Green Chemicals Industry Sees Strong Growth with Eco-Innovation, Bioplastics & Global Policy Support | DataMIntelligence

The Green Chemicals market is rising fast with new bio-based innovations, regulatory support, and demand from packaging, agriculture, and personal care sectors

NEW YORK, NY, UNITED STATES, July 25, 2025 /EINPresswire.com/ -- The Green Chemicals market is accelerating rapidly, fueled by tightening environmental regulations, consumer demand for sustainable products, and increasing investments in bio-based solutions. These chemicals, derived from renewable sources such as biomass, plant-based materials, and waste, serve as eco-friendly alternatives to traditional petrochemicals. Rising concerns over climate change, stringent governmental policies on emissions, and increasing preference for biodegradable and low-toxicity products are pushing both manufacturers and end users to adopt green chemical solutions. The market is evolving across various sectors, including agriculture, packaging, textiles, and personal care, reflecting a larger move towards circular economy models. As of 2023, the market reached US$ 105.5 billion and is expected to hit US$ 188.2 billion by 2031, growing at a CAGR of 7.5% from 2024 to 2031.

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Recent Innovations & Key Developments :

July 2025 - Braskem SA
Braskem unveiled a new generation of I’m green™ bio-based EVA (ethylene vinyl acetate) for flexible packaging. The product offers enhanced transparency, improved recyclability, and reduced CO₂ footprint, targeting high-demand segments like cosmetics and food packaging.

June 2025 - BASF SE
BASF announced a partnership with a European biotech firm to co-develop enzyme-catalyzed green chemical intermediates. The new production method reduces energy consumption by 40% compared to traditional petrochemical pathways.

May 2025 - DuPont

DuPont introduced a high-performance biodegradable polymer targeted for agricultural mulch films. The polymer degrades completely in soil within one growing season, addressing plastic residue issues in farming.

April 2025 – DSM NV

DSM launched a new algae-based omega-3 ingredient used in green cosmetic formulations. The launch reflects the company’s strategy to shift away from fish-derived ingredients, aligning with marine ecosystem protection goals.

Market Acquisitions and Mergings:

March 2024: BASF SE acquired a 49% stake in a startup developing enzyme-based chemical platforms for industrial cleaning solutions. The move expands BASF’s portfolio of biodegradable and low-impact formulations.

January 2024: Mitsubishi Chemical Holdings completed its acquisition of a European bioplastics firm to enhance its R&D capabilities and supply chain presence in the region.

December 2023: Cargill Incorporated announced a strategic merger with a U.S.-based biosurfactant producer, enabling broader market reach in personal care and cleaning segments.

Market Opportunities :

Bioplastics Expansion: Growing bans on single-use plastics in North America, Europe, and parts of Asia present vast opportunities for green polymers and bioplastics.

Agrochemical Substitutes: Increasing demand for sustainable farming solutions creates openings for bio-based fertilizers, pesticides, and soil conditioners.

Green Solvents & Surfactants: Rising demand in cosmetics, home care, and industrial cleaning sectors for less-toxic, biodegradable ingredients offers strong potential.

Circular Economy Integration: Innovations around waste valorization—such as converting agricultural residues into chemicals—are reshaping the sustainability landscape.

Government Subsidies & Tax Breaks: Incentives for companies adopting cleaner technologies are accelerating R&D and infrastructure development.

Market Key Players:

BASF SE
DSM NV
DuPont
Evonik Industries AG
Mitsubishi Chemical Holdings Corporation
Braskem SA
Albemarle Corporation
Aemetis, Inc.
Cargill Incorporated
SECOS Group Ltd.

These players are actively investing in product innovation, renewable sourcing, and expanding their global footprint through partnerships and acquisitions to stay competitive in the rapidly evolving green chemicals space.

Market Segmentation:

By Product Type:

Bio-Alcohols
Bio-Polymers
Bio-Organic Acids
Bio-Ketones
Others

By Source:

Biomass
Algae
Sugar & Starch
Vegetable Oils
Animal Fats

By Application:

Agriculture
Food & Beverage
Packaging
Automotive
Personal Care & Cosmetics
Construction
Textiles
Pharmaceuticals

By Region:

North America
Europe
Asia-Pacific
South America
Middle East & Africa

Latest News - USA :

July 2025 - Cargill Incorporated
Cargill announced the expansion of its biorefinery facility in Iowa to increase the production capacity of bio-based 1,4-butanediol (BDO), used in biodegradable plastics and coatings. The move aligns with growing U.S. demand for sustainable industrial solvents.

June 2025 - U.S. Department of Energy (DOE)
The DOE awarded $68 million in grants to companies developing scalable green chemical technologies, focusing on enzymatic bioconversion and carbon-negative synthesis processes. Startups and academic partnerships are the main beneficiaries.

May 2025 – DuPont
DuPont began commercial-scale production of its bio-based specialty materials in its renovated Delaware plant. The materials cater to the automotive and electronics industries looking to decarbonize their supply chains.

April 2025 – SECOS Group Ltd. (via U.S. operations)
SECOS launched a new compostable film product designed for municipal waste bag programs across several U.S. cities. The product meets ASTM D6400 standards and supports state-led plastic reduction mandates.

Latest News - Japan :

July 2025 - Mitsubishi Chemical Holdings Corporation
Mitsubishi Chemical opened a new pilot plant in Shizuoka to produce biodegradable plastics using seaweed-derived polysaccharides. The initiative supports Japan’s goal to replace 25% of single-use plastics with bio-based alternatives by 2030.

June 2025 - Japan Ministry of Economy, Trade and Industry (METI)
METI announced a ¥10 billion green subsidy package aimed at scaling up domestic production of biosurfactants and bio-solvents. Major players like DSM and Evonik’s Japanese branches are among the grant recipients.

May 2025 - Evonik Japan
Evonik launched a new bio-based dispersant for paints and coatings that reduces volatile organic compounds (VOCs) by over 80%. It targets the Japanese construction and automotive sectors' push toward greener materials.

April 2025 - Aemetis, Inc. (Japan Operations)
Aemetis signed a distribution agreement with a major Japanese trading company to supply renewable ethanol and bio-acetates for use in adhesives, paints, and solvents. The agreement will support Japan’s updated 2030 emissions roadmap.

Conclusion:
The Green Chemicals Market is entering a golden phase of transformation, with robust tailwinds from policy, innovation, and shifting consumer preferences. As global economies prioritize net-zero emissions and circularity, the demand for sustainable chemicals derived from renewable resources will only intensify. Key players are responding with agile innovations, strategic collaborations, and a push toward scalable, economically viable solutions. With continuous regulatory support and growing corporate ESG commitments, green chemicals are poised not just as an alternative, but as a foundation for the future of responsible industrial growth.

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Sai Kumar
DataM Intelligence 4market Research LLP
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