The market for allyl chloride is expected to grow at a CAGR of less than 5% globally. Major factor driving the market studied is the increasing use of allyl chloride derivatives in several applications, along with increased demand for epoxy resins in different industrial applications. On the flip side, stringent government regulations and unfavorable conditions arising due to the COVID-19 outbreak is hindering the growth of the market.
- Epichlorohydrin is expected to dominate the application segment of the global allyl chloride market as it is used to produce epoxy resins, surfactants, flame retardants, among others.
- Asia-Pacific region represents the largest market and is also expected to be the fastest-growing market over the forecast period owing to the consumption from countries such as China, South Korea, India, and Japan.
Key Market Trends
Increasing Use of Allyl Chloride Derivatives in Several Applications
- Allyl chloride is an organic chemical compound which is primarily used as an intermediate to produce several chemicals. Allyl chloride is insoluble in water however soluble in the organic solvents. Allyl chloride is manufactured by chlorination of propylene, at an industrial scale.
- The key demand of allyl chloride is from epichlorohydrin production. Allyl chloride is transformed into epichlorohydrin by the epoxidation process or by reacting allyl chloride with hydrochlorous acid.
- In addition, allyl chloride also finds its applications in the production of allyl alcohol, allyl isothiocyanates, allylamine and allyl silane. Allyl chloride is also employed as an alkylating agent to manufacture several chemical compounds.
- Apart from this, the demand for allyl chloride is increasing from pharmaceutical and pesticide manufacturing, as an alkylating agent.
- Furthermore, the rapid growth in the plastic industry is driving the demand for allyl chloride globally. Epoxy is one of the key polymers which has growing demand from end-user industries like plastics, paints and coatings, and composites market. Rising trends from these end-user markets is in turn expected to surge the demand for allyl chloride during the period.
Asia Pacific Region to Dominate the Market
- Asia-Pacific is anticipated to witness the highest CAGR during the period on account of rapid expansion and consumption of pharmaceutical and industrial applications from countries like China, South Korea, Japan, and India.
- Increasing demand for polymers, plastics, and other chemicals from countries like China, India, and other emerging economies in the region, is driving the demand for allyl chloride from chemical, pharmaceutical and polymer industries.
- The growth is also attributable to the pressing need for epichlorohydrin from numerous end-user industries, especially water treatment projects which is witnessing heavy funding is in turn expected to elicit massive demand for allyl chloride.
- Due to the aforementioned factors, the demand for allyl chloride is expected to increase in the region during the forecast period.
The Allyl Chloride Market is partially consolidated in nature with a few major players dominating a significant portion of the market. Some of the major companies are OSAKA SODA, Solvay, INOVYN, Olin Corporation and GELEST, INC. and among others.
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