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    Green Solvent Market

    ID: MRFR/CnM/9748-HCR
    111 Pages
    Priya Nagrale
    September 2025

    Green Solvent Market Research Report By Solvent Type (Bio-based Solvents, Water-based Solvents, Halogenated Solvents, Aromatic Solvents, Terpenes and Other Natural Solvents), By Application (Paints and Coatings, Adhesives and Sealants, Cleaning and Degreasing, Electronics and Semiconductor Manufacturing, Pharmaceuticals and Cosmetics), By Purity (Industrial Grade, High Purity, Research Grade), By End-Use Industry (Automotive, Construction, Electronics, Healthcare, Aerospace) and By Regional (North America, Europe, South America, Asia Pacific...

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    Green Solvent Market Research Report - Global Forecast by 2034 Infographic
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    Green Solvent Market Summary

    The Global Green Solvent Market is projected to grow from 9.58 USD Billion in 2024 to 16.6 USD Billion by 2035, reflecting a robust growth trajectory.

    Key Market Trends & Highlights

    Green Solvent Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 5.12 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 16.6 USD Billion, indicating substantial growth potential.
    • In 2024, the market is valued at 9.58 USD Billion, showcasing a solid foundation for future expansion.
    • Growing adoption of eco-friendly chemicals due to increasing environmental regulations is a major market driver.

    Market Size & Forecast

    2024 Market Size 9.58 (USD Billion)
    2035 Market Size 16.6 (USD Billion)
    CAGR (2025-2035) 5.12%

    Major Players

    Arkema, BASF, SABIC, Evonik Industries AG, Royal Dutch Shell Plc, Covestro AG, Merck Group, The Chemours Company, DowDuPont, LyondellBasell Industries Holdings BV, Huntsman Corporation, INEOS, PetroChina Company Limited, Eastman Chemical Company, Solvay S.A.

    Green Solvent Market Trends

    Growing concerns over environmental sustainability are driving the demand for green solvents. Key market drivers include increasingly stringent environmental regulations, rising consumer preference for eco-friendly products, and government incentives for adopting sustainable practices.

    Additionally, advancements in biotechnology and chemical engineering have led to the development of cost-effective and efficient green solvents.

    Opportunities for exploration include the expansion of applications in various industries, such as pharmaceuticals, cosmetics, and food processing.

    Research and development efforts are also focused on developing even more environmentally friendly solvents with improved performance and reduced toxicity.

    Furthermore, the growing awareness of the health hazards associated with traditional solvents is spurring demand for safer alternatives. Green solvents offer lower volatility, reduced flammability, and diminished toxicity compared to their conventional counterparts.

    This has led to their increased adoption in laboratories, manufacturing facilities, and consumer products.

    The market is expected to continue its growth trajectory, driven by the confluence of environmental consciousness, technological advancements, and regulatory pressures.

    The increasing regulatory emphasis on sustainable practices and the growing consumer preference for eco-friendly products are driving a notable shift towards the adoption of green solvents across various industries.

    U.S. Environmental Protection Agency (EPA)

    Green Solvent Market Drivers

    Market Growth Charts

    Market Growth Projections

    The Global Green Solvent Market Industry is on a growth trajectory, with projections indicating a market size of 9.58 USD Billion in 2024 and an anticipated increase to 16.6 USD Billion by 2035. This growth reflects a compound annual growth rate (CAGR) of 5.12% from 2025 to 2035, driven by various factors including regulatory support, technological advancements, and changing consumer preferences. The increasing adoption of green solvents across multiple industries, such as automotive and pharmaceuticals, further supports this positive outlook. As sustainability becomes a core focus for businesses, the green solvent market is likely to flourish.

    Growing Environmental Regulations

    The Global Green Solvent Market Industry is experiencing a surge in demand due to increasing environmental regulations aimed at reducing volatile organic compounds (VOCs) and harmful emissions. Governments worldwide are implementing stringent policies to promote the use of eco-friendly solvents, which has led to a shift in manufacturing practices. For instance, the European Union's REACH regulation encourages the adoption of green solvents in various applications, including paints and coatings. This regulatory landscape is expected to drive the market's growth, with the industry projected to reach 9.58 USD Billion in 2024, reflecting a strong commitment to sustainability.

    Rising Demand from End-User Industries

    The Global Green Solvent Market Industry is significantly influenced by the rising demand from end-user industries such as paints, coatings, and adhesives. These sectors are increasingly adopting green solvents to align with sustainability goals and consumer preferences for environmentally friendly products. For example, the paint industry is shifting towards bio-based solvents, which are perceived as safer alternatives. This trend is expected to contribute to the market's expansion, with projections indicating a growth to 16.6 USD Billion by 2035. The increasing awareness of the environmental impact of traditional solvents further supports this transition.

    Consumer Preference for Sustainable Products

    The Global Green Solvent Market Industry is witnessing a shift in consumer preferences towards sustainable products. As environmental awareness increases, consumers are actively seeking products that minimize ecological impact. This trend is particularly evident in the cosmetics and personal care sectors, where brands are reformulating products to include green solvents. The growing demand for transparency in ingredient sourcing further drives this change. Companies that adopt green solvents are likely to enhance their brand image and attract environmentally conscious consumers. This shift is expected to bolster market growth, contributing to the industry's projected expansion in the coming years.

    Technological Advancements in Solvent Production

    Technological advancements in the production of green solvents are playing a crucial role in the Global Green Solvent Market Industry. Innovations in extraction and synthesis methods are enhancing the efficiency and cost-effectiveness of bio-based solvents. For instance, the development of new catalytic processes allows for the production of solvents from renewable resources, reducing reliance on petroleum-based products. These advancements not only improve the quality of green solvents but also expand their application range. As a result, the market is poised for growth, with a projected CAGR of 5.12% from 2025 to 2035, indicating a robust future for sustainable solvent solutions.

    Market Segment Insights

    Green Solvent Market Solvent Type Insights

    The Solvent Type segment of the Green Solvent Market is projected to witness substantial growth in the coming years. The market is driven by the increasing demand for eco-friendly and sustainable solvents across various industries.

    Bio-based solvents, derived from renewable resources such as plant biomass and vegetable oils, are gaining traction due to their low toxicity and biodegradability.

    The growing environmental concerns and regulations have fueled the adoption of bio-based solvents in industries like paints and coatings, pharmaceuticals, and personal care.

    Water-based solvents, another environmentally friendly alternative, are witnessing increasing use in cleaning applications, metalworking, and textile industries. Their non-flammability and low volatility make them suitable for a wide range of industrial processes.

    Halogenated solvents, once widely used in various applications, are facing declining demand due to their environmental and health hazards. Stringent regulations and the availability of safer alternatives are driving the shift away from halogenated solvents.

    Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

    Their natural origin and pleasant aroma make them attractive for use in consumer products. The Green Solvent Market segmentation by Solvent Type provides valuable insights into the market dynamics and growth potential of different solvent types.

    This information is crucial for industry participants to make informed decisions, develop effective strategies, and capitalize on growth opportunities in the green solvent market. 

    Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

    Green Solvent Market Application Insights

    Application is a key segment shaping the dynamics of the Green Solvent Market. Among applications, Paints and Coatings occupied the largest market share in 2023 and will continue to grow throughout the forecast.

    The application is driven by the increasing demand for eco-friendly and sustainable paints and coatings across the automotive, construction, furniture, and other industries.

    Adhesives and Sealants are another significant application segment, which will continue to expand across the packaging, construction, automotive, and other industries due to their effectiveness in bonding a variety of materials.

    Cleaning and Degreasing applications are also growing, focused primarily on the manufacturing, electronics, and healthcare industries, which need precision cleaning and degreasing processes.

    Electronics and Semiconductor Manufacturing is another promising application segment, driven by the increasing demand for high-performance and green solvents in the production of electronic devices and semiconductors.

    Green Solvent Market Purity Insights

    The Green Solvent Market is segmented by purity into Industrial Grade, High Purity, and Research Grade. Among these, the Industrial Grade segment is expected to witness significant growth over the forecast period.

    The growth of this segment can be attributed to the increasing demand for green solvents in various industries, such as paints coatings, pharmaceuticals, and cosmetics.

    Moreover, the rising awareness about the environmental benefits of green solvents is further driving the growth of this segment. The High Purity segment is also expected to witness healthy growth over the forecast period.

    The growth of this segment can be attributed to the increasing demand for high-purity solvents in the pharmaceutical and biotechnology industries. The Research Grade segment is expected to witness moderate growth over the forecast period.

    The growth of this segment can be attributed to the increasing demand for research-grade solvents in academic and research institutions.

    Green Solvent Market End-Use Industry Insights

    The Green Solvent Market is segmented by end-use industry into automotive, construction, electronics, healthcare, and aerospace. The automotive industry is a major consumer of green solvents, which are used in the production of paints, coatings, and adhesives.

    The construction industry also uses a significant number of green solvents, which are used in the production of paints, coatings, and sealants. The electronics industry uses green solvents in the production of printed circuit boards, semiconductors, and other electronic components.

    The healthcare industry uses green solvents in the production of pharmaceuticals, medical devices, and other healthcare products.

    The market growth is attributed to the increasing demand for green solvents from various end-use industries. The automotive industry is expected to be the largest end-use industry for green solvents, followed by the construction industry.

    The electronics industry is also expected to witness significant growth in the demand for green solvents. The healthcare industry and the aerospace industry are also expected to contribute to the growth of the Green Solvent Market.

    Get more detailed insights about Green Solvent Market Research Report - Global Forecast by 2034

    Regional Insights

    The regional segmentation of the Green Solvent Market offers insights into the market's geographic distribution and growth potential.

    North America is expected to hold a dominant share of the market, driven by stringent environmental regulations and a growing focus on sustainable manufacturing. Europe follows closely, with a significant demand for green solvents in the automotive and electronics industries.

    The APAC region is projected to witness the fastest growth, owing to rising industrialization and increasing awareness of environmental protection.

    South America and MEA are anticipated to contribute a smaller share of the market but are poised for steady growth in the coming years. 

    Green Solvent Market Regional Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

    Key Players and Competitive Insights

    Key Green Solvent Market companies are continuously working to develop innovative Green Solvent Market products and solutions to cater to the increasing demand for sustainable and environmentally compatible ones.

    Prominent Green Solvent Market players are making focused efforts to expand their market footprint and product lines through strategic partnerships and acquisitions, propelling Green Solvent Market development.

    Both big and small market participants are striving to differentiate their offerings from local competitors with innovative value propositions and advanced levels of product development in the Green Solvent Market.

    Moreover, the ongoing Green Solvent Market consolidation spurs M activity that allows market participants to strengthen their product lines and obtain additional capabilities in terms of technology and market access.

    In addition to this, Green Solvent Market companies remain focused on reducing the environmental impact of their products and implementing environmentally compatible production processes.

    One of the key Green Solvent Market companies is Arkema, a multinational specialty chemicals and advanced materials company.

    Arkema’s brand NEOCARBON™ covers its range of Green Solvent Market products, offering a broad variety of hydrocarbon-based solvents, oxygenated solvents, and specialty solvents.

    The company is a leading co-player in various end-use industries, including paints and coatings, pharmaceuticals, cosmetics, and electronics.

    Moreover, in line with the Green Solvent Market dynamics, Arkema has been focused on sustainable development, implementing eco-friendly production processes and measures to reduce the environmental impact of its products.

    A key rival in the Green Solvent Market is BASF, the leader in the chemical industry. The company provides a range of solvents within the Green Solvent Market, offering a broad scope of solvents derived from renewable, plant-based sources.

    Furthermore, BASF has been driving the Green Solvent Market transformation through its Green Solvent Network, which aims to develop and promote the use of sustainable and environmentally compatible solvents to decarbonize the industry.

    Key Companies in the Green Solvent Market market include

    Industry Developments

    • Q2 2024: Cargill opens new bioindustrial facility in Eddyville, Iowa to expand green solvents production Cargill announced the opening of a new bioindustrial facility in Eddyville, Iowa, dedicated to the production of bio-based solvents, aiming to meet growing demand for sustainable alternatives in the chemical industry.
    • Q1 2024: Stepan Company launches new line of bio-based solvents for industrial applications Stepan Company introduced a new portfolio of bio-based solvents designed for use in coatings, adhesives, and cleaning products, expanding its offerings in the green solvents market.
    • Q2 2024: BASF and Avantium sign partnership to develop next-generation green solvents BASF and Avantium announced a strategic partnership to jointly develop and commercialize new green solvents derived from renewable feedstocks, targeting applications in paints and coatings.
    • Q3 2024: Solvay inaugurates new R&D center focused on green solvent innovation in Lyon, France Solvay opened a new research and development center in Lyon, France, dedicated to advancing green solvent technologies and accelerating the commercialization of sustainable chemical solutions.
    • Q2 2024: LanzaTech secures $50 million Series C funding to scale green solvent production LanzaTech raised $50 million in Series C funding to expand its proprietary gas fermentation technology for producing green solvents from industrial emissions.
    • Q1 2025: Evonik launches new green solvent for pharmaceutical synthesis Evonik introduced a new green solvent specifically designed for pharmaceutical synthesis, offering improved safety and environmental performance compared to traditional solvents.
    • Q2 2025: Clariant announces partnership with Neste to supply bio-based feedstocks for green solvents Clariant and Neste entered into a partnership to secure sustainable, bio-based feedstocks for the production of green solvents, supporting Clariant’s commitment to circular chemistry.
    • Q1 2024: Dow unveils new eco-friendly solvent platform for paints and coatings Dow launched a new platform of eco-friendly solvents aimed at reducing volatile organic compound (VOC) emissions in paints and coatings, reinforcing its sustainability strategy.
    • Q3 2024: INEOS completes acquisition of bio-based solvent producer Ecovio INEOS announced the acquisition of Ecovio, a leading producer of bio-based solvents, to strengthen its position in the sustainable chemicals market.
    • Q2 2025: AkzoNobel opens new green solvent manufacturing plant in the Netherlands AkzoNobel inaugurated a new manufacturing facility in the Netherlands dedicated to the production of green solvents for use in paints, coatings, and cleaning products.
    • Q1 2025: DSM appoints new Head of Green Solvents Business Unit DSM announced the appointment of a new executive to lead its Green Solvents Business Unit, reflecting the company’s focus on expanding its sustainable product portfolio.
    • Q2 2024: Shell and Braskem sign agreement to co-develop renewable solvents Shell and Braskem entered into a collaboration agreement to jointly develop and commercialize renewable solvents for industrial and consumer applications.

    Future Outlook

    Green Solvent Market Future Outlook

    The Global Green Solvent Market is poised for growth at a 5.12% CAGR from 2024 to 2035, driven by regulatory support, sustainability trends, and technological advancements.

    New opportunities lie in:

    • Develop bio-based solvents for industrial applications to meet rising eco-friendly demands.
    • Invest in R&D for innovative solvent formulations that enhance performance and reduce environmental impact.
    • Expand distribution networks in emerging markets to capitalize on increasing green chemistry adoption.

    By 2035, the Green Solvent Market is expected to achieve substantial growth, reflecting a robust commitment to sustainability.

    Market Segmentation

    Green Solvent Market Purity Outlook

    • Industrial Grade
    • High Purity
    • Research Grade

    Green Solvent Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Green Solvent Market Application Outlook

    • Paints and Coatings
    • Adhesives and Sealants
    • Cleaning and Degreasing
    • Electronics and Semiconductor Manufacturing
    • Pharmaceuticals and Cosmetics

    Green Solvent Market Solvent Type Outlook

    • Bio-based Solvents
    • Water-based Solvents
    • Halogenated Solvents
    • Aromatic Solvents
    • Terpenes and Other Natural Solvents

    Green Solvent Market End-Use Industry Outlook

    • Automotive
    • Construction
    • Electronics
    • Healthcare
    • Aerospace

    Report Scope

    Report Attribute/Metric Details 
    Market Size 2024 9.58 (USD Billion)
    Market Size 2025 10.07 (USD Billion)
    Market Size 2034 15.79 (USD Billion)
    Compound Annual Growth Rate (CAGR) 5.12% (2025 - 2034)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2034
    Historical Data 2020 - 2024
    Market Forecast Units USD Billion
    Key Companies Profiled SABIC, Evonik Industries AG, BASF SE, Arkema S.A., Royal Dutch Shell Plc, Covestro AG, Merck Group, The Chemours Company, DowDuPont, LyondellBasell Industries Holdings BV, Huntsman Corporation, INEOS, PetroChina Company Limited, Eastman Chemical Company, Solvay S.A.
    Segments Covered Solvent Type, Application, Purity, End-Use Industry, Regional
    Key Market Opportunities Sustainable product development Regulatory push for environmental protection Growing adoption in the pharmaceutical industry Increased demand from the electronics industry Rising awareness about environmental safety
    Key Market Dynamics Increasing environmental awareness Rising demand for sustainable products Technological advancements Growing adoption in pharmaceutical and biotechnology industries Expanding applications in electronics
    Countries Covered North America, Europe, APAC, South America, MEA

    FAQs

    What is the market size of the Green Solvent Market?

    The Green Solvent Market is expected to reach USD 15.79 billion by 2034, exhibiting a CAGR of 5.12% from 2025 to 2034.

    Which region is expected to hold the largest market share in the Green Solvent Market?

    Asia-Pacific is expected to hold the largest market share in the Green Solvent Market, owing to the increasing demand for green solvents in various industries such as pharmaceuticals, electronics, and automotive.

    What are the key drivers of the Green Solvent Market?

    The key drivers of the Green Solvent Market include the growing demand for sustainable and environmentally friendly products, stringent government regulations on VOC emissions, and increasing adoption of green solvents in various industries.

    What are the major applications of Green Solvents?

    Green solvents are used in a wide range of applications, including paints and coatings, cleaning agents, adhesives, and pharmaceuticals. They are also used in the extraction of natural products and in the synthesis of various chemicals.

    Who are the key competitors in the Green Solvent Market?

    Some of the key competitors in the Green Solvent Market include BASF, Dow, Eastman Chemical, Evonik, and INEOS.

    What is the expected growth rate of the Green Solvent Market?

    The Green Solvent Market is expected to exhibit a CAGR of 5.12% from 2025 to 2034.

    What are the challenges faced by the Green Solvent Market?

    The Green Solvent Market faces challenges such as the high cost of green solvents compared to traditional solvents, the limited availability of green solvents, and the lack of awareness about the benefits of green solvents.

    What are the opportunities in the Green Solvent Market?

    The Green Solvent Market presents opportunities such as the increasing demand for sustainable products, the growing adoption of green solvents in various industries, and supportive government regulations.

    What are the key trends in the Green Solvent Market?

    Key trends in the Green Solvent Market include the development of new green solvents, the increasing use of bio-based green solvents, and the growing adoption of green solvents in emerging markets.

    What is the outlook for the Green Solvent Market?

    The outlook of the Green Solvent Market is positive, driven by the increasing demand for sustainable products, the growing adoption of green solvents in various industries, and supportive government regulations.

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