MONOCHLOROACETIC ACID MARKET ANALYSIS

Monochloroacetic Acid Market Size and Trends

The monochloroacetic acid market is estimated to be valued at USD 1.02 Bn in 2024 and is expected to reach USD 1.35 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 4.1% from 2024 to 2031.

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The global monochloroacetic acid market is expected to witness moderate growth over the forecast period. Monochloroacetic acid finds numerous application scope in industries such as plant growth regulators, drugs and pharmaceuticals, microbial control, water treatment, and others. The thriving agrochemical industry along with the increasing emphasis on water treatment across developing economies is expected to drive the demand for monochloroacetic acid in the coming years. Moreover, the growing need for effective drugs and medicines is also projected to augment the market growth during the analysis timeframe. However, strict regulations over the use of agrochemicals owing to environmental concerns may hamper the market expansion to some extent over the next few years. Nonetheless, continuous research and development activities for new applications are likely to pave new growth opportunities for the monochloroacetic acid market in the long run.

Growing Demand from Herbicides Production

The monochloroacetic acid market is expected to witness significant growth in demand driven primarily by its increasing usage in the production of herbicides. As a key intermediate ingredient, MCA finds wide applications in the manufacturing of several pre-emergent and post-emergent herbicides that are used extensively across various crops like cereals and grains, fruits and vegetables, and others. The global herbicide market has been growing steadily over the past few years and herbicides have become an integral part of several agricultural practices to maximize crop yields.

With the rising global population and growing demand for food, more agricultural land is being cultivated worldwide which has also increased the dependency on agricultural chemicals. Herbicides play a crucial role in weed management and allow cultivating higher yields from the same land parcel. This has significantly driven its consumption. Moreover, concerns regarding farm sustainability and decreasing arable land have further prompted growers to adopt improved weed control measures to protect crop yield from weed competition. The increasing need to boost productivity and meet the escalating food demand particularly in developing economies in Asia Pacific and Latin America are important factors bolstering the sales of herbicides.

Rising Production of Glyphosate

Glyphosate is the most widely used active ingredient in herbicide formulations worldwide and its production relies heavily on MCA as a key raw material. Glyphosate-based herbicides account for the largest share in the global herbicide market and are amongst the top-selling agricultural chemicals. The increased GM crop adoption coupled with the introduction of glyphosate-resistant crop varieties have further expanded the glyphosate market size over the years. According to various reports, glyphosate herbicide sales have grown at an impressive rate of 7-8% annually over the past decade.

With most key patents on glyphosate expiring, more manufacturers are keen on developing generic formulations. This has resulted in amplified production volumes to cater to the growing demands as well as increased accessibility of cost-effective glyphosate products. All such factors are contributing to the raised consumption of MCA predominantly utilized as a key intermediate in glyphosate synthesis. Expanding glyphosate production remains a major driver propelling the monochloroacetic acid market growth in the forthcoming years.