The global bio solvents market was valued at USD 4.06 billion in 2023 and is expected to grow at a CAGR of 3.9% from 2024 to 2030. This growth is primarily driven by increasing environmental concerns and stringent government regulations encouraging industries to adopt eco-friendly solvents. Bio solvents, derived from renewable resources, are seen as sustainable and less toxic alternatives to traditional petroleum-based solvents.
Demand from key industries such as paints and coatings, adhesives, and pharmaceuticals is fueling market expansion. Advances in technology and investments into research and development have led to the development of high-performance bio solvents, further boosting their adoption.
Stringent regulations, such as the Farm Security and Rural Investment Act in the US and the EU’s REACH regulation, require manufacturers to shift towards bio-based materials due to environmental and health concerns around synthetic solvents, which release harmful VOCs.
Government agencies like the EPA in the US and DEFRA in the UK enforce strict limits on toxicity and emissions from solvents, incentivizing the use of bio solvents for safer and environmentally friendly production.
The bio-alcohol segment led the market with a 45.6% share in 2023. Bio-alcohols like bioethanol and biobutanol are increasingly used as sustainable solvents in pharmaceuticals, food and beverages. Supportive regulations and consumer demand for green products sustain their leadership.
The D-limonene segment is forecast to grow fastest with a CAGR of 4.4%. Derived from citrus oils, its biodegradability, non-toxicity, and pleasant aroma make it favored in cleaning products, adhesives, and coatings. Its growth is driven by a shift to eco-friendly materials and advancements in extraction technology.
The paints and coatings industry accounted for the largest share of 31.5% in 2023. Demand is driven by environmental regulations on VOCs, consumer preference for green products, and improved bio solvent formulations compatible with various coatings. Growth in construction and automotive sectors supports this trend.
Pharmaceutical applications are predicted to see the fastest growth, at a CAGR of 4.2%, due to the need for safer, sustainable solvents in drug production processes such as extraction and purification. Increasing R&D in green chemistry and regulatory support raise adoption in this sector.
North America held 28.4% market share in 2023, supported by industrial demand for eco solvents and strong presence of key producers like Cargill and Stepan Company.
US market growth is fueled by regulations promoting environmental safety, consumer awareness of green products, and technological advances facilitating sustainable chemical production.
Canada is expected to grow quickly due to government encouragement of renewable materials and efforts to optimize cost and efficiency of bio solvent production.
Europe’s market is anticipated to grow at 4.5%, led by established chemical industries and demand from cosmetics and food sectors amid stringent regulations on VOCs.
Asia Pacific growth is driven by expanding industries and favorable manufacturing conditions in countries like China, India, and Japan.
Market leaders include Stepah Company, Tri-Chem Specialties, ADM, POET, BASF, CREMER OLEO, Corbion, and Cargill.
Leading companies focus on expanding product offerings and strategic partnerships to enhance competitiveness.
| Attribute | Details |
|---|---|
| Market Size (2023) | USD 4.06 Billion |
| Forecast Market Size (2030) | USD 5.21 Billion |
| Growth Rate | 3.9% (CAGR 2024-2030) |
| Base Year | 2023 |
| Historical Data | 2018-2022 |
| Forecast Period | 2024-2030 |
| Segments | Product, End-use, Region |
| Regions Covered | North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
| Key Companies | Stepan Company, ADM, POET, BASF, Corbion, Cargill |
