The global acetalhyde market is expected to witness a CAGR of approximately 3.5% during the forecast period, majorly driven by the growing demand for pyridlines in the Asia-Pacific region and the increasing demand for pentaerythritol to produce neopolyolesters.
The demand for pentaerythritol from various end-use applications including pesticide, pharmaceutical, resin, paints & coatings has been increasing continuously. However, the overall demand for acetaldehyde has witnessed a hindrance due to N-Butyraldehyde (used in the production of plasticizer alcohols), which was earlier produced from acetaldehyde, is now being generated from propylene.
Pyridline accounted for the largest share by raw material in 2017. It is also one of the fastest growing segments, because pyridine and its bases are important raw materials in the production of agricultural chemicals. This has led to a significant rise in demand for pyridline, which in turn has benefitted the market for acetaldehyde. Additionally, with the increasing demand for pesticides, fertilizers, and insecticides, demand for acetaldehyde from agricultural chemicals segment is expected to further rise during the forecast period.
In terms of consumption, in 2017, China dominated the market in both the Asia-Pacific region and globally, accounting for approximately 46% of the market. The demand for and consumption of pyridines and pentaerythritol have increased rapidly over past few years, owing to growing downstream demand for pesticides, pharmaceuticals, and alkyd resin paints and coatings. Additionally, India is the second largest consumer of acetaldehyde globally. The country has been developing and growing rapidly in recent years. The prime reason for the market growth is the accelerating usage of pyridines, making Asia-Pacific the largest consumer in the world.
The major players include – BASF SE, Celanese Corporation, Eastman Chemical Company, Huntsman Corporation, and LCY Group, among others.
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