The butylated hydroxytoluene market is expected to register a CAGR of over 3% globally during the forecast period. The major factor driving the market studied is the increasing demand for antioxidants from the polymer industry. On the flip side, stringent regulations due to increasing health concerns and unfavorable conditions arising due to the COVID-19 outbreak are hindering the growth of the market.
- The butylated hydroxytoluene market is expected to grow during the forecast period owing to the increasing demand from the plastics and rubber industry.
- The 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
Increasing Demand from the Plastics and Rubber Industry
- Butylated hydroxytoluene is widely used in the plastics and rubber industry owing to its antioxidant characteristics, and its usage is expected to grow rapidly during the forecast period.
- Earlier, rubber was coated with antioxidants to protect it from oxidation, and once the outer coating wears off, the unprotected rubber will instantly undergo oxidation. To prevent this, instead of coating the rubber surface, chemicals are incorporated into the rubber during mixing.
- Antioxidants react with oxygen trapped in the rubber compound during mechanical mixing and later bleed to the surface, thereby providing complete protection for rubber from oxidation.
- Similarly, in plastics, oxidation leads to discoloration and general disorientation. This can either be caused by oxidation and free radical generation. Free radicals are generated due to heat, mechanical stress, and radiation. Antioxidants react with free radicals and prevent degradation of plastics.
- The growing demand for plastics and rubber from various industries, such as automotive and packaging, is expected to drive the market for butylated hydroxytoluene during the forecast period.
The Asia-Pacific Region is Expected to Dominate the Market
- The Asia-Pacific region is expected to dominate the market for butylated hydroxytoluene during the forecast period as a result of the increase in consumption from countries, like India and China.
- Some of the largest producers for butylated hydroxytoluene are in the Asia-Pacific region, which include Honshu Chemical Industry Co. Ltd, Milestone Preservatives Pvt. Ltd, Ratnagiri Chemicals Pvt. Ltd, Dycon Chemicals, VDH Chem Tech Pvt. Ltd, Finar Limited, and many others.
- Butylated hydroxytoluene is used as an antioxidant food additive to prevent atmospheric oxidation of unsaturated organic compounds present in food and oils. It is approved as a food additive by the United States Food and Drug Administration and the European Union.
- In 2019 alone, China produced about 75 million metric ton of plastic, which is about 20% of the total world’s plastic production. Plastic is mainly used in the packaging industry for its lightweight and durability. The increasing e-commerce market is expected to drive the demand for plastics, which accounts for around 30% of the total plastic consumption. The growing plastics industry is expected to drive the market for butylated hydroxytoluene.
- China’s e-commerce market is dominated by Alibaba whose market share is around 59%. The company’s annual revenue in FY 2019 saw a 51% year-on-year growth. The growing e-commerce industry requires packaging, which is expected to drive the market in the region during the forecast period.
- Furthermore, the Indian e-commerce industry is expected to reach USD 120 billion by 2020. The increase in penetration of Internet and the change in government policies allowing 100% foreign direct investments in the e-commerce sector are expected to boost the consumption of plastics.
- The aforementioned factors, coupled with government support, are expected to contribute to the increasing demand in the butylated hydroxytoluene market in the Asia-Pacific region during the forecast period.
The global butylated hydroxytoluene market is partially fragmented with the major players accounting for a marginal share of the market. Few companies in the market include LANXESS, Merck KGaA, OXIRIS, Dycon Chemicals, and Finar Limited.
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