The global white spirits market was valued at $6.5 billion in 2020, and is projected to reach $11.2 billion by 2030, growing at a CAGR of 5.7% from 2021 to 2030.
White spirits, also known as mineral spirits, are combination of petroleum hydrocarbons. They are clear and colorless liquids that are chemically stable and non-corrosive in nature. They are used as solvents and diluents in paint & varnish, fabric, metal cleaning, and rubber end-use industries.
Rise in use of white spirits in paints & coatings, adhesives, and inks & dyes end-use industries drives the demand in the global market. Combination of white spirit with aliphatic and alicyclic hydrocarbon makes it widely used for solvent applications such as cleaning solvent, degreasing solvent, and aerosol solvent. In addition, other applications of white spirit include wood preservative solvents, varnishes, and lacquer solvent. All these factors drive the demand of the global white spirits market. Paint industry is the largest consumer of white spirit owing to its extensive use as paint thinner and cleaning agent used for paint brush cleaning.
However, health hazard associated with long term exposure to white spirit limits the growth of the global white spirits market. Presence of mineral spirit in the environment may or may not lead to exposure and cause health hazards. Factors such as breathing, consumption, and skin contact lead to exposure of white spirits. Health hazards associated with ingestion or exposure of white spirits also depend upon factors such as dose or amount of white spirit exposure and duration of exposure. Long-term ingestion leads to abdominal pain and drowsiness. In addition, long term exposure leads to heart problems and pneumonitis (severe lung damage). Ingestion of white spirit directly into lungs may further increase the risk of vomiting sensation. Other risks associated with ingestion of white spirit vapor include nose & throat irritation, shortness in breath, and headache. All these factors are anticipated to restrict the growth of global white spirits market.
On the contrary, use of white spirit in paint industry is anticipated to offer new opportunity in the global white spirits market. Addition of white spirit helps to minimize the viscosity of the paint and minimizes the time for drying of paint. In addition, white spirit helping to aid the smoothness of paint products is another considerable factor that boosts the demand of the global market and thereby anticipated to offer new growth opportunities during the forecast period. Other applications of white spirit include wood preservation products, grease removers, preventing corrosion of metal working fluids, and automotive cleaning & polishing products. All these factors collectively surge the demand of in the global market and are thereby anticipated to offer new opportunities during the forecast period.
The white spirits market analysis is done on the basis of product type, grade, application, and region. Depending on type, the market is divided into type 1, type 2, type 3, and type 0. On the basis of grade, the global white spirits market is divided into low flash point grade white spirits, regular flash point grade white spirits, and high flash point grade white spirits. The applications covered in the study include paint thinner, solvent extraction, cleaning solvent, degreasing solvent, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The major companies profiled in this report include Shell plc, Exxon Mobil Corporation, TotalEnergies, DHC Solvent Chemie GmbH, Pacer, Rahaoil Inc., Alshall International Co., Ahmadullins: Sciences & Technologies, Kuwait International Factory, and Kapco Petroleum Industries FZC.
White spirits market, by region
The Asia-Pacific white spirits market size is projected to grow at the highest CAGR of 7.0% during the forecast period and accounted for 27.6% of white spirits market share in 2020. Eco-friendly and cost effectiveness of white spirit makes it viable to be used for applications such as paint thinner as it minimizes the paint viscosity and improves paint smoothness. In addition, rise in use of white spirit in construction and automotive end-use industries drive the demand of Asia-Pacific white spirits market.
By Region
Asia-Pacific would exhibit highest CAGR of 7.0% during 2021-2030.
White spirits market, by product type
In 2020, the type 1 product type was the largest revenue generator, and is anticipated to grow at a CAGR of 5.8% during the forecast period. Type 1 white spirit is subjected to hydro-desulfurization process and comprises of hydrocarbon with carbon number ranging between C7-C12.Type 1 white spirit is widely used as extraction solvent and cleaning solvent owing to its high boiling point (90-230°C). In addition, use of type 1 white spirit as an active solvent in aerosol and other wood preservative products drives the demand in the global market.
By Type
Type 3 segment is the most lucrative segment
White spirits market, by grade
In 2020, the low flash point white spirit grade was the largest revenue generator, and is anticipated to grow at a CAGR of 5.5% during the forecast period. Low flash point grade white spirit has 31 to 54 Centigrade of flash point making them ideal to be used in paints, varnishes, and asphalt products, hence driving the demand of the global market.
By Grade
High flash point grade is the most lucrative segment
White spirits market, by application
In 2020, the paint thinner application was the largest revenue generator, and is anticipated to grow at a CAGR of 5.8% during the forecast period. White spirit is produced from petroleum distillate making it viable to be used as a solvent in paint thinner is driving the demand of white spirits in pain thinner application.
By Application
Paint Thinner application is the most lucrative segment
Key benefits for stakeholders
- Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- It outlines the current white spirits market trends and future estimations from 2020 to 2030 to understand the prevailing opportunities and potential investment pockets.
- The major countries in the region have been mapped according to their individual revenue contribution to the regional market.
- The key drivers, restraints, and opportunities and their detailed impact analysis are explained in the study.
- The profiles of key players and their key strategic developments are enlisted in the report.
Impact Of Covid-19 On The Global White Spirits market
- The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy across the globe. The white spirits market has been negatively impacted due to the wake of the COVID-19 pandemic owing to its dependence on automobile, color & painting, manufacturing, and building & construction industries.
- According to a report published by Energy and Economic Growth Survey, the oil & gas sector is among the hardest hit sector with an average contraction of -2.8% in 2020. This has hampered the production of white spirits amid the COVID-19 period. Also, more than 100 countries have locked their international borders for transportation and non-essential trade activities which in turn have reduced the consumption of white spirits among the automotive sectors.
- Furthermore, the temporary shutdown of oil refineries amid the COVID-19 period has led to demand-supply disruptions. For instance, according to a report published by the Indian Ministry of Petroleum & Natural Gas, the central public sector enterprise (CPSE) refineries has produced 7,103.76 thousand metric tons (TMT) of crude oil in April 2020 that is 28.91% lower than the target for the month and 36.93% lower than the production achieved in the corresponding month of 2019. This has severely affected the demand for white spirits market during the COVID-19 situation.
- Also, several chemical manufacturing companies have either shut down or shrank their operations due to the risk of infections among the workforce where white spirits are widely used for chemical synthesis and other applications. This has temporarily hampered the demand for the white spirits market amid the COVID-19 period.
- In addition, the falling income of customers has led to a contraction in the sales of both light and heavy-duty vehicles which in turn has decreased the demand for white spirits in the automotive sectors. For instance, according to an article published by The Times of India, the sales of passenger cars saw a 30% decline in March 2020 as compared to March 2019, owing to lockdowns and shutdowns of auto plants.
White Spirits Market Report Highlights
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Analyst Review
The global white spirits market is expected to exhibit high growth potential owing to its use in paints & coatings, waxes, adhesives, and printing ink application. In addition, it is widely used in applications such as cleaning & degreasing solvent and paint thinner that drives the demand of the global market. White spirit can also be used as a solvent for extraction of oil-bituminous rock organic components from mineral is another considerable factor anticipated to offer new growth opportunities during the forecast period. Moreover, coal samples contain contaminants that need to be cleaned prior to be used. Thus, white spirit is generally used as a cleaning solvent to separate mixture of organic liquids from coal sample. In addition, combination of white spirit and aromatic compounds can be used as an extraction or processing solvent during synthesis of alkyd resin from camelina oil that is anticipated escalate the demand of the global market.
The white spirit market has witnessed a steady growth owing to rise in disposable income, increase in urbanization, change in lifestyles, and growth in construction activities. In addition, Asia-Pacific is expected to witness a robust growth rate during the forecast period owing to surge in construction activities and rapid growth of manufacturing industries such as automobiles. Moreover, development in the low aromatic white spirits segment is expected to propel the growth of the white spirit market.
Rise in use of white spirits in paints & coatings, adhesives, and inks & dyes end-use industries drives the demand in the global market. Combination of white spirit with aliphatic and alicyclic hydrocarbon makes it widely used for solvent applications such as cleaning solvent, degreasing solvent, and aerosol solvent. In addition, other applications of white spirit include wood preservative solvents, varnishes, and lacquer solvent. All these factors drive the demand of the global white spirits market. Paint industry is the largest consumer of white spirit owing to its extensive use as paint thinner and cleaning agent used for paint brush cleaning.
The global white spirits market was valued at $6.5 billion in 2020, and is projected to reach $11.2 billion by 2030, growing at a CAGR of 5.7% from 2021 to 2030.
Shell plc, Exxon Mobil Corporation, TotalEnergies, and DHC Solvent Chemie GmbH are most established players of the global white spirits market.
Paint thinner industry projected to increase the demand for white spirits Market.
The white spirits market analysis is done on the basis of product type, grade, application, and region. Depending on type, the market is divided into type 1, type 2, type 3, and type 0. On the basis of grade, the global white spirits market is divided into low flash point grade white spirits, regular flash point grade white spirits, and high flash point grade white spirits. The applications covered in the study include paint thinner, solvent extraction, cleaning solvent, degreasing solvent, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Use of white spirit in paint industry is anticipated to offer new opportunity in the global white spirits market. Addition of white spirit helps to minimize the viscosity of the paint and minimizes the time for drying of paint. In addition, white spirit helping to aid the smoothness of paint products is another considerable factor that boosts the demand of the global market and thereby anticipated to offer new growth opportunities during the forecast period. Other applications of white spirit include wood preservation products, grease removers, preventing corrosion of metal working fluids, and automotive cleaning & polishing products.
Paint thinner, extraction solvent, and cleaning solvent applications are expected to drive the adoption of white spirits.
The white spirits market has been negatively impacted due to the wake of the COVID-19 pandemic owing to its dependence on automobile, color & painting, manufacturing, and building & construction industries.
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