U.S. Demand for Solvents to Approach 11 Billion Pounds
CLEVELAND – According to a new study released by Cleveland-based market research firm The Freedonia Group Inc., U.S. demand for solvents is expected to increase at an annual pace of 1.5% through 2018 to 11 billion pounds. Growth is driven by a robust recovery in construction spending along with a continued rebound in manufacturing output. Strength in both nonresidential and residential building construction will stimulate not only direct solvent use in construction-related activities, but also increased solvent demand in paint and coatings and other construction-related materials. Solvent use in a variety of manufacturing applications, most notably in chemical processing, will be supported in part by comparatively low natural gas prices that will help boost the competitiveness of U.S. manufacturers. These and other trends are presented in Solvents, a new study from The Freedonia Group Inc.
Steadily growing environmental concerns, as well as regulatory pressure, will drive demand for “green” solvents that are derived from renewable materials. According to analyst Ryan Sullivan, “This will contribute to growth in alcohols and glycols, which will see the largest gains of all solvents.” Other green solvents such as butanediol and terpenes will see the fastest demand growth, albeit from much smaller bases.