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$ 10,551.3 Mn in 2019 and is predicted to reach US$ 13,575.2 Mn by the end of 2027, growing at a CAGR of 3.2% during the forecast period (2020 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.
Regionally, Middle East & Africa region dominated the global white spirits market in 2019, accounting for around 32% share in terms of value, followed by Asia Pacific and North America, respectively
Figure 1. Global White Spirits Market, Revenue Share (%), By Region, 2019
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.
|Base Year:||2019||Market Size in 2019:||US$ 10,551.3 Mn|
|Historical Data for:||2017 to 2019||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||3.2%||2027 Value Projection:||US$ 13,575.2 Mn|
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.
|Restraints & Challenges:||
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
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 US$ 545.4 billion out of the total $20.5 trillion produced. Of that, US$ 327.1 billion was auto manufacturing and US$ 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, Revenue Share (%), By Grades, in 2019
Based on grades, white spirits market is segregated into low flash grade, regular flash grade, and high flash grade. Wherein, in 2019, 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.
Global White Spirits Market - Impact of Coronavirus (Covid-19) Pandemic
As the impact of the ongoing pandemic on the global white spirits market continues to come into focus. Moreover, paints & coating manufacturers have started operating their production facilities in Q3 of 2020 which has helped in boosting the growth of the market last year
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
White spirits are also known as mineral spirits, varsol, and petroleum spirits derived from petroleum. It is used as common organic solvent in paints, aerosols, varnishes, asphalt products, lacquers, wood preservatives, and for cleaning & degreasing machine parts. In Europe, 60% of the total white spirits consumption is utilized for varnishes, paints, and lacquers. It is majorly used as solvent in paint industry. Furthermore, white spirits is commonly used to clean paint brushes in residential applications. The growth of end-use industries including paint industry is projected to boost the demand for white spirits over the forth coming years.
Based on application, white spirits market is segmented into paint thinner, cleansing solvent, degreasing solvent, fuel, disinfectant, others. Wherein, paint thinner segment dominated global white spirits market in 2019 and contributed for 55% in terms of revenue in the same year, followed by cleansing solvent and degreasing application. Moreover, paint thinner application is predicted to record fastest growth of 6.6% during the forecast period (2020 to 2027).
On the basis of region, Middle East & Africa accounted for the largest share, in terms of revenue in 2019 and contributed for 32% in 2019, followed by Asia Pacific and North America. Moreover, Middle East & Africa is anticipated to record fastest growth in terms of revenue in the global white spirits market during the forecast period (2020 to 2027).
Key features of the study:
“*” marked represents similar segmentation in others categories in the respective section.