Monochloroacetic Acid Market set to cross the billion-dollar benchmark by 2024, APAC to drive the regional landscape
Business collaborations having been one of the key growth strategies of myriad industries, have also profoundly impacted Monochloroacetic Acid (MCAA) Market. One such instance bearing a testimony to this tactic was the collaboration of the German Company, CABB Gmbh, in 2013 with two domestic enterprises JinweiHuasheng Chemical Co. Ltd and Jining Gold Power Co. Ltd, where the former had inked a Memorandum of Understanding for the establishment of a joint venture company in China to deal with the marketing and manufacturing of high quality monocholoroacetic acid. Reportedly, three companies collectively invested around USD 160 million in the MCAA project of production capacity 50000t/a. The constant technological innovations characterizing this fraternity and series of such collaborations and joint ventures are poised to influence monochloroacetic acid industry trends in the ensuing years.
Europe monochloroacetic acid (MCAA) market size, by application, 2013 – 2024 (USD Million)
Global monochloroacetic acid market involves the participation of biggies such as AkzoNobel N.V., Daicel Corporation, The Dow Chemical Company, Daicel Corporation, Shandong Minji Chemical Co., CABB GmbH, PCC SE, Niacet Corporation, and, Xuchang Dongfang Chemical Co. Ltd. The strategies of alliances and product innovations are quite rampant across the competitive landscape of the monochloroacetic acid industry. The recent announcement of Atul Ltd. and AkzoNobel entering a partnership agreement with regards to production of MCCA in India is again a substantiation of how monochloroacetic acid market giants are deeply ingrained in collaborative approaches. The partnership was rather an appreciable step by both the firms to further exploit the potential of monochloroacetic acid market. Global Market Insights, Inc., claims monochloroacetic acid industry to surpass a revenue of USD 1.2 billion by 2024, with a projected CAGR of 4% over 2017-2024.
Monochloroacetic acid, often termed chloroacetic acid is recognized as one of the most halogenated forms of acetic acid. Being reactive in nature, this compound can form a number of intermediates by undergoing reactions. In fact, this fundamental aspect further expands the application horizon of monochloroacetic acid market. For instance, this organochlorine compound is an integral component in carboxymethyl cellulose (CMC) manufacturing, which finds extensive application across diversified domains, such as food and beverage, paints & coating, textile, paper & pulp etc. It is therefore no surprise that the growth of all these aforementioned domains will leave a perpetual impact on monochloroacetic acid industry dynamics as well. As per the estimates, approximately 30% of the globally produced MCCA is used in the manufacturing of CMC.
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A sizable chunk of the overall monochloroacetic acid industry share is obtained from agrochemical application, which is why the growth potential of the market is forecast to be remarkably high in agrarian countries, particularly in the United States and BRICS nations. As per a recent estimation, in the year 2016, 45% of the total land in America and 60% of the total land in India were under cultivation. The population curve of China and India is exponentially increasing, a factor that is subsequently necessitating increased crop production to address the rising food demand curve. Enhancement of soil fertility has thus become a requirement of late, which is quite evident from the increased consumption of pesticides, fungicides, insecticides, and other chemical aggregates across APAC belt. Since MCAA and its derivatives are extensively deployed in these agrochemicals manufacturing, the aforementioned aspects are expected to upscale monochloroacetic acid industry demand.
Speaking of the geographical trends, Asia Pacific is forecast to procure a major chunk of the overall industry over the coming seven years, accounting for almost 60% of the overall share by 2024. Other than agrochemical sector, the proliferation of medical, personal care, and textile sectors have also proved to be beneficial for the regional monochloroacetic acid industry growth. MCAA is majorly used for glycine production, which is an intermediate compound obtained from glyphosate herbicide production. Statistics claim, glyphosate is arguably the largest volume of herbicides that are produced worldwide. Though there are other synthesis routes for glyphosphate production, but in China, the predominant route is through MCAA. This fundamental aspect makes China’s contribution significant not only in the APAC monochloroacetic acid market but also in the global business space. China is arguably the largest consumer and manufacturer of agrochemicals. While emerging agrochemical domain plays a crucial role in the development of regional monochloroacetic acid market, another key end-use segment almost equally responsible for the business proliferation is the paper and pulp sector.
Heavy depletion of petroleum reserves across some of the regions have of late turned out to be a major concern for the monochloroacetic acid market players. Depleting crude oil reserves has subsequently resulted in raw material price discrepancies, thereby generating a supply demand gap in the value chain. However, unprecedented efforts are being continuously undertaken by the raw material manufacturers at the grass root level to overcome these challenges.
Author Name : Satarupa De