NAPHTHENIC ACID MARKET ANALYSIS

Key Takeaways from Analyst

The market is expected to witness steady growth over the forecast period driven by increasing demand from the paints, coatings, and lubricant industries. Naphthenic acid finds wide usage in the production of paints, varnishes, and coatings due to its excellent wetting and dispersing properties. Rapid growth in the construction and automotive industries across developing nations will boost the demand for paints and coatings, in turn, augmenting this market. Furthermore, naphthenic acid consumption is also expected to rise in the lubricant industry as it is used for the production of rust and corrosion inhibitors.

However, volatility in raw material prices remains a key challenge. Since crude oil is the primary raw material, fluctuating crude oil costs will impact naphthenic acid prices as well. Stringent environmental regulations regarding VOC emissions during naphthenic acid production may also limit market growth to some extent. The Asia Pacific region, led by China and India, is anticipated to continue dominating the market over the forecast period attributed to swiftly expanding end-use industries in the region. Meanwhile, North America is expected to register stable demand. Key players could focus on expanding capacities in developing Asian countries to leverage growth opportunities.