Global white spirits Market is estimated to witness high growth, owing to increased construction activity & high demand for paint thinners and cleaners
Global white spirits market is estimated to be valued at USD 6.55 Bn in 2024, exhibiting a CAGR of 4.1% over the forecast period (2024-2031). The market growth is mainly driven by high demand for paint thinners and cleaners from construction and paint & coatings industries. Furthermore, rapid urbanization and infrastructure development have augmented the growth of construction sector, thus, boosting consumption of white spirits.
Market Dynamics-
Global white spirits market growth is driven by rising construction activities across both developing and developed countries. Such as Germany & U.K. Government investments in infrastructure development projects such as roads, bridges, highways and others have resulted in increased demand for paints and coatings, thus, positively impacting the white spirits market. Huge demand for paint thinners from paint & coatings industry can also drive the market growth. White spirits or mineral spirits are widely used as diluents and thinners in decorative and industrial paints & coatings. Growing paint & coatings industry, especially in Asia Pacific, can boost consumption of white spirits during the forecast period.
Increasing demand from paints and coatings industry
Paints and coatings industry is one of the largest end users of white spirits. White spirits are used as solvents and thinners in paints, coatings, inks and related products. Growing construction industry across the world can boost demand for paints and coatings, and this can drive the white spirits market growth. Countries in Asia Pacific and Middle East regions are witnessing strong growth in construction activities, and this positively impacts the white spirits consumption.
Rising usage in industrial cleaning and degreasing
White spirits have wider industrial applications as effective cleaning and degreasing agents. These are used for cleaning and degreasing of metal surfaces, parts and equipment in various manufacturing industries such as automotive, machinery, electronics and others. Growing industrial sectors leads to increased need for cleaning and maintenance activities. Their safer environmental profile as compared to other solvents encourages replacement and new adoption of white spirits in industrial cleaning.
Stringent regulations regarding VOC emissions
Many regions and countries Such as Asia pacific have formulated stringent regulations regarding the VOC (volatile organic compound) emissions from solvents and coatings. Since white spirits are hydrocarbon solvents, their usage entails VOC emissions. The tightening emissions norms compel manufacturers to modify formulations, replace solvents and adopt alternate cleaning technologies. This poses a challenge for the white spirits market.
Availability of Bio-based and green alternatives
With growing environmental concerns, industries are actively exploring bio-based and more sustainable solvent alternatives. The competitive advantage of bio-degradability favors the bio-alternatives over minerally derived white spirits. This threat from green substitutes can impede demand for white spirits.
New applications development
Constant R&D allows white spirits to foray into new application beyond existing usage. Ongoing projects involve development of white spirits-based formulations for 3D printing materials, electronic coatings, pharmaceutical solvents, and others. Successful commercialization of these new applications can stimulate the white spirits consumption.
Link: https://www.coherentmarketinsights.com/market-insight/white-spirits-market-3273
Key Developments:
- In December 2022, ExxonMobil revealed its five-year corporate strategy, which includes a significant rise in investments focused on lowering emissions and enhancing lower-emission projects, particularly through its Low Carbon Solutions division. By 2027, the plan intends to maintain annual capital expenditures ranging from USD 20 to 25 billion, with a target of increasing investments in lower-emission initiatives to around USD 17 billion.
- In July 2022, Adnoc Distribution, UAE's petroleum and retail distributor, announced its acquisition of a 50% stake in TotalEnergies Marketing Egypt for about USD 186 million. It entered into a supply agreement for white spirit with Adnoc, and this can enhance the company's market share over time.
- In February 2021, Abu Dhabi National Oil Company (ADNOC) announced the addition of white spirits and solvents to its product portfolio. This expansion is aimed at strengthening the company's presence in the international market.
Key Players:
ExxonMobil Corporation, Royal Dutch Shell Plc, Total S.A., Idemitsu Kosan Co., Ltd., Compañía Española de Petróleos, S.A.U. (CEPSA), Neste Oyj, Haltermann Carless Deutschland GmbH, DHC Solvent Chemie GmbH, Al Sanea Chemical Products, and GSB Chemical Co. Pty. Ltd.
