Green Solvents Market Trends

Growth Drivers

• Rapid Urbanization and Industrialization – Rapid urbanization has resulted in high demand for construction, food & beverages, automobiles, and other things. This increased demand is further expected to rise the adoption rate of green solvents for their varied use. As per data from the United Nations Organization, the worldwide ratio of the population living in urban settlements accounted to be around 55% in 2018.  This number is further anticipated to increase to 68% by 2050.

• Worldwide Expansion in the Automobile Sector - As per the data by the International Organization of Motor Vehicle Manufacturers (OICA), the global sales of all vehicles rose from 78,774,320 units in 2020 to 82,684,788 units in 2021.

• Increase in Demand for Paints and Coatings- For instance, in 2020, the consumption of architectural paint in the U.S. amounted to be around 860 million gallons.

• Increased Demand for Consumer Goods –In 2022, India’s fast-moving consumer goods (FMCG) sector was calculated to be India’s fourth-largest sector with household and personal care accounting for 50% of FMCG sales in India.

• An Upsurge in the Pharmaceutical Industry - For instance, as of November 2021, the pharmaceutical industry in the United States was worth over USD 2.8 trillion.

Challenges

• High Cost of Production of Green Solvents – The production cost of green solvents is comparatively higher than that of conventional paints as of their complex production process. Hence, this factor is anticipated to hinder the market growth over the forecast period.

• Fluctuation in Raw Material Prices
• Complex Production Process of Green Solvents