The global green and bio-solvents market size is anticipated to showcase significant growth over the forecast period. Shift of industries towards green and bio-based products is projected to be one of the major market drivers. Rise in chemical pollution has forced governments from across the world to lay down stern regulations for protection of environment. Governments have formulated policies to reduce emission of Octadecylsilanized Silica (ODS), Volatile Organic Compound (VOC), and other hazardous air pollutants. This factor is expected to further stimulate market growth in the near future.
Conventional solvents use petrochemicals as raw materials. Green or bio-solvents, on the other hand, do not use traditional resources. Use of these products reduces over dependency on conventional petrochemical solvents and chemical exporting countries. Uncertainty over crude oil prices is expected to open new avenues for market players. Rising adoption of bio-based products over traditional alternatives is anticipated to facilitate market expansion in the years to come.
However, cost effective production is expected to pose a challenge for the growth of the green and bio-solvents market in the near future. There is a high cost difference between production process for traditional and bio-solvents, owing to limited availability of appropriate and advanced technologies. This is a key factor restraining the growth of the market.
Green and bio-solvents find applications in asphalt paving and roofing shingles. High VOC content in asphalt paving can harm environment. This factor is anticipated to bode well for global market expansion. Trends such as limited usage of VOC emitting products and encouragement for non-VOC products in several European countries are creating growth opportunities for the market. Applications in activities such as heavy oil and bitumen extraction from Canadian tar sands and replacement of petroleum solvents are anticipated to propel the market over the forecast period.
Paints and coatings made using conventional solvents may cause skin allergies, especially among people allergic to chemicals and other substances. Hence, there is a high demand for green solvents over conventional alternatives. This factor is anticipated to augur well for the global market in the forthcoming years.
Adhesive, paints and coatings, printing inks, and pharmaceuticals, and cosmetics are major applications of green and bio-based solvents. Soy methyl esters, fatty acid esters, lactate esters, polyhydroxyalkanoates, and D-limonene are some of the major products available in the market.
North America and Europe are considered as the key regions in the green and bio-solvents market owing to increasing application of paint and coating in commercial and residential buildings. High demand for automotive coating and presence of big pharmaceutical companies headquartered in countries such as U.S., Germany, Canada, and France will further boost the demand for green and bio-solvents. Strict environment protection norms are helping growth of the market in Europe among other developed regions.
Asia-Pacific is expected to grow at the significant pace during the forecast period owing to high demand from the cosmetic industry. Rising awareness regarding environment protection is anticipated to further impel regional growth in near future. Emerging economies such as India and China support green initiatives and provide incentives such as relaxation in tax returns. This factor is projected to positively influence market expansion in the forthcoming years.
Key market players are Archer Daniels Midland Company; BASF SE; Huntsman Corporation; BioAmber, Inc.; Florida Chemical Company; The Dow Chemical Company; E.I. Du Pont de Nemours & Co.; Vertec BioSolvents. Inc.; Flotek Industries, Inc.; Cargill Incorporated; and Cremer Oleo GmbH & Co. KG.
Most companies have adopted new product development, mergers and acquisitions, and partnerships and collaborations as major business strategies. These strategies are expected to help them gain a competitive advantage and high market share in the forthcoming years.
In August 2015, BASF SE introduced new bio-based Polyol, which helps in manufacturing extremely low-emission 2K PU coatings for exterior and interior applications. The polyol can be utilized in coatings exposed to potable water, semi-structural adhesives, and industrial floorings.
In May 2013, Flotek Industries, Inc. a developer and distributor of innovative specialty chemicals and down-hole drilling and production equipment acquired Florida Chemical Company, Inc., a producer of large volumes of d-Limonene and flavor and fragrance compounds. This acquisition will help Flotek Industries Inc. to reduce its raw material importing cost.
Research Support Specialist, USA