The global green & bio-solvents market size is projected to be $5,322.2 million by 2030, advancing at a CAGR of 6.1% during 2021–2030.
The market is prospering owing to the rising product potential in the paints & coatings industry. With painting and coating products being used in multiple verticals, such as automotive, furniture, and construction, the requirement for solvents is booming. The rising consumer awareness regarding the adverse effects of industrial solvents and other toxic components of paints & coatings on the environment and human health has resulted in the growing requirement for bio-based solvents.
Additionally, the increasing concerns regarding volatile organic compound (VOC) emissions have led multiple environmental protection organizations to enforce stringent regulations on manufacturers of industrial solvents. One of these global organizations is the U.S. Environmental Protection Agency (EPA). Moreover, bio-based solvents enable a reduction in the operational costs, while providing higher efficacy and reliability, which would further help propagate the market growth.
The lactate esters category is expected to record the fastest growth during the forecast period. This can be attributed to the easy availability of such raw materials, their low production costs, and increasing application in the automotive, construction, and pharmaceutical sectors.
The methyl soyate category is also expected to grow at a significant rate in the type segment, attributed to the cost-competitiveness, low VOC content, and low toxicity of this chemical. It is used as a shoreline cleaner to remove and recover spilled oil and other petroleum products from beaches and streams. It has been listed by the U.S. EPA on the National Contingency Plan product schedule for oil spills and is the only shoreline cleaner licensed by the state of California. Other emerging applications of soybean-oil-based solvents include safe plastic waste disposal, paper pulp cleaning and recycling, and crude oil solvent extraction and processing.
Globally, the APAC green & bio-solvents market is projected to witness the fastest growth in the coming years, at a CAGR of over 6.5%. The regional market is driven by the growing R&D aimed at the development of alcohols from bio-based sources, primarily due to the abundant availability of raw materials and low costs of production. Moreover, the stringent environmental laws and policies, due to the adverse impact of VOC emissions on environmental and human health caused by the usage of synthetic solvents, will further encourage the demand for bio-solvents. India, China, and Japan are the key contributors to the rapid growth of the green & bio-solvents market in this region.
Major players operating in the green & bio-solvents market include Archer Daniels Midland Company, BASF SE, CREMER OLEO GmbH & Co. KG, Solvay, Stepan Company, The Dow Chemical Company, GFBiochemicals Ltd., Cargill Incorporated, Emery Oleochemicals, and Huntsman International LLC.