Increasing demand for greener products, the growing need for cost-effective processing, cheaper feedstocks and new product avenues are driving the commercialization of alternative chemical products, according to BCC Research. The company’s new report reveals that the recent turmoil in the U.S. economy and the increased global demand for energy supplies and subsequent cost hikes in oil and gas also should spur significant growth rates.
The total alternative U.S. chemical end-use product market should reach $149.9 billion and $884.1 billion in 2016 and 2026, respectively, reflecting a 10-year compound annual growth rate (CAGR) of 19.4%, according to BCC. Pharmaceuticals as a segment should increase from $27 billion in 2016 to $96.2 billion in 2026, growing at a 10-year CAGR of 13.5%. Alternative packaging products should reportedly reach $25 billion and $232.1 billion in 2016 and 2026, respectively, demonstrating a 10-year CAGR of 25%. The market for alternative cleaning and detergent products, estimated at $29.3 billion in 2016, should reach $158.7 billion in 2026 on a 10-year CAGR of 18.4%, according to BCC.
The market for green chemistry is set to outpace the overall global chemical market during the current decade, according to the company. BCC’s report indicates that the impetus for market growth stems from a combination of tightening regulations and demand from consumers for more sustainable products.
"While petrochemical and inorganic chemicals will continue to be produced in high quantities, there will be less reliance on these products as competing products appear," says BCC Research analyst Christopher Maara. "Higher petrochemical costs will also make alternative chemical products more cost-competitive with traditional products. Alternative chemicals and alternative chemical end-use products will provide manufacturers with lucrative market opportunities in the next 10 years."
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