Green Solvents Market (2023 - 2030) Size, Share & Trends Analysis Report By Product (Bio-alcohols, Lactate Esters), By End-use (Pharmaceuticals, Paints & Coatings), By Region, And Segment Forecasts

Green Solvents Market Summary

There are several different kinds of environmentally friendly solvents, including water, supercritical water, ionic liquids, and fluids. The product is more environment friendly, toxic-free, and safe as compared to the conventional volatile organic compounds (VOCs). The demand for eco-friendly paints and coatings has increased as a result of favorable regulations and some rules set forth by the European Commission (EC), Eco-product Certification Scheme (ECS), and others in both developing as well as developed economies, where the product is applied to disperse or dissolve the compounds used in the paint production. This could be one of the major forces boosting the product market. In addition, the packaging business, where green solvent-based sealants & adhesives are employed for the purpose of bonding applications, has experienced rapid expansion due to the rising demand for consumer goods. During the projected time, these factors will trigger the market growth

The popularity of the product has increased across a variety of end-use sectors as a result of the federal government’s growing emphasis on bio-based goods. For instance, the Swiss Federal Office for the Environment (FOEN), the Swiss State Secretariat for Economic Affairs (SECO), the German Environment Agency (UBA), Nature Conservation and Nuclear Safety (BMU), and the German Federal Ministry for the Environment are all actively promoting the use of bio-based products in a variety of end use sectors, according to a report released by the Organization for Economic Co-operation and Development (OECD). This could boost demand for the product market and open up lucrative market opportunities.

Agricultural sources are used to extract green solvents such soybean oil, bio-succinic acid, distilled glycerin, lactic acid, maize, and others. The environmental friendliness of green solvent and its lower emission of volatile organic compounds (VOCs) than conventional petroleum-based solvent served as the main argument for producers to switch to it. In addition, the usage of hazardous substances and solvents has negative effects on the environment. Furthermore, the usage of such harmful drugs has a considerable negative impact on health over time. Asthma, cancer, TB, and other ailments are primarily to blame for the existence of such reactive chemical compounds in industrial solvents. Such factors are responsible for the growth of the market as an alternative to traditional industrial solvents.

Product Insights

Lactate esters dominated the market with the highest revenue share of 31.4% in 2022. This is attributable to its rise in the overall demand and consumption from various end-use industries like pharmaceuticals, industrial solvent applications, and personal care. Additionally, lactate esters can be readily used as an alternative to the traditional petroleum based solvents if its production cost is reduced significantly. Furthermore, they are commonly used product in paints and coatings industry and have numerous advantages such as easy to recycle, non-corrosive, 100% biodegradable, and non-ozone depleting.

Another green solvent that is widely used in the global market is D-Limonene. According to Vertec BioSolvents, Inc, many unpleasant solvents, including xylene, toluene, methyl ethyl ketone, and acetone can be replaced by d-limonene solvent. It can also take the place of the majority of chlorinated solvents. Furthermore, it is not water soluble by itself, thus a unique surfactant is used when making it for certain tasks like asphalt and tar removal. D-Limonene is widely used in cleaning goods. The cleaning product is made by mixing surfactants, which stands for "surface active agent," and cleaning goods with solvents like d-Limonene and adding compounds like calcium and magnesium.

Apart from the aforementioned products, bio alcohols are example of other green or bio-based solvents used in the market. Bio-based alcohols find its vast application, especially in the formulation of perfumes and deodorants along with its usage in food coloring and alcoholic drinks.

End-use Insights

Paints & coatings segment dominated the market with the highest revenue share of 31.6% in 2022. Its high share is attributable to the increase in the number of infrastructure and construction activities in developing nations like China, Japan, and India. In addition, the rise in demand for paints & coatings containing bio-based product is driving the market, as it provides glossy, durable, and decorative look for indoor and outdoor paints.

The emergence of green solvents in variety of end-uses is booming, in the current scenario. In today’s world, the market is witnessing the introduction of bio-based or green adhesives and sealants. These adhesives, which are a relatively new type, are made with ingredients like starch, vegetable oil, and proteins, among others. Moreover, utilizing these biobased raw materials eliminates the need to consider environmental sustainability. In addition, according to Anagha Engineers, the adhesives & sealant sector is assisting other conventional businesses in their initial transition to sustainability. Sealants and adhesives have a promising future in the market for sustainable products thanks to their wide range of products and rigorous improvements. Such factors are responsible for the growth of the product in adhesives and sealants industry.

The percentage of solvents employed in the pharmaceutical industry ranges from 80% to 90%; however, since they only serve as the process media, they do not change the reaction profile. Additionally, it dominates the toxicity profile. Furthermore, despite worries about the environment and human health, recent research has focused on the use of bio-based chemicals manufactured from agricultural wastes as green solvents to create useful pharmaceutical ingredients as a renewable alternative to fossil chemicals. Such developments regarding the use of green solvents in pharmaceutical industry is driving the market growth worldwide.

Regional Insights

North America dominated the global green solvents market with the highest revenue share of 37.5% in 2022. This is attributed to the rise in demand for greener solvents which has forced the lawmakers and government to replace the traditional petroleum-based solvents with more eco-friendly alternatives. In addition, the North American region is poised to witness substantial growth prospect on the account of the presence of leading manufacturers such as Stepan Company, and Cargill, Incorporated, among others.

Asia Pacific region is one of the fastest growing regions the product market due to the increase in demand from end-use industries like paints & coatings, cosmetics, pharmaceutical, and industrial. In addition, the paint and coatings industry in China is expanding quickly, which has encouraged producers to create high-quality green and bio-based solvents for use in dispersing the ingredients in paint formulations. Asia-Pacific is also a desirable market for businesses due to low labour costs, low start-up costs for production facilities, and low market costs. These elements fuel the demand for green/bio-based solvents in this area.

European region is expected to witness a major growth potential for green solvents. This is due to the presence of multiple manufacturing companies such as BASF SE, DuPont, Dow, and LyondellBasell among others in the region. In addition, end-use industries like cosmetics and food & beverages have a strong hold in European region. The use of green solvents in such industries is expected to have a positive impact on the regional market.

Key Companies & Market Share Insights

The competition in the global green solvents market is highly dependent on the quality of the product, number of manufacturers and distributors, and their geographical locations.

The top producers and companies operating in the market are using a variety of corporate growth strategies, such as mergers and acquisitions, stepping up their R&D efforts targeted at creating novel and inventive goods and solutions, among other things.

A number of participants and stakeholders in the market for green solvents on a global scale are also concentrating on increasing their manufacturing capacities. Some prominent players in the green solvents market include:

• BASF SE

• DuPont

• Dow

• Cargill, Incorporated

• Gevo

• AkzoNobel

• LyondellBasell N.V. 

Green Solvents Market Report Scope

Global Green Solvents Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global Green Solvents market report on the basis of product, end-use, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Bio-Alcohols

    • Bio-Methanol

    • Bio-Ethanol

    • Other Bio-Alcohols

  • Bio-Glycols

  • Lactate Esters

  • D-Limonene

  • Methyl Soyate

  • Others

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Chemical Intermediate

  • Pharmaceuticals

  • Printing Inks

  • Paints & Coatings

  • Cosmetics & Personal Care

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • Italy

    • Belgium

    • The Netherlands

  • Asia Pacific

    • China

    • India

    • South Korea

    • Vietnam

    • Thailand

    • Indonesia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • South Africa