The Global Green and Bio-Based Solvents Market was valued at USD 3.5 billion in 2022 and is estimated to reach approximately USD 6.2 billion by 2031, at a CAGR of 6.6% from 2023 to 2031. Green and bio-based solvents are safer for the environment than conventional solvents made from fossil fuels. These solvents are made from renewable biomass, such as plants, and are intended to be less harmful and to have a smaller negative impact on the environment. They are utilized in many sectors, such as medications, coatings, and cleaning products, to lessen negative effects on ecosystems and people's health while fostering sustainability. Solvents made from green and bio-based materials can make chemical production and processes more environmentally responsible and long-lasting. Growing environmental consciousness and the demand for sustainable alternatives across a range of industries have been major drivers of the market for green and bio-based solvents in recent years. Due to their better safety profiles and fewer negative effects on the environment, these solvents constitute a possible alternative to conventional petrochemical-derived solvents. Green solvents offer a more environmentally friendly choice for a variety of applications because they are often made from renewable resources like plant extracts and agricultural waste. They are perfect for enterprises looking for eco-friendly solutions because they frequently have lower toxicity, biodegradability, and a lower carbon footprint. On the other hand, bio-based solvents come from biological sources such as sugars, starches, and cellulose. They are increasingly popular in sectors including chemicals, medicines, paints, and coatings thanks to their adaptability and capacity to replace traditional, frequently dangerous solvents. As governments throughout the world enact stronger environmental rules, driving industry to adopt greener practices, the market for these solvents is expanding. Additionally, corporations have been prompted to invest in sustainable alternatives by consumer demand for eco-friendly products.

GREEN & BIO-BASED SOLVENTS MARKET: REPORT SCOPE & SEGMENTATION

Global Green & Bio-based Solvents Market Dynamics

Market dynamics for green and bio-based solvents are being driven by a number of important variables. Industries are being forced to switch to these solvents as a result of strict environmental restrictions and a growing worldwide emphasis on sustainability. These solvents provide decreased toxicity, smaller carbon footprints, and improved safety profiles. The use of these solvents is also being pushed forward by worries about health and safety, particularly in sectors where employee welfare is a top issue. Their adaptability has made them desirable options in a variety of industries, including pharmaceuticals, chemicals, paints, and coatings. Despite these encouraging factors, difficulties still exist. Cost competitiveness continues to be a top issue because producing green and bio-based solvents can be more expensive than doing so with conventional competitors. Additionally, market stability can be impacted by supply chain weaknesses relating to the availability of particular feedstocks and price swings. Nevertheless, ongoing research and innovation are broadening the selection of solvents that are accessible and resolving these issues with pricing and supply chain. Additionally, businesses are increasingly incorporating these solvents into their products to satisfy market demand for eco-friendly substitutes as consumer awareness of sustainability rises. In conclusion, the Green and Bio-based Solvents market is a dynamic and developing industry poised for continuous expansion. Its dynamics are determined by a complex interaction of environmental concerns, regulatory constraints, economic reasons, and consumer preferences.

Global Green & Bio-based Solvents Market Drivers

• Growing Awareness of Health and Safety

The adoption of green and bio-based solvents in many sectors has been greatly influenced by the growing awareness of health and safety issues. This increased knowledge is the result of a general understanding of the negative health effects linked to conventional solvents obtained from petrochemical sources. Green and bio-based solvents naturally have lower toxicity levels and emit less hazardous gases than their conventional equivalents. This decreased toxicity not only lessens health hazards for workers handling these solvents but also helps to enhance indoor air quality, which is good for everyone's health at work. The likelihood of occupational health problems is decreased by the fact that these solvents are frequently non-carcinogenic and less prone to irritate the skin and respiratory system. This results in decreased healthcare expenses for corporations and increased worker output. Additionally, industries are actively looking for safer alternatives as regulatory agencies scrutinize the safety and environmental impact of chemicals used in various operations. This improves a company's reputation and commercial competitiveness while also assisting with regulatory compliance and positioning the company as a morally upright organization.

• Renewable Resource Availability

The availability of renewable resources is a key factor in the expanding use of green and bio-based solvents across numerous sectors. Environmental concerns and sustainability are intimately related to this driver. The fact that green and bio-based solvents are made from renewable feedstocks including plants, agricultural waste, and other biomass materials is one of their main advantages. These renewable feedstocks are continually renewed by natural processes, in contrast to conventional solvents made from finite fossil fuels. This minimizes reliance on limited and frequently geopolitically unstable resources while ensuring a steady and long-term supply of raw materials for the production of solvents. Furthermore, the availability of renewable resources supports international initiatives to lessen carbon footprints and prevent climate change. Industries can help create a future that is more sustainable and carbon neutral by using feedstocks sourced from biomass.

Restraints:

• Higher Production Costs

The widespread use of green and bio-based solvents is significantly hampered by higher production costs. While these solvents have a number of benefits for the environment and sustainability, their manufacturing costs are frequently higher than those of their conventional, petrochemical-derived counterparts. The difficulty of obtaining and processing renewable feedstocks is a significant factor raising production costs. The production of biomass materials can be more time- and resource-consuming than the extraction of fossil fuels. Furthermore, costs may rise due to the scarce supply of some renewable resources, particularly if these feedstocks are in high demand across a variety of industries. Additionally, the infrastructure and technology needed for turning biomass into bio-based solvents can be capital-intensive. Another cost-related challenge is the scale of production. Green and bio-based solvent production cannot yet have reached the economies of scale enjoyed by the petrochemical industry, which can produce conventional solvents at lower costs due to large-scale operations and established supply chains.

• Regulatory and Certification Hurdles

The use of green and bio-based solvents is significantly constrained by certification and regulatory obstacles. These challenges are related to the intricate and dynamic web of laws, standards, and accreditations that control the creation, labeling, and application of chemicals across numerous industries. The adoption of green and bio-based solvents may be hampered by this lack of clarity since firms can find it difficult to understand the regulatory environment. Additionally, the process of getting the required certifications and approvals for these solvents can be expensive and time-consuming. Rigid testing and documentation are frequently necessary for compliance with regulatory regulations, which can pose entrance barriers for smaller firms and stifle industry innovation. Furthermore, the regulatory environment is constantly evolving, with new regulations and requirements emerging over time. Staying up-to-date and compliant with these changes can be challenging for businesses, particularly those operating across multiple jurisdictions.

Opportunities:

• Growing Environmental Awareness

The market for green and bio-based solvents is given a big opportunity by the rise in environmental consciousness. There is a rising need for more environmentally friendly and sustainable alternatives as people, organizations, and governments become more aware of the negative environmental effects of conventional petrochemical-based solvents. A movement in consumer preferences is occurring in favor of ecologically friendly items. Particularly in industries like cleaning goods, paints, coatings, and personal care products, this trend is pushing companies to reformulate their products to include green and bio-based solvents. In addition to increasing revenue, satisfying this desire helps build a company's reputation as a trustworthy and sustainable brand. Globally, governments are enacting strict environmental laws and providing financial incentives to encourage the use of sustainable and renewable resources. The opportunity extends to sectors such as pharmaceuticals and agriculture, where the use of green and bio-based solvents can contribute to reduced environmental impact and better align with ethical and sustainable practices.

• Automotive Sector Adoption

The introduction of green and bio-based solvents presents a considerable opportunity in the automotive industry. Green and bio-based solvents have a number of options as the global car sector comes under increasing pressure to lessen its environmental impact and adhere to higher emissions rules. The creation of hybrid and electric vehicles represents a significant opportunity. Advanced battery technologies are needed for these vehicles, and solvent-based manufacturing techniques are frequently used in the production of lithium-ion batteries. The environmental effect of battery production can be reduced by using green and bio-based solvents in these processes, which is in line with the automobile industry's general sustainability objectives. Green solvents can also be used in a variety of processes during the manufacture of conventional internal combustion engine cars, such as the formulation of paint and coatings. The use of low-VOC and non-toxic green solvents becomes an appealing option as automakers strive to lower volatile organic compound (VOC) emissions and enhance air quality.

Segment Overview

By Type

Based on type, the global green & bio-based solvents market is divided into lactate esters, methyl soyate, bio-alcohols, bio-diols, bio-glycols, and d-limonene. The d-limonene category dominates the market with the largest revenue share. D-limonene is a bio-based solvent extracted from citrus peels. It is known for its pleasant citrus aroma and is used in cleaning products, as well as in the formulation of fragrances and flavors. Bio-glycols are derived from renewable sources and can serve as alternatives to conventional glycols. They find applications in antifreeze, coolants, and as heat transfer fluids. Bio-diols are glycols produced from bio-based feedstocks. These solvents are used in applications such as antifreeze, deicing agents, and as intermediates in chemical synthesis. Bio-alcohols include alcohols like ethanol and isopropanol produced from renewable feedstocks. They are used in various industries, including pharmaceuticals, personal care products, and as fuel additives. Lactate esters are solvents produced from lactic acid, which can be derived from renewable resources such as corn or sugarcane. They are known for their low toxicity and biodegradability, making them suitable for various applications, including coatings and inks. Methyl soyate is derived from soybean oil, a renewable agricultural product. It is commonly used as a biodiesel and as a solvent in industrial applications, including cleaning and degreasing.

By Application

Based on the application, the global green & bio-based solvents market is categorized into adhesives & sealants, printing ink, industrial & domestic cleaners, and paints & coatings. The paints & coatings category leads the global green & bio-based solvents market with the largest revenue share. Paints and coatings often contain solvents to achieve desired consistency and performance. Green and bio-based solvents are utilized in the paint and coatings industry to reduce VOC emissions and improve sustainability. They are commonly used in architectural coatings and automotive finishes, aligning with stringent environmental regulations. Green and bio-based solvents are increasingly used in the production of industrial and domestic cleaning products. These solvents are less toxic and have lower environmental impact, making them ideal for formulations that align with eco-friendly cleaning trends. They offer safer alternatives for workers and contribute to improved indoor air quality. Green and bio-based solvents are used in the formulation of adhesives and sealants as carriers and diluents. They help improve the environmental profile of these products by reducing volatile organic compound (VOC) emissions. As regulations on VOCs become stricter, the adoption of green solvents in this sector is expected to grow. The printing ink industry relies on solvents for ink formulation. Green and bio-based solvents can replace traditional, often petroleum-derived solvents, reducing the environmental impact of printing processes.

Global Green & Bio-based Solvents Market Overview by Region

The global green & bio-based solvents market is categorized into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific, emerged as the leading region, capturing the largest market share in 2022. Due to a number of interrelated variables, Asia-Pacific has emerged as the top market for the adoption of green and bio-based solvents. This region is particularly well-suited for their integration. Some of the largest and fastest-growing economies in the world, like China and India, are found in the Asia-Pacific region. There is a growing demand for ecologically friendly solutions like green and bio-based solvents as a result of the quick industrialization and urbanization of these nations. Additionally, the region's large and expanding population has raised awareness of the quality of the air and water, which has accelerated the transition to cleaner and more sustainable options. Industries have been urged to adopt greener practices by strict environmental rules and a proactive stance by governments in nations like Japan and South Korea. Green solvent use has been encouraged by these restrictions in a number of industries, including manufacturing, the automobile industry, and construction. Additionally, Asia-Pacific is well-positioned for the manufacturing of bio-based solvents due to its abundant agricultural and biomass resources. A dependable supply chain for these solvents is made possible by the abundance of feedstock resources including palm oil, sugarcane, and rice husks.

Global Green & Bio-based Solvents Market Competitive Landscape

In the global green & bio-based solvents market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.

Some of the prominent players in the global green & bio-based solvents market include BASF SE, Cargill Inc., Clariant, DuPont, Huntsman Corp, LyondellBasell Industries Holdings B.V., OQ SAOC, Sasol, Solvay S.A , Vertec Biosolvents Inc, and various other key players.

Global Green & Bio-based Solvents Market Recent Developments

In May 2023, A partnership to generate renewable plastic polymers from corn residue has been announced by Dow and New Energy Blue. In order to reduce carbon emissions from the production of plastic and use it in recyclable applications for footwear, packaging, and transportation, Dow plans to buy this bio-based ethylene.

In August 2022, launched joint ventures and announced the intended location for lactic acid and polylactic acid production in the United States, LG Chem and ADM The first joint venture, called GreenWise Lactic, would generate up to 150,000 tonnes of lactic acid based on corn each year. ADM would own a majority stake in GreenWise and contribute to the project the fermentation capacity from its Decatur bioproducts facility. LG Chem would own a majority of the second joint venture, LG Chem Illinois Biochem. Building a facility to utilize products from GreenWise Lactic to generate roughly 75,000 tonnes of polylactic acid (PLA) annually would expand on LG Chem's bioplastics expertise.

Scope of the Global Green & Bio-based Solvents Market Report

Green & Bio-based Solvents Market Report Segmentation

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

• Global Green & Bio-based Solvents Market Size and Forecast:

To identify and estimate the market size for the global green & bio-based solvents market segmented by type, by application, region and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of green & bio-based solvents between 2019 and 2031.

• Market Landscape and Trends:

To identify and infer the drivers, restraints, opportunities, and challenges for the global green & bio-based solvents market

• Market Influencing Factors:

To find out the factors which are affecting the sales of green & bio-based solvents among consumers

• Impact of COVID-19:

To identify and understand the various factors involved in the global green & bio-based solvents market affected by the pandemic

• Company Profiling:

To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Intended Audience

• Industry Professionals
• Environmental Regulators
• Financial Analysts
• Researchers and Academics
• Retailers, Wholesalers, and Distributors
• Governments, Associations, and Industrial Bodies
• Investors and Trade Experts