NEW YORK, Aug. 6, 2020 /PRNewswire/ -- The Global Plasticizers Market is expected to reach USD 20.96 Billion by 2027, according to a new report by Reports and Data. Plasticizers find widespread usage in the production of vinyl flexible or polyvinyl chloride (PVC) and are pliant. It finds extensive applications in various products in hospitals, homes, businesses, and cars. It is extensively used for softening vinyl due to its stability, durability, and robust performance. Due to its strength, durability, and ability to withstand high temperatures, it is used in resilient flooring, PVC coatings, and wall coverings, among others. Factors like the expansion of the construction and automotive sectors and the escalating necessity for flexible PVC are fostering the growth of the sector.
Factors like the expansion of the construction sector and the escalating necessity for flexible PVC is supporting the sector growth. The construction sector is a significant contributor to the increase in the sales of the plasticizers attributed to the continuous expansion of the construction sector and the diverse applicability of this plasticizer in this industry, like in wire & cable and flooring & wall coverings.
Though various supporting factors are propelling the industry growth, adverse market factors like strict regulatory norms about the usage of plasticizers may hinder market growth.
COVID-19 Impact Analysis
The COVID-19 pandemic is having a significant impact on the plasticizer industry. Demand for the product is suffering severe shocks across various end-use markets, worldwide supply chains are upset, and the competitive order of manufacturers/producers has witnessed a change. The shortage of demand has fast-tracked the global chemical sector into an oversupply situation. Movement restrictions appear to be a direct and immediate effect, and once the compulsory social distancing ends, it is expected things would get back to normal conditions.
By type, phthalate plasticizers contributed to a larger market share in 2019. Phthalates segment is attributed to the rising demand for PVC in various industries where it finds applicability in plasticizing PVC. Its traits like durability and permanency result in its extensive use in applications like wires/cables, automobile applications, and roofing, which also contributes to the market share held by this segment.
By distribution channel, the offline segment held a larger market share in 2019. The polyglycolic acid industry is very offline-intensive and witnesses transparency. The offline channel necessitates the requirement of substantial investment of time by the buyer and high selling costs, along with considerable knowledge of the market on the seller side.
By application, the film & sheet segment is projected to witness the fastest growth rate of 6.1% during the forecast period. The growth rate seen by the Film & Sheet segment is associated with the continuous expansion of the e-commerce sector, growing food & beverage industry that is resulting in rising demand for these plasticizers for packaging purposes contributing to the growth rate witnessed by this segment.
The market in the Asia Pacific region dominated the market in 2019 and is likely to grow at the fastest rate of 5.9% in the forecast period. This is owing to the swift urbanization, development of infrastructure projects, and the robust growth of the automotive and construction industry in this region. Furthermore, the surging demand for the product from the packaging, and consumer goods industry is estimated to spur the market growth in the region.
Key participants include BASF, ExxonMobil, Evonik Industries, UPC Technology, Eastman, LG Chem, Aekyung Petrochemical, Lanxess AG, Polyone Corporation, and Shandong Hongxin Chemicals, among others.
In July 2017, BASF, a leading market player, had started the manufacturing of Palatinol DOTP plasticizer at its Texas facility. The focus of this expansion was to cater to the growing requirements phthalate plasticizers in the North American region.
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