Green/bio-based solvents Market Expected to Reach $6.2 Billion by 2030

According to a new report published by Allied Market Research, titled, "Green/bio-based solvents Market by Type and Application: Global Opportunity Analysis and Industry Forecast, 2021–2030," 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.

Green/bio-based solvents are environment friendly chemical substances that are derived from agricultural sources such as corn, sugarcane, lactic acid, refined glycerin, bio succinic acid, soybean oil and similar others. They exhibit low toxicity as compared to conventional solvents that make them best suited for applications in a wide range of industries including paints & coatings, adhesives & sealants, ink manufacturing, pharmaceuticals, and others.

Increasing demand for consumer goods has surged the establishments of chemical industries in both developed and developing economies where green solvents-based cleaners are widely employed for industrial cleaning applications. For instance, according to a report published by the American Chemistry Council (ACC), the chemical production in the U.S. rose by 3.9% in 2021. This may fuel the demand for green/bio-based solvents in the growing industrial sector. Furthermore, increasing popularity of sustainable products in green buildings may surge the demand for green solvent-based paints & coatings in the construction sector. This may boost the demand for green/bio-based solvents during the forecast period.

However, the high manufacturing costs of green/bio-based solvents may retrain the manufacturers with less investment potential to enter into the green/bio-based solvents market. This factor may hamper the market growth.

On the contrary, the governments of both developed and developing economies are constantly engaged in promoting sustainable products by providing tax rebates and other attractive policies. Furthermore, several agencies such as the United States En), and others, have put efforts to reduce the level of volatile organic compounds (VOCs) from solvents. This is anticipated to increase the sales of green/bio-based solvents, owing to their minimal or low volatile organic compounds (VOCs) emissions; thus creating lucrative opportunities for the market.

The green/bio-based solvents market is segmented on the basis of type, application and region.

By type, the market is divided into ester solvents, d-limonene, alcohol, glycols & diols solvents, and others. The d-limonene segment is projected to grow at the highest CAGR of 5.9% during the forecast period. This is attributed to increase the demand for d-limonene in domestic and industrial cleaning products, drug formulation, and others.

By application, the market is divided into paints & coatings, adhesives & sealants, printing ink, industrial and domestic cleaners, and others. The adhesives & sealants segment is projected to grow at the highest CAGR of 5.3% during the forecast period. This is attributed to increase the demand for adhesives & sealants in packaging, building & construction, electrical & electronics, and other end use sectors.

Region-wise, the green/bio-based solvents market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific green/bio-based solvents market size is projected to grow at the highest CAGR during the forecast period, owing to rise in paints & coatings, ink manufacturing, cosmetics, industrial & domestic cleaning, and other sectors. The building & construction sector in India is growing rapidly, which in turn has surged the popularity of green solvents-based paints & coatings. Furthermore, countries such as China, India, Japan, Australia, and others, have put efforts to reduce the VOCs emissions from chemical manufacturing sector. This factor may drive the green/bio-based solvents market in the region.

Key players operating in the global green/bio-based solvents market include, BASF SE, Cargill Inc., Clariant, DuPont, Huntsman Corp, LyondellBasell Industries Holdings B.V., OQ SAOC, Sasol, Solvay S.A and Vertec Biosolvents Inc.

COVID-19 Analysis

The novel coronavirus (COVID-19) is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The green/bio-based solvents market is negatively impacted due to the wake of the COVID-19 pandemic owing to its dependence on paints & coatings, adhesive & sealants, chemical manufacturing, and other sectors. The increasing risk of infection among the workforce has resulted in delayed construction projects amid the COVID-19 scenario, which in turn has negatively impacted the demand for green/bio-based solvents among the paints & coatings sector. For instance, according to an article published by CNA, the construction Industry Joint Committee (CIJC) has said that the shortage of manpower may lead to delay in construction projects attributed to workplace safety, and other factors. Also, several green/bio-based solvents manufacturing companies have either shutdown or shrank their operations due to the risk of infections among the workforce, which in turn has resulted in supply chain disruptions. Also, different raw materials for producing green solvents are purchased or hired from other enterprises. The decreased purchasing potential of suppliers has also negatively impacted the market amid the COVID-19 period.

However, the rise in sale of pharmaceutical ingredients where green/bio-based solvents are widely used as intermediates for producing drug formulations may enhance the performance of the green/bio-based solvents market post the COVID-19 scenario. Furthermore, new emerging geographic scenario, enhanced domestic supply chain and strong public investments are projected to drive the growth of the green/bio-based solvents in the paints & coatings sector. For instance, according to an interim for the 2021 Australian infrastructure plan, the Australian Construction Industry Forum (ACIF) expects the construction industry to return to pre-Covid-19 levels, driven by strong public investments.

Key Findings of Study

• By type, the ester solvents segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.8/% from 2021 to 2030.
• By application, the paints & coatings segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.7% from 2021 to 2030.
• Region wise, Asia-Pacific 6.5%.