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October 2025
The Europe green chemicals market size was approximately USD 121.95 billion in 2024 and is projected to reach around USD 335.50 billion by 2034, with an estimated compound annual growth rate (CAGR) of about 10.65% between 2025 and 2034 Global shift towards non-toxic chemicals is set to enable high-return ventures for manufacturers in the coming years.
The chemical, which is derived by applying an eco-friendly process with sustainable raw materials called the green chemical. In the production of these chemicals, materials like plants, algae, and waste material play a major role. Moreover, the global shift towards environmental safety, green chemicals is likely to gain major industry share in the coming years.
| Report Attributes | Details |
| Market Size in 2025 | USD 134.94 Billion |
| Expected Size by 2034 | USD 335.50 Billion |
| Growth Rate from 2025 to 2034 | CAGR 10.65% |
| Base Year of Estimation | 2024 |
| Forecast Period | 2025 - 2034 |
| Segment Covered | By Product Type, By Application, By Production Process, By Feedstock, By Form |
| Key Companies Profiled | AkzoNobel, Clariant , Green Oleo , Greenchemicals , Novamont , Corbion , Borregaard , EnginZyme AB |
The European green chemical industry is observing a greater technology shift towards CO2 utilization and electrochemical synthesis, as per the recent information. Also, digital tools and artificial intelligence are gaining increased attention in the manufacturing sectors, and manufacturers are focusing on cost-effectiveness and rapid production in recent years.
| Country / Region | Regulatory Body | Key Regulations | Focus Areas | Notable Notes |
| European Union | European Chemicals Agency (ECHA) | Section 8 (Restriction) | "Safe and sustainable by design" chemicals | ECHA manages the technical and administrative aspects of the implementation of the REACH Regulation. |
How did the Biobased Polymer Segment Dominate the Europe green chemicals market in 2024?
The bio-based polymer segment held a 40% share of the market in 2024, due to the increasing demand from the major sectors like packaging, consumer goods, and textiles in recent years. Furthermore, the major manufacturers in Europe are seen as demanding bio-based polymers such as PHA and PLA in the current period. Also, reducing fossil fuel dependency while meeting strict sustainability regulations, the biobased polymer segment has gained industry attention.
The bio-based solvents segment is expected to grow at a notable rate during the predicted timeframe, owing to the emerging stricter green regulations and industrial decarbonization in Europe. Furthermore, these solvents are actively seen in replacing the organic compounds like paints & coatings, and cleaning agents in Europe. Also, initiatives like research on enzyme-based solvent production will drive segment dominance in the coming years.
Why does the Packaging Segment Dominate the Europe Green Chemicals Market by Application?
The packaging and plastics segment held 35% of the Europe green chemicals market in 2024 as brands and consumers increasingly demanded eco-friendly alternatives to single-use packaging. Major food and beverage companies have committed to fully recyclable or biodegradable packaging under EU waste directives. Bio-based polymers and coatings provide high strength and flexibility while ensuring compostability.
The agriculture & fertilizers segment is expected to grow at a notable rate due to Europe's growing emphasis on sustainable farming and soil health restoration. With rising restrictions on synthetic agrochemicals, bio-based fertilizers and crop enhancers are gaining traction. These green inputs improve soil fertility and reduce environmental damage, aligning with the EU's Farm to Fork strategy.
How did the Fermentation Segment dominate the Europe Green Chemicals market in 2024?
The fermentation segment dominated the market with a 45% share in 2024, because it is one of the most established and scalable methods to produce green chemicals. Using microbes to convert renewable feedstocks into alcohols, acids, and polymers ensures high efficiency and low environmental impact. European chemical producers have invested heavily in fermentation-based biorefineries to produce bioplastics and green solvents.
The bio-refining segment is expected to grow at a significant rate as Europe moves toward integrated, zero-waste chemical manufacturing. Unlike single-product fermentation, bio-refineries produce multiple outputs-fuels, polymers, and specialty chemicals-from one biomass source. This multi-stream efficiency supports circular economy goals and carbon neutrality targets.
Why does the Sugar and Starch-Based Segment Dominate the Europe Green Chemicals Market?
The sugar and starch-based segment held 40% of the Europe green chemicals market in 2024 due to their abundance, established processing infrastructure, and ease of fermentation. Crops like corn, wheat, and sugar beet are widely cultivated across Europe, providing a stable and low-cost source of carbohydrates for biopolymer and biofuel production.
The waste & residue-based segment is expected to grow at a notable rate as Europe prioritizes circular economy models and resource efficiency. Using agricultural waste, food residues, and forestry by-products as raw materials reduces landfill pressure and lowers carbon emissions. Governments are encouraging industries to valorize waste into high-value chemicals instead of relying on food crops.
How did the Liquid Segment dominate the Europe Green Chemicals market in 2024?
The liquid segment dominated the market with a 50% share in 2024, because most green chemicals-such as biofuels, solvents, and industrial intermediates produced and consumed in liquid form. Liquids are easier to process, transport, and mix in chemical applications. Industries like coatings, pharmaceuticals, and packaging rely heavily on liquid-based formulations.
The powder and granule segment is expected to grow at a significant rate as industries seek stable, lightweight, and easily transportable green chemical alternatives. These forms have better shelf life and allow precise doses in industries like fertilizers, plastics, and pharmaceuticals.
What Makes Germany the Powerhouse of Green Chemical Innovation?
Germany dominated the Europe green chemicals market in 2024, owing to factors like advanced R&D facilities and a greater chemical manufacturing base. The regional government is actively seen in pushing decarbonization initiatives, where the major brands are rapidly switching towards green manufacturing. Also, the manufacturers are heavily investing in R&D development programs to enhance chemical production.
Can Carbon Tech Propel the United Kingdom to the Forefront of Green Manufacturing?
The United Kingdom is expected to capture a major share of the Europe green chemicals market, akin to its heavy funding for the bio innovation startups in recent years. Also, the major manufacturers are heavily adopting carbon capture technologies while promoting these on websites and social media platforms in the United Kingdom.
By Product Type
By Application
By Production Process
By Feedstock
By Form
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October 2025
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