INDIA DE AROMATIC SOLVENTS MARKET ANALYSIS

Market Challenges And Opportunities

India De Aromatic Solvents Market - Restraints

• Rising demand for eco-friendly product bio-based raw materials

Rising demand for eco-friendly product bio-based raw materials is expected to restrict the market growth of de-aromatic solvents over the forecast period. Moreover, according to the Coherent Market Insights, demand for greener alternatives, bio-based solvents market is slated to register a steady CAGR of around 6–8% over the forecast period.

• Increasing Cost of Raw Materials

The price of the raw materials needed to make de-aromatic solvents is anticipated to change, which would be detrimental to the industry. Naphtha is the most frequent raw material utilized to create de-aromatic solvents. Crude oil is used to make naphtha. Due to the Russian invasion of Ukraine and trade restrictions imposed on Iran and Russia, two major producers of oil and gas, crude oil prices are soaring. Thus, the market's expansion is hampered by the increasing price of crude oil and its impact on participants' profit margins. Additionally, crude oil must be refined before use, and using crude oil resources incurs additional expenditures. These factors are predicted to restrain the market growth for DE aromatized solvents over the forecast period.

Market Opportunities

• Various manufacturers are focusing on increasing production capacity of de-aromatized

Various manufacturers are focusing on increasing production capacity of de-aromatized in order to expand their presence in India. This is expected to offer potential growth opportunities in the near future. For instance, in 2017, Exxon Mobil expanded its production capacity by 250,000 tons for global hydrocarbon solvents. It produces a range of de-aromatic solvents in its facilities located in Singapore and Antwerp.