Bio-Solvents Market Trends

Growth Drivers

• Growing Demand for Renewable and Sustainable Products – the depletion of fossil fuel resources globally is leading to the increasing customers’ demand for renewable, sustainable, environmentally friendly, biodegradable products, such as green solvents. It is estimated that if the rate of burning fossil fuels worldwide continues to remain the same as of today, it will generally be depleted by 2060. Moreover, the rising legislative push for utilizing more sustainable products from carbon-neutral resources to reduce global carbon footprint and their environmental impact is further expected to augment the bio-solvent market growth.
• Rising Concern About Greenhouse Gas (GHG) Emission - the increasing need to reduce the level of greenhouse gases and the release of volatile organic compounds (VOC) released from various industrial processes is responsible for the fast-paced penetration of bio solvents in many end-use industries, which is expected to boost the market growth. The global greenhouse gas emissions are projected to be around 50 Gt per year, making it 6.6t per person and for 2019 it was observed to reach 57 Gt CO2 eq including 5 Gt.

• Rising Demand for Bio-Ethanol from Transport Industry – The rising demand for bio-based ethanol as a transport fuel to replace gasoline is the consequence of the rapid growth of the transport sector which is a major contributor to emissions globally. Bio-based ethanol is produced through the biological transformation of sugars and is currently the most produced of all bio-solvents. It is a renewable source of fuel and also has low toxicity. Furthermore, it reduces GHG emissions, by over 71% compared to fossil fuels besides the reduction of other pollutants emissions, leading to improved air quality.
• Expansion of End-Use Industries – the rapid expansion of many end-use industries as well as increasing demand for consumer & industrial products such as flavors, cosmetics, fragrances, cleaning agents, paints, adhesives, and inks, is anticipated to boost the market growth over the forecast period. For instance, the global cosmetics industry experienced growth of about 16% in 2022, in comparison to the year 2021.
• Growing Pharmaceutical Industry – which heavily relies on solvents for drug discovery, process development, and drug manufacturing processes is expected to propel the product demand. Solvents in pharma companies are also used to extract and separate compounds from mixtures or natural products.

Challenges

• Supply Chain Disruption– is the main challenge in the application of bio-based solvents in various chemical, pharmaceutical, and other research and processing industries. Though bio solvents are considered low-cost and energy-efficient alternatives to traditional solvents their availability heavily depends on the supply of their raw material whose production, price, and distribution are highly unstable worldwide. The fluctuations in the farm product prices & availability to those of manufactured products are anticipated to hamper the market growth.
• Lack of Data Availability Regarding the Physical Properties and Toxicity
• Stringent Regulatory Standards for Solvents Manufacturing