Green Chemicals Market to Expand with Significant CAGR During 2025 – 2033: Grand View Research Inc.

 Green Chemicals Market Growth & Trends

The global green chemicals market size is anticipated to reach USD 25.9 billion by 2033, growing at a CAGR of 7.8% from 2025 to 2030, according to a new report by Grand View Research, Inc. The growth of Nanoscience presents a significant growth avenue for green chemicals, as the demand for environmentally responsible synthesis of nanomaterials gains momentum across multiple disciplines to produce low-dimensional nanomaterials for applications in energy, electronics, healthcare, and environmental remediation.

A key driver in this space is the push for sustainable nanomaterial synthesis processes that eliminate toxic reagents, reduce waste, and minimize environmental impact, aligning with both regulatory and sustainability goals. For instance, examples include citrate-mediated reduction for gold nanoparticles and the use of carboxymethylcellulose (CMC) as both a reducing and stabilizing agent in silver nanoparticle formation. These innovations underline the critical role of green chemicals in advancing nanotechnology, especially in applications like wastewater treatment, air purification, and sensor development, where safe and scalable synthesis is essential.

In the food and beverage sector, industries look for alternatives to traditional plastics. With rising environmental concerns, biodegradable materials such as polylactic acid (PLA), starch blends, and cellulose-based products have emerged as viable substitutes. These bio-based materials, derived from renewable sources like sugarcane, corn, and wood pulp, decompose naturally and reduce reliance on fossil-fuel-derived plastics. Breakthroughs like the discovery of PET-degrading enzymes such as petase and cutinases further highlight the potential of green chemical in addressing plastic pollution through enzymatic recycling.

Asia-Pacific leads the green chemicals market, with a market share of 35.0%, due to the region's expanding healthcare infrastructure, rising population, and increasing demand for sustainable drug manufacturing. Countries like India and China, known for their large-scale pharmaceutical production, are increasingly adopting green chemistry principles to reduce environmental impact and improve process efficiency. The use of bio-based solvents, enzymatic synthesis, and renewable feedstocks is gaining traction, driven by regulatory pressure and global sustainability goals. Continuous R&D investments, government support, and partnerships with biotech firms further propel the adoption of green chemicals in pharmaceutical applications across the region.

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Green Chemicals Market Report Highlights

• The demand for ionic liquid (IL) based green chemicals is increasing steadily, driven by their unique properties such as low vapor pressure, high thermal stability, and versatile solvating capabilities. These salt-based compounds, which melt below 100°C, minimize atmospheric emissions and reduce health hazards associated with volatile organic solvents. Their application in green chemistry is further enhanced when derived from renewable sources like sugars, alkaloids, and lipids, ensuring biodegradability and lower toxicity.
• Bio-based ILs serve as efficient solvents, catalysts, and reaction media in sustainable processes such as biomass depolymerization, pharmaceutical synthesis, metal extraction, and cross-coupling reactions. Their adaptability and performance, coupled with regulatory pressure to adopt safer and eco-friendly alternatives, are propelling their role in the broader green chemicals market.
• Europe's green chemicals market is projected to register the fastest CAGR of 8.2% from 2025 to 2033 due to regulatory mandates, corporate sustainability initiatives, and growing consumer awareness. Leading companies are setting ambitious goals to incorporate recycled or bio-based materials into their packaging and products. This transition is further supported by regulations like the EU’s packaging and packaging Waste Regulation, which mandates that 55% of plastics must be recyclable by 2030. Green chemicals are increasingly used across diverse sectors such as packaging, automotive, textiles, and industrial applications, with innovations like bio-based PET, biodegradable fibers, and biosurfactants at the forefront. Europe’s advantage in low-emission chemical production, enabled by energy efficiency and renewable energy, offers significant yet underexploited potential.
• In September 2024, Avantium announced the expansion of its FDCA (furandicarboxylic acid) pilot plant in Geleen, Netherlands, with a new Polymerization Pilot Plant. This facility enables the polymerization of 100% plant-based FDCA into PEF (polyethylene furanoate), a recyclable, bio-based alternative to conventional plastics, supporting applications in packaging, textiles, and more. The pilot plant, operational since 2022, handles both melt and solid-state polymerization, enhancing Avantium’s in-house innovation and technology licensing capabilities.

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Green Chemicals Market Segmentation

Grand View Research has segmented the global green chemicals market on the basis of product, application, and region:

Green Chemicals Product Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2033)

• Bio-alcohols
• Bio-organic acids
• Biopolymers
• Other Products

Green Chemicals Application Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2033)

• Construction
• Pharmaceuticals
• Packaging
• Food and Beverages
• Paints and Coatings
• Automotive
• Textile
• Other Applications

Green Chemicals Regional Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2033)

• North America
  • US.
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
  • Brazil
  • Argentina
• Middle East & Africa
  • Saudi Arabia
  • South Africa

List of key players in the green chemicals market

• Dow
• ADM
• BASF
• Cargill, Incorporated
• Corbion
• Merck KGaA
• Syensqo
• Solugen
• Evonik
• DUDECHEM GmbH
• Mitsubishi Chemical Group Corporation.
• DuPont

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.