Circular Bio-Solvents Market

Circular Bio-Solvents Market Outlook (2025 to 2035)

The global circular bio-solvents market is expected to reach USD 2,149 million by 2035, up from USD 1,014 million in 2025. During the forecast period 2025 to 2035, the industry is projected to expand at a CAGR of 7.8%.

The bio-solvents market is garnering a continuous increase but seems to be expanding at a slow rate, induced by the growing preference for organic and low-VOC substitutes over petroleum-based solvents. They are renewable (or waste-based) solvents that are experiencing growing popularity in many major industries, including paints and coatings, personal care, cleaning, and pharmaceuticals. Environmental regulations are becoming stricter; consumers are becoming more aware, and advances in circular bio-refinery technology are providing key market dynamics.

Quick Stats for Circular Bio-Solvents Market

• Industry Value (2025): USD 1,014 Million
• Projected Value (2035): USD 2,149 Million
• Forecast CAGR (2025 to 2035): 7.8%
• Leading Segment (2025): Bio-Alcohols (40% Market Share)
• Fastest Growing Country (2025-2035): India (8.9% CAGR)
• Top Key Players: BASF SE, Dow Inc., Archer Daniels Midland (ADM), Cargill, Inc., and Corbion N.V.

What further fosters uptake is a high level of policy support in some areas, such as Europe and Asia-Pacific, and also industrial changes to decarbonization and zero-waste production. Yet, the cost of production and a lack of infrastructure in sourcing circular source materials are the limiting factors for scaling.

What are the drivers of the Circular Bio-Solvents market?

The bio-solvents market is a cyclical market which has been increasing due to an increase in demand for sustainable and environmentally friendly alternatives to traditional petrochemical solvents. Increasing enforcement of environmental laws to minimize volatile organic compound (VOC) emissions, as well as encourage the practice of renewable and/or biodegradable chemical use, is one of the key drivers.

The trend towards a circular economy, in which waste products and by-products have been turned into precious raw materials, is prompting companies to use bio-based solvents that are produced using agricultural waste and forestry and by-products, and food waste materials. The demand for green products in the sphere of personal care, cleaning, and coatings by consumers is compelling manufacturers to use circular bio-solvents in their products. Enhancement of production efficiency and scalability is also being improved by the technological development in terms of bio-refining processes, which include enzymatic conversion and fermentation.

Decreased reservations about investments in alternatives to carbon technologies and sustainable production processes are also stimulating the use of circular solvents, especially in Europe, North America, and rapidly developing Asia-Pacific economies.

What are the regional trends of the Circular Bio-Solvents market?

The bio-solvents market is circular, and regional trends exhibit diverse performance due to regulation, industrial capacity andthe  green agenda. The highest level of adoption is in Europe because the region has strong recycling infrastructure, strict environmental policies, and a commitment to circular economy ideas.

The area also spends so much on waste-to-resource technologies and bio-refinery networks. North America also takes a significant share with the rise in demand for paints, coatings, personal care, and efforts to reduce carbon footprints. The market in the Asia-Pacific is growing fast, especially in East and South Asia. Agricultural waste matter or biomass has been used in countries in this region to spur the circular solvent manufacture, led by the industrial development and government sustainability packages.

Latin America and the Middle East & Africa are developing markets in which recycling infrastructure (and green chemistry use) are slowly advancing. All in all, there is a combination of the strength of environmental policy, the availability of feedstock, as well as the innovation in the industry that is defining regional growth.

What are the challenges and restraining factors of the Circular Bio-Solvents market?

There are various threats and inhibitors of the circular bio-solvents market, which impede its adoption in the global market. The prohibitive cost of producing advanced bio-refinery technologies and waste-to-resource conversion process is also one of the obstacles to the realization of circular solvents and makes the latter less price-worthy than the former petrochemical solvents.

There is also the problem of availability of waste-based feedstocks, which is limited in supply and inconsistent, and this makes operations difficult in the areas where there is a lack of organized infrastructure in waste collection and biomass. A third challenge is the technological complexity associated with making high-performance, scalable, and high-purity circular solvents according to high industrial performance standards. Innovation Investments in emerging markets are also retarded because of regulatory uncertainty in the environment.

Moreover, the absence of awareness and acceptance among the end users, particularly in cost-sensitive industries, constrains penetration in the market. The gap in infrastructure in terms of logistics, recycling systems, and integration of bio-refineries is also a limiting point to growth. The bundling of these challenges signifies that the potential of circular bio-solvents can only be realized by improving and supporting supply chains, which require innovation and policy solutions.

Country-Wise Insights

India Emerges as a High-Growth Hub for Circular Bio-Solvents Adoption

India is fast emerging as an important growth market in terms of the circular bio-solvents, which are rising in the country due to its large amount of agricultural residue, increasing environmental consciousness and a strong industrial growth. The bioeconomy programmes of the country, including the National Bio-Energy Mission, Sustainable Alternative Towards Affordable Transportation (SATAT), are promoting the conversion of organic and agro-waste to value-added products, including green and circular solvents.

Indian companies such as Praj Industries have been leading the way in bio-refinery with solutions to convert waste products such as sugarcane bagasse into sustainable materials to produce chemicals and solvents. The availability of a large pool of chemical, pharmaceutical, and personal care industries provides India with an expanding requirement to supply low-toxicity biodegradable solvents.

Furthermore, governmental policies such as the encouragement of cleaner production and the limitation of VOC should also be mentioned as factors that are driving the process of switching to the bio-based industry even more rapidly. As investments in circular technology and infrastructure continue in India, the country should become the fastest-growing country in the global circular bio-solvent market within a decade.

China Accelerates Circular Bio-Solvents Growth Through Industrial Integration and Biomass Utilization

China is finding its way at the frontline of being a key player in the circular bio-solvents market due to its strategic approach of green manufacturing process and industrial sustainability. The surplus chemical production infrastructure and large agricultural and forestry biomass available in the country mean that there is a good base in which waste-derived solvents can be developed.

Such government initiatives as the plan of making China in 2025 and its dual-carbon targets (peak carbon emissions by 2030 and a zero-carbon future by 2060) are driving industries toward cleaner, more circular substitutes such as bio-solvents.

Advanced fermentation, catalytic conversion and gasification technologies have been invested in by the local companies that transform the agro-waste into high-performance-based solvents. The market for low-VOC, green options is growing fast in such industries as paints, coatings and electronics.

In addition, the development of R&D within bio-refineries is being fast-tracked through associations with various international companies and research organizations. China already has support in the form of policies, market needs, and availability of raw materials to grow into one of the most dynamic markets for circular bio-solvents in the next ten years.

Germany is Accelerating Circular Bio-Solvents Through Policy-Driven Industrial Innovation

With the robust manufacturing and favorable environmental policies, Germany is set up to play a major role in the development of the circular bio-solvents market in the country. The nation is encouraging the use of circular bio-solvents by engaging food waste in green chemistry and waste valorization technologies with high investment. It aims at making renewable waste feedstocks like agricultural residues or industrial by-products into high-purity solvents and is currently being worked on by the German chemical giants.

Low-carbon and resource-efficient industries are being encouraged by government-led programs like the EU Green Deal and national circular economy plans in Germany, which are resulting in three outcomes: creating space, decommissioning, and rerouting. Germany offers an excellent framework for closed-loop production models because its recycling infrastructure is well established and the country has outstanding regulatory enforcement standards, which enables circular solvent manufacturing in the country.

Market potential is also increased by the fact that the demand is growing in the automotive coatings and specialty chemicals sectors. Consequently, Germany is taking steps to capture leadership in circular bio-solvents growth in Europe, which is enhancing sustainability and industrial competitiveness.

Category-Wise Analysis

Bio-Alcohols are Powering the Core of Circular Bio-Solvent Innovation

Bio-alcohols form an essential sub-segment of the circular bio-solvents market and serve as platform building blocks to an expansive variety of sustainable industrial uses. Bio-alcohols like ethanol, butanol and isopropanol, produced in renewable or waste based bio mass, also exhibit low-toxicity, high solvency, biodegradability. The said properties render them the most desirable alternative to conventional petrochemical solvent use in coatings, cleaning products, pharmaceuticals, and personal care products.

In circular-economy terms, the production of bio-alcohols is becoming an integrated biorefinery-based approach where closed-loop and waste valorization takes precedence. Improved production efficiency, energy use and carbon emissions through technological improvement of fermentation and conversion technology by catalytic processes are also taking place.

Second-Generation Feedstock is Powering the Next Wave of Circular Bio-Solvents

Second-generation raw material is transformational in the circular bio-solvents market serving as a viable replacement to food-based raw materials, which is also sustainable. These feedstocks, which translate to non-edible biomass, including agricultural waste, forestry products, and lignocellulosic biomass, are opening the door to new routes of scaling up and eco-productive manufacturing of solvents.

Second-generation sources are more ethically and environmentally feasible as opposed to the first-generation inputs as they do not compete with food supply chains. Utilization of such biomass waste material saves use of virgin resources enhancing carbon neutrality and zero waste processing. The yield, purity and economics of solvent production using these complex feedstocks have become better due to the technological advances used in the pretreatment and bioconversion processes.

Competitive Analysis

Key players in the circular bio-solvents industry BASF SE, Dow Inc., Archer Daniels Midland (ADM), Cargill, Inc., Corbion N.V., Eastman Chemical Company, LyondellBasell Industries, Solvay S.A., Clariant AG, Croda International, AkzoNobel N.V., Huntsman Corporation, BioAmber Inc., Vertec BioSolvents Inc., Myriant Corporation

The competitive analysis of the circular bio-solvents market includes assessing the general situation on the market and the technological possibilities of companies, their innovation strategies, production volume, and sustainability strategy. It determines the ways in which the firms distinguish themselves in terms of feedstock sourcing, process efficiency, regulatory compliance and adherence to the principles of a circular economy. It also looks at market positioning, pricing mechanisms, as well as the potency to fulfill demand in varied application segments like coatings, cleaning, and personal care. Moreover, it does not overlook entry barriers, arising business models, as well as cooperation trends that affect business competition. This assists the stakeholders to gain familiarity with the emerging dynamics and strategic priorities in the market.

Recent Development

• In May 2024, Caldic Europe is extending its portfolio of bio-circular solvents to include sustainable Ethyl Proxitol, building on its existing relationship with Shell Chemicals. This collaboration is fully aligned with Caldic's strategic ambitions to increase its portfolio of products and services with a lower environmental impact for its customers.
• In January 2023, Solvay is investing at its Livorno site, in Italy, to launch the company’s first unit of circular highly dispersible silica (HDS), made with bio-based sodium silicate derived from rice husk ash. This new breakthrough silicate process provides a circular solution as it gives a second life to rice husk in a local value chain. Coupled with renewable energy integration at the plant, it will allow Solvay to achieve a 50% reduction in CO2 per ton of silica. This will make the Livorno site Europe’s best-in-class silica production site in terms of CO2 footprint. Production is expected to start by the end of 2024.

Fact.MR has provided detailed information about the price points of key manufacturers of the Circular Bio-Solvents Market positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Methodology and Industry Tracking Approach

Our report on the 2025 global Circular Bio-Solvents market comprises of the insights of more than 1,200 stakeholders based on 12 countries, with each of the respondent giving at least 75 data points. 65 percent of participants were end users such as chemical manufacturers, personal care brands, coatings formulators, and industrial cleaning solution providers.

The rest 35 percent consisted of supply chain experts, green officers, waste management experts and circular economy strategists. The time frame of fieldwork is wrapping up in July 2024- June 2025, and the variables under study include feedstock circularity, solvent recovery rates, lifetime carbon intensity, industrial integration feasibility, and policy alignment. The Equitable model of calibration positioned regional correctness in regions of North America, Europe and the Asia-Pacific.

The paper uses over 95 approved references such as sources of green chemistry journals, solvent use audit, industrial decarbonization reports, and white papers on circular economy. High levels of analysis (such as multi-variable regression, Monte Carlo simulations and scenario models) were implemented to achieve data accuracy. Having followed the bio-solvents market closely since 2018, this report provides an expert roadmap of the most innovative opportunities for businesses to grow and aim to be competitive, compliant and sustainably grow in the expanding circular bioeconomy.

Segmentation of Circular Bio-Solvents Market

• By Type :

  • Bio-Alcohols
  • Bio-Glycols
  • Bio-Diols
  • Bio-Based Esters
  • Bio-Based Ketones
  • Others

• By Feedstock :

  • First-Generation
  • Second-Generation
  • Third-Generation

• By Application :

  • Paints & Coatings
  • Adhesives & Sealants
  • Pharmaceuticals & Cosmetics
  • Industrial & Domestic Cleaning
  • Printing Inks
  • Agrochemicals

• End-use Industry :

  • Automotive
  • Construction
  • Healthcare & Personal Care
  • Packaging
  • Agriculture

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa