White Spirit Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The white-spirit market is expected to register a CAGR of over 5% during the forecast period (2021-2026).

The market was negatively impacted due to COVID-19 in 2020. Owing to pandemic scenario, several countries around the world went into lockdown, to curb the spreading of virus. This negatively affected the demand of white spirit from various applications such as paint thinner, fuel, degreasing agent and others as production units of industries such as paints and coatings, construction, automotive, and others were put on halt due to labour shortage and supply chain disruption. However, the condition is expected to recover in 2021, which will benefit the market over the forecast period.

• Over the short term, the increasing demand from the paints and coatings industry and augmenting infastructure development are driving the market's growth.
• On the flipside, toxic and hazardous in nature and negative impact of COVID-19 pandemic are expected to significantly hinder the growth of the market studied.
• Customization of products more specific to application and gain in demand as a substitute to turpentine are likely to act as opportunities in the future.
• Asia-Pacific is expected to dominate the global market during the forecast period.

Scope of the Report

White spirit is a petroleum-derived clear, transparent liquid which is used as a common organic solvent in painting and other applications. The white spirit market is segmented by grade, application, and geography. By grade, market is segmented into Low-flash Grade, Regular-flash Grade, and High-flash Grade. By application, the market is segmented into Paint Thinner, Cleansing Agent, Degreasing Agent, Fuel, Disinfectant, and Other Applications. The report also offers market size and forecasts for forecasts for 15 countries across major regions. For all the segments, market sizing and forecasts have been done on the basis of revenue (USD million).

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Key Market Trends

Growing Demand from Paint Thinner Application

• White spirit is a petroleum derived clear liquid which stands to be an effective organic solvent, widely used as a paint thinner.
• White spirits reduce the viscosity of the paint and let the paint dry in a longer time. The paints on which white spirits is used as a thinner, dry out to form a smooth and levelled coat on the surface, paint is applied.
• White spirit is commonly used in the construction industry, wherever paints are used. The growth of construction industry, globally is boosting the demand for paints and coatings, thereby stimulating the white spirit market.
• In India, the construction industry has been on rise over the years with many new construction activities going on. For instance, the Indian government has been actively boosting housing construction, as it aims to provide a home to about 1.3 billion people. The country is likely to witness around USD 1.3 trillion of investment in housing over the next seven years and is likely to witness the construction of 60 million new homes in the country. The availability of affordable housing in the country is expected to rise by around 70% by 2024. By 2022, India is expected to contribute about USD 640 billion in the construction industry due to government initiatives in infrastructure development and affordable housing such as housing to all, smart city plans, etc.
• United states has one of the world’s largest construction industry and it recorded an annual revenue of USD 1,306 billion in 2019. The United States is a major industrialized nation that houses multiple industries in heavy-scale, medium-scale, and small-scale categories. The country is known for its booming commercial activities. According to US Census Bureau, the total Residential housing units authorized by building permits in March 2020 were at a seasonally adjusted annual rate of 1,353,000 representing 5% growth over March 2019 rate of 1,288,000. The total number of privately‐owned housing starts in March 2020 were at a seasonally adjusted annual rate of 1,216,000 representing 1.4% growth over March 2019 rate of 1,199,000.
• Germany has the largest construction industry in Europe. The construction industry in the country has been growing at a slow pace, which is majorly driven by the increasing new residential construction activities. According to the industry experts, the completion of construction of new houses was estimated to be around 315,000 units in 2019, which is higher, when compared to total completions in 2018, which was 300,000 units. The increasing migration to the country has been stimulating the current demand for new residential construction. ​About 3.6 million migrants were expected to arrive to Germany, by the end of 2020-2021, which will require at least 350,000 new dwellings per year.
• In addition, white spirit is used for wooden furniture or floors, making it useful for application in the furniture industry. With numerous construction projects under planning or development phase across the world, the expected growth in demand for furniture is also expected to create noticeable demand for white spirit over the years to come. However, this trend is likely to persist after normalization of economic activities, which are currently affected due to the COVID-19 outbreak.
• All the afore-mentioned factors are expected to drive the demand for white-spirit for paint thinner applications over the forecast period.

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