WELLESLEY, MA--(Marketwired - August 22, 2016) - The increasing demand for greener products, the growing need for cost-effective processing, cheaper feedstocks, and new product avenues are driving the commercialization of alternative chemical products. BCC Research reveals in its new report that the recent economic turmoil in the U.S. economy and the increased global demand for energy supplies and subsequent cost hikes in oil and gas also should spur significant growth rates.
Alternative chemical products include chemicals produced from biobased feedstocks, as well as end-use chemical products that incorporate both bio-based chemicals and green chemistry principles (i.e., end-use chemical products include cleaning products derived from bio-based ingredients and solvent-free cleaning products).
The total alternative U.S. chemical end-use product market should reach $149.9 billion and $884.1 billion in 2016 and 2026, respectively, reflecting a 10-year compound annual growth rate (CAGR) of 19.4%. Pharmaceuticals as a segment should increase from $27 billion in 2016 to $96.2 billion in 2026, growing at a 10-year CAGR of 13.5%. Alternative packaging products should reach $25 billion and $232.1 billion in 2016 and 2026, respectively, demonstrating a 10-year CAGR of 25%. The market for alternative cleaning and detergent products, estimated at $29.3 billion in 2016, should reach $158.7 billion in 2026 on a 10-year CAGR of 18.4%.
The market for green chemistry is set to outpace the overall global chemical market during the current decade. Companies are reducing their use and generation of hazardous substances, creating safer products and lowering the impact of processes on human health and the environment. The impetus for market growth stems from a combination of tightening regulations and demand from consumers for more sustainable products. The EPA continues to facilitate the adoption of this revolutionary and diverse discipline, which should to lead to significant environmental benefits, innovation and a strengthened economy.
Rising fossil fuel feedstock costs and stricter environmental regulatory controls are incentivizing manufacturers to use green chemistry technologies to offset the large capital investment required to change and/or upgrade current equipment and facilities. For the chemical industry, the continuous change in environmental matters means not only new risks but also new business opportunities. Chemical producers now understand that preventing pollution makes as much business sense as spending less on raw materials and capturing more market share.
Alternative chemical products also offer the chemical industry new market opportunities in an otherwise stagnant marketplace dominated by big companies. In the alternative chemical segment, smaller players can compete with global conglomerates and gain market share quickly for specialty niche products. However, many dominant alternative chemical manufacturers are already making substantial footholds in these emerging markets.
"While petrochemical and inorganic chemicals will continue to be produced in high quantities, there will be less reliance on these products as competing products appear," says BCC Research analyst Christopher Maara. "Higher petrochemical costs will also make alternative chemical products more cost-competitive with traditional products. Alternative chemicals and alternative chemical end-use products will provide manufacturers with lucrative market opportunities in the next 10 years."
Alternative Chemical Products and Processing (CHM040C) provides a comprehensive and detailed analysis of "green chemistry processes" and their products, which include biomass feedstocks, bio-based chemical products and end-use alternative chemical products. Global market drivers and trends, with data from 2016, 2021, and projections of CAGRs through 2026 also are provided.
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. Founded in 1971, BCC Research is a unit of Eli Global, LLC. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.