Market Trends of Azodicarbonamide Industry
This section covers the major market trends shaping the Azodicarbonamide Market according to our research experts:
Plastics and Rubber Industry is Expected to Dominate the Market
- Azodicarbonamide is a crystalline powder, an odorless chemical compound by nature, which ranges in color from yellow to orange-red.
- Azodicarbonamide is used in plastics manufacturing processes such as injection molding, calendaring, extrusion, coatings, slush, and rotational molding.
- It is also used as a blowing agent in the formation of the foamed plastics in the foaming process.
- Foamed plastics usage has increased the strength to weight ratio of the material, improved electrical and thermal insulation, and reduced material costs.
- Increasing demand for foamed plastic from industries like air filters and construction in the next few years is anticipated to propel the use of azodicarbonamide as a blowing agent.
- In the rubber industry, it is used in the formation of vinyl (PVC). Vinyl foam is used in carpets and floor mats as it is springy and does not slip on smooth surfaces. The global market value of rubber is expected to reach USD 60.4 billion by 2026, which is likely to benefit the market studied.
- Saudi Arabia's prospects of rubber production are comprehensive, as Saudi Arabia signed a USD 54.4 billion deal to offer investment in rubber manufacturing plants in January of 2019. Also, in June of 2019, the Russian petrochemical company Sibur reported that it is considering the construction of a rubber production plant in Saudi Arabia.
- The demand for products, like rubber seals, yoga mats, gymnasium products, and shoes, is expected to increase, which, in turn, is expected to translate into demand in the azodicarbonamide market.
- All the aforementioned factors are expected to drive the demand for azodicarbonamide over the forecast period.
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Asia-Pacific Region to Witness a Significant Growth
- Asia-Pacific is expected to grow significantly during the forecast period owing to the rising demand from consumers for better-quality plastics and rubber products (foamed plastics, etc.).
- The plastic industry is expected to grow in countries like China and India. The Chinese plastic industry is growing at a high rate due to the availability of cheaper raw materials and massive demand increase in industries like packaging and footwear from developing economies.
- The Chinese government is planning Xinjiang as the hotbed for textile and apparel manufacturing, and it has invested USD 8 billion. It is expected that China's northwest region is to become the country's largest textile production base by 2030, thereby boosting the market demand.
- India's plastic production is also expected to increase massively due to export growth and government investments. According to India Brand Equity Foundation, from April 2019 to January 2020, plastic export stood at USD 7.045 billion, with the highest contribution from plastic raw material at USD 2.91 billion. India exported plastics worth USD 813 million in October 2020, and the export from April 2020 to October 2020 was USD 5.58 billion.
- Furthermore, India is expected to have 18 plastic parks in the near future, as the union government will be investing INR 40 crore to increase the domestic production of plastics. This is expected to boost the demand for azodicarbonamide during the forecast period.
- According to Statista Market Forecast, the revenue generated by the food and beverage industry in India is projected to reach USD 7,623 million in 2021. It is expected to show an annual growth rate (CAGR) of 10.35%, resulting in a projected market volume of USD 11,305 million by 2025. This expected growth in the food and beverage industry is estimated to influence the demand in the market studied positively.
- All such trends in the region are expected to drive the demand in the azodicarbonamide market during the forecast period.
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