Global White Spirits Market Report, published by Variant Market Research, forecast that the global market is expected to reach $9 billion by 2024 from $5 billion in 2016; growing at a CAGR of 6.6% from 2016 to 2024. By geography, rest of the world (RoW) and Europe are expected to grow at a CAGR of 7.8% and 6.8%, respectively, during the forecast period.
Unassuming jet kerosene prices, steady demand from the paints and coatings industry, changing demographics, improving global economic conditions, and the increasing demand for these spirits as a turpentine substitute, are the major factors driving the global white spirits market. However, high cost of white spirits is expected to restrain the market growth. Shifting focus towards low aromatic white spirits would provide several growth opportunities for the market in the coming years.
The global white spirits market is bifurcated by application and grades. The segmentations by application include paint thinner, cleaning solvent, degreasing solvent, fuel, disinfectant, and others. Regular flash grade, high flash grade, and low flash grade are the various classifications of white spirits by grades. The paint thinner segment dominated the application segment with the largest market share in 2016. Regular flash grade was the maximum revenue generating segment by grades. Geographically, the market is categorised into North America, Europe, Asia-Pacific and Rest of the world.
Asia-Pacific accounted for the largest market share of 36.1% in 2016, owning to the growing infrastructural developments in the region. Improvement in economical condition has also led to the growth in demand for white spirits in the Asia-Pacific region. North America was the second largest market with a total market share of 28.6%. In terms of growth, rest of the world (RoW) is expected to attain the fastest CAGR of 7.8% during the forecast period 2016-2024.
Market players have used various strategies to increase their market share and global presence. For instance, company such as ExxonMobil Corporation has focused on research and development to provide low aromatic content white spirits in order to gain competition in the market. The major players in the market include ExxonMobil Corporation, Royal Dutch Shell Plc, Total S.A., Idemitsu Kosan Co., Ltd., CEPSA, Neste Oyj, and others.