Bio-Based Solvents Market Report 2026

The bio-based solvents market size has grown strongly in recent years. It will grow from $7.61 billion in 2025 to $8.3 billion in 2026 at a compound annual growth rate (CAGR) of 9%. The growth in the historic period can be attributed to use of conventional organic solvents, growth in chemical manufacturing, industrial cleaning demand, availability of biomass feedstocks, regulatory pressure on emissions.

The bio-based solvents market size is expected to see strong growth in the next few years. It will grow to $11.57 billion in 2030 at a compound annual growth rate (CAGR) of 8.7%. The growth in the forecast period can be attributed to stringent environmental regulations, growth in sustainable manufacturing, innovation in bio solvent chemistry, rising demand for biodegradable products, expansion of green chemistry initiatives. Major trends in the forecast period include shift from petroleum based to renewable solvents, rising demand for low toxicity solvents, growing use in paints and coatings, expansion in personal care and pharmaceutical applications, focus on high performance green solvents.

The increasing regulatory pressures to reduce volatile organic compound (VOC) emissions are expected to drive the growth of the bio-based solvent market in the coming years. Volatile organic compounds are organic chemicals that easily evaporate at room temperature and contribute significantly to air pollution, ground-level ozone, and adverse health effects. The rise in regulatory pressure is due to the harmful environmental and health impacts of VOCs, including photochemical smog, respiratory illnesses, and climate change. Bio-based solvents help reduce VOC emissions by providing low-VOC, eco-friendly, and compliant alternatives, enabling industries to meet stricter emission standards and transition to sustainable production processes. For example, in July 2024, the California Department of Pesticide Regulation reported that VOC emissions in key ozone nonattainment areas remained within state implementation plan goals for 2023; however, some regions saw increases compared to 2022. In the San Joaquin Valley, emissions rose from 12.528 tons per day (tpd) in 2022 to 14.788 tpd in 2023, with projections indicating continued growth in 2024. Similarly, the Sacramento Metro area saw emissions increase from 1.097 tpd in 2022 to 1.371 tpd in 2023. Restrictions on high-VOC applications are expected to continue through 2025, reflecting ongoing regulatory enforcement. This demonstrates how rising regulatory pressures to reduce VOC emissions are driving the bio-based solvent market.

Key companies in the bio-based solvent market are focusing on innovations in biotechnology and green chemistry, such as levulinate-ketal solvents, to replace volatile silicones and petrochemical solvents in formulations. Levulinate-ketal solvents are acetals made from levulinic acid (derived from second-generation biomass) and bio-diols; they offer silicone-like volatility and feel with high biobased content and biodegradable profiles. For instance, in October 2025, GFBiochemicals, a France-based biochemical company, launched RE:CHEMISTRY NEW320 (INCI: Ethyl Propanediol Acetal Levulinate), a plant-based solvent and emollient alternative to cyclopentasiloxane (D5) for personal-care formulations. Produced from second-generation biomass using levulinate-ketal chemistry, this solvent provides silicone-like volatility and sensory performance while maintaining high biobased content and enhanced biodegradability. RE:CHEMISTRY NEW320 allows formulators to reduce dependence on petrochemical and palm-derived ingredients without compromising texture, dry-down, or overall product quality. This launch highlights GFBiochemicals’ commitment to green chemistry solutions and reflects a broader shift toward sustainable, high-performance bio-based solvents in cosmetics and personal care.

In June 2024, Technip Energies, a France-based engineering and technology company focused on the energy transition, partnered with Shell Catalysts & Technologies to accelerate the commercialization of Bio-2-Glycols technology for producing bio-based monoethylene glycol (MEG) from glucose. The partnership combines Shell’s research and development expertise with Technip Energies’ bio-MEG process technology to deliver a more efficient, scalable, and sustainable bio-based MEG solution. Shell Catalysts & Technologies, a Netherlands-based company, provides advanced refining and chemical technologies, supporting bio-based chemicals with catalyst and process innovations that improve efficiency and sustainability in chemical production.

Major companies operating in the bio-based solvents market are Shell Catalysts & Technologies, Cargill Incorporated, Archer Daniels Midland Company (ADM), BASF SE, Merck KGaA, Dow Chemical Company, LyondellBasell Industries Holdings B.V., AkzoNobel N.V., Eastman Chemical Company, Solvay S.A., Huntsman Corporation, Clariant AG, Stepan Company, Ashland Global Holdings Inc., Corbion N.V., Genomatica Inc., Gevo Inc., GFBiochemicals Ltd., Galactic S.A., INEOS Nitriles.

Europe was the largest region in the bio-based Solvents market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the bio-based 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 bio-based solvents market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The bio-based solvents market consists of sales of bio-ethanol, plant-derived propylene glycol, ethyl lactate, bio-acetone, and 2-methyloxolane. 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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