by The global Fumed Silica Market is estimated to be valued at US$ 1.23 Bn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Fumed silica, also known as pyrogenic silica, is produced through the combustion of chlorosilanes in an oxygen-hydrogen flame. It comes in the form of microscopic particles that have a fluffy, easily dispersible structure. It is primarily used as a reinforcing and thickening agent in products such as sealants, adhesives, coatings, silicone rubber, etc. owing to its ability to add body, consistency, structure and strength to adhesives, sealants, greases, and personal care items among others. It also provides thixotropic properties, controls settling & sagging, and improves thermal conductivity in the applications.
Market key trends:
One of the major trends in the fumed silica market is the growing demand from the personal care industry. Fumed silica is widely used in cosmetics, skincare, and other personal care products due to its excellent suspension, thickening and structuring properties. It is used in applications such as foundation, skin lotions, sunscreens, lipsticks, and more. With the rising health and beauty consciousness among individuals across the globe, the demand for various personal care products is surging rapidly which is resulting in the growing consumption of fumed silica. Additionally, fumed silica is also witnessing increasing adoption in the food processing and packaging industries which is further propelling the market growth.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low as significant capital investments are required for production facilities. Also, the market is quite consolidated with presence of major established players.
Bargaining power of buyers: The bargaining power of buyers is moderate as the market is highly fragmented in nature and buyers can negotiate on pricing. However, differentiated quality of products gives some control to suppliers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. There are few raw material suppliers and switching costs are low. However, established suppliers have advantage of economies of scale.
Threat of new substitutes: The threat of substitutes is low as fumed silica has unique properties that are difficult to replicate. However, options like precipitated silica pose some threat.
Competitive rivalry: The competitive rivalry is high due to presence of major global players. Players compete on pricing and quality.
Key Takeaways
The Global Fumed Silica Market Size is expected to witness high growth, exhibiting CAGR of 5.6% over the forecast period, due to increasing demand from end-use industries like paints & coatings, food & beverages, and personal care.
On regional front, Asia Pacific is expected to dominate the global market during the forecast period. The increasing demand from countries like China, India, Japan and South Korea is driving the regional market. North America and Europe are also expected to hold significant market shares.
Key players operating in the fumed silica are Applied Material Solutions Inc., Cabot Corporation, Chifeng Shengsen Silicon Technology Development Co. Ltd, China-Henan Huamei Chemical Co. Ltd, Dalian, Fuchang Chemical Co. Ltd, Dongyue Group Co. Ltd, Evonik Industries, Gelest Inc., Heraeus Holding, Kemitura AS, OCI Company Ltd, Tokuyama Corporation, and Wacker Chemie AG. Key players are focused on new product innovations to cater changing demands from end-use industries.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
