by Market Overview:
Monochloroacetic acid, also known as chloroacetic acid, is an organic compound with the chemical formula CH2ClOOH. It is a colorless, crystalline solid that is highly soluble in water. Monochloroacetic acid finds wide applications in the production of carboxymethyl cellulose (CMC), thioglycolic acid, pesticides and herbicides like 2,4-D, among others. CMC is an important binding and thickening agent used across various industries such as food & beverages, pharmaceuticals, construction, and personal care & cosmetics. Thioglycolic acid is used in permanent waving and hair straightening formulations.
The Monochloroacetic Acid market is estimated to be valued at US$ 941.62 Mn in 2023 and is expected to exhibit a CAGR of 3.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Monochloroacetic acid demand is primarily driven by its use in the production of carboxymethyl cellulose (CMC) and thioglycolic acid. CMC has widespread applications and enables various industries. Additionally, growing demand for natural and biodegradable products is expected to boost the production of carboxymethyl cellulose, in turn fueling the monochloroacetic acid market growth. Furthermore, increasing application of thioglycolic acid in personal care products such as hair straightening formulations and hair removers is creating numerous opportunities for monochloroacetic acid producers. However, health hazards associated with monochloroacetic acid exposure may hamper the market growth over the forecast period. Stringent regulatory norms regarding its production and transportation also pose challenges.
Segment Analysis
Monochloroacetic acid market is dominated by the carboxylate salts and esters segment as it finds wide applications in the production of agrochemicals, personal care products, and surfactants. This segment accounted for nearly 60% of the overall market share in 2022. The increasing demand for surfactants from industries like personal care and detergents has propelled the growth of this segment.
PEST Analysis
Political: Governments across regions are imposing stringent regulations regarding the production and usage of chemicals to ensure environmental sustainability. This impacts the market dynamics.
Economic: The high costs associated with R&D activities for product innovation poses a challenge for market growth. However, increasing applications in end-use industries augur well for demand growth.
Social: Rising consumer awareness about health, hygiene and sustainability is driving the use of biodegradable and eco-friendly surfactants produced from monochloroacetic acid.
Technological: Production technologies are advancing to increase yields and optimize reactions. This is helping market players improve efficiencies and reduce costs.
Key Takeaways
The Global Monochloroacetic Acid Market Size is expected to witness high growth, exhibiting CAGR of 3.6% over the forecast period, due to increasing demand from agrochemical and pharmaceutical industries. Asia Pacific dominated the market and accounted for over 40% share in 2022 led by strong demand from China, India, and Japan.
Regional analysis: Asia Pacific is the fastest growing as well as the dominating region in the monochloroacetic acid market. Countries like China, India, and Japan are the major consumers and are expected to remain lucrative markets during the forecast period. This is attributed to the large scale production of agrochemicals and pharmaceutical intermediates in these countries.
Key players: Key players operating in the monochloroacetic acid market include AkzoNobel N.V., CABB Group GmbH, Niacet Corporation, and Denak Co. Ltd. AkzoNobel dominates the market with its wide product portfolio and extensive global presence. CABB Group also enjoys a strong position with its technical expertise and production facilities across Europe and Asia Pacific.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
