The chemicals that are derived from biological sources such as plants, algae and agricultural waste which are sustainable, biodegradable and has low carbon footprint are known as green bio chemicals. Production of biofuels, eco-friendly solvents and biodegradable plastics are major usage of green bio chemicals. Green bio chemicals are crucial in sectors such as agriculture and packaging.
Lowering greenhouse gas emissions and growing environmental issues that drives the sustainable green biochemical alternatives are major objectives of green bio chemicals. With supportive government policies and tax incentives making bio-based alternatives more sustainable that industries are further adopting bio-based products.
Key Growth Drivers and Opportunities
Renewable Feedstocks Fuelling Green Biochemicals: The major shift towards renewable feedstocks in chemical production is due to the decreasing non-renewable resources specially petroleum. It became costly to extract and reserves deplete thus industries are shifting towards more sustainable and economically viable alternative green biofuels. Green biochemicals and biofuels contribute in lowering greenhouse gas emissions and offer more stable and long-term supply to industries.
Corporate Sustainability Goals: Various organizations in multidisciplinary industries are pushing efforts for setting the ambitious sustainability targets and long-term strategic goals for the corporate social responsibility initiative. Lowering the carbon emission and lowering the usage of hazardous substances and chemicals in production process is the end goal driving more adoption of sustainable green biochemicals in various industries.
Challenges
The main challenge for growth of green biochemicals is petrochemical-based substitutes with cost-friendly production and well-established supply chain network compared to green biochemicals. Already developed infrastructure and mature and stable raw material availability enables manufacturers to produce cost efficient petrochemicals and with consistent quality limiting the adoption of green biochemicals globally.
Innovation and Expansion
Braskem & Fitesa Launch Bio-Based Nonwovens to Cut Carbon in Hygiene Products
In April 2025, the Braskem and Fitesa announced the use of Braskem’s I’m green Bio-Based Polyethylene Grade for Fitesa’s Nonwovens. It is made from bioethanol from sugarcane as feedstock, the green bio-based PE grade for nonwovens has a direct impact on the final product’s carbon footprint.
This innovative material presents an overall better process performance and enhanced spinning stability, supporting the increase of bio-based content on products throughout the global hygiene supply chain.
Nippon Yuka Unveils BioxiGuard to Boost Marine Biodiesel Stability
In May 2025, the Nippon Yuka Kogyo Co., Ltd., announced the launch of BioxiGuard, Japan’s first antioxidant specifically developed for marine biodiesel fuels. BioxiGuard aims to enhance fuel stability and efficiency in marine applications by cutting oxidation degradation by almost half, assisting the maritime sector’s shift to lower-carbon operations.
The BioxiGaurd is integrated with multiple biodiesel blends which makes it ideal and flexible solution for fleet that have adopted renewable fuel sources. In order to speed up its adoption, Nippon Yuka intends to boost its availability at major international ports by the end of 2025.
Sustainable Alternatives, Expanding Markets
The companies and manufacturers that want to thrive in the green bio chemicals industry should prioritize value-added processing, innovative production methods, sustainable practices, strategic alliances, and market expansion in order to meet the rising demand for green bio chemical products and their wide range of uses. The key players operating in the green bio chemicals market include, BASF, ADM, Conagen, Inc., Rentechinc., BIOSYNTH, and others.
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