The market for benzyl alcohol is expected to witness a CAGR of over 5% during the forecast period. Major factors driving the market studied are increasing demand from the food and beverage and cosmetics and personal care industries. On the flip side, a high concentration of benzyl alcohol causes toxic effects on humans, and the unfavorable conditions that are arising due to the COVID-19 outbreak are hindering the growth of the market.
- Intensification of nitrobenzaldehydes synthesis from benzyl alcohol as an inherently safe continuous flow process in a microreactor is expected to offer various opportunities for the growth of the market over the forecast period.
- The food & beverage industry is expected to dominate the global benzyl alcohol market over the forecast period.
- Asia-Pacific region represents the largest market and is also expected to be the fastest-growing market over the forecast period owing to the increasing consumption from countries, such as China, India, and Japan.
Key Market Trends
Food and Beverage Industry Segment to Dominate the Market
- The food and beverage industry is anticipated to register a CAGR of more than 8% during the forecast period. Food additives and preservatives derived from benzyl alcohol are intensively used in the food & beverage industry.
- The food preservative market is expected to register a CAGR of more than 6% during the forecast period, owing to the rising consumption of processed and packaged food. This will ensure the regular demand for benzyl alcohol as many preservatives are derived from it.
- The worldwide food additives market is projected to show rapid growth during the forecast period. Benzyl alcohol is a food additive permitted for direct addition to food for human consumption, as a synthetic flavoring substance.
- The food & beverage segment is also expected to be the fastest-growing market over the forecast period, owing to the increasing food demand from the ever-increasing global population and rising spending power.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific is expected to be the dominant market in benzyl alcohol consumption. This is because China dominates the market for the end-use industries, such as paints and coatings, adhesives and sealants, chemical processing, and cosmetics and personal care. China's consumption of adhesives accounts for a 32% share of global consumption.
- Asia-Pacific is also expected to be the fastest-growing market during the forecast period, owing to the demand from applications like solvents, preservatives, food additives, etc.
- The Asia-Pacific food additive market is expected to register a CAGR of more than 6% during the forecast period. Benzyl alcohol is regularly used as a food additive in various applications.
- The paints and coatings industry, where benzyl alcohol is used as a general solvent, is expected to witness a CAGR of approximately 6% during the forecast period in the region. This is because China is expected to witness the highest growth in construction activities, followed by India. In China, government spending on constructing affordable housing facilities has been increasing to cater to the housing demand. In addition, the public-private partnership (PPP) projects have also been boosting in the domestic construction sector.
- The Asian cosmetics and personal care market is gaining popularity worldwide. It is expected to register a CAGR of more than 5%, during the forecast period, with Japan, Singapore, South Korea, Hong Kong, and China amongst the top 10 global cosmetics exporters. Benzyl alcohol is used in a wide variety of cosmetic formulations as a fragrance component, preservative, solvent, and viscosity-decreasing agent.
- Thus, rising demands from the above-mentioned end-user industries are expected to drive the growth in the Asia-Pacific region.
The benzyl alcohol market is fragmented with the presence of both international and domestic players. The major companies in the market studied include Alfa Aesar, Thermo Fisher Scientific, Elan Chemical, LANXESS, Merck KGaA, and Valtris Specialty Chemicals, among others.
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