WHITE SPIRITS MARKET ANALYSIS

Key Takeaways from Analyst

The growth of the white spirits market is fueled by rising demand in the paints and coatings sector. Historically, solvents sourced from petroleum feedstock have been the primary players in the white spirits industry. However, rising demand for bio-based and environment-friendly products compel manufacturers to develop spirits from renewable sources.

Asia Pacific currently dominates white spirits consumption due to growing paints and coatings industry in China and India. Strong infrastructure development and construction activities along with increasing per capita paints usage in the region provide huge market potential.

Volatility in crude oil prices poses challenge for white spirits suppliers as it directly impacts production costs. However, developing alternative raw material sources can help mitigate this risk. Shift towards water-based paints owing to stringent VOC regulations in North America and Europe is a threat to solvent-based ones. White spirits still have applications where low-VOC products do not provide equivalent performance.

Adoption of bio-based raw materials presents new opportunities for white spirits producers. Growing emphasis on sustainability across end-use industries such eco-friendly options. Expanding coatings demand from transportation and industrial segments besides buildings and construction can aid market expansion.