In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022.
Request InsightsPurchasing power in the couPurchasing power in the country is expected to fell nearly by 2.5%. On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively. Request Insights
IN THE NEWSApril, 2019: Merck Group launched Cyrene, a sustainable dipolar aprotic solvent, manufactured from a renewable cellulose source. This product is anticipated to be a greener alternative to Dimethylformamide (DMF) and N-Methyl-2-pyrrolidone (NMP)
.April, 2019: Braskem S.A. has launched HE-70S, its first partially renewable solvent made from sugarcane ethanol. It contains raw materials such as biobased carbon and is considered a part of the oxygenated solvents group.
The global renewable solvent market is estimated to garner a revenue of ~USD 7 billion by the end of 2031 by growing at a CAGR of ~5% over the forecast period, i.e., 2022 – 2031. Further, the market generated a revenue of ~USD 4 billion in the year 2021. The benefits of renewable solvents over traditional solvents like less toxicity, biodegradable in nature and lesser emission of Volatile Organic Compounds (VOC) is estimated to be the primary growth factor for the renewable solvent market in the forecast period. As per recent estimates, the United States emitted approximately 11,880 tons of VOC in 2021 – a considerable decrease from 2018 with 12,930 tons. Such a decrease in VOC emission is expected to prompt the market size of renewable solvent.
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Renewable solvents are manufactured through the process of fermentation of renewable resources. Generally, the raw materials used are cellulose, starch or oil. The renewable solvents get completely dissolved and suspend easily in other materials. The renewable solvents are eco-friendly due to which it is used as a substitute over traditional solvents. Additionally, traditional solvents are not considered to be an optimum option because of its highly flammable and toxic content. They highly impact the environment by creating air pollution and diseases such as lung infection, nausea, headache and skin irritation. In 2019, as per World Health Organization, 99% of the world population was living in places where the WHO air quality guidelines levels were not met. The high level of air pollution is anticipated to foster the demand of renewable solvents hereby creating growth opportunities for the renewable solvent market.
The renewable solvents market is segmented and analyzed for demand and supply by application into paints & coatings, pharmaceuticals, adhesives, home & personal care, industrial cleaning, plastics & polymers, agrochemicals, food & beverage, and others. Out of these, the paints & coatings segment is anticipated to garner the highest revenue by 2031. The growth of the segment can be attributed to the growing demand for renewable solvent solutions for the construction and automotive industries. Further, with the increased housing construction, backed by a growing population, and income levels in countries like Brazil, China, India, and Mexico, the demand for paints & coatings is anticipated to grow significantly. As per the World Bank, the population and GDP of China was 1.4 billion and USD 13.89 trillion respectively. This figure rose to 1.41 billion population and USD 17.73 trillion GDP in 2021.
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
Regionally, the global renewable solvent market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these, the market in Asia Pacific is projected to hold the largest market share by the end of 2031. This is attributed to an increase in construction in the region which is further expected to drive the rise in demand for renewable solvents for its advantages. It is estimated that Asia-Pacific is projected to account for USD 7.4 trillion of global construction output by 2030. Furthermore, the rise in pharmaceutical spending in Asia-Pacific countries such as Japan and Korea is anticipated to drive for the expansion of the renewable solvent market size. As per Organization for Economic Co-operation and Development, the pharmaceutical spending in Japan held 2.27% of GDP in 2019 whereas, in Korea it was 1.63% of GDP in 2021.
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The global renewable solvent market is further classified on the basis of region as follows:
Our in-depth analysis of the global renewable solvent market includes the following segments:
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FREQUENTLY ASKED QUESTIONS
The increased awareness about environmental hazards along with the expansion of automotive industry and rapid industrialization and urbanization is expected for market growth.
The market is anticipated to attain a CAGR of ~5% over the forecast period, i.e., 2022 – 2031.
Fluctuation in raw material prices and complex production process are expected to hamper the market growth.
The market in Asia Pacific is projected to hold the largest market share by the end of 2031 and provide more business opportunities in the future.
The major players in the market are AstroBio, NexantECA, Godavari Biorifineries Limited, CREMER OLEO GmbH & Co. KG, Cargill company, Braskem S.A., Vertec BioSolvents Inc., Archer Daniels Midland Company, InKemia Green Chemicals, Inc., Merck Group and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by type, raw material, application, and by region.
The paint & adhesives segment is anticipated to garner the largest market size by the end of 2031 and display significant growth opportunities.
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