(Commodity Online): The economic crisis hasn’t jolted this industry and is set to emerge stronger with a compound annual growth rate (CAGR) of 5.3% from 2009-14. It’s market size would be a huge US $59.1 bn with USA and Europe accounting for 30% and 35% of the total revenues respectively. More importantly the market is green and related to agriculture and chemicals- renewable chemicals.
A new market research report, Renewable Chemicals Market (2009-14) published by MarketsandMarkets pointed that the renewable chemicals market includes all the chemicals obtained from renewable feedstock such as agricultural raw materials, agricultural waste products or biomass, microorganisms etc. The development of this market is driven by the fact that renewable chemicals decouple economic growth from finite, non-renewable resource consumption, and also help diversify the feedstock portfolio.
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The driving force for the renewable chemicals market is the low requirement of capital for both production as well as feedstock. Moreover, consumer demand for green products and governmental support to the industry for reducing dependence on finite non renewable petroleum feedstock as well as reducing green house gas emission has been driving the market for renewable chemicals. The growth of the industrial biotechnology has also contributed to the growth of the overall renewable chemicals market due to their innovations in biocatalysis that finds extensive usage in manufacturing renewable chemicals. Renewable chemicals find industrial, pharmaceutical application as well as in consumer products.
The market is driven by the increasing demand from the food packaging industry, biodegradable and compostable plastics, and other consumer products. The renewable chemicals market is estimated to reach US$ 59 billion in 2014 from about US$ 45 billion in 2009. While alcohols currently form the largest segment of the renewable chemicals market, the polymers segment holds the maximum growth potential at an expected CAGR of 11% from 2009 to 2014. Polymer chemicals are used in making biodegradable and compostable plastics and consumer goods for use in cell phones, laptops etc.
Focus on reducing global green house gas emissions levels has led to an increase in the activities in the field of renewable chemicals. Foreseeing the rising importance of renewable chemicals the major players in the chemicals industry such as Dow, BASF have already rendered an increased attention on this market .
Platform chemicals are estimated to reach a market sixe of US$ 3.5 billion in 2014 from US$ 1.9 billion in 2009 at an optimistic CAGR of 12.6% from 2009 to 2014. Platform chemicals play an important role in the renewable chemicals market since their multiple functional groups can be converted to families of highly useful chemicals.
Immense market opportunity lies for the renewable chemicals market in the Japan and the rapidly developing economies of India, China, and Russia, which largely consume chemicals from petrochemical feedstock. Governmental support and initiatives to encourage the use of renewable chemicals is expected to provide the necessary boost to the market in these economies. Strategic alliances and new technology developments 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.
Europe forms the largest market for renewable chemicals with an estimated $21.0 billion by 2014. Its 5.5% CAGR from 2009 to 2014 is driven by consumer demand for green products and governmental support for such chemicals. U.S. is the second largest segment, growing at with an estimated a CAGR of 5.1% to reach $17.5 billion by 2014.
The report provides indepth market estimates and forecast for global renewable chemicals market as follows:
Renewable chemicals – Products: Alcohols, organic chemicals, ketones, polymers and other markets.
Renewable chemicals - Application: Industrial, transportation, textiles, safe food supply, environment, communication, housing, recreation, health & hygiene and other applications. Renewable chemicals – Catalysis: Biocatalysis and chemical catalysis Renewable chemicals – Technology: Thermo-chemical conversion, fermentation and bioconversion, product separation and bioconversion, enzymatic hydrolysis, gasification-fermentation, acid hydrolysis, biochemical-thermochemical, biochem-organisolve, fischer-tropsch diesel, reductive transformation, dehydrative transformation and other technologies.
Key questions answered 1)Which are the high growth segments/cash cows; how is the market segmented in terms of applications, products, services, ingredients, technologies, stakeholders.
2)What are market estimates and forecast; which are markets are doing well and which are not?
3)Where are the gaps and opportunities; what is driving the market;
4)Which are the key playing fields? Which are the winning edge imperatives?
5)How is the competitive outlook; who are the main players in each of the segments; what are the key selling products; what are their strategic directives, operational strength and product pipelines? Who is doing what?
(Courtesy: PRNewswire and www.marketsandmarkets.com)
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