Germany Green Chemicals Market Overview, 2029

Germany Green Chemicals Market Overview, 2029

The German green chemical market is characterized by its strong integration within the broader chemical industry and its significant role in the transition towards sustainability. The products made by the chemical industry contribute towards a sustainable future, both directly and as the basis for innovations in other industries. With its economic strength and its large number of small and mediumsized enterprises, the German chemical industry is well set up to thrive in the future – in its home market of Germany, in Europe, and around the world. Its conduct is rooted in the fundamental principles of protecting people and the environment and striving for good and fair working conditions. This commitment on the part of the chemical industry in Germany is demonstrated by its participation in the Responsible Care initiative and in its social partnership activities. The aim of these guidelines is to underpin sustainability as a guiding principle of the chemical industry in Germany and to provide inspiration for the international community. As a sector-specific umbrella, the guidelines provide orientation for enterprises and their workforces. In Germany, translates into commitment to the country’s social market economy (“Soziale Marktwirtschaft”) and their engagement in the unique social partnership within the chemical industry. The VCI represents the politico-economic interests of more than 1,700 German chemical companies and German subsidiaries of foreign businesses. For this purpose, the VCI is in contact with politicians, public authorities, other industries, the scientific community, and the media. The VCI stands for over 90 percent of the chemical industry in Germany. In 2011 the German chemical industry realised sales of more than 184 billion euros and employed more than 428,000 people. The German chemical industry is looking back on particularly difficult years that were marked by Russia’s war of aggression on Ukraine and the resulting energy crisis. Enormous energy prices and price increases for raw materials and inputs are making matters hard indeed for industry in Germany.

According to the research report ""Germany Green Chemical Market Overview, 2029,"" published by Bonafide Research, the Germany green chemical market is anticipated to grow at more than 8.5% CAGR from 2024 to 2029. Among the most important trends affecting chemical and pharmaceutical industry are sustainability, climate change, protection of natural resources, and circular economy. The German chemical industry, together with its customers, is developing and implementing new processes and products e.g. with the aim to reach greenhouse gas neutrality by 2050 or earlier, to use CO2 as an input or to use plastic materials via recycling as feedstock for the next generation of products. New technologies such as nano- and biotechnology, the hydrogen economy and digitalisation are explored to find efficient ways to achieve these goals. Areas of growth for the chemical industry lie in the topics addressed in the “High Tech-Strategy” of the Federal government. Due to digitalisation, process and organizational innovations are gaining in relative importance. The energy crisis also affects the long-term growth potential of the chemical industry. As energy prices will remain substantially higher than in other parts of the world, competitiveness of basic chemicals shrinks and the transformation of our industry is at risk. The consequences could be declining investments, relocation of production abroad and increasing import pressure. The threat of de-industrialization is real.  There are structural problems in Germany: high taxes, levies and energy prices are driving up costs. Bureaucracy, infrastructure problems and slow approval procedures are also slowing companies down. Therefore, import pressure will continue to increase and the challenges for the industry remain enormous. As matters stand now, the VCI is expecting for 2024 only a stable development for production in the chemical-pharmaceutical industry. Due to the structural problems, it remains questionable whether the German chemical and pharmaceutical industry will be able to benefit from an increase in global demand for chemicals.

The leading segment in the green chemical market in Germany is Bio Alcohols, primarily due to their extensive applications across various industries, including automotive, pharmaceuticals, and food. Bio alcohols, such as bioethanol and biobutanol, are derived from renewable resources and are increasingly favored over fossil fuels due to their lower environmental impact. The growing emphasis on sustainability and reducing greenhouse gas emissions has spurred demand for bio alcohols as a cleaner alternative to traditional fuels. This segment is also benefiting from supportive government policies aimed at promoting biofuels, alongside advancements in production technologies that enhance efficiency and reduce costs. The Bio Polymers segment is experiencing significant growth, driven by rising consumer awareness regarding plastic pollution and the need for sustainable materials. Bio-based polymers are increasingly being adopted in packaging, automotive, and construction sectors as they offer similar performance characteristics to conventional plastics while being biodegradable or compostable.

Bio Organic Acids segment includes products like lactic acid and succinic acid, which are produced through fermentation processes using renewable feedstocks. The demand for bio organic acids is rising due to their applications in food preservation, pharmaceuticals, and biodegradable plastics. Bio Ketones, although not as prominent as other segments, bio ketones are gaining traction due to their use in solvents and as intermediates in chemical synthesis. Their production from renewable resources aligns with the growing trend towards sustainable chemistry. Bio Solvents category encompasses solvents derived from biological sources that replace traditional petroleum-based solvents. The increasing regulations on volatile organic compounds (VOCs) are driving the adoption of bio solvents in various applications, including paints, coatings, and cleaning products. Others Product Types catch-all category includes various emerging bio-based chemicals that do not fit neatly into the aforementioned categories. Innovations in biotechnology are leading to the development of new products that cater to niche markets within the green chemical landscape.

The Packaging segment is the leading application in the green chemical market in Germany, driven by increasing consumer demand for sustainable and biodegradable materials. As environmental concerns rise, businesses are shifting towards eco-friendly packaging solutions to reduce plastic waste and comply with stringent regulations banning single-use plastics. This trend is bolstered by innovations in bio-based materials, such as those derived from plant sources, which offer comparable performance to traditional packaging while being more environmentally responsible. The Healthcare sector is experiencing significant growth due to the rising adoption of green chemicals in medical products and services. Green chemicals are used in the production of biodegradable medical supplies, such as sutures and drug delivery systems, which help minimize environmental impact. They are utilized in the formulation of pharmaceuticals and personal care products, where non-toxic and sustainable ingredients are becoming increasingly important to consumers.

Pharmaceuticals & Personal Care Products segment focuses on the use of green chemicals in drug formulations and personal care items. The shift towards natural ingredients is driven by consumer preferences for safer products with fewer side effects. In construction, green chemicals are used in sustainable building materials, including paints and adhesives that are low in volatile organic compounds (VOCs), enhancing indoor air quality and reducing environmental impact. In Food & Beverages sector, green chemicals play a role in food preservation and packaging, ensuring products are safe for consumption while minimizing ecological footprints. The demand for eco-friendly paints and coatings made from bio-based solvents is increasing, driven by regulations and consumer preferences for low-emission products. Automotive, green chemicals are utilized in producing bio-based plastics and coatings for vehicles, contributing to lighter weights and improved fuel efficiency while reducing reliance on fossil fuels. Other applications include various niche markets where green chemicals can be applied, such as agriculture (bio-pesticides) and cleaning products, reflecting a broader trend towards sustainability across industries.

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.