Green Solvents Market: Current Analysis and Forecast (2024-2032)
Emphasis on Type (Bio-Based, Water-Based, Supercritical Fluids, and Deep Eutectic); Application (Paint & Coatings, Industrial & Domestic Cleaning, Cosmetic, Pharmaceutical, Agriculture, Adhesive Sealant, and Others {Textile, Printing Inks}); and Region/Country
Green Solvents Market Size & Forecast
The green solvents market was valued at USD 3,324.74 million in 2023 and is expected to grow at a steady CAGR of around 7.05% during the forecast period (2024-2032), owing to increased environmental awareness, stricter regulations on VOC emissions, and the need for sustainable alternatives in industries such as coatings, pharmaceuticals, and personal care.
Green Solvents Market Analysis
The demand for eco-friendly substitutes in various application industries including paints and coatings, pharmaceuticals, personal care, and many others. Owing to the implementation of stringent VOC (Volatile Organic Compound) emission regulations by governing authorities globally, a transition to green solvents from renewable sources is taking place in various sectors to mitigate ecological concerns. The emphasis on green and biodegradable products has resulted in the increased demand for bio-based and water-based solvents, which aids corporations to fulfill their sustainability and consumer demands.
The market growth is also supported by technological advancements, companies operating in the market are continuously expanding their product lines to cater to the industry demand. For instance, in November 2024, BASF opened a new water-based dispersions production line at its site in Heerenveen, the Netherlands. This expansion increases production capacity while keeping CO₂ emissions at the same level. It is powered by green electricity generated from the Hollandse Kust Zuid wind farm. The new line is in line with the packaging materials evolution which will also address the need to make more products biobased for printing, packaging, and lining. It will manufacture environmentally friendly materials such as Joncryl® for food-safe inks and Acronal Pro® polymers for long-lasting paints. BASF has ambitious plans to go beyond climate neutrality and sustainability goals in Europe, despite all the flaming regulatory issues in this region.
Green Solvents Market Trends
The increasing use of bio-based solvents
The global green solvent market is shifted towards bio-based green solvents as a result of higher adoption of some of the green solvents due to its affordability. Bio-based green solvents are made using raw materials that do not deplete oil reserves, such as corn, sugar cane or soy. Bio-based green solvents have a different ecological impact as they minimize the emission of air pollutants as well as green-house gases since they are easily degraded. Due to stringent environmental regulations and the ever-growing consumer preference for green products in the industry, paint and coatings, pharmaceuticals and personal care for instance, bio-based solvents are being adopted more in these industries. Innovative green solutions are likely to spur market expansion and further innovations within the green solvent industry. For instance, in 2024, a leading chemical corporation Solvay increased the output of Augeo® Clean Multi, a bio-based alternative solvent utilizing glycerin as the main ingredient, due to the rising need for eco-friendly solvents within the coatings and cleaning sectors. Due to its nontoxic profile and environmental friendliness, Augeo® Clean Multi has become a popular product and as a result positioned Solvay on the frontline in the green solvents industry.
Asia Pacific Dominated the Green Solvents Market
The Asia Pacific green solvents market is expected to dominate in the forecast period due to several factors, such as the rapid industrialization, enforcement of environmental laws and growing needs for sustainable products in other industries such as paints, coatings and personal care. This region also boasts of its strong investment in green technologies owing to the presence of rigid environmental policies in some of the countries such as China, Japan and India. The most critical countries within the Asia-Pacific region such as China and Japan have implemented stringent environmental policies to mitigate the effects of pollution and encourage sustainable development. For example, the Ministry of Ecology and Environment has set strict guidelines on VOC emissions in China, forcing businesses to use less polluting green solvents. For example, China has implemented restrictions on VOC emissions aimed at the industrial or the manufacturing sector, which prompted the increase in use of green solvents within the region. The rapid expansion of the building and automotive sectors in the Asia Pacific region has subsequently increased the use of paints and coatings, which encourages the usage of green solvents within the environmental regulations. For instance, in January 2023, Asian Paints announced the approval of (~USD 242 million), a Rs. 2000 crore rupee capex plan for the construction of a new facility for manufacturing water-based paints. The plant will have an annual production capacity of 400,000 kiloliters and will incorporate advanced technology in the production of paint and its raw materials in a clean manner. Moreover, Asia Pacific is registering high growth in the application of eco-friendly solvents in personal care and pharmaceutical industries owing to the rising demand for green products amongst the consumers.
Green Solvents Industry Overview
The green solvents market is competitive and concentrated, with few global and international players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some major players operating in the market are BASF, Dow, Stepan Company, LyondellBasell Industries Holdings B.V., Florachem Corporation, Huntsman International LLC, ADM, Corbion, Vertec BioSolvents Inc., and Clariant.
Green Solvents Market News
In 2024, Circa Group successfully scaled up production of levoglucosenone, a solvent derived from waste biomass that is fully bio-based in nature. LGO is a sustainable biomolecule platform for the manufacture of many green biochemicals that can replace hazardous fossil-derived products used in various fields such as medicine, plant protection, food additives, cancer therapy, electrical applications, battery production, coatings, graphene, polymeric substances, and several others where there are plant-based substitutes of the existing industrial chemical that is more beneficial in terms of costs.
In November 2024, BASF opened a new water-based dispersions production line at its site in Heerenveen, the Netherlands. This expansion increases production capacity while keeping CO₂ emissions at the same level. It is powered by green electricity generated from the Hollandse Kust Zuid wind farm. The new line is in line with the packaging materials evolution which will also address the need to make more products biobased for printing, packaging, and lining.
Green Solvents Market Report Coverage
Report Attribute | Details |
Base year | 2023 |
Forecast period | 2024-2032 |
Growth momentum | Accelerate at a CAGR of 7.05% |
Market size 2023 | USD 3,324.74 million |
Regional analysis | North America, Europe, APAC, Rest of the World |
Major contributing region | Asia Pacific dominated the market in 2023 |
Key countries covered | The US, Canada, Germany, The UK, Spain, Italy, France, China, Japan, and India |
Companies profiled | BASF, Dow, Stepan Company, LyondellBasell Industries Holdings B.V., Florachem Corporation, Huntsman International LLC, ADM, Corbion, Vertec BioSolvents Inc., and Clariant |
Report Scope | Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Demand and Supply Side Analysis; Competitive Landscape; Company Profiling |
Segments Covered | By Type, By Application, and By Region/Country |
Reasons to buy this report:
The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
The report presents a quick review of overall industry performance at one glance.
The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
The study comprehensively covers the market across different segments.
Deep dive regional level analysis of the industry.
Customization Options:
The global green solvents market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to contact us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the Green Solvents Market Analysis (2024-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the global green solvents market were the three major steps undertaken to create and analyze the adoption of green solvents in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global green solvents market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detailed secondary study was conducted to obtain the historical market size of the green solvents market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the green solvents market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as type and application. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the green solvents market. Further, we conducted factor analysis using dependent and independent variables such as type and application of the green solvents market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the green solvents market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global green solvents market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
The industry’s market size, in terms of revenue (USD) and the adoption rate of the green solvents market across the major markets domestically
All percentage shares, splits, and breakdowns of market segments and sub-segments
Key players in the global green solvents market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global green solvents market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of the type and application in the global green solvents market.
The main objective of the Global Green Solvents Market Study
The current & future market trends of the global green solvents market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
Analyze the current and forecast market size of the green solvents market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
Segments in the study include areas of the type and application.
Define and analysis of the regulatory framework for the green solvents
Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
Analyze the current and forecast market size of the green solvents market for the major region.
Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
Company profiles of the green solvents market and the growth strategies adopted by the market players to sustain the fast-growing market.
Deep dive regional level analysis of the industry
Frequently Asked Questions FAQs
Q1: What is the current market size and growth potential of the green solvents market?
The green solvents market was valued at USD 3,324.74 million in 2023 and is expected to grow at a CAGR of 7.05% during the forecast period (2024-2032).
Q2: What are the driving factors for the growth of the green solvents market?
The market is experiencing significant growth driven by propelled by increased environmental awareness, stricter regulations on VOC emissions, and the need for sustainable alternatives in industries such as coatings, pharmaceuticals, and personal care.
Q3: Which segment has the largest green solvents market share by Type?
The bio-based segment has the largest green solvents market share by Type.
Q4: What are the emerging technologies and trends in the green solvents market?
The increasing use of bio-based solvents is one significant trend in the green solvents market.
Q5: Which region will dominate the green solvents market?
Asia Pacific is expected to dominate the market during the forecast period.
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