Market Challenges And Opportunities

Market Drivers:

Increasing demand from cleaning products industry: The cleaning products industry has seen significant growth in recent years, driven by rising consumer demand for effective and environmentally friendly household and industrial cleaning solutions. Ethanolamines are largely used as pH adjusters and corrosion inhibitors in various cleaning formulations, such as dish washing liquids, laundry detergents, hard surface cleaners, and many industrial degreasing agents. According to the UN COMTRADE database, the global trade of cleaning preparations increased by over 12% from 2019 to 2020, with further growth projected. As cleaning product manufacturers aim to reduce harsh chemicals in their products and replace them with bio-based and recyclable components, the need for multi-functional ingredients like ethanolamines is growing.

Various types of ethanolamines, like monoethanolamines (MEA), diethanolamines (DEA) and triethanolamine (TEA), are well-suited to fulfill the stringent formulation requirements of modern sustainable cleaners. MEA and DEA allow precise control of pH for effective stain removal. TEA also has moisturizing properties that are beneficial for hand dishwashing liquids and laundry products. Furthermore, ethanolamines are inexpensive and readily biodegradable, meeting the environmental standards of Europe, North America, and other major markets. Their adaptability across powder, liquid, and gel formulations is another advantage. With rising health awareness and regulations restricting toxic chemicals, the cleaning industry\'s shift towards green chemistry helps drive consistent demand for multi-use alkanolamines.

Increasing usage in personal care products: The global ethanolamines market is being propelled by rising demand from the personal care industry. Ethanolamines such as monoethanolamines (MEA) and triethanolamine (TEA) are increasingly being used in the formulation of various personal care products like soaps, detergents, hair conditioners, and skin creams. As consumer spending on personal grooming and hygiene rises around the world, the incorporation of these solvents and emulsifiers in cosmetic formulations is expected to surge. Their effectiveness in regulating the pH of products, improving their texture and appearance, and adding a pleasant smell makes ethanolamines suitable for use across a wide range of skin and hair care items.

Current trends point towards a growing emphasis on natural and organic personal care worldwide. This presents a massive opportunity for ethanolamines, which are plant-derived and enable manufacturers to label their goods as containing \\'natural ingredients\\'. Ethanolamines are well-suited to fill the function of synthetic preservatives and emulsifiers that are now being avoided due to health and environmental concerns. Their non-irritating nature and ability to solubilize oil and water mixtures make them compatible with formulating natural cosmetics. As consumers increasingly prefer greener alternatives, natural personal care brands utilizing ethanolamines in their recipes are expected to capture more market share in the coming years.

Rising demand from gas treatment processes: The demand for ethanolamines is growing significantly owing to their extensive use in gas treatment processes across various industries. Ethanolamines such as monoethanolamines (MEA) and diglycolamine (DGA) play a vital role in removing acid gases like carbon dioxide and hydrogen sulfide from natural gas and refinery gas streams. With rapidly expanding natural gas production and refining activities worldwide, the requirement for acid gas removal processes is on the rise. According to the International Energy Agency (IEA), global natural gas production increased by over 4% year on year in 2021. This upward trend is projected to continue in the coming years as well, thereby generating strong demand for ethanolamines from the oil and gas industry.

Besides acid gas scrubbing, ethanolamines also find wide applications as corrosion inhibitors, lubricant additives, cleaning agents, and personal care products. The growing significance of ethanolamines as an eco-friendly alternative to methanol in gas treatment is another factor stimulating the market. Various field studies conducted by the IEA have demonstrated ethanolamines\' effectiveness in attaining the emissions standards for greenhouse gases and other air pollutants from natural gas, making their adoption more desirable. Furthermore, the rising emphasis on carbon capture and storage (CCS) technologies for curbing industrial emissions will augment the consumption of ethanolamines, which are critical enablers in these advanced processes. With pioneering CCS projects underway in regions like Europe and China, the future outlook for ethanolamine demand remains positive.