Green solvents Global Market Report 2024

The green solvents market size has grown strongly in recent years. It will grow from $1.86 billion in 2023 to $2.04 billion in 2024 at a compound annual growth rate (CAGR) of 9.2%. The expansion observed in the historical period can be attributed to factors such as environmental regulations, heightened consumer awareness, an increased demand for eco-friendly products, cost competitiveness, and government initiatives.

The green solvents market size is expected to see strong growth in the next few years. It will grow to $2.79 billion in 2028 at a compound annual growth rate (CAGR) of 8.2%. The anticipated growth in the forecast period can be attributed to factors such as stringent emission standards, the growth of the bio-based economy, initiatives promoting a circular economy, rising investments in research and development, and consumer demand for products with clean labels. Key trends in the forecast period encompass innovations in green chemistry, collaborative efforts and partnerships within the industry, a heightened focus on reducing volatile organic compounds (VOCs), the development of application-specific formulations, and an increasing demand for environmentally friendly options in cleaning products.

The anticipated surge in demand for environmentally friendly solvents is set to drive the growth of the green solvents market in the foreseeable future. Eco-friendly solvents, derived from renewable sources such as plants or biomass, possess a lower impact on human health compared to traditional solvents. The adoption of green solvents is expected to reduce the environmental footprint in chemical production processes, offering a sustainable alternative across various industrial applications. For example, biodiesel and ethanol have been identified as green solvents for deconstructing lignocellulose. As of August 2023, the Foreign Agricultural Service reported a 20% year-over-year increase in fuel ethanol consumption in Canada to 3.4 billion liters, and biodiesel production reached 416 million liters in 2022, up from 405 million liters in 2020. This escalating demand for eco-friendly solvents is a key driver propelling the growth of the green solvents market.

The adoption of sustainable solutions is poised to further boost the green solvents market. A sustainable solution entails a balanced approach to natural resources, minimizing harm to the environment and human health while meeting current needs. Green solvents, characterized by lower environmental impact compared to traditional counterparts, play a crucial role in reducing air pollution and associated greenhouse gas emissions. According to Sumitomo Chemical's Sustainability Data Book 2022, sales revenue from designated sumika sustainable solution products rose from $3.1 billion (463.3 billion yen) in 2020 to $4.17 billion (621.2 billion yen) in 2021. This emphasis on reducing greenhouse gas emissions is expected to drive the growth of the green solvents market.

The heightened cost associated with green solvents is anticipated to pose a challenge to the market's future expansion. The production cost of green solvents is higher due to expensive raw materials and complex production processes compared to conventional solvents. This increased cost may deter customers with limited investment capacity from opting for green or bio-based solvents, thereby impeding market growth. For example, in 2021, the production cost of bio-based ethyl acetate exceeded that of its petroleum-based counterpart, primarily due to the higher costs associated with sourcing and processing renewable feedstocks. The elevated expenses linked to green solvents are expected to hinder the growth of the green solvents market.

Major companies in the green solvents market are strategically focusing on introducing innovative and cost-effective solutions, such as eco-friendly alternatives, to optimize their revenues. Eco-friendly alternative solvents are less harmful to the environment than traditional solvents and are derived from renewable resources. In July 2021, Merck Group, a Germany-based pharmaceutical company, launched AZ 910, a new line of green solvents for photolithographic processes in semiconductor manufacturing. This cost-effective solution is non-NMP (N-methylpyrrolidone)-based, non-flammable, and biodegradable, making it safer and less harmful to the environment.

In June 2021, DIC Corporation, a Japan-based chemical company, acquired the pigment business of BASF SE for $1.63 billion (€1.5 billion). This strategic acquisition aims to enhance DIC Corporation's pigment portfolio for various industries, including electronic displays and cosmetics, and accelerate its global growth. BASF SE, a Germany-based chemical company, is a key provider of green solvents for industries such as construction and coatings.

Major companies operating in the green solvents market report are Cargill Incorporated, Archer Daniels Midland Company, The Dow Chemical Company, LyondellBasell Industries Holdings B.V., Merck KGaA, Solvay S.A., DuPont de Nemours Inc., Akzo Nobel N.V., Huntsman Corporation, Stepan Company, Novozymes A/S, Praj Industries Limited, Genomatica Inc., Galactic S.A., LanzaTech Inc., Elevance Renewable Sciences Inc., SACHEM Inc., Green Biologics Limited, shenzhen esun industrial co. Ltd, CREMER OLEO GmbH & Co. KG, DMC Biotechnologies, AgroSustain S.A., Circa Group Pty. Ltd., Gevo Inc., Greenyug LLC, Botaneco Inc., Terpenoid Therapeutics, Vertec Biosolvents Inc., Myriant Corporation.

North America was the largest region in the green solvents market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the green solvents market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa The countries covered in the green solvents market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The green solvents market consists of sales of bio-based solvents, biofuels, green pharmaceuticals, and essential oils. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The primary types of green solvents include bio-alcohols, bio-diols, bio-glycols, and lactate esters. Bio-alcohols, for example, represent a category of renewable fuels derived from biological materials, functioning as eco-friendly transportation fuels and industrial solvents across various industries. These solvents are utilized in a range of applications, spanning construction, coating, cleaning products, industrial processes, toiletries, and cosmetics. They find diverse end-uses in chemical intermediates, pharmaceuticals, printing inks, paints and coatings, cosmetics, personal care, and other sectors.

The green solvents market research report is one of a series of new reports that provides green solvents market statistics, including green solvents industry global market size, regional shares, competitors with a green solvents market share, detailed green solvents market segments, market trends and opportunities, and any further data you may need to thrive in the green solvents industry. This green solvents market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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