SULFAMIC ACID MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Sulfamic Acid Market Size and Trends

The sulfamic acid market is estimated to be valued at USD 171.77 Bn in 2024 and is expected to reach USD 243.31 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.1% from 2024 to 2031.

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The demand for sulfamic acid is expected to grow on account of increasing applications in the chemicals, pharmaceuticals, and food processing industries. Sulfamic acid is widely used as a pH control agent and cleaning product across various end-use sectors. Within the chemicals industry, the compound finds major usage in the production of sulfa drugs, dye stuffs, and other specialty chemicals. Moreover, increasing consumption of processed food and changing lifestyle are supporting the growth of the pharmaceuticals and food processing industries. This, in turn, is anticipated to drive the utilization of sulfamic acid in these industries. Growing awareness among consumers pertaining to hygiene and sanitation is further augmenting the product demand from cleaning products.

Impact of Cosmetic Industry

The global cosmetic industry has witnessed significant growth over the past few years. There has been a rising demand for various cosmetic products such as hair colorants, hair straighteners, hair fixers, hair conditioners, shampoos, skincare products, makeup items and others. Sulfamic acid plays a vital role in the formulation of many hair products and skincare items. It is widely used as a cleansing agent and pH controller in shampoos and conditioners. The acid helps in regulating the pH of these products to the slightly acidic range needed for optimal hair health. It also allows the product to properly cleanse and remove dirt, oil and other impurities from hair without stripping away its natural oils.

The growing cosmetic industry is presenting lucrative opportunities for the sulfamic acid market. Manufacturers are focusing on introducing innovative hair care and skincare products with natural and organic ingredients. This is increasing the demand for multifunctional ingredients like sulfamic acid that can aid in cleaning and conditioning while maintaining the right pH. Furthermore, rising disposable incomes and growing beauty consciousness among consumers, especially women, are fueling the sales of various haircare and skincare items. Changing lifestyles and increasing willingness to spend on personal care are other key factors driving the global cosmetic industry. As long as this industry continues to expand, it will drive significant growth in the consumption of sulfamic acid.

Market Concentration and Competitive Landscape

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Increased Demand from Cleaning Products Industry

Sulfamic acid is widely used as a pH adjuster and builder in the formulation of various hard surface cleaners and disinfectants. Properties like water solubility and acidity make it suitable for applications in bathroom cleaners, automatic dishwasher detergents, alkaline cleaners and other household and industrial cleaning products. The compound helps in maintaining the required acidic pH for these products to properly dissolve dirt, grease and stains. It also has mineral sequestering abilities that improve the cleaning performance.

The growing cleaning products industry worldwide has boosted the consumption of sulfamic acid considerably. Rising hygiene awareness, busy lifestyles, increasing household incomes and expanding urbanization are major factors fueling the sales of home and commercial cleaning items. Moreover, with the ongoing COVID-19 pandemic, consumers as well as institutions are placing more emphasis on cleanliness and hygiene, thus driving greater demand for disinfectants.

Key Takeaways from Analyst:

The sulfamic acid market is poised to witness steady growth over the forecast period driven by the increasing demand from several end-use industries such as chemical processing, pharmaceuticals, and personal care. Sulfamic acid finds wide application as a pH controller and cleaning agent in these industries which will propel market expansion. Furthermore, its properties such as high water solubility and acid strength compared to other similar organic acids make it a preferred industrial chemical.

North America currently dominates the global sulfamic acid market owing to the presence of leading chemical producers and sizeable market for cleaners and disinfectants in the region. Meanwhile, Asia Pacific is expected to emerge as the fastest growing regional market attributed to the rapid growth of the pharmaceutical industry in China, India and other Asian countries.

Rising environmental regulations regarding toxic ingredients used in cleaning products provide opportunities for sulfamic acid producers to popularize their green cleaning solutions. However, availability of substitutes such as sulfuric acid poses a major challenge to the market growth. Also, sulfamic acid is highly corrosive in nature which necessitates proper handling during transportation and storage, thereby acting as a restraint.

Market Challenges: Stringent environmental regulations on sulfamic acid production

Stringent environmental regulations on sulfamic acid production have been negatively impacting the growth of the sulfamic acid market. Governments across the world are implementing stricter emission norms and effluent discharge standards for manufacturing facilities to curb pollution and reduce environmental degradation. This is aimed at minimizing the harmful effects of sulfamic acid production on air, water and soil quality.  Compliance with evolving environmental mandates requires substantial investments in upgraded pollution control equipment and waste treatment infrastructure. This increases operating costs significantly for producers. It also calls for changes in manufacturing processes to reduce the generation of toxic by-products. While necessary from an ecological standpoint, these regulatory pressures pose notable financial challenges especially for small and medium scale sulfamic acid manufacturers. Some companies may find it difficult to justify the high costs of compliance and be forced to scale down or close operations altogether.

Market Opportunities: Innovation of bio-based sulfamic acid

The growing demand for sustainable and environmentally friendly chemicals presents a major opportunity for bio-based sulfamic acid. Sulfamic acid has wide applications across industries like plastics, textiles, cleaning and more. Currently, sulfamic acid is primarily produced through chemical synthesis which relies on non-renewable fossil fuels and emits greenhouse gases. Transitioning to a bio-based production method could help lower emissions and reduce dependency on volatile oil prices. Several companies are researching the use of renewable biomass sources like agricultural residues as a feedstock for sulfamic acid production. If successful, this could help establish a greener supply chain and improved sustainability credentials for the sulfamic acid market.

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Insights by Application: Extensive usage drive the segment growth

In terms of application, dyes & pigments is expected to contribute 29.9% share of the market in 2024. Sulfamic acid plays a pivotal role in dye manufacturing, which is why the dyes & pigments application segment accounts for the largest share of the sulfamic acid market. Sulfamic acid is commonly used as a dispersing agent for various dyes during the production process. Its ability to disperse pigment particles uniformly and prevent unwanted aggregation makes it ideal for this application.

The global dyes industry has been growing steadily over the past few years due to rising demand from various end-use industries like textiles, printing inks, paper, plastics, leather, and others. Population growth and improving economic conditions in developing nations have amplified the consumption of dyed products. This growing demand for dyes from mass market consumer goods is directly stimulating the adoption of sulfamic acid. Additionally, strict environmental regulations regarding the phase-out of hazardous amines used in dye manufacturing are prompting players to replace them with more sustainable dispersants like sulfamic acid.

Another factor driving the dyes & pigments segment is the growing technical textiles industry. Technical textiles find application in varied sectors including construction, packaging, medical, hygiene, and automotive. Sulfamic acid serves as an important dispersant for specialized technical dyes & pigments used in products engineered for enhanced performance. The demand for high-quality functional fabrics from the infrastructural and industrial sectors is propelling this application area of sulfamic acid.  On the pigments front, the booming plastic industry has emerged as a massive end-user of colored masterbatch pigments. Sulfamic acid acts as a dispersing agent as well as pH regulator for these pigments during the plastic coloring process. Steady growth in plastic consumption worldwide due to its versatility and lightweight properties will augment sulfamic acid demand from this angle over the coming years.

Insights by Form: In terms of form, liquid contributes the highest share of the market owing to its handling advantages

The liquid segment is expected to account for 46.7% share in the sulfamic acid market based on form in 2024. This can be attributed to multiple logistical and application-based benefits associated with the liquid form over other counterparts.  From a handling perspective, liquid sulfamic acid is much more convenient to measure and dispense compared to powder or crystal forms. The liquid state facilitates controlled and accurate proportioning of sulfamic acid into production batches through simple pumping and metering systems. This improves process consistency and minimizes dosing errors.

Liquid sulfamic acid also frees up time and effort spent on powder handling activities like sifting, weighing, and adding. Operations are simplified as dust control measures become redundant. Occupational safety is enhanced as the risks of airborne powder exposure are removed.  In terms of applications, liquid sulfamic acid exhibits better solubility and compatibility properties. It assimilates smoothly into aqueous media and allows uniform dispersion of solids. This quality of liquid sulfamic acid gel well for its use as a pigment dispersant and pH regulator in liquid dye formulations.

Additionally, with liquid form end users can easily retrofit sulfamic acid into existing process lines equipped to handle liquid reagents as opposed to solids. Transitioning to liquid means no major plant modifications or additional investments. Owing to such operationally-driven advantages, liquid sulfamic acid has emerged as the preferred form among dye, pigment and technical textile manufacturers where it serves as an indispensable production aid. Steady demand from such application sectors will continue propagating the leadership of the liquid segment.

Regional Insights

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North America has established itself as the dominant region in the global sulfamic acid market over the years. The region is expected to account for 34.7% of the market share in 2024. The region is home to vast chemical production facilities and major end-use industries such as textiles, pharmaceuticals, and metal treatment that are the key consumers of sulfamic acid. Stringent environmental regulations regarding the use of hazardous chemicals and growing preference for eco-friendly alternatives have further enhanced the consumption of sulfamic acid in North America. The U.S., in particular, has emerged as the largest producer and consumer of sulfamic acid due to significant investments by key players to expand their production capacities. Moreover, the presence of leading R&D facilities is enabling innovation and development of improved grades of sulfamic acid in the region.

The Asia Pacific region has been witnessing high growth in the sulfamic acid market over the recent past. Factors such as rapid industrialization, lowering trade barriers, and increasing population have boosted the demand from textile, dye, and metal treatment industries across the region. Countries like China, India, and Japan are major importers of sulfamic acid to meet their expanding industrial needs. Especially in China, shifting focus towards specialty chemicals from bulk chemicals production is augmenting sulfamic acid consumption. Further, growing pharmaceutical industry in the region is also driving the product uptake. Lower production costs and cheap labor availability in the region have attracted several international manufacturers to set up production bases in Asia Pacific to minimize transportation costs and strengthen their positions in the high potential market.

Market Report Scope

Key Developments

• In February 2024, BASF SE, a global chemical company, announced the initiation of a divestment process for its shares in two joint venture companies located in Korla, China. The companies involved are BASF Markor Chemical Manufacturing (Xinjiang) Co, Ltd and Markor Meiou Chemical (Xinjiang) Co, Ltd.
• In May 2023, Brenntag, a leading global distributor of chemicals and ingredients, announced plans to acquire Colony Gums, Inc., a specialized provider of gum-based ingredients and solutions

*Definition: The sulfamic acid market involves the manufacturing and sale of sulfamic acid as a chemical commodity. Sulfamic acid, also known as sulfamic acid, is an acidic chemical compound with the formula HSO3NH2. It is a colorless crystalline solid that is highly soluble in water. Sulfamic acid is mainly used in the production of dyes, healthcare products, food additives, and agrochemicals. It acts as a pH adjuster, cleansing agent, or acidulant in these applications. The global sulfamic acid market has seen moderate growth in recent years due to its wide range of industrial uses.

Market Segmentation

• Application Insights (Revenue, USD Bn, 2019 - 2031)
  • Industrial Equipment & Domestic Appliances
  • Dyes & Pigments
  • Paper & Pulp
  • Acid Cleaning
  • Electroplating & Electro-refining
  • Sulfation & Sulfonation
  • Others
• Form Insights (Revenue, USD Bn, 2019 - 2031)
  • Crystal
  • Powder
  • Liquid
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Golden Time Chemical (Jiangsu) Co., Ltd.
  • DI-CORP
  • Palm Commodities International
  • Raviraj Chemicals
  • Nissan Chemical Corporation
  • Donau Chemie
  • Acuro Organics Limited
  • Vedic Orgo LLP
  • Shandong Mingda Chemical Technology Co., Ltd
  • LaizhouZhongda Chemicals Co., Ltd
  • Honeywell International
  • Jinan Jinhao Chemical Co., Ltd.
  • Laizhou Guangcheng Chemical Co., Ltd.
  • Laizhou Jinxing Chemical
  • Shandong Mingda Chemical Technology Co., Ltd
  • Timuraya
  • Yantai Sanding Chemical Co., Ltd.