The market for Azodicarbonamide is expected to grow at a CAGR of more than 5% during the forecast period. One of the key factors driving the market is the significant growth of the plastic industry.
- However, regulation or banning of use of azodicarbonamide for some applications in Europe and Australia acts as a restraint for the market. Some major food chains like subway and flower foods have stopped using Azodicarbonamide in their bread preparation due to its unpopular reputation of its health effects.
- North America is estimated to dominate the market with the largest consumption coming from the United States. However, Asia-Pacific is likely to register the fastest growth rate during the forecast period.
Key Market Trends
Plastics and rubber industry is expected to dominate the market
- Azodicarbonamide is a crystalline powder, odorless chemical compound by nature, which ranges in color from yellow to orange red.
- Azodicarbonamide is used in plastics manufacturing processes such as injection molding, calendaring, extrusion, coatings, slush, and rotational molding.
- It is also used as a blowing agent in the formation of the foamed plastics in the foaming process.
- Foamed plastics usage has increased the strength to weight ratio of the material along with the improvement in electrical and thermal insulation and reduced material costs.
- Increasing demand for foamed plastic from industries like air filters and construction in the next few years is anticipated to propel the use of azodicarbonamide as a blowing agent.
- In rubber industry, it is used in the formation of vinyl (PVC). Vinyl foam is used in the carpets and floor mats as it is springy and does not slip on smooth surfaces.
- As demand of products like rubber seals, yoga mats, gymnasium products and shoes is expected to increase, which in turn is expected to translate into demand for azodicarbonamide market for the forecast period.
Asia-Pacific to Witness a Significant Growth
The Asia Pacific is expected to grow significantly during the forecast period owing to the rising demand from consumers for better-quality plastics and rubber products (foamed plastics etc.) process. The plastic industry is expected to grow in countries like China and India. The Chinese plastic industry is growing at a high rate due to the availability of cheaper raw materials and massive demand increase in industries like packaging and footwear from developing economies. India's plastic production is also expected to increase massively due to export growth and government investments. In the Fiscal year 2019, plastics export from India stood at USD 10.98 billion out of which exports of raw plastic material stood at USD 4.53 billion. India is expected to have 18 plastic parks in the near feature as the union government will be investing Rs 40 crore to increase the domestic production of plastics (According to the Ministry of Commerce and Industry). This is expected to boost the demand for the Azodicarbonamide during the forecast period.
The market studied is fragmented in nature. Some of the key players in the market include Ajanta Group, Haihang Industry Co., Ltd, Jiangxi Selon Industrial Co., Ltd., LANXESS, SPL Group, among others. The production of Azodicarbonamide has almost stopped in Europe and is completely imported.
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