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Players in the solvent market are moving forward with a focused approach to remain competitive
The global solvent market is likely to witness a CAGR of 3.0% from 2013 to 2018. Asia-Pacific represents the single largest market for solvents for the same period, followed by Europe and North America. In terms of applications, paints & coatings, pharmaceuticals, and adhesives dominated the global consumption of solvents. Oxygenated solvents are the major types of solvents consumed with the usage of hydrocarbon and halogenated solvents being gradually phased out. New innovations in the solvent market are bio & green solvents, which will find increased penetration when the performance to cost ratio reaches a desired level.
The players in the solvent market includes global chemical giants such as BASF (Germany), Celanese (U.S.), Eastman Chemical Company (U.S.), Exxon Mobil (U.S.), Honeywell (U.S.), Huntsman Corporation (U.S.), Ineos (Switzerland), LyondellBasell (U.S.), Sasol (South Africa), Shell Chemicals (The Netherlands), and Solvay (Belgium) to name a few. There are lot of regional players that operate in this market with a primary motive to fulfill the domestic demand.
Growth of the solvents market is overshadowed by several restraints, the primary one being regulations in developed regions on their usage. This is due to the harmful effects these solvents have on the environment. The other is the evolution of technologies, which utilizes less (or no) volume of solvents such as water-based paints. Green & bio solvents help revive the global solvents market, but only at the expense of convetional solvents.
In this scenario, it is extremely important that the players operating in the market remain competitive by adopting top growth strategies. This includes a focus on capacity expansion and getting rid of deadweight assests to increase profitability. The companies are increasingly expanding their capacity in the Asia-Pacific region to tap the high solvent demand in the region. The other reasons that justify this growth strategy are easy availability of feedstocks, low level of regulations, and cheap labor. The other most common growth strategy in the market is retrenchment, which means cutting down extra expenses, mothballing plants, and selling off unprofitable ventures.
Solvent Market by Type (Ketones, Esters, Aromatics, Alcohols), Application (Paints & Coatings, Pharmaceuticals, Adhesives, Printing Inks, Personal Care) & Source - Global Trends & Forecast to 2018
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