The global green/bio-based solvents market size was US$ 3.99 billion in 2021. The global green/bio-based solvents market size is forecast to reach US$ 6.3 billion by 2030, growing at a compound annual growth rate (CAGR) of 5.1% during the forecast period from 2022 to 2030.

Green solvents contain agricultural constituents, including corn, sugarcane, lactic acid, glycerin, bio-succinic acid, soybean oil, and similar substances. Solvents with the lowest toxicity include acetone, ethanol, methanol, 2-propanol, ethyl acetate, isopropyl acetate, methyl ethyl ketone, 1-butanol, and tert-butanol. These chemicals are intermediates found in a wide range of manufactured products, such as detergents, cosmetics, paints, coatings, inks, adhesives & sealants, pharmaceutical products, and many more.  

Factors Influencing Market Growth

• With increasing rules and regulations imposed by the Eco-product Certification Scheme (ECS), European Commission, and others, consumers demand eco-friendly paint and coating products that disperse or dissolve paint components using green/bio-based solvents. This factor is driving the global market. 
• The growing demand for consumer goods has sparked the growth of the packaging industry that uses green solvent-based adhesives & sealants for bonding applications. As a result, the green/bio-based solvents market is forecast to grow significantly during the forecast period.
• Due to the high cost of raw materials and the complicated production process, green/bio-based solvents carry a higher production cost than conventional solvents. This factor is slowing down the overall market growth.
• Due to the growing emphasis of governments on bio-based products, the popularity of green/bio-based solvents has increased among a variety of end-use industries. Therefore, green/bio-based solvents may become more popular, thereby creating lucrative opportunities for the global market.

Impact Analysis of COVID-19

The COVID-19 pandemic had negatively impacted the global market growth. The paints & coatings industry, ink manufacturers, adhesives & sealants, and other sectors are highly dependent on green/bio-based solvents. In addition, many manufacturers of paints & coatings that use green/bio-based solvents to dissolve or disperse the components in paint formulations have shut down or reduced their operations due to the risk of infections among their employees. This has temporarily impacted market demand during COVID-19.  

Regional Insights

The Asia Pacific region is forecast to grow significantly during the forecast period, accounting for the major share of the market. Increasing demand for paints & coatings, ink manufacturing, industrial, cosmetics, pharmaceuticals, and others in the Asia Pacific region is responsible for this growth. In addition, global manufacturers find the Asia Pacific to be an attractive market due to the region's cheap labor costs, low manufacturing unit set up costs, and low market costs. Globally, these factors are driving the use of green/bio-based solvents.

Leading Competitors

The leading prominent companies profiled in the global green/bio-based solvents market are:

• BASF SE
• Cargill Incorporated
• Clariant AG
• DuPont de Nemours, Incorporated
• Huntsman Corporation 
• LyondellBasell Industries Holdings B.V.
• OQ SAOC
• Sasol Limited 
• Solvay S.A
• Vertec Biosolvents Incorporated
• Other Prominent Players

Scope of the Report

The global green/bio-based solvents market segmentation focuses on Type, Application, and Region.

Segmentation based on Type

• Ester Solvents
• D-Limonene
• Alcohols, Glycols & Diols Solvents
• Others

Segmentation based on Application

• Paints and Coatings
• Adhesives & Sealants
• Printing Ink
• Industrial & Domestic Cleaners
• Others (Pharmaceutical and personal care)

Segmentation based on Region

• North America
• The U.S.
• Canada
• Mexico
• Europe
• Western Europe
• The UK
• Germany
• France
• Italy
• Spain
• Rest of Western Europe
• Eastern Europe
• Poland
• Russia
• Rest of Eastern Europe
• Asia Pacific
• China
• India
• Japan
• Australia & New Zealand
• ASEAN
• Rest of Asia Pacific
• Middle East & Africa (MEA)
• UAE
• Saudi Arabia
• South Africa
• Rest of MEA
• South America
• Brazil
• Argentina
• Rest of South America