Biosolvents Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Alcohols, Diols & Glycols, Esters, Others), By Application (Industrial & Domestic Cleaners, Paints & Coatings, Adhesives & Sealants, Printing Inks, Others), and By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 6.68 Billion
CAGR (2026-2031)	6.03%
Fastest Growing Segment	Paints & Coatings
Largest Market	North America
Market Size (2031)	USD 9.49 Billion

Market Overview

The Global Biosolvents Market will grow from USD 6.68 Billion in 2025 to USD 9.49 Billion by 2031 at a 6.03% CAGR. Biosolvents are defined as solvents derived from renewable biomass sources, such as agricultural crops, seeds, and vegetable oils, which serve as sustainable alternatives to conventional petrochemical solvents. The primary drivers supporting the growth of the Global Biosolvents Market include stringent environmental regulations aimed at reducing Volatile Organic Compounds and a heightened global emphasis on lowering carbon footprints in industrial processes. According to the Renewable Fuels Association, in 2024, global ethanol production reached approximately 31.2 billion gallons, illustrating the substantial industrial capacity for bio-based chemicals utilized in solvent and fuel applications.

One significant challenge impeding market expansion is the higher production cost of biosolvents compared to fossil-based equivalents, often resulting from complex processing requirements and lower economies of scale. This price disparity can deter widespread adoption in cost-sensitive industries where conventional solvents remain a cheaper option. Additionally, the volatility of agricultural feedstock prices further complicates long-term planning for manufacturers and creates economic uncertainty within the supply chain.

Key Market Drivers

Strategic shifts toward green chemistry and bio-economy initiatives are fundamentally reshaping the Global Biosolvents Market by prioritizing renewable carbon sources over fossil-based incumbents. This transition is being accelerated by substantial government support and industrial investments aimed at fostering a circular economy, which directly benefits the development of bio-based chemical supply chains. These initiatives provide the necessary economic framework for manufacturers to transition away from conventional petrochemicals toward safer, renewable alternatives. According to the U.S. Department of Agriculture, March 2024, in the 'An Economic Impact Analysis of the U.S. Biobased Products Industry' report, the biobased products sector contributed USD 489 billion of value added to the United States economy, demonstrating the immense economic scale currently driving the commercialization of renewable chemical alternatives.

The robust expansion of the paints and coatings application sector acts as a second critical catalyst for widespread biosolvent adoption, driven by the need for high-performance, low-toxicity formulations. Major coatings manufacturers are aggressively reformulating their portfolios to replace conventional volatile organic compounds with sustainable bio-based esters and alcohols, effectively linking sustainability with profitability. According to PPG Industries, April 2024, in the '2023 ESG Report', 44% of the company's total sales were generated from sustainably advantaged products, underscoring the growing market reliance on eco-friendly inputs for formulation. This sectoral demand aligns with broader upstream trends, as raw material availability expands to meet industrial needs. According to European Bioplastics, in 2023, the global production capacity for bio-based materials was projected to surge to approximately 7.43 million tonnes by 2028, ensuring a strengthened feedstock foundation for solvent production.

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Key Market Challenges

The higher production cost of biosolvents compared to conventional petrochemical alternatives represents a critical impediment to market expansion. This price disparity arises largely from the capital-intensive nature of converting renewable biomass into high-purity chemicals, which often involves intricate fermentation and purification processes. In price-sensitive industries such as paints, coatings, and industrial cleaning, procurement decisions are driven primarily by operational margins. Consequently, the premium attached to biosolvents discourages manufacturers from switching away from established, lower-cost fossil solvents, thereby limiting the market penetration of renewable alternatives to niche applications rather than mass adoption.

This challenge is further exacerbated by the difficulty in achieving economies of scale. Without consistent, high-volume demand, bio-based manufacturers cannot operate facilities at the optimal levels required to reduce per-unit costs, leaving them at a disadvantage against the mature petrochemical sector. According to European Bioplastics, in 2024, the average capacity utilization rate for the global bio-based industry stood at approximately 58%. This significant underutilization highlights the operational inefficiencies that sustain high production costs, preventing biosolvents from reaching the competitive pricing necessary to challenge fossil-based equivalents in the broader industrial market.

Key Market Trends

The valorization of lignocellulosic and agricultural waste for second-generation solvents is rapidly emerging as a primary trend, fundamentally altering feedstock strategies to bypass the food-versus-fuel debate. Manufacturers are increasingly utilizing advanced refining technologies to convert low-value residues, such as waste oils and forestry by-products, into high-purity renewable chemicals, thereby decoupling solvent production from volatile commodity crop markets. This shift toward circularity ensures a stable supply of technical-grade precursors necessary for downstream chemical synthesis without compromising food security. According to Neste, August 2025, in the article 'Neste's renewable diesel journey', the company's total production capacity for renewable products, derived largely from diverse waste and residue raw materials, has reached approximately 5.5 million tons annually, underscoring the industrial scalability of waste-to-chemical pathways.

Concurrently, the development of carbon-neutral solvent portfolios to support Scope 3 emission reduction has become a critical competitive differentiator for suppliers targeting sustainability-focused end markets. Chemical producers are aggressively expanding their capacity for bio-based alcohols and ethers that offer drop-in performance with verifiable carbon reduction metrics, allowing customers in the pharmaceutical and electronics sectors to lower their indirect emissions profiles. This trend is driving significant volume growth in renewable solvent manufacturing, as verified environmental attributes become a standard procurement requirement. According to Verbio SE, September 2025, in the 'Annual Report 2024/2025', the company's production of bioethanol, a key solvent and intermediate, reached 582,610 metric tons for the fiscal year, reflecting the surging demand for low-carbon chemical inputs in global supply chains.

Segmental Insights

The Paints & Coatings segment represents the fastest growing sector in the Global Biosolvents Market due to a significant industry shift toward sustainable manufacturing practices. This expansion is largely propelled by strict guidelines from the United States Environmental Protection Agency and the European Union REACH regulation, which enforce lower volatile organic compound limits. Manufacturers are actively replacing conventional petrochemical solvents with renewable alternatives to decrease toxicity levels and carbon footprints. This strategic transition allows companies to adhere to rigorous compliance standards while satisfying the increasing global requirement for safer architectural and industrial coating solutions.

Regional Insights

North America currently holds the leading position in the global biosolvents market, driven primarily by stringent environmental mandates regarding volatile organic compound emissions. The United States Environmental Protection Agency enforces regulations that compel manufacturers to transition from conventional petrochemical solvents to sustainable bio-based alternatives. Furthermore, the region benefits from a strong agricultural sector that ensures a steady supply of feedstock for production. This regulatory pressure, combined with high demand from the construction and automotive industries for eco-friendly paints and coatings, establishes North America as the dominant territory in the global landscape.

Recent Developments

• In August 2024, Circa Group AS entered into a strategic collaboration with Vertec Biosolvents to develop the market for its sustainable solvent, Cyrene, in the Americas. This partnership aimed to substitute hazardous petroleum-based solvents by blending them with bio-based alternatives to create safer and more sustainable industrial solutions. By combining expertise in bio-based solvent blends with the unique properties of Cyrene, the companies sought to expand the application range and competitiveness of renewable solvents. The agreement marked a crucial step in accelerating the shift towards environmentally friendly products in the North American market.
• In May 2024, BASF expanded its portfolio of biomass balance products to include certified renewable variants of key chemical intermediates and solvents such as 1,4-butanediol (BDO) and tetrahydrofuran (THF). These products were manufactured by replacing fossil resources with renewable raw materials, such as bio-waste, at the beginning of the production process. The certification allowed the company to attribute the renewable content to specific sales products, providing customers with drop-in solutions that possessed a lower product carbon footprint without compromising on quality or performance. This move aimed to support the transition of various industries towards reduced reliance on fossil fuels.
• In February 2024, Kraton Corporation launched Sylvasolv, a new line of biobased hydrocarbon oils and solvents derived from pine wood pulping co-products. The initial product in this series, Sylvasolv 1000, was specifically developed for the agriculture industry to serve as a functional additive in fertilizer coatings and crop protection formulations. This 100% biobased solution was engineered to replace petroleum-based alternatives, offering improved environmental credentials and performance benefits such as dust control and anti-caking properties. The launch represented a strategic expansion of the company's portfolio of sustainable specialty chemicals.
• In January 2024, Solvay introduced a new carbon-neutral assortment of its Augeo biosolvents during the American Cleaning Institute's annual conference. This strategic product launch was aimed at substituting traditional petrochemical-based solvents in cleaning applications with options that inherently carried a reduced carbon burden. The new range was validated for superior sustainability and was designed to meet the rigorous performance standards required by the industry. By expanding its portfolio with these eco-friendly solutions, the company reinforced its dedication to the circular economy and supported its customers in achieving their own environmental targets through the adoption of renewable, low-carbon chemistries.

Key Market Players

• Archer Daniels Midland Company
• BASF SE
• Solvay S.A.
• Cargill, Incorporated
• Stepan Company
• Corbion NV
• Dow Inc.
• GF Biochemicals Limited
• CREMER OLEO GmbH & Co. KG
• Vertec BioSolvents Inc.

By Type	By Application	By Region
Alcohols Diols & Glycols Esters Others	Industrial & Domestic Cleaners Paints & Coatings Adhesives & Sealants Printing Inks Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Biosolvents Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Biosolvents Market, By Type:

• Alcohols
• Diols & Glycols
• Esters
• Others

• Biosolvents Market, By Application:

• Industrial & Domestic Cleaners
• Paints & Coatings
• Adhesives & Sealants
• Printing Inks
• Others

• Biosolvents Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE