Market Trends of Monochloroacetic Acid Industry
This section covers the major market trends shaping the Monochloroacetic Acid Market according to our research experts:
Increasing Demand from Personal Care and Pharmaceuticals Industries
- Monochloroacetic acid (MCA) plays an important part in the personal care and cosmetic industry, as it is used in the manufacturing of betaines, i.e., amphoteric surfactants. Owing to the foaming properties of betaines, it is used in hair shampoos.
- Thioglycolic acid (TGA or mercaptoacetic acid) is used in permanent hair styling formulations and is also manufactured using MCA. Thioglycolic acid and its derivatives are used in the production of hair care products, such as shampoos, conditioners, and hair masks.
- According to INEGI, the total number of shampoos, conditioners, and hair rinses produced in Mexico reached 571.62 million units in 2021 and registered a growth rate of 5.4 % when compared to 542.22 million units in 2020.
- As per INEGI's survey, the monthly sales volume of shampoo and conditioner produced in Mexico was valued at 45.9 million units in December 2021 and registered growth when compared to 45.46 million units in November 2021.
- Additionally, rising disposable income, raising awareness of beauty products, changes in consumption patterns, the impact of globalization on lifestyles, and changing retail landscape in developing countries, such as India, Thailand, and Vietnam, are likely to boost the demand for personal care products in the coming years. This, in turn, is expected to increase the demand for MCA from the personal care sector.
- According to The Internatinal Trade Administartion, and U.S. Department of Commerce, in 2021, the cosmetics market in Canada generated approximately USD 1.24 billion of revenue. Industry revenue is expected to grow by 1.45% annually to reach USD 1.8 billion by 2024.The recovery of the beauty and personal care industry in Canada represents a great opportunity for U.S. exporters of cosmetic products.
- MCA is also required in the pharmaceuticals sector for the production of ibuprofen/brufen, diclofenac sodium, caffeine, vitamins (e.g. vitamin B), glycine, N-(P-hydroxyphenyl)-glycine (METOL), and maleates.
- India is the third-largest pharmaceutical market, in terms of volume, and thirteenth most significant, in terms of value, as it has a large raw material base and availability of a skilled workforce.
- According to the India Brand Equity Foundation, Indian pharmaceutical sector is expected to grow to USD 100 billion by 2025.
- Hence, considering the aforementioned factors, with the increasing demand for personal care products, the demand for monochloroacetic acid is likely to rise, during the forecast period.
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Asia-Pacific Region to Dominate the Market
- Asia-Pacific region dominated the global market share, owing to increasing demand from various end-user industries such as personal care and pharmaceuticals, agrochemicals, and others.
- The demand for Monochloroacetic Acid (MCA) has witnessed an increase in the past few years in China and India, majorly because of the increasing demand from the personal care and pharmaceutical sectors.
- According to the National Bureau of Statistics of China, the retail trade revenue of cosmetics was valued at CNY 30.89 billion (USD 4.42 billion) in December 2021.
- The increasing concerns for hygiene and cleanliness have led to the growth in demand for personal care products, detergents, and washing soaps. This is likely to boost the demand for MCA, owing to its requirement in the production of these personal care products.
- According to the Ministry of Economy Trade, and Industry (METI), the sales value of hair shampoo in Japan was valued at CNY 73.82 billion (USD 10.56 billion) in 2021.
- The personal care and pharmaceutical industries are raising in Asia-Pacific as the demand and consumption increase with the increasing population from China and India.
- As per IBEF, India's domestic pharmaceutical business was worth USD 42 billion in 2021 and is expected to grow to USD 65 billion by 2024 and USD 120-130 billion by 2030. The Indian pharmaceutical market expanded by 13.9% in terms of overall sales in January 2022.
- Therefore, considering the aforementioned factors, the demand for monochloroacetic acid is expected to witness a rapid increase in Asia-Pacific, during the forecast period.
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