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The green and bio-solvents market is estimated to grow by USD 6.28 billion at a CAGR of 9.65% between 2022 and 2027. The acceptance of such products among numerous end-user industries indicates a broader shift towards sustainability. Favorable government regulations further support this trend, encouraging businesses to adopt more environmentally friendly practices. Additionally, the increasing demand for these products from emerging economies highlights a global awareness and commitment to environmental conservation. Furthermore, the growing emphasis on corporate social responsibility (CSR) and sustainability initiatives by companies is driving the demand for environmentally friendly products. The development of innovative and cost-effective green technologies is also spurring market growth, making it increasingly attractive for businesses to invest in eco-friendly solutions.
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This report extensively covers market segmentation by application (paints and coatings, printing inks, cleaning products, adhesives and sealants, and others), product (lactate esters, methyl soyate solvents, alcohols, d-limonene, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa).
The market share growth of the paints and coatings segment will be significant during the forecast period. The proliferating demand for sustainable paints and coating solutions is expected to drive segment growth during the forecast period. Green and bio solvents are used as an alternative to conventional petroleum-based products. The demand for sustainable paints and coatings is increasing in the automotive industry which is expected to propel the growth of the market in focus during the forecast period.
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The paints and coatings segment was valued at USD 3.07 billion in 2017. Ethyl lactate is one of the popular green and bio solvents used in paints and coating applications. This particular solvent has a low vapor pressure, high boiling point, and low surface tension, making it a suitable choice for paints and coating applications. It is widely preferred for painting polystyrene and metal surfaces. Further, bio-ketones are widely used as solvents in paints and coatings.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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 green solvent industry, along with significant investments by companies, will boost product sales of green chemicals in North America. Since 2000, the region has faced environmental challenges such as climate change due to unsustainable production and the high use of chemicals in end-user industries. 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 for green and bio solvents in North America during the forecast period.
The market is witnessing growth driven by increasing awareness of environmental concerns related to Volatile Organic Compounds (VOCs) emitted by traditional solvents. Small and Medium-sized Enterprises (SMEs) are adopting eco-friendly alternatives like D-Limonene, Lactate esters solvents, and NMP to reduce their carbon footprint. These solvents, derived from renewable resources, are replacing conventional solvents such as Toluene, Acetone, and Xylene in various applications like paints and coatings, printing inks, and adhesives. The shift towards bio-based solvents is also driven by their use in consumer goods, industrial and domestic cleaning, cosmetics, pharmaceuticals, and agriculture, catering to the growing demand for environmentally friendly products. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for environment-friendly products from emerging economies is notably driving market growth. Many manufacturers of green and bio solvents are relocating their manufacturing operations to developing countries due to factors such as the availability of land, cost-effective labor, low transportation costs, and government initiatives to create a business-friendly environment by implementing policies that promote the use of green and bio solvents. These solvents are used in various industries, including paints & coatings, petrochemical, fuel products, and renewable resources. The market for green and bio solvents is also driven by increased spending on consumer goods, industrial and domestic cleaning products, adhesives, and sealants.
Manufacturers of green chemicals, like Cargill Inc., have significant opportunities to expand their presence in emerging markets such as India, Japan, South Africa, and Brazil. These markets are witnessing increased spending on pharmaceuticals, automobiles, electronics, electricals, and consumer goods. As a result, the global green and bio solvent market is expected to experience substantial growth in the forecast period.
The evolution of green chemistry in the chemical industry is the primary trend in the market. The production and use of hazardous chemicals in their original form or as a combination are restricted in numerous countries. In such a scenario, green and bio solvents play a significant role. Green and bio solvents are designed to reduce or eliminate the use or generation of hazardous substances. In the making of green and bio solvents, green chemistry applies across the life cycle of a product.
The life cycle of a green chemical includes its designing, manufacturing, application, and then disposal. Hence, it is known as sustainable chemistry. The textile industry accounts for a major market share in the overall chemical industry, and the demand for green and bio solvents has been observed from it. Such development is set to positively impact the market during the forecast period.
Lack of commercialization is the major challenge impeding the market growth. The high availability of conventional fossil fuel feedstock with an advanced production process may restrict the commercial production of green and bio-solvents. The large-scale production of alcohol products is mainly dependent on fossil-derived sources. For instance, methanol is produced by the hydrogenation of carbon monoxide in the presence of various catalysts. Though methanol can be produced through fermentation, its commercial feasibility is still under doubt.
The commercial production of other bio alcohols is still under investigation, except bio-based ethanol. However, companies and technology providers are focusing on the commercialization of various bio solvent products, but the commercialization of green and bio solvents will still take time, which may restrict the market's growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Vertec Biosolvents Inc. - The company offers green and bio solvents that are made from sugarcane, a renewable resource, better use of natural resources to help reduce CO2 emissions. The company offers bio-based solvents for formulating and cleaning solutions in coatings, inks, and agricultural chemicals and petroleum industries.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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 report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is experiencing significant growth driven by the increasing demand for bio-alcohols, biobased cleaning cloth, and butanediol. These solvents, derived from renewable sources like cassava, corn, and sorghum, are gaining traction due to their eco-friendly nature and reduced impact on the environment. They find extensive applications in various industries, including the cosmetic and healthcare sectors, where sustainability goals are driving the adoption of greener alternatives. The market is also supported by housing construction activities and the rising use of plant-based fibers. As SMEs and larger enterprises alike prioritize environmentally friendly solutions, the global green and bio-solvents market continues to expand, offering greener alternatives to traditional solvents like NMP and hydrogen peroxide, and reducing the use of VOCs.
The market is witnessing robust growth, fueled by increasing awareness and adoption of sustainable practices in various industries. Biobased heavy-duty cleaning cloths and agrochemical solutions are gaining popularity due to their environmentally friendly nature and effectiveness. Bio-diols and bio-glycols are replacing traditional solvents in many applications, driven by the cosmetic sector and SMEs looking for greener alternatives. The market is also influenced by factors such as income levels and population growth, which are driving demand for eco-friendly products. As concerns over VOCs like NMP rise, wheat-derived 2-methyl tetrahydrofuran is emerging as a sustainable solution, further propelling the growth of the green and bio-solvents market. The Green and Bio Solvents Market is driven by growing concern over VOCs (Volatile Organic Compounds), particularly NMP: N-Methyl-2-pyrrolidone, and increasing adoption by SMEs (Small & Medium-sized Enterprises) due to Income-levels.
Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.65% |
Market growth 2023-2027 |
USD 6.28 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.96 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Archer Daniels Midland Co., BASF SE, Braskem SA, Cargill Inc., Circa Group AS, Comindex SA, Corbion NV, CREMER OLEO GmbH and Co. KG, DuPont de Nemours Inc., Elevance Renewable Sciences Inc., GFBiochemicals Ltd., Huntsman Corp., India Glycols Ltd., Liberty Chemicals Srl, Roquette Freres SA, Solvay SA, Stepan Co., Vertec Biosolvents Inc., Yancheng Hongtai Bioengineering Co. Ltd., and Yancheng Huade Biological Engineering Co. Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting, 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 |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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