Definition of Market/Industry:

White spirit is a petroleum distillate and is used as an organic solvent and paint thinner. They are widely used for cleaning purposes across various industries. Its household application include cleaning of the paintbrushes after use and remove adhesives residues from non-porous surfaces. Moreover, white spirit is also used as alternate of kerosene in a portable stove, as it is a light grade of kerosene. Some of the major application of white spirit are cleansing solvent, paint thinner, degreasing solvent, disinfectant, fuel, and other applications include additives in oil & lubricants, cutting fluid, etc.

The global white spirits market was valued at US$ 10,224.2 Mn in 2018 and is anticipated to grow at a CAGR of 3.2% during the forecast period (2019 to 2027).

Drivers

Booming paints and coating industry, especially in the U.S region, is a prime factor projected to propel the market growth of the white spirit over the forecast period. According to the American Coatings Association, in 2015, the paint and coatings industry shipped more than $11.2 billion in architectural coatings from the U.S. sector of the industry. Also, the APAC region is also gaining significant growth in the coating market. According to the coatings world, India and China represent about 75% of the total paint and coatings the market in the APAC region. Hence, the growth of paints and the coating industry is projected to fuel the market growth of the white spirit.

Market Opportunities

An increasing number of manufacturer is expected to offer new growth opportunity over the forecast period. For instance, in June 2017, a group of executives from Carabao Group Plc, a leading energy drink company, has announced a move into Thailand's 100-billion-baht white spirits market, long dominated by billionaire Charoen Sirivadhanabhakdi of ThaiBev Group. A new company, Tawandang 1999, has been set up by Sathien Setthasit, Yuenyong Opakul, Nutchamai Thanombooncharoen and Supoj Theerawattanachai with registered capital of 

600 million baht.

Market Restraints

Slow economic growth across key markets of developed regions such as North America and Europe as these regions are major consumers of white spirits. However, these markets are mature and hence, are witnessing relatively slow growth currently and this situation is projected to remain unchanged over the forecast period. This factor is expected to hinder the market growth. Moreover, China is another major markets for white spirits that are also experiencing an economic downturn. Therefore, slow economic growth across the major market is expected to restrict market growth.

Key Takeaways

Based on product type, white spirits market is divided into type 1, type 2, type 3, and type 0 segments. In 2018, type 1 segment accounted for the largest market share of 53.5%, in terms of revenue, followed by type 2 and type 3 segments. Furthermore, type 3 segment is projected to record fastest growth of more than 7.0% in the global white spirits market during the forecast period (2019 to 2027).

Market Trends

Shifting focus of the manufacturer towards introducing odorless and low aromatic white spirits is a major trend that has been observed in the market. White spirits producers are developing low odor variants of white spirits that are claimed to contain less of highly volatile shorter hydrocarbons. Moreover, odorless white spirits are further refined to eliminate the toxic aromatic compounds and are widely used across applications such as oil painting as these white spirits emit low levels of VOCs and low odor. Hence, shifting preferences for odorless and low aromatic white spirit is expected to fuel the market growth over the forecast period.

Increasing launch of customized product portfolio more specific to an application is expected to boost the market growth over the forecast period. Key players in the white spirits market are engaged in offering white spirits, specifically with low aromatic content, that are designed to cater to specific end-use requirements. For instance, ExxonMobil Corporation, one of the major players in the global white spirits market, offers Exxsol D80, which finds application specifically in metalworking. This product has a high flashpoint and narrow boiling range, which offer faster drying and more safety during usage.

Regulations

Paints based on white spirits, intended to be used by the general public, are restricted in Denmark for indoor use on ceilings and walls (Statutory order 830 of 30 October 1999)

Competitive Section:

Company Names 

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

Haltermann Carless Deutschland GmbH 

  • In July 2015, Haltermann Carless Solutions group acquired Shu-Chem Holdings Inc., a producer of alcohols and esters in Manvel, Texas, U.S. This acquisition is in line with the company’s plan to expand its business in the U.S.

Segmentation

By Product Type

  • Type 1
  • Type 2
  • Type 3
  • Type 0

By Application

  • Paint Thinner
  • Cleansing Solvent
  • Degreasing Solvent
  • Fuel
  • Disinfectant
  • Others (Additives in Oil & Lubricants, Cutting Fluid, etc.)

By Grades

  • Low Flash Grade
  • Regular Flash Grade
  • High Flash Grade

By Region

  • Asia Pacific
  • Europe
  • North America
  • Latin America
  • Middle East & Africa