Monochloroacetic Acid Market is Estimated to Witness High Growth Owing to Increasing Demand from Herbicide Manufacturing & Rising Application in Carboxymethyl Cellulose Production
The monochloroacetic acid market is estimated to be valued at USD 1.02 Billion in 2024, exhibiting a CAGR of 4.1% over the forecast period (2024-2031). Furthermore, the increasing demand for herbicides from the agriculture industry and growing applications of MCA in carboxymethyl cellulose production are contributing to the market growth.
Rising application of MCA in agrochemicals is one of the major drivers propelling the monochloroacetic acid market growth. MCA acts as an important intermediate in the production of various herbicides such as 2, 4-D, MCPA and dicamba which are widely used for controlling weeds in agriculture. Moreover, growing production of carboxymethyl cellulose (CMC) also fuels the demand for MCA. CMC finds applications in numerous industries including food & beverages, pharmaceuticals, and personal care among others. It is mainly used as a thickener and stabilizer in these industries.
Increasing Demand from the Herbicides Industry
The demand for monochloroacetic acid is rapidly increasing from the herbicides industry as it is used as an active ingredient in various weedicides and herbicides. MCA acts as an important building block in the manufacture of many potent herbicides such as 2, 4-D, MCPA, and dicamba. With the growing population and increasing demand for food, the use of herbicides has significantly increased over the past few years in order to maximize agricultural productivity. The rising consumption of herbicides to control weeds and maximize crop yield is thus expected to drive the growth of the monochloroacetic acid market during the forecast period.
Wide Applications in the Production of Carboxymethyl Cellulose (CMC)
Monochloroacetic acid serves as a chief raw material in the manufacture of carboxymethyl cellulose, which finds widespread applications in various industries such as food, pharmaceutical, oil drilling, personal care, paper processing, etc. CMC is used as a food additive, binder, thickener, emulsifying agent, and stabilizer. It further enhances the texture and appearance of foods. The growing demand for CMC from end-user industries is prompting monochloroacetic acid manufacturers to increase their production capacities, thereby propelling the market growth.
Stringent Environmental Regulations Regarding Production and Disposal
The production and disposal of monochloroacetic acid is strictly regulated across various countries due to its harmful effects on the environment as well as human health. It is considered a priority toxic substance by the European Union. Any leakage from the manufacturing plants into water bodies or soil can contaminate the environment to a great extent. Similarly, its disposal requires high level of treatment to neutralize the toxic effects. The stringent environmental norms and compliance requirements associated with MCA pose a major restraint to the market's growth worldwide.
Availability of Substitute Products
The availability of substitute products like 2-chloroethanoic acid and dichloroacetic acid limits the growth of the monochloroacetic acid market to some extent. The substitute products have similar properties and can be used for applications like the production of herbicides where monochloroacetic acid is commonly used. Though they are currently more expensive than MCA, ongoing research & development to reduce production costs of alternatives can shift the industry preferences away from monochloroacetic acid in future. This threat from replacement products poses a challenge for the overall expansion of the monochloroacetic acid market
Rising Demand from the Pharmaceutical Industry
There exists widespread application of monochloroacetic acid in the pharmaceutical industry for the production of various drugs and pharmaceutical intermediates. It serves as an important ingredient in the manufacture of anti-infective and antibiotics drugs. The demand from the pharmaceutical sector is anticipated to rise significantly driven by the increasing prevalence of diseases worldwide and growing focus on drug R&D. This burgeoning pharmaceutical industry presents lucrative opportunities for manufacturers to further penetrate the market.
Emerging Economies of Asia Pacific
Asia Pacific currently represents the largest and fastest growing regional market for monochloroacetic acid worldwide. The region is expected to present noteworthy opportunities for monochloroacetic acid producers owing to robust industrial landscape, surging manufacturing activities, and increasing demand from industries such as pharmaceuticals, personal care, textiles, etc. in developing economies like India and China. Additionally, favorable government initiatives supporting the growth of the agrochemical sector also bodes well for the future outlook of monochloroacetic acid market in these emerging Asia Pacific countries.
Link: https://www.coherentmarketinsights.com/market-insight/monochloroacetic-acid-market-3135
Key Developments
- In 2021, Nouryon and Atul, two leading companies in the chemical industry, started up a monochloroacetic acid (MCA) plant in India.
- In 2020, Nouryon, a global specialty chemicals company, completed its previously announced acquisition of the carboxymethyl cellulose (CMC) business of J.M. Huber Corporation.
Key Players
AkzoNobel N.V., Merck Life Science Vietnam, Sigma Aldrich, Jubilant, JAY DINESH CHEMICALS, TerraTech Chemicals (I) Pvt. Ltd.., Nouryon, Wego Chem, Hemadri Chemicals, Janvi Chemicals, NIACET CORPORATION, and PCC SE
