Although most of the world’s energy demands are fulfilled by non-renewable sources, the world now intends to make a swift move towards sustainable sources. Non-renewable sources like fossil fuels and organic chemicals are facing serious challenge in terms of drying reserves and lack of new sites. Renewable chemicals are sustainable, eco-friendly and highly under-utilized. Increasing demand for energy is driving the global industries towards the budding renewable chemicals market. Abundance of renewable feedstock, increasing ability owing to the technological advancements and deliberate attempts to maintain the ecological balance are expected to maintain a steady growth rate in the global industry for renewable chemicals.
Segmentation and Key Takeaways
The most possible chemicals and polymers need detailed analysis in order to gather relevant information about the threats, opportunities and future business prospects in the industry. Basic segmentation in the global renewable chemicals market is based on the types of chemicals, applications and their demand pattern across different geographical regions. Based on geography, the market is divided into four regions, namely, Asia Pacific, North America, Europe and rest of the world. These four segments are further divide on the basis of countries.
Chemicals studied by the researchers include ethanol, methanol, glycol, 1, 3-propanediol and epichlorohydrin. Renewable polymers studied in terms of sustainable usage include polylactic acid (PLA), polyethylene (PE), polyhydroxyalkanoates (PHA), polyamide and starch-based plastics. Majority of the industry is dominated by the chemicals segment, which is again dominated by renewable alcohols. The polymers segment is largely dominated by starch-based plastics. Thanks to the advancements in resin blends, new business opportunities in packaging applications are expected to witness growth in polymers segment.
Healthy Future Forecasted Till 2018
Specialty chemicals, pharmaceuticals and all the other related industries are the essential application areas for the products in renewable chemicals market. The biggest drivers for the industry include abundance of organic and non-organic feedstock, exceptionally low cost of feedstock, technological innovations, increasing support from governments and non-government organizations and increasing consumer acceptance for alternative energy and chemicals. All the factors are expected to have positive influence on the overall growth of the industry in terms of revenue and business opportunities.
Based on the market research reports for renewable chemicals industry, the market is expected to grow at a steady CAGR of 14.3% from 2013 to 2018. At this rate, the market will reach past $83.4 billion by 2018, which is currently poised at $57 billion (in 2013). North America and Asia Pacific are the dominating geographical regions, thanks to the growing needs from United States of America and China in the respective regions. Sales of biopolymers and bioethanol are expected to stay on the rise during the forecasting period.