The global thiochemicals market is expected to witness a CAGR of over 5% during the forecast period. Rising use of thiochemicals in methionine production, which serves as a major nutrient for the poultry industry, is majorly expected to drive the market growth.
- The high toxicity of thiochemicals, such as isopropyl mercaptan and tetrahydrothiophene, which are flammable and extremely toxic to aquatic fauna, is likely to hinder the growth of the market.
- However, increasing market penetration in African economies, like South Africa and Kenya, is expected to provide substantial opportunity for the thiochemicals market in emerging economies.
Key Market Trends
Growing Usage in Animal Nutrition
- In the animal nutrition end-use, thiochemicals are majorly used in the form of methyl mercaptan, which is used in the production of methionine. Methionine is mainly used as a dietary supplement for poultry and animal feed. Therefore, the increasing demand for poultry and other meat is expected to drive the thiochemicals market.
- Poultry consumption is expected to increase in the Asia-Pacific region, like India and China, in response to an expanding population, which is expected to intensify the demand for poultry meat and eggs, resulting in an increase in consumption for thiochemicals in the industry.
- The industry has been witnessing an increase in the production and consumption of beef and veal, pork, and chicken meat since the past few years. This has resulted in an increase in the demand for animal feed as well, driving industry growth.
- Increasing production of feed across Europe, Asia, Middle East & Africa, North America, and Latin America is predicted to witness significant growth, which, in turn, is expected to augment the product demand in the sector.
China to Dominate the Asia-Pacific Regional Market
- China’s thiochemicals demand for methionine production is rising faster than the global average, due to the rising demand for meat products from China’s wealthy middle class. The enormous growth can be explained by the surging demand for animal feed used in the livestock and farming industries. Since the population almost doubled to 1.4 billion people, the country’s demand for meat and animal feed has exploded.
- DL-methionine is one kind of safe feed additives and belongs to the key area supported by China’s Key High-tech Industry and Industrial Structure Adjustment Guidelines.
- Additionally, the 12th five-year development plan in the feed industry clearly pointed out that China should develop feed products with excellent quality, safety, high-efficiency, as well as new feed additives; this contributes to enhance the capacity of DL-methionine, strengthen the international competitiveness of amino acid in feed grade, and reduce the production cost.
- Methionine manufacturers are expanding production in the country by setting up new plants. This helps the country’s animal feed industrial chain to extend upstream, and greatly boost the development of the animal feed processing and breeding industries.
- Additionally, growing refining activities in the country and the growing demand for natural gas are expected to significantly support the market growth.
- Such positive factors are expected to drive the market for thiochemicals through the forecast period.
The market studied is highly consolidated, where only two players, Arkema Group and Chevron Phillips Chemical Company, hold a lion’s share of the market. Some of the other major players operating in the market studied include Hebei Yanuo Bioscience Co. Ltd and Daicel Corporation amongst others.
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