CHLOROACETYL CHLORIDE MARKET ANALYSIS

Market Challenges And Opportunities

Global Chloroacetyl Chloride Market - Restraints

• Growing adoption of biodegradable herbicides in agrochemical industry 

Growing adoption of biodegradable herbicides in agrochemical industry is a prime factor expected to hinder the market growth of chloroacetyl chloride. Rising concern over environmental sustainability due to growing cases of soil erosion and water pollution, which ultimately leads to the degradation of land and water. Due to this various organizations are further anticipated to restrict the usage of herbicide in the agrochemicals industry, which in turn hampers the market growth of chloroacetyl chloride.

• Rising concern over the environment

Ban of pesticides in Europe due to rising concern over the environment is expected to hinder the market growth of chloroacetyl chloride. For instance, in March 2019, the EU bans UK's most-used pesticide over health and environmental concern. European Union will ban the most-commonly used pesticides after safety officials reported human health and environmental concerns. Hence, the ban of pesticide in Europe is expected to negatively affect the market growth chloroacetyl chloride.

• Rising demand for acids anhydrides that are mainly produced from chloroacetyl chloride

Rising demand for acids anhydrides that are mainly produced from chloroacetyl chloride is projected to propel the market growth over the forecast period. Acids anhydrides are widely used in the preparation of pharmaceutical formulations, industrial chemicals, and perfumes. Moreover, it is also used in the manufacturing of aspirin and the synthesis of heroin by diacetylation of morphine reaction. Therefore, the growing demand for Acids Anhydrides from the aforementioned application is expected to propel the market growth.

• Expanding chemical industry around the globe

Expanding chemical industry around the globe, especially in Asia Pacific region is projected to propel the market growth of chloroacetyl chloride. According to The Economic Times, the India chemical industry is expected to grow at around 9% per annum to reach US$ 304 billion by FY25, from US$ 163 billion in FY18. The growth is likely to be driven by rising demand in end-use segments for specialty chemicals and petrochemicals intermediates. Hence, expanding the chemical industry is expected to foster market growth over the forecast period.