Renewable Solvent Market Trends

  • Report ID: 4179
  • Published Date: Nov 27, 2024
  • Report Format: PDF, PPT

Renewable Solvent Market Trends

Growth Drivers

  • Rapid Urbanization and Industrialization – The rise in per capita fuels urbanization and propels the population in urban areas. As a result, demand for construction, food and beverages, automobiles, and other products gradually rises, creating a demand for renewable solvents for a variety of applications. Rapid industrialization and urbanization thus are expected to fuel the demand for renewable solvents for varied uses. United Nations Organization stated that, as of May 2018, about 55% of the global population lives in urban areas. This number is further anticipated to increase to 68% by 2050.

  • Growing Application of Renewable Solvents in the Automotive Industry – The constantly rising demand for vehicles backed up by the high usage of renewable solvents in automobiles owing to their biodegradable nature, eco-friendly properties, and emission of lesser VOC emissions is expected to drive market growth in the assessment period. As per the data from 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.

  • Expansion of The Paints and Adhesives Industry – Several rules are laid by regulatory commissions and the government to use eco-friendly paints and adhesives in industries of construction, electronics, automotive, and others are expected to increase the demand for renewable solvents. Thus, the high demand for paints and adhesives is anticipated to bring lucrative growth opportunities for the market in the forecast period. As per recent data, the global market volume of paint and coatings was calculated to be approximately 10 billion gallons in 2019.

  • Growing Demand for Consumer Goods – The increased demand for consumer goods is expected to surge the growth of the packaging industry where renewable solvents are used as adhesives and sealants for bonding and other purposes. This subsequently is forecasted to create favorable opportunities for market expansion. As per the India Brand Equity Foundation in 2022, the 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.

  • Rise in Research and Development Expenditure – Major key players of the market and government is focusing on developing advanced renewable solvents to protect the environment and the earth. Thus, a high amount of investments is made to initiate the development of technology-developed renewable solvents for use in a wide spectrum of industries. According to the World Bank, global research and development expenditure accounted for 2.2% in 2018, which further rose to 2.63% in 2020.

Challenges

  • Fluctuation in Raw Material Prices
  • Complex Production Process
  • High Cost of Renewable Solvent Production – The production of renewable solvents requires a lot of technologically developed machines and advanced products which ultimately adds a high cost to the manufacturing process. Furthermore, additional costs are incurred in the initial stage of production. All these factors coupled to increases the costs of renewable solvent production cost. This is estimated to lower the adoption rate of renewable solvents and subsequently hamper the market growth in the forecast period.

Renewable Solvent Market: Key Insights

Base Year

2024

Forecast Year

2025-2037

CAGR

5.2%

Base Year Market Size (2024)

USD 4.44 billion

Forecast Year Market Size (2037)

USD 8.58 billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Author Credits:  Rajrani Baghel


  • Report ID: 4179
  • Published Date: Nov 27, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

In the year 2025, the industry size of renewable solvent is estimated at USD 4.62 billion.

The renewable solvent market size was over USD 4.44 billion in 2024 and is poised to exceed USD 8.58 billion by 2037, growing at over 5.2% CAGR during the forecast period i.e., between 2025-2037. The increased awareness about environmental hazards along with the expansion of the automotive industry and rapid industrialization and urbanization will fuel the market growth.

Asia Pacific industry is set to dominate majority revenue share of NA% by 2037, attributed to an increase in the construction sector in this region owing to advantages of renewable solvent.

The major players in the market are Neste, AstroBio, NexantECA, Godavari Biorifineries Limited, CREMER OLEO GmbH & Co. KG, Cargill company, Braskem S.A., Vertec BioSolvents Inc., Archer Daniels Midland Company, InKemia Green Chemicals, Inc., Merck Group
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