Market Trends of Methylene Chloride Industry
Increasing Demand from Pharmaceutical Industry
- Methylene chloride, also called Dichloromethane (DCM), is a solvent in pharmaceutical applications, mainly used to extract several compounds and produce antibiotics and vitamins. It is also used as a tablet-coating agent.
- While the pharmaceutical industry had a mixed year globally, the underlying performance and outlook for the sector are positive. COVID-19 therapeutics boosted the growth of many companies, while most others remained relatively immune to some of the pandemic's effects.
- New medications are being developed, approved, and marketed regularly, resulting in significant market growth. Other market growth drivers include the aging population, as seniors use more medicines per capita, and the prevalence and treatment of chronic diseases are increasing. Most countries' population profiles are becoming older. According to the World Health Organization (WHO), one in every six people will be over 60 by 2030.
- The pharmaceutical industry is expected to reach about USD 1,700 billion by 2025, with an annual growth rate of 8%.
- It is, moreover, owing to the growing middle class, aging, rising incomes, and increasing urbanization in countries such as the United States, China, and India.
- The healthcare sector in the United States is one of the most advanced sectors in the country. According to the Pharmaceutical Research and Manufacturers Association (PhRMA), US firms conduct over half the world's R&D in pharmaceuticals and hold the intellectual property rights on most new medicines.
- Therefore, the increasing pharmaceutical industry is expected to propel the methylene chloride demand during the forecast period.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to account for the largest market for methylene chloride during the forecast period.
- Higher demand is expected from the major developing countries, such as China, India, Japan, and others.
- Paints and coatings demand is increasing in the region. The automotive and construction industry contributes to a significant share in the consumption of paints and coatings.
- Asia-Pacific includes the most prominent construction market globally, led by India, China, and various Southeast Asian countries. The main driving factors for the construction activities growth in these countries are increasing living standards, higher per capita income, industrialization, infrastructural development, etc.
- Moreover, the Asia-Pacific region, with low manufacturing costs, cheap labor sourcing, and an extensive customer base, includes a substantial inflow of FDI, with India and China being the primary beneficiaries. The region's favorable economic climate boosted the demand for hotels, shopping malls, high-rise buildings, and stadiums.
- The Chinese government built a state infrastructure investment fund worth USD 77 billion to revive its infrastructure to combat China's stunted economic growth. The construction output in China was valued at USD 4.54 trillion in 2021.
- On the other hand, as per the Invest India Report, India's construction industry is heading to reach USD 1.4 trillion market size by 2025, supported by schemes about the smart city mission targeting the transformation of 100 cities and affordable housing.
- In India, FDI in the construction development sector (townships, housing, built-up infrastructure, and construction development projects) and construction (infrastructure) activities amounted to USD 26.16 billion and USD 25.95 billion, respectively, between April 2000 and September 2021.
- Pharmaceutical production in countries like China and India is growing due to government initiatives and manufacturers' investments in the sector. It is expected to boost the consumption of the market studied in pharmaceutical production.
- The pharmaceutical sector is one of the key industries in China's continued economic development. From joining the World Trade Organization, China's pharmaceutical industry rapidly progressed. According to the National Bureau of Statistics, the pharmaceutical sector generated USD 511 billion in 2021.
- India occupies an important position in the global pharmaceutical sector. According to the Indian Brand Equity Foundation, the Indian pharmaceutical sector supplies over 50% of the global demand for various vaccines, 40% of the US generic drug demand, and 25% of the total UK drug demand. Globally, India ranks 3rd in pharmaceutical production volume and 14th in value. The domestic pharmaceutical industry includes a network of 3,000 pharmaceutical companies and approximately 10,500 production units.
- Hence, with such trends, the methylene chloride demand in the Asia-Pacific region is expected to grow during the forecast period.
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