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Ethoxylates Market Growth & Trends
The global ethoxylates market size is expected to reach USD 17.9 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 4.0% from 2020 to 2027. Growing consumer awareness regarding clean and hygiene oriented lifestyle, coupled with inclination towards environment friendly, is expected to drive the detergents demand, which, in turn, is expected to drive the product consumption over the forecast period.
Availability of technologically advanced equipment, such as washing machines, whose cleaning efficiency majorly depends on the quality of detergents, has further increased the demand for high-quality and high-performance detergents. These factors indirectly point toward the increasing demand for high-performance chemicals used in the production of detergent chemicals, thereby driving product consumption.
Demand for ethoxylates is expected to be restrained by concerns regarding the toxicity of the products. The surfactants used in coatings, detergents, and cleaners are based on ethoxylates. The products such as alcohol ethoxylates pose a threat to the sediment organisms and sewage treatment plant organisms, thereby posing a threat to the environment. In addition, the products such as nonylphenol ethoxylates (NPEs) have been found to cause damage to human health and consequently been banned by several governing agencies, such as the European Union and the government of Canada.
Among different product types available in the market for various applications, fatty alcohol ethoxylates (FAE) appear to be one of the prominently consumed chemicals owing to its widespread emulsifying, foaming, solubilizing and wetting properties. Efficient cleaning properties, coupled with its biodegradability, have propelled the consumption of FAE in the market.
However, fluctuations in the prices of palm and palm kernel oil, coupled with upstream instability in the fatty alcohol market, have resulted in the price increase for alcohol ethoxylates. The price increase is expected to continue on account of rising ethylene oxide prices, thereby leading to an increase in the production cost.
Agrochemicals account for a notable consumption of ethoxylates. The use of technology for spraying the agrochemicals in optimum quantities has improved the results of pesticides and herbicide use and reduced the side effects of the excessive use, which has encouraged the use of agrochemicals in farming. Demand for agrochemicals is expected to grow due to the consumption of pesticides that use ethoxylates as one of the major ingredients, thereby fueling market growth.
Market players are integrated across the value chain and are involved in the distribution of ethoxylates through a direct distribution network. In addition, they are involved in the captive consumption of ethoxylates, which are primarily used for the production of cleaning solutions for household applications and industrial and institutional cleaning. The presence across the value chain leads to a superior position, primarily in terms of operating margins.
Ethoxylates Market Report Highlights
- In terms of revenue, Asia Pacific is expected to emerge as the fastest growing regional market over the forecast period
- The alcohol product segment held the largest revenue share of 48.4% in 2019
- Asian countries, particularly India and China, are likely to witness remarkable growth in next few years
- The industry is fragmented and competitive with the presence of major global players, such as BASF SE, DuPont, Croda International Plc., Dow, and Huntsman Corporation LLC
- Growing demand for industrial and institutional cleaners is expected to drive the product consumption over the forecast period.