Green solvents Market Report 2026

The green solvents market size has grown strongly in recent years. It will grow from $2.19 billion in 2025 to $2.35 billion in 2026 at a compound annual growth rate (CAGR) of 7.6%. The growth in the historic period can be attributed to growth in chemical manufacturing, rising environmental awareness, increased use in pharmaceuticals, availability of bio feedstocks, expansion of coating industries.

The green solvents market size is expected to see strong growth in the next few years. It will grow to $3.27 billion in 2030 at a compound annual growth rate (CAGR) of 8.6%. The growth in the forecast period can be attributed to stricter environmental regulations, growth of green chemistry, rising demand for sustainable products, expansion of cosmetic manufacturing, advancements in solvent technologies. Major trends in the forecast period include increasing adoption of bio based solvents, rising demand from paints and coatings, growing use in pharmaceutical manufacturing, expansion of low voc formulations, increasing focus on regulatory compliance.

The increasing demand for eco-friendly solvents is expected to propel the growth of the green solvents market going forward. An eco-friendly solvent is an environmentally friendly solvent derived from renewable resources such as plants or biomass, designed to have a lower impact on human health and the environment compared to traditional solvents. Green solvents help reduce the environmental footprint of chemical production and can replace conventional solvents across various industrial applications. For instance, in November 2024, according to Advanced Biofuels Canada (ABFC), a Canada-based industry association, biofuel consumption saw strong growth in 2023 - renewable diesel more than doubled to 1.2 billion liters per year, biodiesel increased by 14% to 530 million liters per year, and ethanol rose by 13% to 4 billion liters per year. Biofuel content also climbed to 9.44% in gasoline and 6.23% in diesel, marking respective increases of 10% and 68% compared to 2022. Therefore, the rising demand for eco-friendly solvents is driving the growth of the green solvents market.

Major companies operating in the green solvents market are developing innovative products such as high-purity solvents to ensure product safety, performance, and consistency across specialized applications. Controls to ensure product quality refer to systematic processes implemented during production to guarantee that a product meets required standards and performs as intended, reducing defects and enhancing reliability. For instance, in August 2024, Eastman Chemical Company, a US-based chemical manufacturer, launched EastaPure isopropyl alcohol (IPA), offering a purity level of 99.99%. This ultra-high-purity IPA is tailored for critical applications in semiconductor manufacturing, including wafer fabrication, precision cleaning, and photoresist thinning. Designed to meet stringent industry requirements, EastaPure IPA minimizes contamination and ensures consistent performance, and is available in packaging options suitable for both large-scale industrial operations and controlled laboratory environments.

In March 2024, Univar Solutions Inc., a US-based chemical and ingredient distributor, acquired Valley Solvent Company Inc. for an undisclosed amount. This acquisition enables Univar Solutions Inc. to broaden its product portfolio, strengthen supply chain capabilities, and expand its market reach to better serve customers across diverse industries. Valley Solvent Company Inc. is a US-based supplier specializing in industrial solvents and chemicals.

Major companies operating in the green solvents market are Cargill Incorporated, Archer Daniels Midland Company, Stepan Company, Novozymes A/S, Praj Industries Limited, Genomatica Inc., Galactic S.A., LanzaTech Inc., Elevance Renewable Sciences Inc., SACHEM Inc., Green Biologics Limited, CREMER OLEO GmbH & Co. KG, DMC Biotechnologies, AgroSustain S.A., Circa Group Pty. Ltd., Gevo Inc., Greenyug LLC, Botaneco Inc., Vertec Biosolvents Inc., Myriant Corporation.

North America was the largest region in the green solvents market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the green solvents market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the green solvents market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The green solvents market consists of sales of bio-based solvents, biofuels, green pharmaceuticals, and essential oils. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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