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

The White Spirit Market is segmented by Grade (Low-flash Grade, Regular-flash Grade, and High-flash Grade), Application (Paint Thinner, Cleansing Agent, Degreasing Agent, Fuel, Disinfectant, and Other Applications), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa).

Market Snapshot

White-spirit Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >5 %

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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 the pandemic scenario, several countries around the world went into lockdown to curb the spreading of the 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 labor 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 infrastructure development are driving the market's growth.
  • On the flipside, toxic and hazardous in nature and the negative impact of the COVID-19 pandemic are expected to significantly hinder the growth of the market studied.
  • Customization of products more specific to an application and the increasing 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 that 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, the 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 15 countries across major regions. For all the segments, market sizing and forecasts have been done on the basis of revenue (USD million).

Grade
Low-flash Grade
Regular-flash Grade
High-flash Grade
Application
Paint Thinner
Cleansing Agent
Degreasing Agent
Fuel
Disinfectant
Other Applications
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Growing Demand from Paint Thinner Application

  • White spirit is a petroleum-derived, clear liquid that stands to be an effective organic solvent, which is widely used as a paint thinner.
  • White spirits reduce the viscosity of the paint and let the paint dry for a longer time. The paints on which white spirits are used as a thinner dry out to form a smooth and leveled coat on the surface, paint is applied.
  • White spirit is commonly used in the construction industry, wherever paints are used. The growth of the 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 the 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 it 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.
  • The United States has one of the world’s largest construction industries, and it recorded 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 the 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 the 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 the 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 number of 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 completion 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 in 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 the normalization of economic activities, which are currently affected due to the COVID-19 outbreak.
  • All the aforementioned factors are expected to drive the demand for white-spirit for paint thinner applications over the forecast period.
White-spirit Market Key Trends

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China to Dominate the Demand in Asia-Pacific

  • In the Asia-Pacific region, China is the largest economy in terms of GDP. The country witnessed about 6.1% growth in its GDP during 2019, even after the trade disturbance caused due to its trade war with the United States. The economic growth rate of China in 2020 was initially expected to be moderate as compared to the previous year. However, due to the onset of COVID-19 in 2020, the economic growth of China is estimated to contract to 1.90%, and it is expected to witness recovery at a rate of 8.20% in 2021.
  • China is one of the primary consumers of white spirit in Asia-Pacific. The market for the white spirit in China is expected to register a significant CAGR during the forecast period.
  • White spirit is the most widely used solvent in the paint industry. In households, white spirit is commonly used to clean paint brushes after use.
  • The paints and coatings industry in China is expected to experience high demand during the forecast period, especially due to the increase in the demand for decorative coating.
  • China is the leading producer of paints and coatings globally. It currently produces more than half of the Asia-Pacific coatings and is the home to more than 10,000 paint companies, among which local producers occupy more than half of the domestic paint market share. Owing to the rising demand for paint thinners and cleaning agents for household needs, the market is expected to rise with the support of the paints and coatings industry.
  • The demand for white spirit is expected to rise with the growth of end-user industries in the country, including the automotive, construction, and industrial sectors, which create demand for paints and coatings, cleansing agent, degreasing agent, fuel, disinfectant, etc.
  • The Chinese automotive manufacturing industry is the largest in the world, with a production share of just over 28% in 2019. The industry witnessed a slowdown in 2018, wherein the production and sales declined. A similar trend continued in 2019, with the production declined to 25.7 million vehicles by dropped by about 7.5% year-on-year.
  • According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), China is the largest producer of automobiles in the world. However, automotive production in the country has been witnessing a huge decline for the past three years. The country produced 2,57,20,665 vehicles in 2019. In 2020, the country produced 25,225,242 vehicles, which declined about 2% from 2019. The uncertainties in the automobile industry are expected to impact the market studied.
  • With growing investments and the construction activities in the country, the demand for paints and coatings is projected to grow during the forecast period. According to the National Bureau of Statistics of China, the revenue generated by the Chinese construction industry has increased from CNY 17.67 trillion in 2014 to CNY 24.84 trillion in 2019.​
  • Rising household income levels, combined with population migrating from rural to urban areas, are expected to continue to drive demand for the residential construction sector in the country. ​Increased focus on affordable housing by both the public and private sectors is also driving the growth in the residential construction sector.
  • The country is investing USD 1.43 trillion in the next five years till 2025 in major construction projects. According to National Development and Reform Commission (NDRC), the Shanghai plan includes an investment of USD 38.7 billion in the next three years, whereas Guangzhou has signed 16 new infrastructure projects with an investment of USD 8.09 billion.
  • Furthermore, countries such as India and Japan have also been contributing to the growth of the market studied in the region. This is expected to drive further the demand for the white spirit market over the forecast period.
  • All the above-mentioned factors are expected to drive the white spirit market in the region over the forecast period.
White-spirit Market Growth By Region

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Competitive Landscape

The white spirit market is fragmented in nature. Some of the major players of the market studied include Neste, Exxon Mobil Corporation, Royal Dutch Shell PLC, DHC Solvent Chemie GmbH, and Total, among others.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Demand from the Paints and Coatings Industry

      2. 4.1.2 Augmenting Infrastructure Development

    2. 4.2 Restraints

      1. 4.2.1 Toxic and Hazardous in Nature

      2. 4.2.2 Negative Impact of the COVID-19 Pandemic

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION (Market Size by Revenue)

    1. 5.1 Grade

      1. 5.1.1 Low-flash Grade

      2. 5.1.2 Regular-flash Grade

      3. 5.1.3 High-flash Grade

    2. 5.2 Application

      1. 5.2.1 Paint Thinner

      2. 5.2.2 Cleansing Agent

      3. 5.2.3 Degreasing Agent

      4. 5.2.4 Fuel

      5. 5.2.5 Disinfectant

      6. 5.2.6 Other Applications

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%)**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Al Sanea

      2. 6.4.2 Cepsa

      3. 6.4.3 DHC Solvent Chemie GmbH

      4. 6.4.4 Exxon Mobil Corporation

      5. 6.4.5 Ganga Rasayanie (P) Ltd

      6. 6.4.6 HCS Group GmbH

      7. 6.4.7 KAPCO PETROLEUM INDUSTRIES FZC

      8. 6.4.8 KH Chemicals

      9. 6.4.9 Kuwaitintlfactory

      10. 6.4.10 Mehta Petro Refineries Limited

      11. 6.4.11 Neste

      12. 6.4.12 PT Pertamina (Persero)

      13. 6.4.13 Royal Dutch Shell PLC

      14. 6.4.14 STOCKMEIER Group

      15. 6.4.15 Total

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Customization of Products More Specific to Application

    2. 7.2 Increasing Demand as a Substitute for Turpentine

**Subject to Availability

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Frequently Asked Questions

The White Spirit Market market is studied from 2016 - 2026.

The White Spirit Market is growing at a CAGR of >5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Exxon Mobil Corporation, DHC Solvent Chemie GmbH, Royal Dutch Shell PLC, Neste, Total are the major companies operating in White Spirit Market.

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