Bio Solvents Market: Drivers and Trends Snapshot
The global bio solvents market is primarily driven by volatile petrochemical prices associated with growing health concerns due to VOC presence in conventional solvents. In addition, stringent regulations by DEFRA, EPA and REACH with respect to toxicity content in conventional solvents have fueled the growth of bio solvents. This trend is projected to have a positive impact on the global market growth over the next six years. Further, increasing penetration of bio solvents in coatings, paints, sealants and adhesives and printing inks is projected to have a positive impact on the growth of bio solvent market.
Furthermore, increasing spending on construction coupled with positive outlook of the automotive industry specifically in emerging markets of Asia Pacific and Latin America due to growing industrialization and urbanization rates are expected to drive demand for paints and coatings. Growing demand for paints and coatings is expected to further boost the global bio solvents market growth. In addition, increasing consciousness regarding harmful effects of conventional solvents in personal care and pharmaceutical products is expected to further drive bio solvents demand in the respective applications.
Understanding the market demand, manufacturers are focusing on increasing investment on R&D to increase bio solvents application scope in cosmetics and pharmaceutical applications. High production costs combined with bio solvents is expected to remain a key challenge for industry participants. New product innovation and advancements in production technologies are expected to counter such challenges during the forecast period.
Bio Solvents Market: Segmentation
Global bio solvents market is segmented into product type, application type and geography. Based on product type the market is segmented into soy methyl esters, glycols, lactate esters, and alcohol among others such as polyhydroxyalkanoates, d-limonene and diols. On the basis of application, bio solvents market is segmented into paints & coatings, printing inks, adhesives and sealants among other niche applications such as cosmetics and pharmaceuticals. The major product segment lactate ester accounted for just below one-third of total market in terms of volume in 2013. Increasing lactate ester solvents demand in printing inks, coatings and industrial applications is projected to drive the market growth during the forecast period.
Furthermore, glycol solvents are expected to grow with highest growth rate due to its increasing penetration in paints and printing inks, industrial coatings and automotive coatings industries. Its high blush resistance and slow evaporation rate are driving its demand over other solvents in the respective applications. Apart from this, increasing spending on construction in different emerging markets such as India, China, Brazil and Mexico on account of rapid urbanization and industrialization rates is expected to remain a major driving factor for the application segment.
Changing trends towards using eco-friendly paints coupled with growing industries of construction is expected to drive bio solvents demand. Paints & coatings application segment emerged as the largest segment accounting for a major chunk in the global market. Growing paints & coatings demand in automotive and construction industries has been a key factor driving bio solvents demand. Sealants and adhesives are expected to experience the highest growth rate during the forecast period.
Bio Solvents Market: Region-wise Insight
North America dominated the bio solvents market and accounted for over one-third of total market in terms of volume in 2013. High level of consciousness regarding environmental and health effects due to usage of conventional solvents and stringent environmental regulations have prompted the shift towards developing bio solvents. Asia Pacific is expected to register significant growth rate due to growing automotive and construction industries. In addition, rapid industrialization in emerging markets of India and China are expected to drive adhesives and sealants demand. Furthermore, growing concerns regarding degradability of conventional solvents is expected to further drive the Asia Pacific market growth.
Bio Solvents Market: Key Players
Some of the key players operating in the bio solvents market are The Dow Chemical Co., E.I. du Pont de Nemours & Co.,AkzoNobel N.V., BASF SE, Cargill Inc., LyondellBasell, Vertec Biosolvents, BioAmber, Myriant Corp., Huntsman Corp., Florida Chemical Company, Inc.
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