Global Renewable Solvent Market Size, Forecast, and Trend Highlights Over 2022 - 2031

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.

Get more information on this report: Request Sample PDF

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.

Global Renewable Solvent Market: Growth Drivers and Challenges

Growth Drivers

• Rapid Urbanization and Industrialization – The rise on per capita fuels urbanization and propel the population to live in urban areas. As a result, the demand for construction, food & beverages, automobiles, and others gradually increases. The rapid industrialization and urbanization thus are expected to fuel the demand of renewable solvents for its varied uses. United Nations Organization stated that, as of May 2018, about 55% of the global population lives in urban areas. This number is further anticipated to increase to 68% by 2050.
• Growing Application of Renewable Solvents in Automotive Industry – The constant rising demand of vehicles backed up by the high usage of renewable solvents in automobiles are expected to drive the market growth. 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.
• Expansion of Paints and Adhesives Industry – As per recent data, the global market volume of paint and coatings was calculated to approximately 10 billion gallons in 2019.
• Growing Demand of Consumer Goods – The increased demand of consumer goods is expected to surge the growth of packaging industry where renewable solvent adhesives and sealants are used for bonding purpose. As per the India Brand Equity Foundation in 2022, the 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.
• Rise in Research and Development Expenditure – According to the World Bank, the global research and development expenditure accounted for 2.2% in 2018, which further rose to 2.63% in 2020.

Challenges

• Fluctuation in Raw Material Prices
• Complex Production Process
• High Cost of Renewable Solvent Production

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.

Major Macro-Economic Indicators Impacting the Market Growth

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.

Global Renewable Solvent Market Regional Synopsis

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.

Get more information on this report: Request Sample PDF

The global renewable solvent market is further classified on the basis of region as follows:

• North America (U.S. & Canada) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
• Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
• Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC (Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
• Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
• Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook

Market Segmentation

Our in-depth analysis of the global renewable solvent market includes the following segments:

Top Featured Companies Dominating the Global Renewable Solvent Market

• Neste
  • Company Overview
  • Business Strategy
  • Key Product Offerings
  • Financial Performance
  • Key Performance Indicators
  • Risk Analysis
  • Recent Development
  • Regional Presence
  • SWOT Analysis

• 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