According to the latest published report of Persistence Market Research titled “White Spirits Market: Global Industry Analysis (2012-2016) and Forecast (2017-2025),” strengthening partnership and increasing production capacity are the two strongest pillars of growth for white spirits businesses over the forecast period. While examining the global white spirits market, our analysts have observed that key vendor’s emphasis is on oversea business development and sales, apart from domestic market. Utmost importance is given to key strategies such as market footprint expansion, product development and increased sales turnover which are employed by manufacturers. Our team of experts have found that application segment is expected to remain dominant over the projected period, while APEJ and North America are likely to lead the global white spirits market during the predicted period.
The study provides market dynamics that are expected to influence the current environment and future status of the global white spirits market during the forecast period. The primary objective of this report is to offer updates on trends, drivers, restraints, value forecasts and opportunities for manufacturers operating in the global white spirits market. The report discusses how the overall competition in the market is steadily increasing. It discusses various factors that are shaping internal as well as external competition in the market. The report provides a market outlook for the predicted period and sets the forecast within the context of the global white spirits market, including product offerings for key applications in the global white spirits market.
Structure of the global white spirits market report
The report includes an executive summary, market definition and overview, drivers, trends, opportunities and restraints. While studying the market, product-wise weighted Average Selling Price (ASP) has been considered to deduce market values. Macroeconomic indicators such as GDP, industrial production index, and solvents production have been considered while forecasting market numbers. Only petroleum based feedstock – solvents are considered i.e. bio-based solvents are not considered while inspecting this market. Top-down approach has been used to assess market numbers for each category while bottom-up approach has been used to counter validate the market estimations. Market volume represents consumption and value indicates revenue generated from sales. All values for market size are in US$ (US Dollar). We have concluded the report with a competitive landscape which provides report audiences with a dashboard view. Detailed profiles of manufacturers are also included within the scope of the report to evaluate their long- and short-term strategies, key offerings and recent developments in the global white market.
Key segments in the global white spirits market
By Product Type
Over 35 successful primary interviews across the region are conducted to examine the global white spirits market. A number of primary and secondary sources were consulted during the course of the study. Secondary sources include Factiva, GBI, Genios and Meltwater. Companies’ annual reports and publications were also examined while studying the global white spirits market. Market size and forecast for each segment have been provided in the context of global and regional markets. The global white spirits market has been analysed based on expected demand. Prices considered for the calculation of revenue are average regional prices obtained through primary quotes from numerous regional white spirits manufacturers, suppliers, and distributors.
Global white spirits market’s present scenario and progress throughout the forecast period
Persistence Market research has forecasted that the global white spirits market is likely to expand at a CAGR of 4.2% in terms of value over the projected period of 2017-2025, to account for a market value more than US$ 8,000 Mn by 2025 end. Over the past two years, growth in key end use industries and consumption of related products especially across key white spirits consuming economies of the globe has been relatively slower, impacted by sluggish economic growth (GDP growth). Industrial output, and general market scenario in major developing countries such as China, India and Brazil showed relatively lackluster growth especially in 2015. The impact of these macro-economic factors coupled with the feedback received from key market respondents has prompted this market research company to come up with more accurate forecast. In terms of volume, the consumption of white spirit was pegged at 8,583 KT in 2016 and is expected to increase at a CAGR of 3.8% over the forecast period to reach 11,953 KT by the end of 2025.
Paint thinner segment is estimated to gain traction over the forecast period
In terms of value, the paint thinner segment has been estimated to account for more than 50% share by 2017 end and is projected to grow 1.5X during the forecast period. Paint thinner segment is expected to grow over the forecast period, owing to the increasing demand for white spirits in the paints and coatings industry. White spirits find high application in the paints and coatings industry where they are used as thinners for paints. Type 1 and Type 2 white spirits find the highest application as paint thinners, due to the high aromatic content, which is required for better solvency. Sales of white spirits for paint thinner application is expected to be valued more than US$ 4,600 Mn by 2025 end, registering at a CAGR of 4.9% in terms of value during the forecast period.
Increasing demand for paint and coating especially in North America, Europe and APAC regions boost the growth of the global white spirits market
Significant growth of the paint and coating industry in North America, especially in the U.S., owing to growing demand from automotive and transportation industries, coupled with rising infrastructure development, helps in driving the paint & coating market. With an increase in the demand for architectural coatings in the North America region, the demand for white spirits is expected to increase as they are mainly used in paint thinner segment of application segment. For instance, in the U.S., architectural coating shipments were increased by more than 10% in 2015, with significant growth of decorative paints for residential and commercial applications.
Europe holds a significant share in the global automotive production. Growth in the automotive industry would lead to increase in demand for paints and coating, and consequently boost the demand for white spirits. Further, in the automobile industry, white spirits are served as cleaning agents and degreasing solvents for car parts, heavy machinery and tools.
Consumption of paints & coatings for industrial and decorative applications in the APAC region is expected to witness robust growth during the forecast period, driven primarily by the steadily increasing disposable income and consumer spending along with steady growth in industrial production growth in automotive production, and among others.
With the growth of the construction industry, demand for paints & coating is expected to increase over the forecast period in MEA region. The government and industrial initiatives for the development of tourism destinations and global business hubs, further result to increase the demand for decorative paints. The Middle East and Africa is a growing market for the decorative paints, which is expected to grow with moderate CAGR over the period of 2017–2025.