Green Solvents Market Analysis by Type (Alcohols, Glycols, Diols, Lactate Esters, D-Limonene, Methyl Soyate, and Others); and by Application (Industrial & Domestic Cleaners, Paints & Coatings, Adhesives & Sealants, Pharmaceuticals, Cosmetics, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4327 | Published Date: Feb 23, 2023
The global green solvents market is estimated to garner a revenue of ~USD 9 Billion by the end of 2035 by growing at a CAGR of ~5% over the forecast period, i.e., 2023 – 2035. Further, the market garnered revenue of ~USD 5 Billion in the year 2022. The growth of the market can be attributed to their being biodegradable in nature, followed by the surging use of eco-friendly paints and coatings. As green solvents emit less volatile organic compounds (VOC) owing to which the major population these days prefers to use such solvents as of the rise in pollution. Such advantages are estimated to be the primary growth factor for the green solvents market in the forecast period. For instance, a recent estimate showed that emissions of VOCs decreased from 12,930 in 2018 to 11,880 tons in 2021 in the United States. In addition to this, the growing use of green solvents in various end-use industries such as automotive, pharmaceutical, industrial & domestic cleaners is another major factor that is estimated to propel the market growth over the projected time frame.
In addition to these, factors that are believed to fuel the market growth of green solvents include the rising trend of sustainability, along with increasing awareness in people for reducing carbon footprints. Since, traditional solvents highly impact the environment by creating air pollution and diseases such as lung infection, nausea, headache, and skin irritation. Therefore, the high level of air pollution and rising concern for environmental protection is anticipated to foster the demand for green solvents. The World Health Organization stated that in 2019, 99% of the world’s population was living in places where the WHO air quality guidelines levels were not met. Additionally, the growing promotion for adopting green products by various regulatory bodies is also predicted to present the potential for market expansion over the projected period.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~5% |
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Base Year Market Size (2022) |
~ USD 5 Billion |
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Forecast Year Market Size (2035) |
~ USD 9 Billion |
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Regional Scope |
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Growth Drivers
Rapid Urbanization and Industrialization – Rapid urbanization has resulted in high demand for construction, food & beverages, automobiles, and other things. This increased demand is further expected to rise the adoption rate of green solvents for their varied use. As per data from the United Nations Organization, the worldwide ratio of the population living in urban settlements accounted to be around 55% in 2018. This number is further anticipated to increase to 68% by 2050.
Worldwide Expansion in the Automobile Sector - As per the data by the International Organization of Motor Vehicle Manufacturers (OICA), the global sales of all vehicles rose from 78,774,320 units in 2020 to 82,684,788 units in 2021.
Increase in Demand for Paints and Coatings- For instance, in 2020, the consumption of architectural paint in the U.S. amounted to be around 860 million gallons.
Increased Demand for Consumer Goods –In 2022, India’s fast-moving consumer goods (FMCG) sector was calculated to be India’s fourth-largest sector with household and personal care accounting for 50% of FMCG sales in India.
An Upsurge in the Pharmaceutical Industry - For instance, as of November 2021, the pharmaceutical industry in the United States was worth over USD 2.8 trillion.
Challenges
The global green solvents market is segmented and analyzed for demand and supply by application into industrial & domestic cleaners, paints & coatings, adhesives & sealants, pharmaceuticals, cosmetics, and others. Out of these segments, the paints & coatings segment is anticipated to garner the highest revenue over the projected time frame. The growth of the segment can be attributed to the worldwide growth in the construction industry where demand for renewable solvent solutions has been increasing. For instance, the worldwide revenue collected by the construction industry was almost USD 2 trillion in 2019. Further, the increased housing construction, backed by the growing population are further factors that are estimated to propel the growth of the segment.
The global green solvents market is also segmented and analyzed for demand and supply by type into alcohols, glycols, diols, lactate esters, D-limonene, methyl soyate, and others. Amongst these segments, the lactate esters segment is expected to garner a significant share. The growth of this segment can be attributed to the increasing demand and consumption of lactate asters from the various end-use industries, followed by the rising use of lactate aster as they are recyclable, biodegradable, non-corrosive, and so on. On the other hand, the D-limonene segment is projected to witness a massive CAGR during the forecast period, owing to the rising use of D-limonene as a fragrance ingredient in several sectors such as food & beverages, along with its rising use in the production of cleaning goods. In addition to this, the significantly rising use of lactate asters as a thickening agent in several kind of creams, and lotions in functional cosmetics and personal care products is also a major factor that is projected to push the segment growth further throughout the forecast period.
.Our in-depth analysis of the global green solvents market includes the following segments:
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By Type |
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By Application |
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The Asia Pacific green solvents market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be attributed majorly to the significant rise in pharmaceutical spending in Asia-Pacific countries such as Japan and Korea, which is anticipated to boost the market growth of green solvents throughout the region during the projected timeframe. According to the Organization for Economic Cooperation and Development (OECD), pharmaceutical spending in Japan was 2.27% of the GDP in 2019, while it was 1.63% of the GDP in Korea in 2021. In addition to this, the increasing initiatives to reduce air pollution and the surge in the use of eco-friendly products are also anticipated to boost the market growth during the forecast period in the APAC region. Moreover, rapid urbanization is propelling the huge use of architectural coatings to coat buildings is also a significant factor that is anticipated to boost the growth of the green solvents market throughout the forecast period in the region.
Furthermore, the North American green solvents market is also estimated to display lucrative market growth by the end of 2035. The growth of the market can be attributed to the rising concern regarding environmental safety among people and end-use sectors which is fueling up the deployment of eco-friendly products. For instance, approximately 3 quarters of Americans say they are conscious about the environment. More than 80% admit they attempt to live in ways that help safeguard the environment. In addition to this, the rising use of green solvents in the paint and coatings industry, along with the stringent rules by the government regarding the use of traditional solvents are some further factors that are anticipated to accelerate the market growth further throughout the projected time frame in the region.
Archer Daniels Midland Company has decided to acquire Florida Chemical Company (FCC), a division of Flotek Industries that manufactures citrus-based flavors and fragrances.
Braskem S.A. has launched its first partially renewable solvent – HE-706, made from sugarcane ethanol and with raw materials such as bio-based carbon.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: Rapid urbanization and industrialization, worldwide expansion in the automobile sector, and increase in demand for paints and coatings are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~5% over the forecast period, i.e., 2023 – 2035.
Ans: High cost of production of green solvents, fluctuation in raw material prices, and complex production process of green solvents are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Archer Daniels Midland Company, Braskem S.A., BASF SE, Huntsman International LLC, The Dow Chemical Company, Cargill, Incorporated, Gevo, Inc., Vertec BioSolvents Inc., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, application, and by region.
Ans: The paints & coatings segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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