RENEWABLE CHEMICALS MARKET ANALYSIS

Market Challenges And Opportunities

Renewable Chemicals Market Challenges – High Cost for Commercialization

The renewable chemicals market is very niche, with few numbers of players in the global market. Increasing consumer awareness about the environment is expected to increase adoption of green and eco-friendly chemicals. To fulfill increasing demand for renewable chemicals, pilot projects have to be commercialized and players have to make significant investments in research and development to upgrade the existing production technology and develop new products. While the market offers highly lucrative growth opportunities, high capital investment in production of renewable chemicals as compared to other conventional chemicals and polymers, is expected to be a key challenge for market growth. Moreover, the viability of renewable chemicals compared to performance of conventional chemicals is still to be conclusively proved, which dissuades end-use industries from adopting these chemicals. Increasing technological advancements and growing consumer awareness is expected to change the tide in the near future. Moreover, due to abundant petroleum reserves in Middle East and Latin America, the market for renewable chemicals in these regions is expected to experience least growth during the forecasted period.