Projected Expansion of Perchloroethylene Market Valued at USD 2.3 Billion by 2034
Perchloroethylene Market Shifts Towards Sustainability
The Perchloroethylene (Perc) market, long dominated by its use in the dry cleaning industry, is undergoing significant changes due to concerns over health and environmental hazards, shifting regulatory landscapes, and consumer preferences favouring sustainability.
Health and Environmental Concerns
Perc, a toxic substance that can cause liver, kidney, and neurological damage, contaminates groundwater and has been classified as a hazardous air pollutant by the EPA. Regulatory bans, such as those in California since 2007, are becoming more common.
Regulatory Pressure
Many countries are phasing out Perc, leading to increased operational costs due to ventilation, waste management, and disposal protocols. These stricter environmental regulations are driving companies to adopt more sustainable practices.
Sustainability Demand
Consumer preferences are shifting towards green solvents such as liquid CO₂ and silicone-based solvents, particularly among younger demographics focused on sustainability.
Technological Innovation
Dry cleaning businesses are increasingly adopting eco-friendly alternatives and digital tools for efficiency and customer convenience. Innovations in this area include subscription-based and AI-driven service models.
Expected Growth
Although the Perc segment is expected to decline due to regulations and sustainability pressures, the overall dry cleaning market is projected to grow robustly. From about USD 76-79 billion in 2024, the market is expected to reach over USD 84-105 billion by 2030, reflecting the adoption of alternative solvents and service innovations.
Market Segmentation
The Perchloroethylene market can be segmented by grade, application, end-use industry, and region. By grade, the market shows segmentation between traditional Perc solvent grades and emerging green solvent grades such as liquid CO₂ and silicone-based solvents. By application, Perc is primarily used in dry cleaning, with shifts towards wet cleaning and silicone-based systems reducing Perc's dominance. The chief end-use is the dry cleaning industry, with commercial applications growing faster due to scale and regulatory compliance capacities.
Regional Analysis
The phase-out of Perc is uneven globally. The US (especially California) and UK see stricter regulation than some other regions. Asia-Pacific, showing growth potential for bio-based chemicals and green alternatives, leads opportunities for sustainable solvent adoption. Europe faces tightening VOC and chemical emissions regulations impacting solvent use broadly.
Business Adaptations to Sustainability and Regulatory Challenges
Companies are adapting to these challenges by transitioning to green solvents, investing in compliance and safety, embracing digital and subscription services, and engaging in market consolidation and product innovation. Larger players are rolling out globally harmonized formulations and alternatives, while niche firms target market-specific or cost-sensitive segments.
In summary, the Perchloroethylene market is contracting due to regulatory and health concerns but remains important in the dry cleaning sector. Growth in the broader market relies on innovation, sustainability transitions, and digitization, with regional differences impacting the pace of change. Key players such as Olin Corporation, Occidental Chemical (OxyChem), Westlake Chemical, AGC Kanto, and Denka are at the forefront of these changes, prioritizing sustainability and regulatory compliance.
[1] Environmental Protection Agency (EPA) [2] European Chemicals Agency (ECHA) [3] Asia Pacific Chemical Council (APCC) [4] Textile Care Alliance (TCA) [5] International Drycleaning and Laundry Institute (IDLI)
- In the face of health and environmental concerns, companies within the dry cleaning industry are increasingly investing in compliance with stricter environmental regulations, such as those imposed by the Environmental Protection Agency (EPA) and the European Chemicals Agency (ECHA), to adopt more sustainable practices.
- With regulatory bans and consumer demand for sustainability on the rise, the dry cleaning industry's financial landscape is growing more focused on environmentally friendly alternatives, such as liquid CO₂ and silicone-based solvents, driving innovation from key players like Olin Corporation, Occidental Chemical (OxyChem), Westlake Chemical, AGC Kanto, and Denka, as well as niche firms seeking to capitalize on market-specific or cost-sensitive opportunities.
