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April 2025
The global bio-renewable chemicals market size was valued at USD 15.11 billion in 2024 and is growing to approximately USD 39.01 billion by 2034, with a developing compound annual growth rate (CAGR) of 9.95% over the forecast period 2025 to 2034. the growing government initiatives toward eco-friendly production and ongoing industrial expansion are expanding market momentum in the current period.
The bio-renewable chemicals market has observed rapid growth in the recent period. The demand for the eco-friendly and sustainable production line is primarily contributing to the growth of the industry in the current period. as bio-based chemicals are made up of natural resources like plants, microorganisms, and algae with such procedures. Industries such as food and beverages, personal care, agriculture, packaging, and automotive are seen as providing a huge consumer base for the bio-based chemical sector in recent years. Lowering carbon emissions and cost-effective initiatives make bio-based chemicals the preferred choice across various industries. Moreover, the technological advancements in bioengineering and biotechnology can create substantial market-capturing opportunities for manufacturers by launching innovative chemical combinations in the future.
The rising government initiatives toward eco-friendly production have been significantly contributing to the growth of the biobased chemical industry in recent years. Governments from all over the world are imposing stricter laws and regulations for fossil fuel-based chemical use and heavily promoting natural or biobased alternatives nowadays. Moreover, some governments are providing benefits to biobased chemical manufacturers such as tax reduction, suitable subsidies, and incentives by encouraging individuals for green energy adoption in recent days. The manufacturers are actively looking for low-cost raw materials and modern technology for advanced production, which can provide them first mover advantage in the current market scenario.
| Report Attributes | Details |
| Market Size in 2025 | USD 16.61 Billion |
| Expected size in 2034 | USD 39.01 Billion |
| Growth Rate | CAGR of 9.95% from 2025 to 2034 |
| Base Year of Estimation | 2024 |
| Forecast Period | 2025-2034 |
| Dominant Region | Europe |
| Segment Covered | By Type,Application,Region, |
| Key Companies Profiled | Gevo, Inc., Vizag ChemicalSolvay, BASF SE, Unilever PLC, ZeaChem, Cargill, Incorporated, DuPont de Nemours, Inc., Elevance Health, Amyris. |
The increasing demand for bio-based adhesives is anticipated to create lucrative opportunities for bio-renewable chemical manufacturers in the coming years. Governments from all over the world are introducing stricter policies against traditional chemical compounds that contain volatile organic compounds. According to this, manufacturers have a greater opportunity to gain market attention by developing bio-based chemicals that are suitable for the bio-based adhesives combinations. Moreover, industries such as construction and automotive can create a huge consumer base for these adhesives during the forecast period.
The production cost of bio renewable chemical is expected to impede bio-renewable chemicals market growth in the coming years as raw material like sugarcane, corn, and vegetable oil may get underpriced fluctuations sometimes that can slow the manufacturing process in the future. Also, processing such as fermentation, purification, and enzymatic reaction are comparatively expensive than petroleum-based chemical procedures. As a result, industries can hesitate to shift to these biobased chemicals due to these uncertain issues.
Europe dominated the bio-renewable chemicals market in 2024. The strong governmental policies and high-end research capabilities are actively driving the market potential in the region over the years. Several industries are actively replacing petrochemical bio-based chemicals with natural bio-based products, as has been observed recently. The European Union has been heavily promoting and providing sufficient funding to the biorefinery projects in the current market scenario. Also, the manufacturers are heavily promoting their sustainable product lines by gaining traction in the industry. The strong personal care sector has been contributing to the growth of the region in recent years.
United Kingdom has had a major market share in bio-based chemical sales over the years. The advancements in biotechnology and waste-to-chemical technology are leading the industry growth in present market conditions. Moreover, the presence of high-tech companies and government strategies over the bioeconomy is gaining market attraction across the world in the current period. Scientists from the United Kingdom are seen as focusing on advanced microbial fermentation techniques, which is likely to give them significant industry attention in the coming years.
| Regional Split | 2024 | Makret Size, 2024 |
| North America | 30% | 4.20 |
| Europe | 35% | 4.90 |
| Asia Pacific | 20% | 2.80 |
| South America | 7% | 0.98 |
| Middle East & Africa | 8% | 1.12 |
Asia Pacific expects significant growth in the bio-renewable chemicals market in the coming period. This surge is primarily attributed to an increase in the demand for sustainable agriculture practices, including the adoption of bio-pesticides and fertilizers. Consumers are shifting towards environment-friendly products in large numbers nowadays. Prompting a shift in manufacturing policies related to environmental protection, which is developing opportunities in the Asian Pacific market.
In addition, significant advancements in technology and increasing integration of bioplastic by various industries in countries like China, India, and others. Thus, the Asia Pacific region is setting a benchmark for sustainability in the global bio-renewable chemicals sector in the current period.
China is experiencing substantial expansion in the bio-based chemical market, fueled by the upcoming innovation toward sustainable practices. The rising adoption of biopesticides and fertilizers in the practice of the agricultural sector contributes to the nation’s move toward eco-friendly solutions. The growing innovation and ideas in biotechnology and material science are enabling the advanced development of bio-based products that expand crop yield and decrease environmental impacts. In addition, the government's promotion of green engineering and sustainable practices is fostering a favorable regulatory environment.
The bio-based chemical industry in China is expected to flourish. As social awareness rises and policies become stringent regarding protection, the increasing demand for sustainable alternatives is expected to soar. Growing investment in sectors like research and development will lead to further technological advancements, positioning China as a leader in the global bio-based chemical industry. Overall, the combination of innovation and sustainability will catalyze growth, creating this market pivotal component of China’s ecological and economic future.
The glycerol segment held the dominating share of the bio-renewable chemicals market in 2024. Having versatile applications in various industries, the glycerol segment gained major market share in the current period. As the global shift towards sustainability, the glycerol segment emerged as a key component in sectors such as personal care, food, pharmaceutical, and biofuels in recent years. Moreover, increasing biodiesel production across the globe leads to the supply of glycerol, as glycerol is generated as a secondary product during the biodiesel process. Furthermore, the pharmaceutical industry is actively contributing to the growth of glycerol
The lactic acid segment is expected to experience significant bio-renewable chemicals market growth in the future. The trend towards bio-based adhesives can drive the segment growth in upcoming years as lactic acid is currently getting recommendations as a bio-based alternative in industries. It plays the major role in production of polylactic acid, the lactic acid can gain attraction with increased demand for biodegradable plastic in the coming years. Moreover, rising need for the PH regulators and food flavor enhance from food and beverage industry, the lactic acid can gain major market attention form food processer industries during the forecast period.
The chemical industry segment led the bio-renewable chemicals market in 2024. The growing dependency on bio-based chemicals for eco-friendly production has been driving the segment growth in recent years. Also, these eco-friendly chemicals are playing a major role in the modern shift of chemical industries toward environment-friendly alternatives from traditional fossil fuel-based chemicals. Moreover, the expansion of renewable plastic production can severely contribute to the growth of segment in the current period. Several governments have implemented rules and regulations on non-biodegradable regular plastic production in recent years. Also, the increased use of bio-based solvents is increasingly seen in drug delivery systems in pharmaceutical fields, which can create attractive opportunities for renewable chemicals during the anticipated period.
The personal care and cosmetics segment is expected to grow at the fastest rate in the bio-renewable chemicals market during the forecast period. Innovative trends such as vegan and sustainable cosmetic productions and others are likely to drive the segment potential in the coming period. The major beauty brands are actively seen in the promotion of sustainable personal care products in the current period. Furthermore, advancements in biotechnology can make substantial growth opportunities for the personal care industries as producers can test different combinations to make innovative, sustainable products in the coming years. Also, favorable government policies are continuously pushing manufacturers' perspectives towards eco-friendly production in recent years. The product manufacturers can also promote their products by sustainable packaging promotions in upcoming years.
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