Global 2-Ethylhexanol Market - 2022-2029

Global 2-Ethylhexanol Market - 2022-2029

Market Overview

The global 2-ethylhexanol market reached US$ XX million in 2021 and is expected to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

2-Ethylhexanol is eight-carbon branched-chain oxo alcohol with a low evaporation rate and a high boiling point. As a chemical intermediary, it is a flexible solvent with high reactivity. It is used as a chain terminator in the production of condensation polymers and as a plasticizer intermediate. Low-volatility 2-ethylhexanol improves the flow and gloss of baking enamels. It's also employed in pigment pastes as a dispersion agent.

2-Ethylhexanol is a low volatility solvent used to defoam varnishes, paints and ceramics. It can be used to manufacture coatings and lacquers. The conversion of propylene and syngas to n-butyraldehyde, followed by a condensation and hydrogenation reaction to create 2-EH via 2-Ethylhexenal, is the basis for large-scale fossil-based production of 2-EH. Propylene is produced by steam cracking of fossil oil, whereas syngas is generally produced through steam reforming natural gas.

The 2-Ethylhexanol main application is as a feedstock in manufacturing low-volatility esters, such as di-(2-Ethylhexyl) phthalate (DOP, DEHP, Palatinol AH) all-purpose plasticizer for vinyl chloride copolymers and PVC. The features of this plasticizer are its low volatility, excellent gelling power and outstanding dielectric properties.

Market Dynamics

The global 2-ethylhexanol market is expected to boost with growing demand for Drop-in renewable fuels.

Growing demand for Drop-in renewable fuels

More than 180 countries pledged to tackle climate change as part of the 2015 Paris Agreement and proposed ambitious objectives for decreasing greenhouse gas emissions. The consequences for the transportation industry are significant. By 2050, the EU aims to reduce GHG emissions from transportation by 60% compared to 1990 levels. In the revised renewable energy directive, the previous aim of 10% renewable fuels in the vehicle fleet by 2023 has been adjusted to a minimum share of 14 percent by 2030. For the time being, fossil-based fuels dominate the car fleet, which is one of the major roadblocks to achieving these targets as road transport emissions continue to rise. Diesel or gasoline-powered vehicles account for over 95% of the European fleet.

Drop-in renewable fuels can greatly reduce GHG emissions in the transportation sector in short to medium term by taking benefit of existing infrastructure when motor engines and fueling systems are concerned. Although the usage of 2-EH in the automotive industry is not new, using it as a transportation fuel introduces a new application and business opportunity. 2-EH can be combined with traditional diesel or renewable fuels like hydrogenated vegetable oil or rapeseed-methyl-ester to produce a fuel with high renewable energy content. The performance characteristics of 2-EH blends in engines have been studied, with good thermal efficiency and regulated emissions reduction. Syngas-produced 2-EH has the lowest primary energy requirement and GHG emissions among the various methods. 2-EH can thus provide a cost-effective alternative to fossil transportation fuels, boosting the amount of renewable material in today's vehicle fleet and bolstering efforts toward a more sustainable transportation sector.

Constant hike in prices of 2-ethylhexanol

The constant rise in the cost of 2-Ethylhexanol is expected to be a restraining factor for market growth. Various leading companies have been increasing the prices of oxo alcohols, especially 2-Ethylhexanol, for various reasons. Some companies have raised the product prices up to 2-3 times a year, affecting the supply chain. For instance, in 2021, Due to increasing raw material costs and strong demand, OQ Chemicals has increased prices for 2-Ethyl Hexanol by US$ 0.30 lb.

Moreover, Eastman Chemical Company has also announced a price increase effective April 14, 2021, for EastmanTM 2-Ethylhexanol at US$1.00/ pound. This action was necessary due to supply and demand and rapidly increasing raw material prices, particularly natural gas. Due to skyrocketing natural gas prices in Europe, Perstorp Oxo AB has increased its selling prices for 2-Ethylhexanol by+US$ 300/mt.

COVID-19 Impact Analysis

The 2-ethylhexanol market has been declining during the COVID-19 due to lower demand from the end-user industries. The 2-ethylhexanol has been widely used in automotive, construction, cosmetics, electrical & electronics and other industries. Furthermore, plasticizers, a key driving sector of 2-Ethylhexanol, showcased bearish sentiments, impacting this sharp decline. In addition, previous unforeseen natural events like prices of several raw materials, including 2-EH, have also impacted the demand. Despite the uncertainties caused by the COVID-19, the prices of 2-Ethyl hexanol stabilized due to ample stocks.

During the COVID-19, the facemask has evolved as an indispensable accessory to reduce the spread of the virus. Facemasks provided a barrier stopping these from reaching other people. Furthermore, DEHP and DBP were the major phthalates found in facemasks, which has boosted the market demand. DEHP is a plasticizer in polyvinyl chloride and other plastics. Di-2-Ethylhexyl-phthalate (DEHP) is produced by esterification of phthalic anhydride with 2-ethyl-hexanol.

Segment Analysis

The global 2-ethylhexanol market is segmented based on purity, application, end-user and region.

Rising demand for plasticizers for producing polyvinyl chloride will boost the 2-ethylhexanol market demand

Based on application, the global 2-ethylhexanol market is segmented into plasticizers, stabilizers, coatings additives, lubricants, pesticides, perfumes, food additives and others.

Plasticizers for polyvinyl chloride are made from 2-ethyl hexanol. Bis(2-ethyl hexyl) phthalate is formed by reacting phthalic anhydride with bis(2-ethyl hexyl) phthalate (DOP, DEHP). PVC is converted into a soft, flexible and elastic material using plasticizers. A primary plasticizer is a plasticizer that is compatible with PVC and has minimal volatility, good permanence and high efficiency. The features of a secondary plasticizer are the polar opposite of those of a primary plasticizer. Plasticizers with the highest solvation and fusing rates are the most efficient. Terephthalates plasticizers are prepared by the transesterification of dimethyl terephthalate with aliphatic alcohols such as 2-ethyl hexanol.

Plasticizers are concerned about the problem of transitioning the raw material foundation in plastics production from fossil to bio-based feedstocks. Plasticizers are used extensively in producing polyvinyl chloride. Plasticizers today are frequently made from fossil fuels. Furthermore, some plasticizers, such as particular ortho-phthalates, are restricted due to their toxicological profile.

Recently, Bielefeld University, Hamburg University of Technology, BASF SE and colleagues have synthesized bicyclic plasticizers accessible from bio-based 2-methylfuran, maleic anhydride and 2-ethylhexanol and evaluated them in performance tests. The team created a new plasticizer via a Diels-Alder reaction with a 2-methylfuran with maleic anhydride, followed by esterification with 2-ethylhexanol. A second prospect with a different configuration was composed using a Diels-Alder reaction of bis(2-Ethylhexyl) maleate with 2-methylfuran, followed by hydrogenation.

Geographical Analysis

Expanding construction and automotive industry in the developing countries will boost demand in Asia-Pacific

Asia-Pacific held a significant share in the 2-ethyl hexanol market. China accounts for the majority of the regional 2-Ethylhexanol Market share in Asia-pacific. The demand for 2-ethyl hexanol is driven by the growing demand for plasticizers in emerging economies like Vietnam, China, India and Indonesia. The electronics manufacturing industry is constantly shifting toward China due to increasing demand for electronics products and low costs. Also, the rising demand for 2-EH hexanol with the rising construction and automotive industry is driving the market growth in the Asia-Pacific region. Also, China is the biggest producer of automobiles globally, with manufacturing bases of almost all the leading automobile companies.

In 2019, BASF SE set up a petrochemical production hub in Gujarat in a joint venture with Adani Group. The investment will develop, construct and operate production plants, including propane dehydrogenation, oxo C4 complex (2-ethylhexanol) and potentially other downstream products. Moreover, India has begun imposing an anti-dumping duty on 2-Ethyl Hexanol from the EU, U.S, Indonesia, Malaysia, South Korea and Taiwan, with the existing duties on the product. The Andhra Petrochemicals Limited has strived to continue the duty on the product used in solvents, flavors and fragrances, citing the likelihood of recurrence of dumping.

Competitive Landscape

The global 2-ethylhexanol market is highly competitive with several global and local brands. Major players in the market include Eastman Chemical Company, SABIC, Dow, China Petrochemical Corporation, OXEA GmbH, BASF SE, INEOS, LG Chem, Mitsubishi Chemical Corporation, Merck KGaA, Meryer Chemical Technology Co. Ltd, among others.

The players in the market are known to incorporate numerous market strategies to achieve growth in the global 2-ethylhexanol market; these include product launches, mergers, acquisitions and collaborations.

Eastman Chemical Company

Overview: Eastman Chemical Company is a specialty materials organization that manufactures an extensive range of products found in items people use every day. The company's products and operations are distributed in four operating segments: Additives & Functional Products (AFP), Chemical Intermediates (CI), Advanced Materials (AM) and Fibers.

The company has been responsible for manufacturing, technology and marketing expertise in oxo chemicals for more than 60 years. The company has one of Longview's largest single-site oxo facilities that produces over 25 different organic chemicals and specialty polymers. Eastman has 47 manufacturing facilities and has equity interests in 3 manufacturing joint ventures in 14 countries that provide products to customers worldwide.

Product Portfolio:

2-Ethylhexanol: As a chemical intermediary, 2-Ethylhexanol is a versatile solvent with high reactivity. It is used as a chain terminator in the production of condensation polymers and as a plasticizer intermediate. Low-volatility 2-ethyl hexanol improves the flow and gloss of baking enamels.

Key Development: In 2020, Eastman Chemical Company announced to increase in prices on certain products. The price for Eastman 2-ETHYLHEXANOL of all packages and grades was increased to $US 0.050/LB in North America and Latin America.

Why Purchase the Report?

To visualize the global 2-ethylhexanol market segmentation by purity, application, end-user and region and understand key commercial assets and players.

Identify commercial opportunities in the global 2-ethylhexanol market by analyzing trends and co-development.

Excel data sheet with numerous data points of 2-ethylhexanol market-level with four segments.

PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.

Purity mapping available as excel consists of key products of all the major market players

The global 2-ethylhexanol market report would provide approximately 61 tables, 62 figures and almost 213 pages.

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