Global Green Olefins Market Research Report: Forecast (2024-2030)

Market Definition

Olefins are ethylene, butylene, and propylene compounds produced from fossil fuel sources, such as petroleum or natural gas, through processes like steam cracking or fluid catalytic cracking. Green olefins are a class of hydrocarbon compounds produced from renewable biomass feedstocks such as corn, sugarcane, etc., rather than fossil fuel sources. Some of the bio-based olefins include bio-ethylene, bio-butylene, and bio-propylene.

Market Insights & Analysis: Global Green Olefins Market (2024-30):

The Global Green Olefins Market is estimated to grow at a CAGR of around 13.66% during the forecast period, i.e., 2024–30. The demand for green olefins witnessed a notable rise globally during the past years due to increasing awareness of environmental sustainability, stringent regulations promoting eco-friendly practices, and a growing preference for renewable & bio-based materials. Industries across various sectors, including plastics, chemicals, consumer goods, etc., sought to reduce their carbon footprint & dependence on fossil fuels.

Additionally, advancements in bio-refining technologies, government initiatives supporting green alternatives, and a shift in consumer preferences towards sustainable economy practices have contributed to the increased demand for green olefins throughout the past years. Besides, concerns regarding effective waste management are rising substantially due to a continuous rise in post-consumer and pre-consumer waste. These include plastic containers, other packaging products, and cosmetics that often end up in landfills & oceans and disrupt marine & terrestrial habitats.

Thus, industrial manufacturers as well as the governments of various economies, especially the US, China, the UK, Brazil, etc., are keenly adopting bio-based olefins in different forms to enable the circular economy. Further, bio-olefin manufacturers are increasingly expanding their business operations to manufacture bio-olefins for usage in tire manufacturing industries for dual benefits, including tire waste reduction post-use and emission reduction during their production. Thus, improving the practices by which industrial manufacturers utilize sustainable raw materials for industrial processing is foreseen to positively shape the Global Green Olefin Market during 2024-30.

Global Green Olefins Market Driver:

Increasing Application of Sustainable Energy Practices in the Automotive Sector – The automotive industry is increasingly focusing on lightweight vehicles to enhance fuel efficiency and reduce emissions. Green olefins, as bio-based materials, offer a sustainable alternative for producing lightweight components, contributing to the industry's efforts to meet regulatory standards. The rising adoption of eco-friendly fuel solutions by automotive industries to reduce carbon emissions is predicted to elevate the demand for green olefins over the next few years. For instance:

• In 2023, Michelin received the Automotive Innovations Award 2023 in the ‘Chassis, Car Body, & Exterior’ category for its road-approved car tires containing around 45% sustainable materials.

Thus, green olefins, mainly butadiene, are used in the production of bio-based plastics for interior components such as dashboards, door panels, tires, and trims. These bio-based materials provide an eco-friendly alternative to traditional plastics derived from fossil fuels. As the automotive sector embraces the imperative to cut carbon footprints, green olefins emerge as a crucial enabler of this transition.

Global Green Olefins Market Opportunity:

Olefin-linked COFs for Hydrogen Fuel Cell Applications to Offer Ample Opportunities – Olefin-linked Covalent Organic Frameworks (COFs) offer promising applications in hydrogen fuel cells, particularly as catalyst supports & proton conductors. These materials possess high surface areas, tunable pore structures, and excellent stability, making them ideal candidates for enhancing the performance & efficiency of hydrogen fuel cells. As the demand for clean energy solutions continues to rise, the development of COF-based materials for hydrogen fuel cell applications presents lucrative opportunities for the Green Olefins Market to diversify its product portfolio and capture new market segments.

In addition, the pursuit of green synthesis of olefin-linked COFs for hydrogen fuel cell applications fosters innovation across multiple sectors, including universities, industry, and government research institutions. By leveraging interdisciplinary expertise & resources, the Green Olefins Industry is expected to accelerate the development and commercialization of COF-based materials, driving technological advancement and market growth in the forthcoming years.

Global Green Olefins Market Challenge:

High Costs of Green Olefins to Impede Market Growth – Till the large-scale commercialization of green olefins, the complete process has multiple challenges, including the high cost of plant setup & operational costs, supply chain development, integration with energy vectors, and the increasing complexity of the technologies. The period required to achieve economies of scale using well-interlinked production machinery, feedstock, and processes is the most prominent factor determining the selling price of green olefins.

Moreover, green olefins face challenges related to cost competitiveness compared to traditional, petrochemically derived olefins. The production costs of bio-based olefins derived from renewable sources could be higher, impacting their market competitiveness, as bio-based olefins rely on feedstocks derived from renewable sources, including crops, waste biomass, or other bio-based materials. Furthermore, the production & sourcing of these feedstocks could be more expensive & subject to availability challenges, which are expected to hamper market growth & expansion during the forecast period.

Global Green Olefins Market Trend:

Adoption of Bio-Based Polypropylene in the Textile Industry – Textile production is estimated to be responsible for about 20% of global clean water pollution from dyeing & finishing products, as per the World Economic Forum. The soaring application of bio-based polypropylene during the manufacturing of various apparel items, including shirts, pants, and outerwear in the textile industry, has been one of the key factors attributing to the growth of the Global Green Olefins Market. Green olefins are used in the production of bio-based fibers for textiles. These bio-based fibers offer an environmentally friendly alternative to conventional synthetic fibers, reducing dependence on fossil fuel-derived materials.

Furthermore, it is projected that the demand for green olefins will be further boosted by the burgeoning investment by the textile companies to cater to the global necessity for textiles, owing to the growing global population. The ongoing change in the fashion industry is also estimated to contribute to the revenue growth of the Global Green Olefins Market in the coming years.

Global Green Olefins Market (2024-30): Segmentation Analysis

The Global Green Olefins Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the global level. According to the analysis, the market has been further classified as:

Based on Type:

• Ethylene
• Propylene
• Butadiene
• Butylene

Ethylene serves as a highly versatile foundation for a broad spectrum of industrial applications, encompassing plastics, packaging materials, solvents, and synthetic fibers. The considerable production of bioethylene by leading green olefins manufacturers, such as SABIC & Braskem, has been noteworthy globally. The increasing adoption of green ethylene by petrochemical manufacturers is contributing significantly to the revenue growth of the Global Green Olefins Market, particularly within the ethylene segment.

Moreover, the escalating demand has prompted various olefin manufacturers to invest in expanding the production of green ethylene, seizing emerging revenue opportunities. Ethylene demand would be driven primarily by the growth of polyethylene-based consumables, increasing PET fiber, bottles, and packaging, and growing requirements for PVC used in construction and pipe applications.

Based on Feedstock:

• Sugarcane
• Corn
• Sugar Beats
• Green Methanol (Bio-methanol)
• Bio-Naphtha
• Others (Sweet Sorghum, Lignocellulosic, etc.)

Among the feedstocks for green olefin production, sugarcane & corn are widely used, each having distinct advantages and challenges. Sugarcane, particularly in countries like the US, China, and Brazil, etc., is a major source of bioethanol, a precursor to green olefins. The high sugar content in sugarcane facilitates efficient bio-refining processes, and Brazil's well-established sugarcane industry positions it as a leading contributor to global green olefin production. However, concerns about its impact on food supplies and land use make it imperative to explore sustainable practices and alternative feedstocks.

Looking ahead, green methanol and bio-naphtha are anticipated to experience significant growth as feedstocks for green olefin production. Green methanol can be produced from various biomass sources, providing flexibility & compatibility with existing infrastructure. Its use as a feedstock is expected to grow due to advancements in technology, increased availability of diverse biomass feedstocks, and the desire for carbon-neutral alternatives, which is further anticipated to enhance market growth during 2024–2030.

Global Green Olefins Market (2024-30): Regional Projections

Geographically, the Global Green Olefins Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

North America accounted for a maximum revenue share in the Global Green Olefins Market in 2023 and would continue to dominate the market in the forecast years as well. The growing consumer awareness regarding environmental sustainability, the implementation of initiatives by the governments of countries like the US & Canada to promote a bio-based economy, and the rising commitment of the corporate industries to use sustainable raw materials are enhancing the demand for green olefins in North America.

In recent years, there has been an increase in the environmental awareness programs launched by the governments of countries like the US & Canada to educate individuals about growing environmental issues and climate change. As a result, individuals have become more conscious and increasingly demanding eco-friendly and sustainable products, including packaging, plastics, and consumer goods.

According to the survey by PDI Technologies Inc., in 2022, more than 79% of Americans agreed to buy products from eco-friendly brands. This inclination of consumers toward renewable and biodegradable alternatives is compelling the end-user industries to procure sustainable raw materials and use sustainable manufacturing processes. Thus, plastic manufacturers & chemical industries are using green olefins in place of conventional petroleum-based products, enhancing the demand for green olefins.

Global Green Olefins Industry Recent Development:

• 2023: Archer Daniels and Midland Company (ADM) acquired Prairie Pulse Inc., the owner of a pulse crop processing facility in Vanscoy, Saskatchewan, Canada. This move aligns with ADM's commitment to supporting Canadian pulse growers by offering tools, resources, and technology partnerships to enhance sustainable farming practices and facilitate access to global markets.
• 2023: BASF collaborated with SABIC and Linde to build a large-scale facility to showcase the feasibility of using electricity instead of fossil fuels to power steam crackers, potentially reducing emissions by 90% in chemical processing. This initiative aims to demonstrate a significant step towards decarbonizing the core processes of chemical production.  

Gain a Competitive Edge with Our Global Green Olefins Market Report

1. Global Green Olefins Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Global Green Olefins Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.