The Global "Green Solvents Market" is expected to grow at a high CAGR during the forecasting period (2022-2029).
Green solvents are environmentally friendly solvents or bio solvents, which are derived from natural sources such as plants, seeds, fruits, and others. Green solvents can be used as an alternative to petrochemical solvents. Thus, an increase in the use of these green solvents in various end-user industries is expected to drive market growth.
Growth in the end-user industries such as automotive, construction, health care, cosmetics, and others is one of the major factors that is driving the market growth. Green solvents are easy to use, possess good sticking properties, do not emit any toxic gases, and are cost-effective. Also, increasing concern over volatile organic compounds to reduce such emissions is enhancing green solvent market growth, thereby reducing smog formation and protecting the environment. According to ibis world, during 2014-2018, cosmetic sales has grown by 11.5% to reach revenue of $12bn in 2018. Green solvents play a significant role in cosmetic preparations for the purposes of – dissolution enhancement, viscosity optimization, and enhanced mixing. Overall, the surge in the cosmetic industry will positively influence the global green solvents market.
Additionally, bio-solvent manufacturing companies and research institutions are making huge investments for the future advancements and technology of bio/green solvents.
Based on the application the global green solvents market is broadly segmented as paints & coatings, adhesives & sealants, industrial cleaners, and others. Among all these paints & coatings accounted for a major market share and it is predicted to grow at a higher CAGR during the forecast period. Paints and coatings are commonly applied to protect equipment and machines from corrosion and rusting. In paints, solvents readily dissolve different components used in the paint formulation including resin and pigment, thereby making it suitable for the application. Green solvent-based automotive paint is non-toxic, owing to volatile organic compounds free and sustaining paint durability. Paints and coatings made using conventional solvents may cause skin allergies. Thus, there is an increase in the demand for green solvents as an alternative of conventional solvents. This is the major factor that is anticipated to indicate the growth of the global green solvents market in the forthcoming years. For instance, according to the US Census Bureau, the revenue of paint and coating manufacturers in the U.S. from 2010 to 2016 has increased by approximately 38%.
The global Green Solvents market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. The Asia Pacific occupies the dominant share in the Green Solvents market and is expected to grow at a CAGR of XX% in the forecast period. Robust demand for the cosmetics, construction, automotive industries are propelling the market growth. Also, due to rising disposable income leads to higher consumer goods consumption and government regulations & policies regarding health and the environment. Additionally, emerging countries in this region are supporting green initiatives and providing incentives such as relaxation in tax returns. All these factors are projected to influence market expansion in the forthcoming years positively. For instance, according to Construction Industry Council (CIC), during 2017-2021 the Asia Pacific’s construction output will increase by 3.3%.
Significant players of the global green solvents market are Vertec Biosolvents, Akzo Nobel NV, The Dow Chemical Company, Shenzen Esun Industrial Company Ltd., BASF SE, Cargill Incorporated, Lyondell Basell Industries NV, Nexant, Astrobio, Florida Chemical Company Inc., and others. Majority of these players are adopting a few key strategies such as product launches, expansions, mergers & acquisitions, and others to sustain their position in the market. For instance, in August 2015, BASF SE introduced a new bio-based solvent Polyol, which helps in manufacturing extremely low volatile organic compounds emission coatings for exterior and interior applications. In March 2017, Shenzen Esun Industrial Company extended its services in Holland.
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