Solvents Global Market Report 2024

The solvents market size has grown strongly in recent years. It will grow from $30.78 billion in 2023 to $32.53 billion in 2024 at a compound annual growth rate (CAGR) of 5.7%. The growth observed during the historical period can be attributed to the industrial revolution, advancements in chemical synthesis, developments in paints and coatings, the expansion of the petrochemical industry, and the growth of the print and ink industry.

The solvents market size is expected to see strong growth in the next few years. It will grow to $39.87 billion in 2028 at a compound annual growth rate (CAGR) of 5.2%. The anticipated growth in the forecast period can be attributed to regulatory compliance, the adoption of bio-based solvents, initiatives promoting green chemistry, integration with circular economy practices, and the growth of the pharmaceutical industry. Significant trends expected in the forecast period encompass the reduction of volatile organic compounds (VOCs), the development of high-performance solvents, advancements in nano-solvents, the digitalization of solvent management, and an increased emphasis on transparency and traceability.

The anticipated surge in demand for personal care products is expected to drive the growth of the solvents market in the future. Personal care products encompass a range of traditional household chemical compounds utilized for health, beauty, and hygiene purposes. These products include cosmetics, skincare items, hair care products, cleaning solutions, and perfumes. Solvents play a crucial role in skincare products by dissolving specific components, thereby enhancing functionality, texture, and sensory attributes. For example, a report by Loreal Cosmetic World in February 2021 highlighted the increasing demand for personal care goods, with skincare alone experiencing a significant growth from over 228 billion euros ($244.65 billion) in 2021 to an 8% increase in 2021 and a remarkable 41.8% rise in 2022. Consequently, the growing demand for personal care products serves as a catalyst for the solvents market's expansion.

The escalating use of cosmetics is anticipated to be a driving force behind the growth of the solvents market. Cosmetics, which encompass a diverse array of products applied to the body, face, hair, or nails for aesthetic purposes, heavily rely on solvents. Solvents aid in dissolving and dispersing various ingredients, facilitating the formulation of products with desired textures and application properties. They contribute to the stability, spreadability, and shelf life of cosmetic formulations, enhancing the overall sensory experience for consumers and ensuring effective delivery of active ingredients. In 2021, the Soil Association's annual organic beauty and wellbeing report revealed a 15% growth in sales of Soil Association-certified organic and natural beauty and wellbeing products in the UK, reaching approximately $170 million. Hence, the increasing use of cosmetics emerges as a significant driver for the solvents market.

A prominent trend in the solvents market is product innovation, with companies in the industry adopting new technologies to maintain their market standing. In April 2022, Solvay S.A., a Belgium-based chemical manufacturer, introduced Rhodiasolv IRIS, a next-generation solvent characterized by biodegradability, non-flammability, low volatility, and reproductive toxicity. This versatile solvent finds applications in phytosanitary product formulation, paint peeling, graffiti and resin removal, industrial cleaning, and agrochemistry. Rhodiasolv IRIS exemplifies a unique production method that recycles a previously incinerated byproduct of its polyamide chain, optimizing petrochemical resource utilization while minimizing environmental impact. It is a vital component in the Rhodiasolv line of green solvents, contributing to the transition to more environmentally friendly agricultural practices.

Major companies in the solvents market are strategically focusing on developing sustainable products, such as sustainable ultra-pure solvents, showcasing the feasibility of producing high-quality solvents from recycled materials. A sustainable ultra-pure solvent is characterized not only by high purity but also by environmentally friendly and sustainable production methods. In January 2023, Clariter, a Luxembourg-based cleantech company, and TotalEnergies Fluids, a France-based energy and petroleum company, introduced a sustainable ultra-pure solvent derived from plastic waste. These ultra-pure solvents find application in demanding markets such as pharmaceuticals and cosmetics, requiring safe, colorless, odorless, and tasteless products meeting the highest pharmacopoeia-standard purity criteria.

In August 2021, Brenntag SE, a Germany-based provider of chemicals and ingredients, completed the acquisition of Matrix Chemical LLC for an undisclosed amount. This strategic move positions Brenntag SE to establish a robust and competitive logistics network for acetone and solvents across North America. The acquisition enhances the company's ability to seize market opportunities, delivering a diverse range of core products more efficiently, cost-effectively, and sustainably to its customers. Matrix Chemical LLC, based in the US, is a chemicals company.

Major companies operating in the solvents market report are China Petroleum and Chemical Corporation, Exxon Mobil Corporation, Royal Dutch Shell Plc., Marathon Petroleum Corporation, Valero Energy Corporation, PJSC Lukoil Oil Company, Reliance Industries Limited, Mitsui Chemicals Inc., BASF SE, Dow Jones Industrial, Sabic, LyondellBasell Industries Holdings B.V, Henkel AG and Co. KGaA, Toray Industries Inc., INEOS Group Limited, Westlake Corporation, Solvay SA, International Flavors and Fragrances Inc., Akzo Nobel NV, Arkema SA, Eastman Chemical Company, Daicel Corporation, Celanese Corporation, Wacker Chemie AG, Huntsman International LLC., Givaudan, Lonza Group AG, Clariant AG, Ashland Global Holdings Inc., Hengyi Industries Sdn Bhd.

Asia-Pacific was the largest region in the solvents market in 2023 and is expected to be the fastest-growing region in the forecast period. The regions covered in the solvents market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the solvents market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of solvents include alcohols, hydrocarbons, ketones, esters, chlorinated solvents, and others. Alcohols, characterized by the presence of one or more hydroxyl (OH) groups attached to a carbon atom in an alkyl group, are a significant category. Ethanol, an alcohol solvent, is utilized to dissolve many organic compounds that are insoluble in water and is commonly found in fragrances and cosmetics. Solvents are categorized into oxygenated solvents, hydrocarbon solvents, halogenated solvents, and others, with sources including bio-based solvents and petrochemical-based solvents. Solvents are applied in various industries, including adhesives, paints and coatings, personal care, pharmaceuticals, and others.

The solvents market research report is one of a series of new reports that provides solvents market statistics, including the solvents industry global market size, regional shares, competitors with an solvents market share, detailed solvents market segments, market trends, and opportunities, and any further data you may need to thrive in the solvents industry. This solvents market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The solvents market consists of sales of organic solvents, inorganic solvents, protic solvents, and aprotic solvents. 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.