Green & Bio-Solvents Market Trends
Growth Drivers
- Increasing Adoption of Bio-based Solvents in Various End-User Industries – The increasingly harmful effects of chemical solvents on plants and animals are estimated to rise market growth opportunities. The number of people willing to pay extra for biobased products to enhance health awareness and educate literate people is driving the market growth during the forecast period. The production of biobased chemicals and polymers worldwide as of 2020 was estimated to be 88 million tonnes.
- Rising focus on Reduce Carbon Emissions across the World – The percentage of carbon emissions from fossil fuel consumption that is released into the environment in 2023 as per the reports was over 60% in the U.S.
- Increasing Use of Household Cleaners, and Fragrances to Maintain a Hygiene Environment – The raise of cleaning products used in households globally during 2022 was USD 250 billion which is raised from the base of USD 230 billion in 2021.
- Growing Use of Adhesives and Sealants in the Construction and Furniture Sector – The adhesives and sealants together generate revenue of more than USD 65 billion across the world in 2022.
- Rising Agricultural Sector with Increasing Demand for Food Crop Lands – The agriculture, food, and other associated industries together made a contribution of USD 1 trillion to the U.S. gross domestic product in 2021 which was 5% of the share.
Challenges
- Huge Investment Cost to Start Production
- Uncertain and Unavailability of Raw Material Supply – The important factor in any business is raw materials and a continuous supply of quality products. The use of cheap products to compensate for the gap in the raw materials to increase profit is estimated to hamper the market growth. The use of fewer quality materials and cheap materials is hindering market growth in the coming years.
- Huge Competition among Small and Medium Size Enterprises
Green & Bio-Solvents Market: Key Insights
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Programme), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favourable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labour as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
6.2% |
|
Base Year Market Size (2024) |
USD 3.74 trillion |
|
Forecast Year Market Size (2037) |
USD 8.18 trillion |
|
Regional Scope |
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