Green Solvents Market By Type (Bio-Alcohols, Bio-Glycols, Bio-Diols, Lactate Esters, D-Limonene, Bio-Based Acetone, and Others), By Source (Agricultural Crops, Cellulose & Biomass, Other Renewable Sources), and By Application (Paints & Coatings, Adhesives & Sealants, Pharmaceuticals, Cosmetics & Personal Care, Cleaning Products, Printing Inks, Food & Beverages, and other Industrial Sources), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Green Solvents market accounted for USD 2.2 Billion in 2024 and is expected to reach USD 5.51 Billion by 2035, growing at a CAGR of around 8.7% between 2025 and 2035.  The green solvent is defined as a solvent based on renewable feedstocks and designed to have little or no negative effects on the environment. Green solvents are better than traditional solvents containing dangerous chemicals and some volatile organic compounds since they are eco-friendly and non-toxic in every way. Its relevance in the industry is in its ability to assist firms in achieving compliance with rigorous environmental standards, cutting their emissions of greenhouse gases, and addressing the continuing market call for eco-friendly products.

Report Scope:

Market Dynamics

Increasing environmental regulations promoting sustainable practices

Increasing environmental laws addressing eco-environmentally friendly solutions are a force in the green solvent market. Authorities and related agencies in different countries are bringing the required standard concerning environmental considerations in industrial processes. The European Union has opted for REACH (Registration, Evaluation, Authority, and Restriction of Chemicals), while industries in the United States have had to come up with volatile organic compound controls on emissions of gases that are organic. Conventional solvents, on the other hand, release hazardous chemicals that cause air as well as water pollution. These regulations are met by green solvents, which are environmentally friendly and produced from renewable materials. The urge to shift away from high carbon footprints and work toward sustainability makes organizations embrace green solvent technologies and provide environmental compliance and long-term cost advantages.

Rising demand for eco-friendly products across various industries

Increased use of green products in various industry sectors has grown in recent years due to the sensitization of sustainable products for consumers and industries. Besides paints & coatings, pharmaceuticals, and personal care industries, many more industries, like agriculture, food & beverages, and automotive industries, are paying high interest to green solvents to decrease their effects on environmental impact. These solvents are environmentally friendly since some of them are synthesized from renewable and biodegradable materials, increase products’ safety, and improve the health of workers by reducing their exposure to hazardous chemicals and reducing greenhouse gas emissions. Furthermore, more industry globalization for employing green technologies through enhanced government motivating factors in conjunction with corporate social responsibilities (CSR) that are encouraging the formulation of environmentally friendly substitutes during manufacturing processes. That is why the popularity of green solvents increases year by year as the global trend towards cleaner processes and fighting with high volatile organic compound emissions proves more and more the importance of these compounds in the framework of today’s sustainability movement.

The limited availability of some bio-based solvents in regions

The high cost and low availability of some of the biobased solvents in parts of the world is a major challenge for the green solvent market. Unlike hydrocarbon solvents, which are produced all over the globe, mostly manufactured, and abundantly available in the market, biobased solvent production is regional. Some of the green solvents that have already been synthesized are such as corn, sugarcane, or soy, and these are crops that are hydrolyzed magnetically in certain localities. Hence, regions that are unable to access these feedstocks have problems when it comes to obtaining appropriate quantities of bio-based solvents. This regional dependency results in supply chain constraints and high transportation costs, placing higher prices for green solvents in remote markets. However, variations in yields that may result from climate changes or differences in crop production techniques also contribute to irregular supply. These factors create challenges to the heavy adoption of green solvents by industries in some regions and, as a result, slow market growth and are unable to measure up to meet competition from traditional solvents whose supply chains are well established.

Expansion of bio-based solvent production technologies and innovations

Emerging technologies of bio-based solvents and advancements in new technology are the affecting areas of interest for the green solvent market. With the rise of consumers’ concern about the use of environmentally friendly products, manufacturers are focussing on research to enhance methods for using bio-based solvents for large-scale production. Biotechnological advancement, in particular microbial fermentation and enzyme-catalyze reactions, made it possible for the conversion of renewable materials like plant residues and agricultural waste—into high-performance solvents. This is not only advantageous in the reduction of dependency on conventional crops, corn, and soy but also provides broader opportunities for feedstock availability and the availability of feedstock within industries that are industrial wastes.
Innovations in green chemistry-supporting solvents indicate that as researchers work for higher solvents, advantages like solubility, stability, and reduced environmental effects are being offered. Other aspects contributing to sustainability are the following concept like the use of a circular economy where wastes produced during manufacturing are used in the production process. It is predicted that at present and in the soon, advanced biotechnologies will have decreased costs and increased availability to make biobased solvents to be produced globally, overcoming the supply chain hurdles and making them available to the various industries to replace the traditional solvent. This will help companies that develop the products to be able to meet the legal regulations on the usage of natural products as well as market demand for natural products.

Rising interest in green chemistry and sustainable manufacturing

Rising interest in green chemistry practices and green manufacturing is a high growth factor for the green solvent market. Green chemistry is the twelve principles aimed at reducing the usage and formation of hazardous substances in chemical products and processes. This approach is finding ground as more industries around the world aim at decreasing their turnover’s impact on the environment and increasing safety for employees and customers. The demand for sustainable manufacturing is also high, particularly in the industries of pharmaceuticals, agrochemicals, cosmetics, and paints & coatings.

Traditional industrial solvents are toxic, so companies are on the lookout for some less hazardous and renewable green solvents. From the governments and the regulatory authorities, new businesses are being persuaded through subsidies, tax exemptions, and more rigid enactments to adhere to cleaner technologies and methods, which promotes green chemistry inventions. This trend not only enables the companies to meet environmental requirements but also improves their corporate image so that they attract environmentally sensitive customers. The increasing emphasis on operations management efficiency and environmental conservation, including sustainable manufacturing processes, is another strong force for growth and innovation in the green solvent markets.

Industry Experts Opinion

“Green Chemical methods and sustainable processes can offer remarkable possibilities for academia and the chemical industry in our aim to improve the environmental footprint of materials, chemicals and fuels processing and manufacturing”

• Dr. Sherine Obare, Dean of Nanoscience at the University of North Carolina at Greensboro,

“Green chemistry has been defined as ‘the employment of techniques and methodologies that reduce or eliminate the use or production of feedstocks, products, by-products, solvents, and reagents that are harmful to human health or the environment.”

• Bashayer J. Al-Shatti, Ministry of Health, Jabriya, Kuwait; Department of Pharmaceutical Chemistry, College of Pharmacy, Kuwait University

Segment Analysis

Based on the type, the Green Solvents Market is also categorized into bio-alcohols, bio-glycols, lactate esters, D-limonene, and bio-based acetone. Bio-alcohols, ethanol, and butanol are the most marketable as they are widely used in the pharmaceutical and cosmetics industries. Lactate esters from renewable resources, corn, and sugar, are being adopted by paints and coatings manufacturers due to low evaporation rates. The use of D-limonene derived from citrus fruits as an active ingredient in cleaning products as they are potent, non-toxicants. Bio-glycols and bio-based acetone in general are exhibiting market growth as companies in various industries are seeking eco-friendly solutions to their problems, although some bio-glycols are having problems when it comes to performance and availability. 

Based on the application, the Green Solvents Market has its bullets in paints and coatings, pharmaceuticals, adhesives and sealants, cosmetics and personal care, and cleaning and washing industries. This major market segment is driven by the need for low-volatile organic compound contents, and paints and coatings are vital products that must adhere to the set environmental standards. The use of green solvents in formulation and drug synthesis is gradually gaining ground in the manufacturing of drugs in the pharmaceutical industry because of lower effects on the environment and enhanced safety. In cosmetics and personal care, green solvents are applied to create natural products with sustainability to meet emergent customers’ demand for green products.

Regional Analysis

North America is the dominating region in the Green Solvents Market due to increasing stringency in environmental legislation and a primary emphasis on sustainability. Policies dealing with volatile organic compound emission control have forced manufacturers in the United States to look for green solvents. The need to meet the green requirements in regulation, coupled with the growing consciousness of consumers regarding the damaging impact of traditional solvents, has created a higher demand for greener solvents in multiple industries such as paints and coatings, pharmaceuticals, and personal care products. They also find that North America presents strong research and development propositions to market a wide range of bio-based solvents and become more portfolio diverse, further cementing its position in the market.

The Asia-Pacific region is the most promising one in terms of green solvent consumption, mainly due to the constantly progressing industrialization and growing public concern for safety and sustainability. Governments and consumers in countries like China, India, and Japan are putting pressure on sustainable manufacturing practices, which are encouraging manufacturing companies to come up with sustainability strategies. The increase in the end-user industries, such as automotive, construction, and personal care, is also a key trend. Boosting green solvent demand. The opportunity to utilize renewable resources and incorporate environmentally sustainable chemistry in the manufacturing processes will improve the market growth in this area. Recently introduced stringent environmental policies are expected to promote the use of green solvents, and Asia-Pacific is expected to emerge as the leader in the global green solvents market.

Competitive Landscape

The Green Solvents Market is highly competitive having major participants such as The Dow Chemical Company, Cargill, and BASF, which offer extensive capital and funding to create and develop new biobased solvents while diversifying their current offerings. The previous decade has seen these companies incorporating sustainable technologies into their business models and signing partnership deals to improve their positions on the competitive chessboard. Other start-ups, including GFBiochemicals and Circa Group, are also beginning to make a name for themselves due to their concentration on green solvents and innovative synthesis techniques. This pressure is playing out as firms look for ways to market their products based on their efficiency, green aspect, and ability to meet environmental laws. Price sensitivity, however, persists, especially when entry markers for petroleum-based solvents are well established. In general, competitiveness is changing, and there is a definite trend towards innovation and objectively necessary accents on sustainability.

Green Solvents Market, Company Shares Analysis, 2024

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Recent Developments:

• In March 2024, Eastman expanded its portfolio of sustainable solutions with the introduction of Eastman Omnia™, a green solvent derived from renewable resources. It is designed for use in cleaning products, personal care, and industrial applications.
• In January 2024, Circa Group announced the successful scaling of its levoglucosenone production, a bio-based solvent that is derived from waste biomass. This solvent, branded as Cyrene, is being promoted as an alternative to traditional toxic solvents like NMP (N-Methyl-2-pyrrolidone) and DCM (Dichloromethane). The expansion of Cyrene's production aligns with the rising demand for greener alternatives in industries like pharmaceuticals and electronics.

Report Coverage:

By Type

• Bio-Alcohols
• Bio-Glycols
• Bio-Diols
• Lactate Esters
• D-Limonene
• Bio-Based Acetone
• Others

By Source

• Agricultural Crops
• Cellulose & Biomass
• Other Renewable Sources

By Application

• Paints & Coatings
• Adhesives & Sealants
• Pharmaceuticals
• Cosmetics & Personal Care
• Cleaning Products
• Printing Inks
• Food & Beverages
• Other Industrial Applications

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• The Dow Chemical Company
• Cargill, Incorporated
• Clariant International Ltd.
• Bio Brands LLC
• Archer Daniels Midland Company
• Corbion NV
• CREMER OLEO GmbH & Co. KG
• Vertec BioSolvents Inc.
• Florachem Corp.
• Solvay S.A.
• Stepan Company
• BASF SE
• Eastman Chemical Company
• GFBiochemicals
• Circa Group
• India Glycols Limited

Frequently Asked Questions (FAQs)