployed by the market players in this segment to gain competitive edge and also to build upon their market presence by knowledge and resource sharing.
The renewable chemicals market includes all the chemicals obtained from renewable feedstock such as agricultural raw materials, agricultural waste products or biomass microorganisms etc. The development of this market is driven by the fact that renewable chemicals decouple economic growth from finite, non-renewable resource consumption, and also help diversify the feedstock portfolio.
The renewable chemicals market is currently facing considerable competition from conventional chemicals derived from petrochemical feedstock. Because the chemicals market is susceptible to the volatility in crude oil prices, market participants are increasingly experiencing the need to make a paradigm shift from petrochemical feedstock to renewable feedstock.
This move would not only bring in economic benefits, it would also successfully address the rising concern over greenhouse gas emissions and their lasting impact on the natural environment.
The report 'Renewable Chemicals: A Global Strategic Business Report,' has predicted that growth in the next few years will be driven by continuous rise in oil/petroleum prices, need for environmentally friendly feedstocks, new technology development induced cost reduction of bio-based chemicals, toxic chemical restrictions (legislated, lobbied/debated, proposed & planned) and growing consumer awareness and acceptance, which remains critical to the final switch to green chemicals.
Optimism prevailing over the industry's ability to develop new innovative green chemicals that enable easy substitution with lower transition costs is forecast to benefit the market.
For more information on the renewable chemicals market, see the latest research: Renewable Chemicals Market
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