Green solvents and bio-based solvents are manufactured from agricultural sources such as sugar, corn, beet root etc. On the other hand the petroleum based solvents release high amounts of volatile organic compounds (VOC), which have great environmental implications. Also, bio- based solvents have properties like high boiling point, less odor, easy recyclability, low toxicity, that other solvents don’t possess. Rising regulatory pressure restricting use of chemical solvents and its eco–friendly nature are the prime reasons for manufacturers to shift towards this market. The green and bio-solvents market is witnessing a moderate to high growth in the recent years and is expected to continue so on in the near future. The global green solvents & bio solvents market accounted for $5640.0 million in 2015 and expected to reach $9705.4 million by 2022 growing at 8% CAGR during 2016-2022.
The major factors that are driving the green & bio-solvents market are favorable environmental & governmental regulatory pressure designed to reduce the emissions of ODS, VOCs, and HAPs; improved competitiveness in petrochemical solvents and volatility in the crude oil prices. Various properties like lox toxicity and easy recyclability of green and bio solvents have enabled their use in variety of applications like paints and coating, pharmaceuticals, commercial and domestic cleaning, printing inks, adhesives and sealants and cosmetics. This increased and extensive applications of green and bio solvents across various end user industries are likely to spur the growth of the green and bio solvents market during the period. However, use of green and bio solvents results in an increase in cost of production hampering the market growth to certain extent. Also lack of supply chain model in feedstock and hence uncertainty about adequate supply of feedstock is major restraint for the global green and bio-based solvents market. Nevertheless, the expanding applications for green and bio-based solvents due to the environmental repercussion of their synthetic counterparts will offer various opportunities to this market in the years to come. High cost of adopting new technologies due to substantial capital requirement in R&D and scaling up production of bio solvents would be a major challenge for the market.
The global green solvents and bio-based solvents market is segmented on the basis of type and applications. On the basis of type the market is segmented as esters, bio-alcohols, bio glycols, bio diols, D-Limonene, methyl soyate etc. Furthermore, esters are segmented into methyl esters, lactate esters, & others. Product wise, alcohol-based bio solvent market is among the most attractive segment, both in terms of growth rate as well as market share. The bio alcohol segment contributes to 35% of the global market share and is anticipated to grow at a CAGR of 8.6% during 2016-2022. The wide applications of alcohol based bio solvents in the pharmaceuticals and cosmetics industry and its less toxicity than their counterparts are major driver for the growth of the market. In 2016, approximately 27% of the total consumption accounted by lactate ester segment only. On the basis of different application the market is segmented as paints & coatings, industrial & domestic cleaners, pharmaceuticals, cosmetics, Personal Care and others. In the application segment, industrial and domestic cleaner is expected to have highest CAGR of around 7.8% percent, in terms of volume and paints and coatings segment is forecasted to be the largest revenue-generating segment with a share of more than 30% in 2014.
The major regional segments analyzed in the report includes North America, Europe, Asia Pacific, and Rest of the World. Asia Pacific is anticipated to be one the fastest growing market in the green solvent and bio solvent market. It is anticipated to grow at CAGR of 8.6% during 2016-2022. The major reason for high growth is rising consumption level of green and bio solvent market of end-use industries. The Latin America bio solvent and green solvent market is driven by factor such as increasing use in application such as personal care, paint and coatings and pharmaceuticals. Some of the key market players are Archer Daniels Midland Company, BASF, Bio-Amber Inc, DOW Chemicals, Huntsman Corporation, E.I du Pont de Numerous and Company ,Vertec Bio solvents Inc , Cargill Inc, Cremer Oleo Gmbh & Co, Florida Chemicals Company Inc, Myriant Corporation, Solvay S.A, etc. Companies are taking active measures and doing mergers and acquisitions to expand their product portfolio and sustain in the market. Recently, DuPont is in talks with DOW Chemical for a merger which is expected to be completed by October 2016. With this merger, Dow Chemicals and DuPont will come together to make a visionary venture to which help them to increase their market in North America and take on rivals such as BASF and Bayer. Also in August 2015, BioAmber Inc opened its BioAmber Sarnia plant that was built in collaboration with Mitsui & Co Ltd. It is world largest succinic acid plant with a capacity of approximately 30,000 tons per year.