Green/Bio-based Solvents Market Outlook - 2021–2030
The global green/bio-based solvents market size was valued at $3.8 billion in 2020, and is projected to reach $6.2 billion by 2030, growing at a CAGR of 5.0% from 2021 to 2030.
Green solvents are derived from the agricultural sources, such as corn, sugarcane, lactic acid, refined glycerin, bio succinic acid, soybean oil and similar others. They are the solvents with lowest toxicity such as acetone, ethanol, methanol, 2-propanol, ethyl acetate, isopropyl acetate, methyl ethyl ketone, 1-butanol, tert-butanol, and others. They are used as intermediates in manufacturing various products in industries including detergents, cosmetics, paints & coatings, inks, adhesives & sealants, pharmaceutical, and others.
Increasing rules and regulations laid by Eco-product Certification Scheme (ECS), European Commission, and others has surged the demand for eco-friendly paints & coatings in both developed and developing economies where green/bio-based solvents are used to dissolve or disperse the components used in the paint formulation. This may act as one of the key drivers responsible for the growth of the green/bio-based solvents market. Furthermore, increasing demand for consumer goods has surged the growth of the packaging industry where green solvent-based adhesives & sealants are used for bonding applications. These factors may boost the growth of the green/bio-based solvents market during the forecast period.
However, the production cost of green/bio-based solvents is high as compared to other conventional solvents owing to the high cost of raw materials and the complex production process. This may restrain customers with less investment potential to purchase green/bio-based solvents; thus hampering the green/bio-based solvents market growth.
On the contrary, increasing focus of federal governments on bio-based products has surged the popularity of green/bio-based solvents among various end-use sectors. For instance, according to a report published by Organization for Economic Co-operation and Development, several agencies such as the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), the German Environment Agency (UBA), the Swiss State Secretariat for Economic Affairs (SECO) and the Swiss Federal Office for the Environment (FOEN) are constantly involved in promoting the use of bio-based products in various end use sectors. This may increase the popularity of green/bio-based solvents; thus creating lucrative opportunities for the market.
The global green/bio-based solvents market analysis is done on the basis of type, application, and region. Depending on type, the market is divided into ester solvents, D-limonene, alcohol, glycols & diols, and others. On the basis of application, it is fragmented into paints & coatings, adhesives & sealants, printing ink, industrial & domestic cleaners, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The major companies profiled in this report include BASF SE, Cargill Inc., Clariant, DuPont, Huntsman Corp, LyondellBasell Industries Holdings B.V., OQ SAOC, Sasol, Solvay S.A and Vertec Biosolvents Inc.
Green/bio-based solvents market, by region
The Asia-Pacific green/bio-based solvents market size is projected to grow at the highest CAGR of 6.5% during the forecast period, and accounted for 21% of the green/bio-based solvents market share in 2020. This is attributed to increase in demand for market in paints & coatings, ink manufacturing, industrial, cosmetics, pharmaceutical, and others in Asia-Pacific. China’s paints & coatings sector is witnessing growth at a rapid pace, which in turn has led the market manufacturers to produce high quality green/bio-based solvents market for dispersing the components in paint formulation. Furthermore, manufacturers across the globe find Asia-Pacific as an attractive market, owing to cheap labor cost, low cost of setting up manufacturing units, and low cost of market. These factors drive the green/bio-based solvents market in this region.
By Region
Asia-Pacific would exhibit highest CAGR of 6.5% during 2021-2030.
Green/bio-based solvents market, by type
By type, the ester solvents segment dominated the global market in 2020, and is anticipated to grow at a CAGR of 4.8% during the forecast period. This is attributed to increase in awareness for personal hygiene-related activities where green/bio-based ester solvents are widely used as intermediates in manufacturing detergents, industrial cleaning agents, and other products. This may propel growth of the ester solvents segment in the global green/bio-based solvents market.
By Type
D-Limonene is the most lucrative segment
Green/bio-based solvents market, by application
By application, the paints & coatings segment dominated the global market in 2020, and is anticipated to grow at a CAGR of 4.7% during the forecast period. This is attributed to factors such as sustained economic growth coupled with rise in foreign direct investment (FDI) inflow in building & construction sector, which in turn has increased the demand for green/bio-based solvents. For instance, according to the data released by Department for Promotion of Industry and Internal Trade (DPIIT), construction industry attracted foreign direct investment (FDI) worth $25.38 billion from April 2000 to June 2021. This may propel growth of the paints & coatings segment in the global green/bio-based solvents market.
By Application
Adhesive & Sealants is projected as the fastest growing segment
Key benefits for stakeholders
- Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- It outlines the current green/bio-based solvents market trends and future estimations from 2020 to 2030 to understand the prevailing opportunities and potential investment pockets.
- The major countries in the region have been mapped according to their individual revenue contribution to the regional market.
- The key drivers, restraints, and opportunities and their detailed impact analysis are explained in the study.
- The profiles of key players and their key strategic developments are enlisted in the report.
Impact Of Covid-19 On The Global Green/bio-based Solvents Market
- The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and economy around the globe.
- The green/bio-based solvents market has been negatively impacted due to the wake of COVID-19 pandemic owing to its dependence on paints & coatings, ink manufacturing, adhesives & sealants, and other sectors.
- Several paints & coatings manufacturing companies have either shutdown or shrank their operations due to the risk of infections among the workforce where green/bio-based solvents market is used to dissolve or disperse the components used in the paint formulation. This has temporarily hampered the demand for market amid the COVID-19 period.
- Also, COVID-19 has put a temporary break on various construction projects, which in turn has shrank the demand for market among the building & construction sectors.
- However, the rising sale of various drugs has surged the growth of pharmaceutical sector scenario where bio-based solvents are widely used as intermediates in drug formulations. This is anticipated to enhance the performance of green/bio-based solvents market post the COVID-19 scenario.
Green-Bio-based Solvents Market Report Highlights
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Analyst Review
According to CXOs of leading companies, the global green/bio-based solvents market is expected to exhibit high growth potential. Green/bio-based solvents possesses various excellent properties such as minimal odor, high boiling point, low toxicity and convenient recyclability that make them suitable for use as an intermediate in paints & coatings, pharmaceuticals, adhesives & sealants, cosmetics, ink manufacturing, and other end use sectors. Applications that require additional control factors over activity and selectivity in all areas of catalysis, including heterogeneous, homogeneous and bio-catalysis can be accomplished with the use of green/bio-based solvents.
In addition, green/bio-based solvents emit low volatile organic compounds (VOCs) and are eco-friendly in nature that has made customers more linear toward purchasing green/bio-based solvents over conventional solvents used as an intermediate in manufacturing various consumer products.
The CXOs further added that sustained economic growth and the development of paints & coatings sector have surged the popularity of green/bio-based solvents.
The increasing potential applications of green/bio-based solvents in several end use sectors such as paints & coatings, adhesives & sealants and increasing awareness for using eco-friendly products are the key factors boosting the green/bio-based solvents market growth.
The global green/bio-based solvents market was valued at $3.8 billion in 2020, and is projected to reach $6.2 billion by 2030, growing at a CAGR of 5.0% from 2021 to 2030.
BASF SE, Cargill Inc., Clariant, DuPont, Huntsman Corp, LyondellBasell Industries Holdings B.V., OQ SAOC, Sasol, Solvay S.A and Vertec Biosolvents Inc are the key players in the global green/bio-based solvents market.
Industries such as paints & coatings, adhesives & sealants, printing ink, industrial and domestic, and others may increase the demand for green/bio-based solvents.
The global green/bio-based solvents market analysis is done on the basis of type, application, and region. Depending on type, the market is divided into ester solvents, D-limonene, alcohol, glycols & diols solvents, and others. On the basis of end application, it is fragmented into paints & coatings, adhesives & sealants, printing ink, industrial & domestic cleaners, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Escalating demand for eco-friendly paints & coatings, increasing adoption of green solvents in the end user market, and hazardous environmental effects of VOC are the main drivers of the green/bio-based solvents market.
End-use industries such as paints & coatings, adhesives & sealants, ink manufacturing, chemical manufacturing, and others are expected to drive the adoption of green/bio-based solvents market during the forecast period.
The green/bio-based solvents market has been negatively impacted due to the wake of COVID-19 pandemic owing to its dependence on paints & coatings, ink manufacturing, adhesives & sealants, and other sectors. In 2022, green/bio-based solvents prices are expected to be higher in Asia-pacific. The price rise will be due to continued regional demand trends and tight product availability. Firm downstream demand for green solvents and stronger upstream costs are expected to sustain the price gain.
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