Segmentation by Purity (96-98%, 98%, and Above 98%); by Application (Biofuel, Pharmaceutical, Solvent, and Others); and by End-User Industry (Chemical Manufacturing, Cosmetic & Personal Care, Food & Beverage, and Paint & Coating) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
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The global solketal market is estimated to garner a revenue of ~USD 100 Billion by the end of 2035 by growing at a CAGR of ~4% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 75 Billion in the year 2022. The growth of the market can be attributed to the increasing utilization of solketal in the formulation of biodiesel, diesel, and gasoline coupled with higher gasoline demand. Solketal is used in the place of ethanol to decrease the formation of gum and as an oxygenated additive in the replacement of MTBE. For instance, the gasoline demand is projected to reach over 25 million barrels over the forecast period. Hence, such a higher demand is estimated to spike the utilization of solketal resulting in a major growth factor for the global solketal market.
Global solketal market trends such as a significant surge in the consumption of diesel can be noticed across the globe. Solketal is noticed to be highly used in the production of diesel to enhance its properties. As of 2020, the daily consumption of diesel was observed to be about 85 million barrels. Moreover, solketal is a product acquired from streptomyces violaceus along with the acetal group that also joins the hydroxyl groups. Solketal also has a vital role to play in the chemical industry as a vital additive to be mixed with several chemicals. For instance, the global revenue for the chemical industry amounted to approximately USD 3,500 billion in 2021. All of these factors are anticipated to influence the growth of the market positively over the forecast period.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~4% |
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Base Year Market Size (2022) |
~ USD 75 Billion |
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Forecast Year Market Size (2035) |
~ USD 100 Billion |
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Regional Scope |
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Growth Drivers
Growing Demand for Solketal in Biodiesel Production – Solketal is the most suitable component used in biodiesel as a flash point improver and viscosity after being synthesized through the ketalization. It can hike the number of cetane in gasoline and biodiesel. For instance, in 2022, the total production of biodiesel in India alone was projected to be around 180 million liters while in 2020, around 150 million gallons of biodiesel were produced in the United States.
Rising Utilization of Solketal in the Cosmetics Industry – Solketal is highly used in cosmetics as a vital solvent to decrease the drying time in cosmetic products. The growth of the global solketal market is projected to be interlinked with the growth of the cosmetic industry. For instance, it was estimated that approximately USD 100 billion is estimated to be exhibited by the global beauty industry by 2025. Furthermore, post-COVID-19, around 20% of women across the globe are estimated to spend money on skincare more than before.
Increasing Requirements in the Pharmaceutical – Growing distribution owing to higher demand for medicines has accelerated the production of medicines which in turn boosts the demand for solketal. As of 2021, approximately USD 575 billion were spent by Americans alone on medicine while this figure of spending is projected to reach around USD 600 billion by 2025.
Developing the Paint & Coating Industry to Boost the Demand for Solketal – The global paint and coating industry was valued at approximately USD 150 billion in 2021. Furthermore, more than 1 billion gallons of paint and coating were produced in the United States in 2022 and are estimated to reach around 1.3 billion gallons in 2023.
Growth in the Chemical Industry – As of 2021, the total worth of the global chemical industry amounted to approximately USD 4 trillion.
Challenges
The global solketal market is segmented and analyzed for demand and supply by application into biofuel, pharmaceutical, solvent, and others. Out of the three types of applications, the biofuel segment is estimated to gain the largest market share in the year 2035. The growth of the segment can be attributed to the rising utilization of biofuel owing to increasing environmental concerns. The utilization of biofuels is escalating owing to the negative impact caused by fossil fuels on the environment. As of 2021, the total production of biofuel across the globe was estimated to reach around 12 million gallons equivalent to nearly 300 thousand barrels, approximately 0.80 thousand barrels per day. Meanwhile, the total consumption of biofuel was anticipated to be around 250 thousand barrels summing up to 0.70 barrels a day in 2021 worldwide. Therefore, such factors are projected to hike the growth of the segment during the forecast period.
The global solketal market is also segmented and analyzed for demand and supply by the end-user industry into chemical manufacturing, cosmetic & personal care, food & beverage, and paint & coating. Amongst these segments, the cosmetics & personal care segment is expected to garner a significant share in the year 2035. The higher utilization of solketal in personal care and cosmetic products is anticipated to hike the segment growth over the forecast period. The growth of the segment can also be ascribed to the rising sales and production of cosmetics across the globe. Solketal is used in cosmetics since it has high compatibility and miscibility and it can also affect the drying time of the products. For instance, in 2023, the sales of non-luxury goods of cosmetics are projected to reach approximately 70%. Hence, such factors are projected to hike the segment growth over the forecast period.
Our in-depth analysis of the global solketal market includes the following segments:
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By Purity |
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By Application |
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By End-User Industry |
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The North American solketal market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be attributed majorly to the growing industries such as chemical, cosmetic & personal care, food & beverage, paint & coating, and others in the region with extreme demand for solketal. The United States is projected to be one of the biggest chemical product producers worldwide. For instance, in 2020, the value of chemical shipment in the U.S. was valued at more than USD 350 billion. Furthermore, the growing consumption and production along with export of the renewable diesel, biofuels, and ethanol in the region are also estimated to influence the market growth over the forecast period. For instance, in 2021, the export of biodiesel reached approximately 150 gallons while the production of biodiesel stood at nearly 15,00 summing up to 38,000 thousand barrels which were expected to be around 100 thousand barrels a day. The data for renewable diesel also indicates the surge in the production and consumption of it in the region.
The Asia Pacific solketal market, amongst the market in all the other regions, is projected to hold the second largest share during the forecast period. The growth of the market can be attributed majorly to similar reasons, such as the growing demand for solketal in several industries in the region. China is expected to be the major consumer and producer of the solketal owing to the presence robust chemical automotive industry in the country. For instance, about 40% of the global chemical sale was solely generated by China in 2020. The surge in the production of automobiles in the region has also boosted the demand for biofuels backed by the positive effect of biofuels on the environment. Therefore, all these factors are projected to propel the growth of the market in the region during the forecast period.
BASF SE to provide CO2 capture technology to Japan in its first opportunity to produce blue hydrogen and ammonia from natural gas. This technology is known as HiPACT which is co-developed by JGC corporation.
Sasol Limited presented the Hybla Project aimed at boosting the production of low-carbon syngas and hydrogen. This project is mainly developed for building innovative plant for the production of hydrogen and syngas to fulfill the demand of the market.
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.
Ans: Growing demand for solketal in biodiesel production and developing the paint & coating industry to boost the demand for solketal are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~4% over the forecast period, i.e., 2023 – 2035.
Ans: The presence of alternative additives in the market is estimated to be the growth hindering factor for the market expansion.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are GLACONCHEMIE Gmbh, Suzhou Jinghua Chemical Co., Ltd, Merck KgaA, Tokyo Chemical Industry Co., Ltd., BASF SE, Sasol Limited, Evonik Industries AG, Solvay Group, and Lonza Group.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue-generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by purity, application, end-user industry, and by region
Ans: The biofuel segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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