Green Chemicals Market Report 2026

The green chemicals market size has grown rapidly in recent years. It will grow from $132.11 billion in 2025 to $146.13 billion in 2026 at a compound annual growth rate (CAGR) of 10.6%. The growth in the historic period can be attributed to stricter environmental regulations, growth of sustainable manufacturing practices, rising consumer preference for eco-friendly products, expansion of biotechnology processes, availability of renewable raw materials.

The green chemicals market size is expected to see rapid growth in the next few years. It will grow to $220.6 billion in 2030 at a compound annual growth rate (CAGR) of 10.8%. The growth in the forecast period can be attributed to increasing investments in bio-refineries, rising demand for biodegradable materials, expansion of green chemicals in automotive and construction, growing focus on carbon-neutral chemical production, increasing adoption of enzymatic manufacturing processes. Major trends in the forecast period include increasing adoption of bio-based chemical alternatives, rising demand for low-toxicity industrial chemicals, growing use of biopolymers in packaging, expansion of green chemistry applications, enhanced focus on circular chemical production.

The growing beauty and cosmetics industry is expected to drive the growth of the green chemicals market in the coming years. The beauty and cosmetics sector includes businesses involved in producing, marketing, and selling products aimed at enhancing personal appearance, skincare, and overall aesthetics. Green chemicals are increasingly important in this industry, offering sustainable and eco-friendly alternatives that meet consumer demand for natural ingredients and environmentally conscious formulations. For example, in February 2025, the Centre for the Promotion of Imports from Developing Countries, a Netherlands-based government organization, reported that Europe imported 437,542 units of natural ingredients for cosmetics in 2022, which increased to 470,561 units in 2023, reflecting a year-on-year growth of approximately 7.6%. Therefore, the expansion of the beauty and cosmetics industry is supporting the growth of the green chemicals market.

Leading companies in the green chemicals market are focusing on technological innovations, such as bio-based production methods, to provide eco-friendly alternatives that enhance sustainability and minimize carbon footprints across various sectors. Renewable dimethyl ether (DME) technology involves producing DME from renewable resources, positioning it as a sustainable substitute for conventional fossil fuels. For example, in May 2024, Lummus Technology LLC, a US-based firm specializing in developing and licensing process technologies and energy solutions, announced the commercial launch of CDDMESM, a new renewable DME technology enhanced through catalytic distillation (CD). The CDDME technology can process various types of methanol to generate renewable DME, which can then be blended to create liquefied petroleum gas or utilized as a hydrogen carrier. This technology requires fewer unit operations, achieves high conversion rates, and lowers utility and operating costs, leading to reduced CAPEX and OPEX.

In April 2023, Eni S.p.A, an Italy-based energy company, acquired Novamont, a manufacturer of green chemicals specializing in bioplastics and biochemicals of vegetable origin. This strategic acquisition is expected to strengthen Eni's position in the green chemicals market, fostering the development of bio-based products and increasing the use of renewable raw materials in production.

Major companies operating in the green chemicals market are BASF SE, Covestro AG, Arkema S.A., Evonik Industries AG, The Dow Chemical Company, DSM-Firmenich, Novozymes A/S, Corbion N.V., NatureWorks LLC, TotalEnergies SE, Braskem S.A., Cargill, Incorporated, DuPont de Nemours, Inc., Mitsubishi Chemical Group Corporation, LANXESS AG, Solvay S.A., Kuraray Co., Ltd., Toray Industries, Inc., Wanhua Chemical Group Co., Ltd., Neste Oyj, Avantium N.V., Genomatica, Inc., BioAmber Inc., LanzaTech, Inc.

Europe was the largest region in the green chemicals market in 2025. The regions covered in the green chemicals market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the green chemicals market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The green chemicals market consists of sales of green solvents, metal surface treatment chemicals, green surfactant, green catalysts, and green additives. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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