US$ 1 Billion Global Neopentyl Glycol Market Size to grow by 4.7% in 2018

“Bekryl Market Research Report: Neopentyl Glycol Industry Outlook”
Global Neopentyl Glycol Market is expected to witness 1.7X growth in its revenue during the forecast period 2018-2028.

The Global Neopentyl Glycol market size is estimated to be valued at USD 1,001.4 million in 2018 and will register a CAGR of 4.8% between 2017 and 2028. In terms of volume, it will register a CAGR of 3.4% over the forecast period.

A major shift in competitive landscape of neopentyl glycol market has been witnessed globally, with market shifting towards higher consolidation. Moreover, the industry has dynamically shifted towards China and South East Asia to tap the growing potential and lower the operational expenses. The industry has benefitted from China’s economic growth of the past two decades.

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On a global scale, increase in demand for eco-friendly coatings powder is one of the key driving factors behind the growing neopentyl glycol market sales. Much of the demand is generated from Construction and automotive sectors.

Bekryl’s market research report, Global Neopentyl Glycol Market Size Analysis and Industry Opportunity, finds Asia Pacific to account for 33% of global volume in 2018. The region leads the industry not only in terms of sales value but also in consumption and growth rate – creating highest revenue opportunity for industry players. Japan and China collectively accounted for 62% of total regional consumption. However, India is also gaining prominence in the market and is expected to create lucrative market opportunity for players. Much of the growth in Asia Pacific is expected to be from growing construction and automotive spending. In 2016, China construction market achieved over 15% growth in industry value. This construction growth is expected to be over 12% between 2018 and 2028 owing to China’s strategic 13th five year plan and ambitious “Belt and Road” initiatives.

Some key trends from the global Neopentyl Glycol market:

Trend#1: Increase in Production Capacity

There has been a series of strategic activities witnessed towards plant capacity expansion. Post 2006, industry leaders including BASF and Oxea have expanded their production capacity. Recently, in 2017, BASF expands its production capacity in China to meet regional subcontinent needs. The expanded capacity of 80 thousand metric tons is expected to be operational since 2020. Another such step was seen in its Germany plant, wherein, the company increased its Germany based plant capacity by 10 thousand metric tons. By 2017, BASF has annual production capacity of 205 thousand tons globally.

Another key industry player –   Oxea – increased its Germany based production plant capacity to 45 thousand metric tons.

Trend#2: Rise in Prices

Rise in raw material prices along with higher demand for the product has led to increase in neopentyl glycol prices. On an average, the industry is witnessing 0.8% annual increment to its prices. However, China has its added advantage over prices and is comparatively 16% lower compared to that in North America. As such, China has emerged as the global production hub for industry manufacturers.

Trend#3: Import Driven Business in South East Asia

South East Asia is registering impressive growth and will create higher incremental opportunity for industry players. However, most of these regions import neopentyl glycol either from Japan and China or Europe. India is expected to take over China in terms of growth rate. Between 2013 and 2016, China witnessed CAGR of 9.1% while India registered 7.5% over the same time period. India is expected to register a CAGR of 10.1%, exceeding China with 7.5% between 2017 and 2028.

Some key global Neopentyl Glycol market players are BASF AG, Eastman, LG Chem, Mitsubishi Gas Chemical, Perstorp, OXEA, Polioli, Oleon, and Shandong Fufeng Perstorp Chemical Co.

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