Monochloroacetic Acid Market Size

Monochloroacetic Acid Market Size

Monochloroacetic Acid Market size crossed USD 900 million in 2016 and will grow at a CAGR of over 4% to 2024.  

Pharmaceutical, paper, textiles, personal care, food & beverages, oil & gas, and chemical industries are the primary drivers for the global monochloroacetic acid market. These rapidly growing industries, especially in China and India, will foresee huge industry growth in the coming years. Growing textiles industry on account of changing fashion trends, increasing population and purchasing power parity will further fuel the market demand in future years. Rapid growth in the above-mentioned industries has made China a preferred destination for relocation of global manufacturing facilities. Furthermore, China and India are also agricultural economies and produces synthetic fibers, jute bags, cloth, and yarn. Presence of several such industries are resulting in greater market demand in these countries.

Monochloroacetic acid market will foresee huge demand from the agriculturally based countries owing to rising agrochemicals, paper and textile industries in the BRICS nations. The BRICS nations and the U.S. have huge agricultural activities and produce on a large scale for self-consumption and exports. In 2016, 45% of land in the U.S. and 60% of the land in India were under cultivation. China and India have a major chunk of the global population which results in more crop production to meet their food demand. Use of agrochemicals such as insecticides, pesticides, herbicides, and fungicides has increased to protect, develop and enhance the crops. These agrochemicals also help the land to maintain its fertility for the next production cycle and increase the crop yield. These factors are fueling the agrochemicals demand in the BRICS nations and the U.S.

Flourishing paper industry due to the trend of use-and-throw materials, and rapidly growing packaging industry due to home delivery system will further augment the market in the Asia Pacific region. China accounted for a major share in the pulp and paper industry, which was close to 55% in 2016, followed by Japan, Indonesia and India with 13%, 8% and 7% respectively.

One of the major components for the monochloroacetic acid production is acetic acid. Fluctuation in the raw material prices related to acetic acid will result in volatility in the product prices. Depleting petroleum reserves round the globe is one of the rising concerns for the past few years. This has resulted in high crude oil prices volatility. This also affects the prices of derivative products such as acetic acid which is manufactured through carbonylation process using methanol. Furthermore, the basic raw material used in the production of acetic acid is methanol which is industrially synthesized using natural gas. Thus, fluctuation in natural gas prices affects the cost of production involved in manufacturing acetic acid, which in turn affects the monochloroacetic acid (MCA) market growth.