Monochloroacetic acid, also known as chloroacetic acid, is an organic compound mainly used for production of carboxymethyl cellulose (CMC). CMC finds wide applications in several end-use industries such as food & beverages, oil & gas, pharmaceuticals, detergents, and paper, among others. It is known for its properties like thickening, binding, suspending, and stabilizing. Rising demand for CMC from personal care products, ready-to-eat food, and construction industry is fueling the monochloroacetic acid market growth.
The global Monochloroacetic Acid Market is estimated to be valued at US$ 941.62 Mn in 2023 and is expected to exhibit a CAGR of 25% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Demand for Carboxymethyl Cellulose (CMC)
The key opportunity driving the monochloroacetic acid market growth is rising demand for carboxymethyl cellulose (CMC) from various end-use industries. CMC finds a wide range of applications due to properties like thickening, stabilizing, binding, and suspending. There is an increasing demand for CMC from food & beverage industry for products like ice-cream, salad dressings, sauces, and others. Significant use of CMC is also observed in pharmaceuticals for tablet coating and in paper industry for improvement of paper strength and quality. Growth in personal care industry utilizing CMC in products like shampoos, lotions, and creams is a major factor augmenting the demand. Thus, rising demand from multiple end-use industries is expected to propel the monochloroacetic acid market over the forecast period.
Porter's Analysis
Threat of new entrants: New entrants will find it difficult to enter this market as it requires high capital investment for setting up manufacturing facilities. Also, the market is dominated by few large players having strong brand presence.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes. However, specific end-use applications have limited alternatives.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of alternative raw materials. However, fluctuations in raw material prices can impact producers.
Threat of new substitutes: Substitutes like glycolic acid and salts pose low threat as MCA has superior properties for its end-use applications in herbicides and carboxymethyl cellulose.
Competitive rivalry: The market is marked by healthy competition between leading manufacturers. Focus is on R&D, product differentiation and expansion to new geographies.
SWOT Analysis
Strengths: Wide applications in agrochemicals and pharmaceuticals industries. Growing demand for carboxymethyl cellulose from personal care and food & beverage industries.
Weaknesses: Toxic in nature, strict environmental regulations for its production. Fluctuations in raw material prices.
Opportunities: Untapped growth potential in emerging economies. New application areas being explored constantly.
Threats: Availability of substitute products. Volatility in crude oil and natural gas prices affecting key raw materials.
Key Takeaways
The Global Monochloroacetic Acid Market Size is expected to witness high growth over the forecast period of 2023 to 2030 owing to its increasing applications.
Regional Analysis: The Asia Pacific region currently dominates the market and is projected to maintain its leading position throughout the forecast period. MCA demand will be driven majorly by China, India and other Southeast Asian countries on account of rapid industrialization and growing agriculture sector.
Key players operating in the Monochloroacetic acid market are AkzoNobel N.V., CABB Group GmbH, Niacet Corporation, and Denak Co. Ltd. AkzoNobel is one of the largest producers globally with presence across major regions. The focus is on capacity expansion plans and strategic partnerships to cater to rising MCA needs of both agriculture and pharmaceutical industries. Research& development of bio-based production methods can offer new opportunities in the coming years. However, price volatility of raw materials remains a key challenge.
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