India Green Chemicals Market Overview, 2029

India Green Chemicals Market Overview, 2029

As India confidently walks into a sustainable future, there comes an interweaving of ancient agricultural wisdom with cutting-edge technology in the green chemicals market. India is the world's 6th largest producer of chemicals and the 3rd biggest contributor in Asia, accounting for 7% of India's GDP. India is an important player in global exports and imports of chemicals and ranked at 14th in exports and at 8th in imports level worldwide, excluding pharmaceuticals. Rapid urbanisation creates fast growing demands for sustainable building materials, such as green paints and insulation from bio-based chemicals. Green building certifications, IGBC and GRIHA, encourage the use of sustainable materials. Most such products are based on the eco-friendly nature, which is a result of their effective consumption of resources. Most companies have therefore focused on the maximization of lifecycle of the materials, reducing waste and increasing sustainability. Most products are, therefore, able to remain functional over time. Nanotechnology-based innovations are now being applied within green chemistry for better efficiency, selectivity, and sustainability of chemical processes. Among this category are catalytic nanomaterials, nanofibers, and nanocomposites, offering properties that enhance performance in green chemical products and processes. Smart packaging materials innovations aim to limit usage of plastics, increase recyclability, and ultimately extend the shelf life of the final product. Indian companies are working on biodegradable films, compostable films, and bio-based coatings as a substitute for traditional plastic packaging. Focus has also been provided to green biodegradable polymers wherein majors companies have been gearing up in India with the chemicals like Stannous Octoate, Stannous Neodecanoate, which will gain a significant foothold in the coatings, adhesives for energy solutions and have low environmental impact- such innovation in the offing, there is a new green revolution in the making. In Feb 2023, Indian Speciality Chemical Manufacturer' Association has signed MoU with USIIC for encouraging trade in speciality chemicals.

According to the research report ""India Green Chemicals Market Overview, 2029,"" published by Bonafide Research, the India Green Chemicals market is anticipated to grow at more than 12% CAGR from 2024 to 2029. Advances in biotechnology on lines of enzyme technology and fermentation processes are improving production efficiency. Companies are increasingly embracing the principles of the circular economy to capture resource recovery, recycling, and sustainable sourcing. Increasing green chemical production efficiency is achieved through supply chain optimization using digital tools and data analytics. The government has planned to organize roadshows in eight international markets to attract investors at the much-awaited investors' summit in January 2022 focused on the petrochemicals sector and keen on attracting the investment dollars to the newly inaugurated Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) close to the soon-to-be-operated crude oil refinery in the Barmer district of Rajasthan. India collaborates with the international organizations and the countries of green chemicals just because it wants to share knowledge and technologies. UNIDO facilitates such relations among multiple partnerships, thus ensuring sustainable industrial practices for all the participants. So far, the government of India has undertaken various initiatives to encourage the adoption of green chemistry and sustainable practices in the chemical industry. As part of this, the Ministry of Chemicals and Fertilizers has launched Green Chemistry Initiative where people have been urged to use green technologies and processes. Many manufacturers are investing in flexible production technologies that help them match their output with fluctuations in demand. This skill reduces waste and maximizes the use of resources, thus making the manufacture of green chemicals efficient and sustainable. In July 2022, NTPC Renewable Energy Limited (NTPC REL) inked an MoU with Gujarat Alkalies and Chemicals Limited (GACL) for India's first commercial Green Ammonia and Green Methanol plants.

The green chemicals market of India is growing rapidly due to environmental concerns and stimulus policies adopted by the government to promote sustainable business. The market for green chemicals includes a few major segments are bio alcohols, bio organic acids, bio ketones, bio polymers, and bio solvents. Each one plays a pivotal role in the journey toward green alternatives in the country. Bio Alcohols is one of the larger segments within India's green chemical landscape. The government has set ambitious targets for blending ethanol with petrol as it wants 20 percent of petrol to be blended with ethanol by 2025. The National Biofuel Policy supports this effort and encourages production of bioethanol from sugarcane, among other feedstocks. Indian Oil Corporation, among others, is establishing more ethanol production units to end their dependence on fossil fuel partly and contribute to energy security. Bio Organic acids have gained huge popularity in food preservation, biodegradable plastics, and pharmaceuticals. Lactic acid and acetic acid are the primary products that come from fermentation. Indian companies are investing in biotechnological innovations to make their production more efficient. Companies like Bhat Bio-Tech are concentrating on organic acids produced from renewable sources, which is contributing to growth in this segment.

Bio ketones are slowly coming into fore as crucial intermediates in chemicals' synthesis. Indian research establishments are exploring the possibilities of bio ketone production from agricultural wastes and biomass. It would encourage the country to adopt circular economy with minimal damage to the environment. Very new but promising, it can be used in a myriad of applications in the near future. Bio Polymers are gaining popularity very fast because of their biodegradable nature and much lesser environment damage compared with the conventional plastics. Polylactic acid, an organic compound derived from corn starch, is increasingly being used in packaging and consumer goods. Indian companies like EcoGreen have also started investing in biopolymer production due to increasing demand for such sustainable alternatives for packaging, which marks a larger intention towards plastic waste reduction. Bio solvents are preferred as they are lower in toxicity compared with conventional solvents. Bio solvents find applications in paints, coatings, and cleaning products among others. Indian players, hence, are developing bio-based solvents from agricultural feedstocks in line with the global emerging trend of safer chemical solutions. In November 2021, Praj Industries Limited and Indian Oil Corporation inked a memorandum of understanding (MoU) to explore opportunities in the production of alcohol-to-jet (ATJ) fuels, 1G & 2G ethanol, compressed bio-gas (CBG) and related opportunities in the biofuels industry.

As the demand for sustainability and environmental practices increases among India's various industries, Indian green chemicals continue to grow rapidly. From packaging to pharmaceutical and personal care products, construction, food and beverages, paints and coatings, automotive, and many more, this product line applies everywhere. Currently, in the packaging industry, there has been a significant trend by Indian companies towards sustainable materials in order to cut down plastic waste. For instance, Ecopack, the major producer, has innovatively developed biodegradable food containers from sugarcane bagasse-which is the left after sugar. Such innovative ideas are not only environment-friendly but, at the same time, cost-effective alternatives to the traditional plastic packs. The government of India has undertaken numerous initiatives to support green packaging. Single-use plastics have been banned in many states; this has enhanced the demand for green alternatives in the market. India's health care sector is using green chemistry to make safer drugs. Lupin Limited-a pharmaceutical has brought out environment-friendly disinfectants to wipe out harmful bacteria that pose less harm to human beings and the environment as a whole. This is part of the country's vision of a greener health care towards reduced environment impact from hospital waste. In the pharmaceuticals and personal care industry, Indian players are re-formulating their offerings to eliminate hazardous chemicals. The Himalaya Herbals Company has introduced its organic line with more natural ingredients and sustainable sourcing. This reflects a wider consumer trend in India for green and ethical products.

Going green in construction has been embraced with low-VOC paints and sustainable materials. The largest paint-making companies supply eco-friendly coatings to improve indoor air quality or achieve environmental standards. Additionally, Indians are turning towards the materials that have been recycled for more use in construction projects and activities undertaken as a commitment to India's sustainability. There has been a move towards even more adoption of compostable packaging and organic ingredients in the food and beverages sector by companies in India. The launch of plant-based bottles for its beverage products marks Dabur as one of the major FMCG companies underlining and engaging the sustainability-conscious consumer. Next are the developments within paints and coatings companies where the company accepted the challenge to come out with low-VOC products in order to minimize impact toward environmental disruption. These products cater towards the residential and commercial markets, which would like to have a healthier life environment. In the automobile sector, the Indian manufacturers are more inclined to use bio-based materials for the automotive production. Mahindra & Mahindra is one of the better known auto manufacturers who come up with the usage of car interiors using plant-derived plastics, once again revealing strong commitment towards sustainability while improving the vehicle performance. In October 2020, the government urged players in the agrochemicals industry to come out with new molecules of global standards for the farmers' benefit, while CropLife India, the industry body, pitched for stable policies and regulatory regimes to boost growth in the sector.

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.