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The green and bio solvent market size is forecast to increase by USD 7.29 billion, at a CAGR of 10.13% between 2023 and 2028. Market growth hinges on various factors, notably the rising adoption of green and bio solvents across multiple end-user industries. This trend is driven by increasing demand for environmentally friendly products, particularly in emerging economies. Moreover, favorable government regulations further stimulate the green & bio-based solvents market by incentivizing the use of green and bio solvents. These regulations encourage businesses to prioritize sustainability and environmental responsibility, thus boosting the demand for eco-friendly alternatives. As companies seek to align with these regulations and meet consumer preferences for greener products, the market for green and bio solvents is expected to experience continued growth in the foreseeable future. Our report examines historic data from 2018-2022, besides analyzing the current market scenario.
Green and bio-solvents are derived from agricultural sources, including corn, sugar cane, refined glycerin, soybean oil, lactic acid, bio-succinic acid, and other similar products. These solvents release fewer VOCs, are environmentally friendly, and are less toxic than conventional petroleum-based solvents.
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The market is witnessing a surge in demand due to growing environmental concerns and stringent environmental regulations. These solvents, derived from vegetable-sourced and bio-based materials such as soybean oil and citrus feedstock, offer a sustainable alternative to traditional VOCs found in agrochemicals, medications, and cosmetics. They are extensively used in household cleaning products, sanitizers, and detergents. With a focus on environmental sustainability, manufacturers are investing in bio-alcohol and bio-based products to reduce reliance on mineral spirits and other petroleum-derived solvents. However, challenges persist due to the complex production process and raw material availability, albeit the market anticipates steady growth fueled by increasing adoption across industries like pharmaceuticals and the packaging industry. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for environment-friendly products from emerging economies is the key factor driving the market. The market is experiencing robust growth in emerging economies like India, China, Brazil, Russia, and Indonesia. Manufacturers are relocating their production facilities to these countries due to factors such as land availability, cost-effective labor, reduced transportation expenses, and supportive government policies promoting bio-solvent usage. Rising disposable incomes and purchasing power in APAC, South America, and MEA are driving increased investments in automotive, food and beverage, textile, and packaging industries.
Additionally, countries like India, Russia, China, Brazil, and Indonesia are expected to see further GDP growth, fueled by expansion in their manufacturing sectors. Further, green chemical manufacturers like Cargill Inc. can seize considerable opportunities in emerging markets such as India, Japan, South Africa, and Brazil. These economies exhibit heightened spending on pharmaceuticals, automobiles, electronics, and consumer goods, indicating significant growth potential for the market during the forecast period.
An increase in new product launches by companies is the primary trend shaping the market. The market is fragmented in nature, with various international and domestic companies operating in the green & bio-based solvents market. These market players offer green and bio-solvent products, backed by several new product launches and innovations in the market to attract more customers and increase their visibility in the market. For instance, in November 2022, Huntsman International LLC announced the launch of the ACOUSTIFLEX VEF BIO system, a bio-based viscoelastic foam technology, which contains up to 20% bio-based content derived from vegetable oils and is meant for molded acoustic applications in the automotive industry.
Similarly, in September 2023, BASF SE announced the launch of bio-based 2-Octyl Acrylate for adhesive formulations or coatings applications. The launch of the product is in line with the expansion of the company's sustainable portfolio. Thus, the increasing number of new product launches is expected to drive the growth of the market during the forecast period.
The ongoing slowdown in the Chinese economy is the major challenge that affects market growth. China contributes significantly to the global demand due to the strong industrial manufacturing base and activities in the country. High economic growth in the recent past has made China one of the largest producers and markets for industrial cleaners, paints and coatings, adhesives, printing inks, and pharmaceuticals, among others. Thus, China is one of the major countries that account for the high demand in the above-mentioned applications.
However, the ongoing economic slowdown and the risk of a further slowdown in the Chinese economy can severely impact global demand during the forecast period. Moreover, China's manufacturing and industrial sector again observed a slowdown in May 2023. The slow growth in China's GDP is expected to decrease the demand for green and bio solvents such as methyl acetate among end-user industries, which, in turn, will negatively impact the growth of the market during the forecast period, as the country is a significant revenue contributor to the market.
The market is experiencing rapid growth driven by rising environmental awareness and regulations regarding VOCs (volatile organic compounds). Derived from vegetable-sourced solvents like refined glycerin, triethanolamine, and bio succinic acid, these solvents offer eco-friendly alternatives to conventional chemicals like diethanolamine and polyethylene glycols. With a focus on sustainability, industries, especially pharmaceutical, are increasingly adopting these raw materials. However, challenges persist in ensuring availability and scalability of bio-based solvents in the market.
The market share growth by the lactate esters segment will be significant during the forecast years. Lactate esters are premium solvents that can be used as bio-based and non-toxic replacements for potentially unsafe synthetic solvents. Moreover, green organic solvents such as lactate esters have broad industrial applications in paints, coatings, and adhesives, among others. There is an increased need as esters for painting and coating wood, polystyrene, and metals to provide a non-corrosive effect. Moreover, lactate esters act as a replacement for solvents such as toluene, acetone, and xylene, resulting in a much safer workplace in the paints and coatings industry.
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The lactate esters segment accounted for USD 3.48 billion in 2018. Furthermore, other applications of lactate esters include being an effective cleaner in the polyurethane industry, as they have high solvency power. It can be used to clean a variety of metal surfaces and remove greases, oils, adhesives, and solid fuels effectively. Such factors will increase demand for esters during the forecast period. Furthermore, the emphasis on reducing the use of petroleum-based products is positively propelling the growth of the lactate esters segment, which, in turn, will propel the growth of the market during the forecast period.
The paints and coatings?segment will account for the largest share of this segment.?Solvents derived from sugarcane and natural or synthetic polymers, are gaining traction as eco-friendly alternatives to petroleum-based products in the automotive industry. Ethyl lactate, with its low vapor pressure and high boiling point, is a preferred choice for painting metal and polystyrene surfaces. Bio-ketones like bio polyether ether ketone (PEEK) serve as lightweight substitutes for metals in automotive manufacturing, particularly in countries like China and India. Companies like BASF SE and Solvay SA are ramping up production to meet rising demand, thereby driving market growth during the forecast period.
North America is estimated to contribute 38% to the growth of the global market during the projection period.
Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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With the increasing demand for eco-friendly paints and coating, adhesives, and sealants, the demand for green and bio solvents is rising in the region. Advances in technology in the bio-based solvent industry, along with significant investments by companies, will boost product sales in North America. As a result, the use of green and bio solvents in industries such as automotive, chemicals, and construction is increasing significantly, contributing to the rise in demand in North America during the forecast period.
Additionally, the US is a leading adopter in North America. Furthermore, various councils collaborate to introduce processes to decrease the harmful effects of synthetic chemicals on the environment. Also, the use of green and bio solvents is increasing in the production of intermediate chemicals. This will drive market growth during the forecast period in the US.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
alteqo bv, Astrobio, BASF SE, Braskem SA, Cargill Inc., Circa Group AS, Corbion NV, CREMER OLEO GmbH and Co. KG, DuPont de Nemours Inc., Gevo Inc., GFBio, Huntsman International LLC, India Glycols Ltd., Roquette Freres SA, SEKAB Biofuels and Chemicals AB, Solvay SA, Stepan Co., Vertec Biosolvents Inc., and Somaiya Group
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report predicts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028.
The green & bio-based solvents market is witnessing remarkable growth driven by a global push to decarbonize economy and reduce environmental impact. Key solvents like ethanol, methanol, and 2-propanol are gaining traction in various industries including pharmaceuticals, construction projects, and printing ink manufacturing. These solvents, derived from plant-based products and renewable sources such as sugars and glycerol, align with sustainability goals. Initiatives like the Eco-Product Certification Scheme (ECS) and programs like the SNAP program reinforce the shift towards eco-friendly alternatives. Additionally, their applications in industrial and domestic cleaners, personal hygiene, and drug formulations underscore their versatility and importance in creating a greener future.
Additionally, the market is witnessing rapid expansion, driven by a growing emphasis on sustainability and environmental consciousness. Ethyl acetate, isopropyl acetate, and methyl ethyl ketone are gaining prominence as eco-friendly alternatives to traditional solvents derived from petroleum and natural gas. Industries ranging from detergent and domestic cleaners to packaging and pharmaceuticals are increasingly adopting these bio-based solvents to reduce their carbon footprint. Moreover, 1-butanol and tert-butanol are emerging as viable options, offering improved performance without compromising environmental integrity. As the demand for green solutions rises, manufacturers in sectors like industrial cleaning agents and paints/coatings are embracing Glycol ethers and ester solvents to meet stringent environmental regulations and consumer preferences.
Market Scope |
|
Report Coverage |
Details |
Page number |
189 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.13% |
Market Growth 2024-2028 |
USD 7.29 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.61 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 38% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
alteqo bv, Archer Daniels Midland Co., Astrobio, BASF SE, Braskem SA, Cargill Inc., Circa Group AS, Corbion NV, CREMER OLEO GmbH and Co. KG, DuPont de Nemours Inc., Gevo Inc., GFBio, Huntsman International LLC, India Glycols Ltd., Roquette Freres SA, SEKAB Biofuels and Chemicals AB, Solvay SA, Stepan Co., Vertec Biosolvents Inc., and Somaiya Group |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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