Researcher MarketsandMarkets has released its report, "Renewable Chemicals Market - Alcohols, Biopolymers, Platform Chemicals and Others - Global Trends and Forecasts to 2018", which defines and segments the global renewable chemical market with analysis and forecasting of the global volume and revenue.
The new data shows that the renewable chemical market will grow from an estimated $57.5 billion in 2012 to $83.4 billion by 2018, with a CAGR of 7.7 per cent from 2013 to 2018.
The growth over the next five years can be put down to a continuous rise in oil prices, requirement for environmentally friendly feedstock, and low production cost of bio-based chemicals.
The boost can also be attributed to rising consumer consciousness, and improving economics.
However, the market researcher says that factors such as economic viability, product quality/performance, and scale of operation will still play important role in determining the commercialization spectrum.
Among the major renewable chemicals, ethanol is the most commercialized segment, and although it has been established in the US and Brazil, MarketsandMarkets believes it has ample scope of growth in Europe, as well as developing countries in Asia such as India and China.
In the biopolymers segment; starch plastics holds maximum share i.e. around 48 per cent, whereas PHA is expected to grow at highest CAGR of over 27.7per cent during the next five years.
Many industry players have made it their ambition to further strengthen their portfolio in bio-based chemicals and materials in recent times.
For example, Netherlands-based DSM is currently exploring multiple routes using its competencies in both chemistry and biotechnology, and the technology being developed can be used as a platform for the development of other high potential bio-based building blocks and/or platform molecules.