Allyl Chloride Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Allyl Chloride Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The market for allyl chloride is expected to record a CAGR of less than 5% over the forecast period (2022-2027).

The primary factor driving the market studied is the increasing use of allyl chloride derivatives in several applications and increased demand for epoxy resins in different industrial applications. On the flip side, stringent government regulations are expected to hinder the market growth.

• Epichlorohydrin is expected to dominate the application segment of the global allyl chloride market as it is used to produce epoxy resins, surfactants, and flame retardants, among others.
• Asia-Pacific region represents the largest market and is expected to be the fastest-growing market over the forecast period owing to the consumption from countries such as China, South Korea, India, and Japan.

• The key demand for allyl chloride is from epichlorohydrin production. Allyl chloride is transformed into epichlorohydrin by the epoxidation process or by reacting allyl chloride with hypochlorous acid.
• The primary use of Epichlorohydrin is in the production of epoxy resins used in coatings, adhesives, and plastics. It is also used to manufacture synthetic glycerine, textiles, paper, inks and dyes, solvents, surfactants, and pharmaceuticals.
• The trade volume of the U.S. plastics industry rose by 27.9% in the first six months of 2021, compared to the same period in 2020.
• India exported plastic raw materials worth USD 352.04 million in July 2021, and the export from April 2021 to July 2021 was USD 1.57 billion.
• Hence, owing to the aforementioned factors, the allyl chloride application for epichlorohydrin production is likely to dominate during the forecast period.

• Asia-Pacific is anticipated to witness the highest CAGR because of rapid expansion and consumption of pharmaceutical and industrial applications from countries like China, South Korea, Japan, and India.
• Increasing demand for polymers, plastics, and other chemicals from countries like China, India, and other emerging economies in the region, is driving the demand for allyl chloride from chemical, pharmaceutical, and polymer industries.
• India consumed only $44 of plastics and rubber per capita in 2020, and China, which used to consume only $86 of plastics and rubber per capita in 2005, shot up to $459 per capita in 2020.
• The polymer consumption and GDP of the polymer industry in the Indian market increased by 10.4% and 8%, respectively.
• Due to the factors above, the region's demand for allyl chloride is expected to increase during the forecast period.

The Allyl Chloride Market is partially consolidated, with a few major players dominating a significant portion of the market. Some of the major companies include (not in any particular order) OSAKA SODA, Kashima Chemical Co., LTD., INOVYN, Sumitomo Chemical Co., Ltd, and Gelest, Inc.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support