The report “Green & Bio-solvents Market by Type (Bioalcohols, Bio-Diols, Biogycols, Lactate Esters), Application (Industrial & Domestic Cleaners, Paints & Coatings, Adhesives, Printing Inks, Pharmaceuticals) and Region- Global Forecast to 2027 “, will grow to USD 1.6 Billion by 2027, at a CAGR of 5.6% from USD 1.2 Billion in 2022.
This growth is primarily triggered by the uncertainty about developments in oil prices. Solvent producers have concerns regarding the developments in oil prices in the future. For some green & bio-solvents, cost reductions have been achieved by using cheaper feedstocks, scaling up the production, or both. The two factors that are expected to have the greatest impact on the future growth trajectory of green & bio-solvents are oil prices and levels of government support. The impact of both factors is heavily dependent on energy prices and the cost of biomass feedstock inputs.
Bioalcohols led the green & bio-solvents market, in terms of both value and volume, in 2021. This is due to the increasing use of bioethanol, biomethanol, biobutanol, and biopropanol in various applications, such as cosmetics, pharmaceuticals, and industrial & domestic cleaners.
The market for all green & bio-solvents declined in 2020, except bioalcohols, in terms of both volume and value. This was due to COVID-19 and the low usage of green & bio-solvents in applications, such as paints & coatings, and cosmetics. The demand for bioalcohols, such as bioethanol and biopropanol, increased significantly due to their usage in industrial & domestic cleansers, hand sanitizers, and surface sanitizers, among other bio-solvents, which led to their growth in 2020, in terms of both volume and value.
Bio-solvents are used in the cleaning of high-precision mechanical parts, for instance, such as ball bearings. For this application, perfect cleaning is necessary for the proper functioning of the mechanical piece (remaining dirt would damage the metal) and is critical to the safety of machines in the working process. The stringent regulatory environment existing in regions like Europe and North America to replace petrochemical-based solvents plays an important in the growth of the green & bio-solvents market. The increasing demand for green & bio-solvents from the industrial & domestic cleaners segment is driven by environmental & regulatory pressure to use greener solvents for cleaning applications
Asia Pacific is projected to be the fastest-growing market, in terms of value, during the forecast period. Asia Pacific has extensive biomass resources, feedstock, and access to markets. The ASEAN region is becoming an attractive hub for production as the global green & bio-solvents industry is slowly scaling to a commercial level, driven by corporate partnerships, private investments, government support & incentives, and innovative technologies. Asia Pacific has become a key region for the green & bio-solvents market and their precursors. This is due to various developments undertaken by companies such as Purac, PTT (Thailand), India Glycols Ltd. (India), Greencol Taiwan (Taiwan), Henan Jindan (China), Ecomann (Shenzen), and Kaneka, Teijin Ltd., (Japan).
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The key market players profiled in the report include Archer Daniels Midland Company (US), BASF SE (Germany), Cremer Oleo (Germany), Solvay (Belgium), Stepan Company (US), Dow Inc. (US), and GF Biochemicals (Netherlands), among others.
