Definition of Market/Industry:
White spirit is also referred to as mineral turpentine, is a petroleum-based clear liquid that is used as an organic solvent in paint industry. White spirit consists of alicyclic-, aliphatic-, and aromatic-hydrocarbons with carbon numbers ranging from C7 to C12. They are mainly used as a paint thinner and as a solvent for extraction, degreasing, and cleaning the machine components. It is an inexpensive petroleum-derived substitute for the vegetable-based turpentine. It is less flammable and less toxic and is also used to thin inks for making mono-prints.
The global white spirits market was valued at US$ 10,224.2 Mn in 2018 and is anticipated to reach US$ 13,647.5 Mn by the end of 2027, growing at a CAGR of 3.2% during the forecast period (2019 to 2027).
Strong economic growth and changing demographics across major countries such as Brazil, Russia, China, and India is expected to propel the demand for white spirit. Moreover, the development of infrastructure across the developing region coupled with the growing demand for white spirit from the automotive industry is another major factor projected to fuel the market growth of the white spirit. Furthermore, the rising number of the manufacturing industry around the globe is also expected to foster the market growth of white spirit over the forecast period.
Growing demand for the white spirit as a turpentine substitute as it is an inexpensive petroleum-derived product commonly used as a paint thinner for oil-based paint and cleaning brushes is expected to fuel the market growth of white spirit. Moreover, rising demand for white spirit from artists since it is less flammable and comparatively less toxic is also projected to foster the market growth of white spirit over the forecast period. Furthermore, it is also preferred by end-user because it doesn't contain any residual sulfur.
Figure 1. Global White Spirits Market Share, By Region, 2018
Middle East and Africa region dominated the global white spirits market in 2018, accounting for 31.4% share in terms of value, followed by Asia Pacific and North America, respectively.
The risk associated with the usage of white spirits as acute exposure can cause central nervous system depression, resulting in a lack of coordination are expected to hinder the market growth. Moreover, exposure to white spirits can also create narcotic effects such as drowsiness, dizziness, nausea, etc. Hence, such side-effects associated with the usage of white spirits is expected to restrict market growth.
Growing demand for the bio-based product is expected to curb the market growth of the white spirit over the forecast period. Crude oil-based solvents such as white spirits are a key component of paints, coatings, and inks. However, these solvent-based paints, coatings, and inks, release a high amount of VOCs as compared to other bio-based alternatives due to which most of the manufacturers are focusing on introducing a bio-based white spirit. Hence, growing demand for bio-based white spirit is expected to restrict market growth.
The rising launch of new and innovative products in the white spirit is expected to fuel market growth over the forecast period. For instance, in October 2017, THAI Beverage Plc (ThaiBev), Thailand’s biggest beverage and food conglomerate, announced the launch of a new white spirit product – Ruang Khao Silver – to tap core white spirit markets in Myanmar, Vietnam and the Philippines. Hence, the increasing launch of a new and innovative product is projected to fuel market growth.
Ongoing urbanization, increasing population, and rising per capita income of the consumers are some of the other important factors fueling the market in the Asia Pacific. According to the Economic Times, the per capita net national income of India during 2017-18 is estimated to be Rs 1, 11,782 showing a rise of 8.3 percent as compared to Rs 1, 03,219 during 2016-17 with the growth rate of 9.7 per cent. Hence, the rising per capita income of the individuals in the Asia Pacific region is expected to fuel the market growth.
Figure 2. Global White Spirits Market - Opportunity Analysis
Market Trends/Key Takeaways
Expanding chemical industry is another major factor that is expected to propel the product demand over the forecast period. According to the KPMG, the Asia chemical industry is the world leader in terms of ethylene production. More than 30 million ton of production comes from Asia, compared to the 25.3 million tons which originate from the United States. Hence, expanding chemical industry is expected to fuel market growth.
The rising production of automobiles in the U.S region is expected to foster market growth over the forecast period. In 2018, the U.S. automotive industry contributed 2.7% to U.S. gross domestic product. That's $545.4 billion out of the total $20.5 trillion produced. Of that, $327.1 billion was auto manufacturing and $218.3 billion was vehicle retail sales. The white spirit has a wide range of applications in the automotive industry.
Figure 3. Global White Spirits Market Share, By Grade, 2018
Based on grade white spirits market is segregated into low flash grade, regular flash grade, and high flash grade. Wherein, in 2018, regular flash grade segment accounted for the revenue share of 58.6% in the global white spirits market, followed by high flash grade and low flash grade.
Figure 4. Global White Spirits Market – Value Chain Analysis
In 2007, the Scientific Committee on Occupational Exposure Limits (SCOEL) proposed the following value as recommended occupational limit value for white spirits: 20 ppm (116 mg/m³) as 8 h average level, 50 ppm (290 mg/m³) as 15 min short-term exposure limit (STEL) level.
Players active in the market are 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.
Few Recent Developments
- In June 2015, Total S.A. signed a collaborative agreement with Neste Oyj for the supply of renewable isoalkane used as feedstock by the former for the production of bio-based solvents. These solvents are meant for applications in paints and coatings, drilling, printing inks, cosmetics, and industrial fluids.