White Spirits Market Expected to Reach $11.2 Billion by2030-Allied Market Research

According to a new report published by Allied Market Research, titled, "White Spirits Market by Product Type, Grade, and Application: Global Opportunity Analysis and Industry Forecast, 2021–2030,"the global white spirits market was valued at $6.5 billion in 2020, and is projected to reach $11.2 billion by 2030, growing at a CAGR of 5.7% from 2021 to 2030.

White spirits, also known as mineral turpentine or solvent naphtha, is a petroleum-derived colorless and transparent liquid that is commonly used as organic solvent. Paint, metal, and lubricant end-use industries are major consumers of white spirits.

The global white spirits market is driven by the rise in demand for white spirits from paints and coatings industry, modest jet kerosene prices, and increase in demand for white spirits as a turpentine substitute. In addition, turpentine can also be used as cleaning & degreasing agent, paint, varnish, and lacquers solvent. Turpentine is prepared by distillation of various pine tree saps such as long-leaf yellow pine, which is toxic in nature. In addition, turpentine oxidizes easily if exposed to daylight or air, resulting in tackiness and yellowing in the painting. White spirit is widely used as a turpentine substitute owing to its non-deteriorating property while storage aids the growth in demand for global white spirits market.

However, white spirit is an aromatic organic solvent and high level of exposure to white spirit leads to toxic effects such as chemical burns, nausea, and others. In addition, prolonged exposure can cause chronic central nervous system disorder. Surge in health issues and health awareness have shifted consumer’s preference toward non-toxic products. In addition, development in water-based paints, which do not require any organic solvents such as turpentine or white spirits, has gained popularity, significantly in residential & non-residential construction sector. These water-based paints are non-toxic in nature; thus, these are actively substituting the demand for oil-based paints and organic solvents such as turpentine and white spirit that are considerably anticipated to hamper the market growth during the forecast period. 

High exposure of aroma associated with white spirit in enclosed space may have narcotic effects such as drowsiness, dizziness, nausea, and others. This factor restrains the use of aromatic paint solvents and offers an opportunistic market for non-aromatic options such as water-based paints. However, development of low aromatic white spirits (LAWS), which are less toxic in nature and do not have narcotic effects, is anticipated to offer a lucrative opportunity for the white spirit market.

The white spirits market analysis is done on the basis of product type, grade, application, and region.

Depending on type, the market is divided into type 0, type 1, type 2, and type 3. Type 1 product type was the largest revenue generator, and is anticipated to grow at a CAGR of 5.8% during the forecast period. Type 1 white spirit is subjected to hydro-desulfurization process and comprises of hydrocarbon with carbon number ranging between C7-C12. Type 1 white spirit is widely used as extraction solvent and cleaning solvent owing to its high boiling point (90-230°C). In addition, use of type 1 white spirit as an active solvent in aerosol and other wood preservative products drives the demand of the global market.

On the basis of grade, the global white spirits market is divided into low flash point grade white spirits, regular flash point grade white spirits, and high flash point grade white spirits. The low flash point white spirit grade was the largest revenue generator, and is anticipated to grow at a CAGR of 5.5% during the forecast period. Low flash point grade white spirit has 31 to 54 Centigrade of flash point making them ideal to be used in paints, varnishes, and asphalt products that drives the demand of the global market

The applications covered in the study include paint thinner, solvent extraction, cleaning solvent, degreasing solvent, and others. In 2020, the paint thinner application was the largest revenue generator, and is anticipated to grow at a CAGR of 5.8% during the forecast period. White spirit is produced from petroleum distillate making it viable to be used as a solvent in paint thinner, which drives the demand for white spirits in pain thinner application.

Region-wise, the white spirits market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific white spirits market size is projected to grow at the highest CAGR of 7.0% during the forecast period and accounted for 28% of white spirits market share in 2020. Eco-friendly and cost effectiveness of white spirit makes it viable to be used for applications such as paint thinner as it minimizes the paint viscosity and improves paint smoothness. In addition, rise in use of white spirit in construction and automotive end-use industries drive the demand of Asia-Pacific white spirits market.

Key players operating in the global white spirits market include Shell plc, Exxon Mobil Corporation, TotalEnergies, DHC Solvent Chemie GmbH, Pacer, Rahaoil Inc., Alshall International Co., Ahmadullins: Sciences & Technologies, Kuwait International Factory, and Kapco Petroleum Industries FZC.

COVID-19 analysis

The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy across the globe. The white spirits market has been negatively impacted due to the wake of the COVID-19 pandemic owing to its dependence on automobile, color & painting, manufacturing, and building & construction industries. According to a report published by Energy and Economic Growth Survey, the oil & gas sector is among the hardest hit sector with an average contraction of -2.8% in 2020. This has hampered the production of white spirits amid the COVID-19 period. Also, more than 100 countries have locked their international borders for transportation and non-essential trade activities which in turn have reduced the consumption of white spirits among the automotive sectors. Furthermore, the temporary shutdown of oil refineries amid the COVID-19 period has led to demand-supply disruptions. For instance, according to a report published by the Indian Ministry of Petroleum & Natural Gas, the central public sector enterprise (CPSE) refineries has produced 7,103.76 thousand metric tons (TMT) of crude oil in April 2020 that is 28.91% lower than the target for the month and 36.93% lower than the production achieved in the corresponding month of 2019. This has severely affected the demand for white spirits market during the COVID-19 situation. Also, several chemical manufacturing companies have either shut down or shrank their operations due to the risk of infections among the workforce where white spirits are widely used for chemical synthesis and other applications. This has temporarily hampered the demand for the white spirits market amid the COVID-19 period. In addition, the falling income of customers has led to a contraction in the sales of both light and heavy-duty vehicles which in turn has decreased the demand for white spirits in the automotive sectors. For instance, according to an article published by The Times of India, the sales of passenger cars saw a 30% decline in March 2020 as compared to March 2019, owing to lockdowns and shutdowns of auto plants.

Key findings of the study

• The type 3 product type is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 6.0% from 2021 to 2030.
• The high flash point segment is anticipated to register the highest CAGR of 6.1% during the forecast period.
• The paint thinner application is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.8% from 2021 to 2030.
• Europe garnered the highest share of 38% in 2020, in terms of revenue, growing at a CAGR of 4.8%.