The market for tris nonylphenyl phosphite is expected to grow at a CAGR of 3% globally during the forecast period. Growing demand from the plastics industry along with increasing demand from the rubber industry are driving the market growth. On the flip side, stringent environmental regulations coupled with unfavorable conditions arising due to the COVID-19 outbreak are hindering the growth of the market.
- The tris nonylphenyl phosphite market is expected to grow during the forecast period owing to the growing demand from the plastics industry.
- Asia-Pacific region to dominate the market across the globe with the largest consumption from countries such as India and China.
Key Market Trends
Growing Demand from the Plastics Industry
- During plastics manufacturing, 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. Whereas stabilizers, improve stability to heat and prevent a chain reaction of decomposition. The growing plastics industry is expected to drive the market.
- Moreover, Europe is home for the second largest packaging industry after China and accounts for a global share of about 20% in 2018. The European packaging industry was valued at EUR 195 billion in 2018 and is expected to grow during the forecast period owing to the increasing use of food packaging and the e-commerce industry.
- The growing demand for plastics from various industries such as automotive, packaging, electronics, etc., are expected to drive the market for tris nonylphenyl phosphite during the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to dominate the market for tris nonylphenyl phosphite during the forecast period due to the increasing demand from countries like India and China.
- The growing plastics industry in countries like India and China are expected to drive the market during the forecast period. In 2019, China produced about 75 million tons of plastic which are 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 total plastics consumption.
- Moreover, India’s packaging industry is the fifth-largest in the world and is growing at about 22-25% per year as per the Plastics Industry Association of India. Costs of packaging and processes food can be lower compared to other countries because of highly skilled labor and cheap labor costs. The growing population and increasing demand for packaging are expected to drive the market for plastics during the forecast period.
- The aforementioned factors, coupled with government support, are contributing to the increasing demand for tris nonylphenyl phosphite in the Asia-Pacific region during the forecast period.
The global tris nonylphenyl phosphite market is partially fragmented with players accounting for a marginal share of the market. Few companies include Addivant, DOVER CHEMICAL CORPORATION, Krishna Antioxidants Pvt. Ltd., Valtris Specialty Chemicals, and Galata Chemicals.
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