Strict regulations on emissions from various industries is expected to increase the demand for high performance fuels ultimately, fostering the growth of the plasticizer alcohol market during the forecast period.
Use in Various Applications
Plasticizer alcohol is used in various applications and contributes to the demand for plasticizers. It is used by various end use industries such as automotive for automotive production which is anticipated to drive the growth of the market.
Demand for Alternatives
Increase in the demand for alternatives such as phthalates, aliphatics, benzoates, specialty plasticizers is predicted to restrain the growth of the plasticizer alcohol market over the next few years till 2027.
Demand for plasticizer alcohol is expected to grow significantly owing to its use in numerous industries such as automotive, construction, plastics & paint coatings and chemical processing. An increase in application scope for PVC in the recent years has prompted the demand for plasticizer alcohols and is expected to affect the market growth positively.
The plasticizers alcohol market is anticipated to record a CAGR of around 3.3% over the forecast period i.e. 2019-2027. The market is segmented by type & application. The market is segmented by type into n-butanol, isobutanol, 2-ethylhexanol, isononyl alcohol & others out of which, the n-butanol segment is anticipated to have leading shares on account of its wide usage as a solvent in various cosmetics and chemical industries.
The market is further segmented by application into acrylate esters, plasticizers, solvents, lubricating oil additives and others out of which, lubricating oil additives segment is anticipated to have significant growth on account of increase in the demand for specialized lubricants. On the basis of end use industry, the market is segmented into construction, automotive and others.
Increment in economic rate is expected to lead to a rise in the disposable income of the consumers, enabling luxuries of the population and enhancement in the lifestyle of the people globally. As a result, this may increase the sales of end use commodities of plasticizers alcohol such as cars and construction essentials. Rise in demand for flexible PVC in different applications, increase in the adoption of high molecular weight phthalate & non-phthalate plasticizers and developing packaging industries are expected to propel the growth of the market. Continuous innovations in plasticizers alcohol which results in the initiation of its bio-derived type and R&D activities for the production of new applications by different markets are estimated to provide wide opportunities for the expansion of the plasticizer market. In most markets, demand for plasticizer alcohol is influenced by economic conditions. Therefore, demand for the product follows the patterns of world economies.
Several regulations are being passed regularly on the safe use of plasticizer alcohol such as in Europe, Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) enables safe use of these chemicals. Huge investments have been made in the research and development in order to improve the performance of these chemicals, produce substances that cater to the market needs and respecting the safety norms of REACH. Various organizations such as ECPI (European Council for Plasticizers and Intermediates) proactively communicate the benefits of using such chemicals and their applications and providing technical & scientific expertise to national industries.
Our-in depth analysis of the plasticizer alcohol market includes the following segments:
On the basis of regional analysis, the plasticizer alcohol market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Asia Pacific region is estimated to have largest market share during the forecast period both in terms of value and volume, owing to high growth of end-use industries, followed by Europe and North America. Latin America region is expected to have significant growth prospects on account of growth in automobile manufacturing and chemical processing units in Brazil and Mexico. Europe is estimated to witness reasonable growth rate attributed to stringent regulations being passed which limit the use of phthalates.
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The plasticizer alcohol market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.