U.S. Green Chemicals Market To Reach $7.46 Billion By 2033

U.S. Green Chemicals Market Growth & Trends

The U.S. green chemicals market is anticipated to reach USD 7.46 billion by 2033 and is anticipated to expand at a CAGR of 7.8% during the forecast period, according to a new report by Grand View Research, Inc. The market is primarily driven by a combination of stringent environmental regulations, rising consumer awareness, and increasing demand for sustainable alternatives across key end-use industries. Government policies such as the Renewable Fuel Standard (RFS) and extended producer responsibility (EPR) programs are accelerating the shift from petrochemical-based products to bio-based solutions. The growing emphasis on corporate ESG goals and circular economy practices is compelling manufacturers to adopt greener production processes and materials. Technological innovations in fermentation, biocatalysis, and waste-to-chemical conversion are also enhancing production efficiency, making green chemicals more commercially viable and accessible across sectors such as packaging, automotive, pharmaceuticals, and construction.

The bio-alcohols segment dominated the U.S. green chemicals market with the largest revenue share of 34.3% in 2024, primarily due to its broad applicability, regulatory support, and established production infrastructure. Bio-alcohols, particularly bioethanol and biobutanol, are widely used as renewable fuel additives in the transportation sector, aligning with U.S. Renewable Fuel Standard (RFS) mandates aimed at reducing carbon emissions. Their versatility as solvents, intermediates, and disinfectants has further driven demand across industries such as personal care, pharmaceuticals, and industrial manufacturing. The advancements in second-generation biofuel technologies and the growing shift toward sustainable raw materials have enhanced the cost competitiveness and scalability of bio-alcohol production, reinforcing the segment’s market leadership.

The construction segment captured the largest revenue share of 26.9% in 2024 in the U.S. green chemicals market, driven by the increasing adoption of sustainable building practices and stringent regulations promoting low-VOC and environmentally friendly materials. Green chemicals are being extensively used in construction applications such as adhesives, sealants, insulation materials, coatings, and concrete additives to meet LEED certification requirements and improve indoor air quality. Rising demand for energy-efficient infrastructure, coupled with growing public and private investment in green building projects, has accelerated the shift toward bio-based and non-toxic chemical solutions. Furthermore, manufacturers are increasingly integrating green chemistry into construction formulations to align with federal and state-level sustainability mandates, thereby reinforcing the segment’s dominance.

 Request a free sample copy or view report summary: U.S. Green Chemicals Market Report

U.S. Green Chemicals Market Report Highlights

• The bio-alcohols segment is expected to grow at the highest CAGR of 8.1% from 2025 to 2033 in terms of revenue, fueled by the rising demand for low-carbon fuel alternatives, expansion of bioethanol blending mandates, and increasing use of bio-alcohols in industrial solvents, personal care, and pharmaceuticals. Ongoing advancements in cellulosic and waste-derived bio-alcohol production are enhancing cost-efficiency and scalability, while growing investor interest and supportive regulatory frameworks continue to accelerate commercialization across diverse end-use applications.

• The automotive segment is expected to witness the fastest growth at a CAGR of 8.6% from 2025 to 2033, driven by the industry's accelerating shift toward sustainability, lightweight materials, and reduced carbon emissions. Green chemicals are increasingly being adopted in the production of bio-based lubricants, biodegradable coolants, interior components, and lightweight composites, supporting OEMs' efforts to meet stringent fuel efficiency and environmental regulations.

• Key industry participants include Evonik Industries AG, BASF SE, Arkema S.A., DuPont, Braskem S.A., Vertec BioSolvents Inc., CD BioSciences-GreenChemistry, Viridis Chemical Company, Corbion N.V., and GENEDGE.

U.S. Green Chemicals Market Segmentation

Grand View Research has segmented the U.S. green chemicals market on the basis of product, source, application and region:

U.S. Green Chemicals Product Outlook (Volume Kilotons; Revenue, USD Million; 2018 - 2033)

• Bio-alcohols

• Bio-organic acids

• Biopolymers

• Other Products

U.S. Green Chemicals Application Outlook (Volume Kilotons; Revenue, USD Million; 2018 - 2033)

• Construction

• Pharmaceuticals

• Packaging

• Food and Beverages

• Paints and Coatings

• Automotive

• Textile

• Other Applications

List of Key Players in U.S. Green Chemicals Market

• Evonik Industries AG

• BASF SE

• Arkema S.A.

• DuPont

• Braskem S.A.

• Vertec BioSolvents Inc.

• CD BioSciences-GreenChemistry

• Viridis Chemical Company

• Corbion N.V.

• GENEDGE