Global Green and Bio-based Solvents Market: Snapshot
Solvents are of two types – water-based and hydrocarbon-based. The latter emits volatile organic compounds during manufacture, handling, and use. As a result they have a negative impact on the environment. This drawback is overcome in green and bio-based solvents, formulated from bio-based resources such as sugars, corn, beet root, and others.
Green and bio-based solvents are used in printing inks, paints and coatings, commercial and domestic cleaning, adhesives and sealants, cosmetics, and pharmaceutical. Growing demand for bio-based materials in different downstream industries of these applications, paints and coatings, and printing inks will most likely drive demand for green and bio-based solvents in the near future.
Another factor stoking growth in the global market for bio-based solvents is the growing research on different possible raw materials for bio-based materials. On the flip side, steep price of raw materials, availability of cheaper petroleum-based substitutes, and complicated manufacturing process is predicted to deter the market in the next couple of years. However, increasing demand for green and bio-based solvents in the cosmetics, adhesives and sealants, and pharmaceutical segments will open up new frontiers of growth in the market and thus help overcome the current obstacles.
A report by Transparency Market Research predicts the global market for green and bio-based solvents to clock a steady 7.2% from 2015 to 2023 to become worth US$8.05 bn by 2023 from US$4.32 bn in 2014.
Wide Ranging Applications Makes Bio-based Ethanol Market Leader
The different types of green and bio-based solvents purveyed in the market are bio-based methanol, bio-based ethanol, bio-based propanol, bio-based butanol, and bio-based propylene glycol, ethyl lactate, D-limonene, and methyl soyate, among others such as hydrogen peroxide, bio-based butanediol, etc. Of these, bio-based ethanol has a leading share in the market and is trailed by ethyl lactate and methyl soyate. Going forward too, bio-based ethanol is predicted to retain its dominant position because of its commercialized production and wide ranging applications. In terms of growth rate, however, methyl soyate is expected to outpace all others in the foreseeable future on account of its growing use as solvents in printing inks, paints and coatings, and cleaning applications.
D-limonene too is predicted to contribute significantly to the green and bio-based solvents market on account of its use as an industrial and domestic cleaning solvent. Ethyl lactate is also likely to offer an attractive opportunity for growth in the near future owing to their rising use as a substitute for petroleum based solvents.
Application-wise, paints and coatings is the dominant segment in the global market for green and bio-based solvents. In 2014, it held 40% share in terms of demand in the market, finds the report by Transparency Market Research. In the upcoming years, the commercial and domestic cleaning segment is also predicted to contribute to demand substantially. Adhesives and sealants will likely outshine all other segments to clock maximum growth.
Abundant Availability of Raw Materials Propels North America Market
From a geographical standpoint, North America leads the global green and bio-based solvents market vis-à-vis volume. Abundant raw materials and growing demand for eco-efficient bio-based products have resulted in propelling the region’s market. In terms of growth rate, however, Asia Pacific is predicted to be the winner in the years to come owing to increasing consumption of solvents in pharmaceutical, paints and coatings, printing inks, cosmetics, and agrochemical applications in nations of India, China, Malaysia, and Thailand.
Solvents are liquids with the capability to dissolve other materials without any chemical change in the solvent or the material. Based on the type or source of raw material, solvents can be classified into bio-based or petroleum-based. Petroleum-based solvents emit high amount of volatile organic compounds during their manufacturing process. This makes them environmentally unsafe. Additionally, these solvents are typically dependent on the prices of crude oil, leading to constant fluctuations in the prices of final products. On the other hand, green & bio-based solvents are characterized by low toxicity, low miscibility, higher boiling point, less odor, and easy recycling process. Thus, green & bio-based solvents are eco-friendly. These properties or inherent advantages makes them suitable for usage in various applications such as paints & coatings, printing inks, commercial & domestic cleaning, adhesives & sealants, pharmaceutical, and cosmetics. Rising demand for these solvents in paints & coatings, printing inks, and industrial cleaning applications has increased their usage in various end-user industries. This is likely to drive the green & bio-based solvents market in the next few years. However, availability of various low-cost petroleum-based substitutes and high costs associated with the production of green & bio-based solvents are projected to hamper market growth during the forecast period. High demand for these solvents in adhesives & sealants, pharmaceutical, and personal care industries is estimated to act as a major opportunity in the near future.
This report analyzes and forecasts the market for green & bio-based solvents at the global and regional level. The market has been forecast based on volume (kilo tons) and revenue (US$ Mn) from 2015 to 2023, considering 2014 as the base year. The study includes drivers and restraints of the global green & bio-based solvents market. It also covers impact of these drivers and restraints on demand for green & bio-based solvents during the forecast period. The report highlights opportunities in the green & bio-based solvents market at the global and regional level.
The report includes detailed value chain analysis, which provides a comprehensive view of the global green & bio-based solvents market. Porter’s Five Forces model for the green & bio-based solvents market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein applications are benchmarked based on their market size, growth rate, and general attractiveness.
The study provides a decisive view of the global green & bio-based solvents market by segmenting it in terms of products such as bio-based methanol, bio-based ethanol, bio-based propanol, bio-based butanol, bio-based propylene glycol, ethyl lactate, d-limonene, methyl soyate, and others. These segments have been analyzed based on the present and future trends. Regional segmentation includes current and forecast demand for green & bio-based solvents in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report also covers demand for individual products and applications in all the regions.
The report provides the estimated market size of green & bio-based solvents for 2015 and forecast for the next eight years. The global market size of green & bio-based solvents has been provided in terms of volume and revenue. Market volume has been defined in kilo tons, while market revenue is in US$ Mn. Market numbers have been estimated based on key products and applications of green & bio-based solvents. Market size and forecast for products and applications have been provided in terms of global, regional, and country level markets.
In order to compile the research report, we conducted in-depth interviews and discussions with a number of key industry participants and opinion leaders. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. We reviewed key players’ product literature, annual reports, press releases, and relevant documents for competitive analysis and market understanding. Secondary research includes a search of recent trade, technical writing, Internet sources, and statistical data from government websites, trade associations, and agencies. This has proven to be the most reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.
Secondary research sources that are typically referred to include, but are not limited to company websites, annual reports, financial reports, broker reports, investor presentations, SEC filings, and external proprietary databases, and relevant patent and regulatory databases such as ICIS, Hoover’s, oneSOURCE, Factiva and Bloomberg, national government documents, statistical databases, trade journals, market reports, news articles, press releases, and webcasts specific to companies operating in the market.
The report comprises profiles of major companies operating in the global green & bio-based solvents market. Key players profiled in the report include Cargill Inc., Vertec Biosolvents Inc., BioAmber Inc., BioMCN, Corbion nv, Galactic, Archer Daniels Midland Company, Florida Chemical Company, Elevance Renewable Sciences, Inc. and Cobalt Technologies. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments.
The report segments the global green & bio-based solvents market as follows:
Green & Bio-based Solvents Market - Product Analysis
- Bio-based Methanol
- Bio-based Ethanol
- Bio-based Propanol
- Bio-based Butanol
- Bio-based Propylene Glycol
- Ethyl Lactate
- Methyl Soyate
- Others (Including hydrogen peroxide, bio-based butanediol, etc.)
Green & Bio-based Solvents Market - Application Analysis
- Paints & Coatings
- Printing Inks
- Commercial & Domestic Cleaning
- Adhesives & Sealants
- Others (Including Agrochemicals, etc.)
Green & Bio-based Solvents Market - Regional Analysis
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa (MEA)
- South Africa
- Rest of MEA