Green Solvents Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The green solvents market size has grown strongly in recent years. It will grow from $2.04 billion in 2024 to $2.22 billion in 2025 at a compound annual growth rate (CAGR) of 8.9%. The growth in the historic period can be attributed to environmental regulations, consumer awareness, rising demand for eco-friendly products, cost competitiveness, government initiatives.

The green solvents market size is expected to see strong growth in the next few years. It will grow to $3.04 billion in 2029 at a compound annual growth rate (CAGR) of 8.3%. The growth in the forecast period can be attributed to stringent emission standards, bio-based economy growth, circular economy initiatives, increasing R&D investments, consumer demand for clean labels. Major trends in the forecast period include innovation in green chemistry, industry collaboration and partnerships, focus on VOC reduction, application-specific formulations, rising demand 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 growing awareness of health hazards is expected to drive the expansion of the green solvents market. Health hazards are increasing due to higher exposure to environmental pollutants, chemical toxins, and lifestyle-related risk factors such as poor diet, stress, and lack of physical activity. Green solvents help mitigate health risks by reducing exposure to harmful chemicals and toxic fumes, lowering the likelihood of respiratory issues, skin irritation, and long-term health problems. For instance, in 2023, the Ministry of Manpower in Singapore reported 1,229 cases of occupational diseases (OD), up from 1,052 cases in 2022, highlighting the growing concern over health risks in the workplace. As a result, the rising awareness of health hazards is driving the growth of the green solvents market.

Major companies in the appendiceal cancer treatment market are focusing on developing innovative products with robust controls to ensure product efficacy, safety, and improved patient outcomes, while optimizing treatment protocols. These controls refer to systematic processes and measures implemented during production to guarantee that products meet specific quality standards and perform as intended. Such controls help minimize defects, ensure consistency, and enhance the overall reliability of the product. For example, Eastman Chemical Company, a US-based leader in the chemical industry, launched EastaPure isopropyl alcohol (IPA), which offers a purity level of 99.99%. This high purity makes it ideal for critical applications in wafer fabrication and semiconductor production stages.

In March 2024, Univar Solutions Inc., a US-based distributor of chemicals and specialty ingredients, acquired Valley Solvent Company, Inc. for an undisclosed amount. This acquisition is aimed at enhancing Univar Solutions' product portfolio, expanding its market presence, and strengthening its supply chain capabilities, enabling the company to better serve its customers across multiple industries. Valley Solvent Company Inc., based in the US, specializes in providing industrial solvents and chemicals.

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 2024. 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.

Green solvents are environmentally friendly solvents derived from crop processing, known for their lower toxicity and reduced hazardous nature compared to traditional volatile organic compounds. They serve the purpose of dissolving or dispersing other substances without causing harm to the environment and find applications in the production and formulation of antibiotics, vitamins, and water-based paints.

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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