DE-AROMATIC SOLVENTS MARKET ANALYSIS

De-Aromatic Solvents Market Size and Trends

The global de-aromatic solvents market is estimated to be valued at USD 2.34 Bn in 2024 and is expected to reach USD 3.64 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.5% from 2024 to 2031.

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There is an increasing demand for de-aromatic solvents from industries such as paints & coatings, adhesives, aerosols, and cleaning agents. The growing construction and automotive industries are expected to drive the consumption of paints & coatings, which, in turn, will boost the demand for de-aromatic solvents. For instance, according to data from trade government sources, the U.S. boasts one of the largest automotive markets globally. In 2020, U.S. light vehicle sales reached 14.5 million units, solidifying the country’s position as the world's second-largest market for vehicle sales and production. In addition, stringent environment norms regarding the emission of volatile organic compounds are also prompting industries to opt for bio-based and eco-friendly de-aromatic solvents, thus providing opportunities for growth in the market. However, availability of substitutes may hinder the market growth to some extent during the forecast period.

Market Driver - Increasing demand for low-odor and low-VOC (volatile organic compounds) solvents

The demand for solvents that produce minimal or no odor and emit lower levels of volatile organic compounds (VOCs) into the air is growing substantially across various end-use industries. De-aromatic solvents have been increasingly adopting as an effective alternative to conventional aromatic solvents owing to their low-odor and low-VOC profile. Many industries such as paints & coatings, cleaning products, adhesives, aerosols, and others are witnessing a noticeable shift toward using de-aromatic solvents to comply with stringent regulations regarding VOC emissions. These regulations are being enforced to control air pollution and reduce the health hazards associated with inhaling VOC vapors.

The paints & coatings industry has especially raised the consumption of de-aromatic solvents as they have become a preferred choice for formulating various paint types. Water-based and powder coatings are gaining wide acceptance but solvent-borne coatings continue to have considerable demand in certain applications that require high performance. In such scenarios, de-aromatic solvents are helping manufacturers to develop low-VOC and sustainable products without compromising on the quality and efficacy of coatings. Similarly, the cleaning products industry is switching to de-aromatic solvents in household cleaners, hand cleaners, hard surface cleaners, and other cleaning liquids and wipes to lower the impact on indoor air quality. Even pharmaceutical and cosmetic industries have triggered the need for de-aromatic solvents by showing preference for odorless and less toxic excipients and diluents in their products.

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Growing regulations on aromatic solvents due to health and environmental concerns

Regulatory authorities across different parts of the world have been imposing stringent restrictions on the application of several aromatic solvents owing to increasing health, safety, and environmental risks associated with these chemicals. Prolonged or repeated exposure to aromatic compound vapors can cause various acute and long-term effects on human health. Short-term impacts may include headaches, dizziness, confusion, while long-term effects involve damage to liver, kidneys, and nervous system. Moreover, aromatic solvents are hazardous air pollutants and many can contaminate water sources. Their improper handling and disposal may also lead to soil contamination over time.

Due to such significant health and environmental concerns, regulatory agencies are constantly efforts to curb the use of hazardous aromatic chemicals. Notable among these are restrictions enforced by the European Union's Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) regulation and California Air Resource Board (CARB) in the U.S. Both agencies have added several aromatic solvents to their lists of chemicals that require limiting or replacing entirely. Their recent guidelines especially emphasize replacing carcinogenic, mutagenic, and reprotoxic solvents. Similarly, China and other major developing economies are also tightening norms pertaining to VOC emissions from solvent-based products.

The weightage of health risks over other performance factors is necessitating companies to substitute aromatic solvents proactively before regulatory bans. Hence, strict legislation controls the choice of solvents, favoring alternatives like de-aromatic hydrocarbons. This growing regulatory pressure is a chief factor driving the demand for specialized non-aromatic solvents across major end-use sectors on a global scale.