Canada Green Chemicals Market Overview, 2029

Canada Green Chemicals Market Overview, 2029

The green chemical market in Canada is significantly different from what it was three decades ago. From inception, it was rules and statutory compliance with orthodox chemical production processes. However, the waking up over environmental concerns started gaining pace during the latter half of the 20th century with the government of Canada initiating policies aimed at reducing the risks that chemicals pose to human health and the environment. With the Chemicals Management Plan arising at the turn of the century came a focus on safer and more environmentally friendly alternatives for chemicals. As sustainability became an imperative around the world, Canadian companies started to focus on bio-based chemicals and new means of production; this is the growth area for a greener chemicals sector. Emission reduction of greenhouse gases by the government and industries has been agreed upon, and further reduction in their environmental footprint is to be achieved. These were also embodied by more friendly environmentally practices within the sectors of agriculture, packaging, and consumer goods. The Canadian Environmental Protection Act (CEPA) emphasizes the consideration of sustainable development regarding the assessment and management of chemicals to ensure a healthy environment and health of humans. Many companies are embracing the principles of the circular economy, such as efficiency in resource utilization and abatement of waste, through renewable feedstocks.

According to the research report ""Canada Green Chemicals Market Overview, 2029,"" published by Bonafide Research, the Canada Green Chemicals market is anticipated to add to more than USD 2 Billion by 2024–29.Bios conversion emerges as an increasingly important use of biomass for the production of valuable chemical products, fuels, and energy. Research institutions and universities develop new ways of producing it in partnership with industry players, further intensifying the process of bio-based processes with a significantly higher efficiency rate. Companies also heavily invest in digital technologies, including data analytics and automation, to streamline production and minimize waste. Apart from making the manufacturing of chemicals sustainable, these innovations make Canada a leader in the manufacture of green chemicals in the world. The growth of the green chemicals market in Canada is helped out by various associations as well as organizations. For example, the Green Chemistry Network campaigns for best practices, research, and collaboration on best practices among industry players. Another key association is the Canadian Chemical Producers' Association (CCPA). Members of the GreenCentre board of directors include senior executives from the major participants in the chemical supply chain includes NOVA Chemicals Corp. and Bayer MaterialScience. End-users represented through the board membership include Ford Motor Company and Veolia Water Solutions & Technologies. GCC hired industry members with both strong global connections as well as an understanding of the public sector environment in order to ensure that the development of technology would align with market opportunities. The board has diversified recently and included more independent members from the venture capital and communications sectors.

Several factors affect the Canadian green chemicals market. For example, the presence of supportive regulatory policies like the Chemicals Management Plan and carbon pricing initiatives builds an enabling environment for the growth of green chemicals. Another factor driving this market forward is the corporate commitment to sustainability and consumer demand for eco-friendly products. Biotechnology and green chemistry are improving as the processes move forward with higher efficiency in production and sustainability. The strict adherence to circular economy principles forces companies to reshape their supply chains and embrace the best practices that are quite sustainable. All these factors contributing together are what make the market grow. However, even though the market is full of growth in Canada, there are numerous restraints in it. High production costs associated with bio-based chemicals and sustainable materials may limit them from being competitive with conventional petrochemicals. The large-scale production technologies and infrastructures for green chemicals are relatively new and still not as mature as in developed economies; this will come as a challenge to firms attempting to transition into this industry. It has wide growth and innovation opportunities. The ability to produce new bio-based chemicals and materials responds to a change in market preference toward sustainable products. The newly developed interest in biodegradable plastics and sustainable packaging solutions will open up new growth areas for the packaging industry. Biotechnology and synthetic biology further provide opportunities for more efficient, sustainable production methods. With this commitment of Canada to environmental sustainability and its transition to a low-carbon economy, all companies have immense potential in leading the development of green chemicals that are aligned with stated national goals.

Bio alcohols form one of the largest groups in the green chemicals market for Canada, and are predominantly used as green alternatives for fossil fuels. Under this category are bioethanol and biobutanol, which, being applied for transportation and other industrial purposes, are two of the products that fall under this category. Bio alcohol creation produces fewer carbon emissions. Moreover, it promotes energy security through the use of domestic agricultural resources. This will spur tremendous growth in the bio alcohol segment with an increasing demand for renewable fuels. Bio organic acids also make up one of the major product types in the green chemicals industry in Canada. These acids are produced via fermentation with renewable feedstocks, including sugarcane and corn. The applications of these products will be vast in food preservation, in biodegradable plastics, and in pharmaceuticals. The adaptability of such bio organic acids, like lactic acid and citric acid, finds a necessity in almost all industries. It could help increase the growing demand towards more greener alternatives. Bio polymers are gaining more applications in the Canadian market as they are biodegradable, and subsequently reduce the impact on the environment compared to traditional plastics. Made from PLA and other materials such as bio-polyethylene, these materials are being applied in packaging applications, agricultural sectors, and consumer products where there is a need for reduced reliance on single-use plastics. Bio solvents are gaining acceptance due to their reduced toxicity and lower environmental footprint in comparison with conventional solvents. These are applied in paints, coatings, and cleaner products, hence an important component in driving Canada towards sustainable industrial practices. The indirect demand for bio solvents is also expected to increase in the near future as industries emphasize green chemistry and consumers opt for greener products. Other product types in the Canadian green chemicals market include bio ketones and specialty green chemicals. These are used to act as solvents, intermediates, and specialty chemicals and are thus utilized in different applications where most applications require pertinent sustainable chemical solutions.

The market encompasses several critical applications, including packaging, healthcare, pharmaceutical and personal care products, construction, food and beverages, paints and coatings, and automotive. Canada is undergoing an enormous transformation in the packaging area toward sustainable materials. Companies such as Canada Brown are leading the field in environmentally friendly packaging materials manufactured from recyclable and compostable resources. For example, they provide individualized packaging in plant-based materials and recycled plastics, which avoids environmental degradation without affecting the essence of the product. The EPR legislation imposes yet another measure that would ultimately make them more environmentally friendly; because they are allowed to have responsibilities for the entire lifecycle of their product packaging. Green chemistry has also been applied in the health sector to produce safer medical supplies and pharmaceutical products. Canadian firms are seeking how they can reduce toxic components in products. For instance, the firm Enerkem is innovative, saying they convert waste into biofuels and chemicals to help the healthcare industries pursue their health safety goals while at the same time minimizing the impact of the environment. For instance, in pharmaceuticals and personal care products companies like Lush Cosmetics reformulated their product lines to eliminate toxic chemicals. Companies emphasized fresher, organic compounds within products, something that was yielding strong demand as consumers chose to embrace products that are clear and sustainable.

Good indoor air quality is being enhanced through adoption in the construction industry using low-VOC paints and coatings. For instance, companies like CarbonCure Technologies pioneer ways of incorporating recycled CO2 into the production of concrete, enhancing its strength while reducing associated emissions. In the food and beverages industry, companies are using increasing amounts of compostable packaging made from organic materials such as sugarcane and corn starch. Wilson Wholesale Supply has some biodegradable food containers that will break down as naturally as they are used, thus preventing landfill waste. The automobile industry is also using biological-based material in car production. Even Ford has been able to make car interiors from soy-based foam, so it's very much possible to have good performance along with the impact on the environment with green chemistry.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Green Chemicals market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Bio Alcohols
• Bio Organic Acids
• Bio Ketones
• Bio Polymers
• Bio Solvents
• Others Product Types

By Applications
• Packaging
• Healthcare
• Pharmaceuticals & Personal Care Products
• Construction
• Food & Beverages
• Paints & Coatings
• Automotive
• Other Applications

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Green Chemicals industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.