Did you know there are chemicals that can act as a cleaning agent, wetting agent, stabilizing agent, and surfactant simultaneously? Yes, we are talking about the amazingly beneficial chemical group named Alkoxylates. Alkoxylates are substances created by performing the alkoxylation of fatty hydrophobic substances like alcohols, phenols, and amines with alkoxides like ethylene oxide, propylene oxide, and butylene oxide. Thanks to its exceptionally beneficial and versatile properties that lead to the wide adoption of such group variants as fatty acid alkoxylates, fatty amine alkoxylates, and fatty alcohol alkoxylates. The industries exhibiting broad incorporation of such chemicals include cosmetics & personal care, consumer products, paints & coatings, pharmaceuticals, and others. If this piqued your interest, and by any chance, you are a chemical enthusiast or looking forward to exploring the Alkoxylate industry in particular, then the statistics might appeal to you. As per Markntel Advisors, the Alkoxylates industry seems to traverse an upward trajectory with a CAGR of 5.1 % during 2022-27. Unwinding the market aspects further, let us gather insights into how the market unfolds in the coming years while elaborating on the recent trends and regional dynamics.
Ventures Hinting Toward the Upward Graph Slope
The Dow Chemical Company, an American multinational chemical corporation headquartered in Michigan, United States, is looking forward to expanding its global alkoxylation capacity into the US and Europe. With a 10% to 15% annual growth rate, the company hopes to serve the emerging needs of several quickly expanding end sectors, including pharmaceuticals, industrial and institutional cleaning solutions, and home and personal care products.
A prominent joint venture for powder coatings in Turkey, Akzo Nobel Boya Sanayi ve Ticaret AS, has finalized the acquisition of the remaining 25% ownership from Akzo Nobel N.V. Previously holding the majority portion of the corporation now owns the entire asset. After this strategic collaboration, the agreement would strengthen AkzoNobel's commanding position in Turkey, known to have dominance in the European powder coatings market that would ultimately pave the way for more sales for Alkoxylates used in coatings.
Next, The Stepan Company announced an opening of its new alkoxylation unit operating at the company's Pasadena, Texas, site in 2021. Alkoxylates, being the essential surfactants, are crucial to households, oilfields, construction, and agriculture, states the company. Along similar lines, Sasol, a global integrated chemicals and energy corporation, announced the opening of its new alkoxylation facility in Nanjing in 2019. With doubling the current facility capacity, this one assumes the company's largest expansion project in China.
Subsequently, 2019 saw the acquisition of Wilmar's French ethoxylation factory by INEOS Oxide. With this acquisition, INEOS hopes to increase the availability of European ethoxylates while increasing the plant's capacity to produce ethylene oxide to 270 KT. Likewise, Altivia Oxide Chemicals, a division of ALTIVIA Petrochemicals, acquired KMCO and the Crosby, Texas-based company's chemical ethoxylation manufacturing assets in June 2020.
Europe Vies for A Larger Piece of the Pie
The global industry for Alkoxylates has gained traction in recent years and is to thrive in the coming years as well. Europe currently has the steering wheel for sure, and the credit entirely goes to the swift expansion of the pharmaceutical industry, pushing the need for these chemicals. Again, the broad incorporation of Alkoxylates in various home & industrial cleaning & personal care applications is another factor backing Europe's dominance.
Besides, as the governments of numerous countries in the region are encouraging the adoption of environment-friendly products, the utilization of these chemicals is escalating substantially and finding application across diverse industries in Europe, catering to the overall market expansion. Moreover, the changing lifestyles and increasing environmental consciousness for personal hygiene, nudging the adoption of personal care products, further enthralls the industry.
Putting it together, Alkoxylates, being a core surfactant, have widely been adopted by numerous industries such as pharmaceuticals, paint industry, cosmetic and FMCG industry, in particular. Besides, rising susceptibility for environment–friendly products and mounting consumer awareness of sanitation & hygiene are setting forth the suitable stage for the market to showcase its potential in the coming years. The current scenario seems to pave a well-edged pathway for the market players. So that they do not just pitch innovative ideas but also revamp their production and cater to the burgeoning needs globally. However, it is equally crucial to keep in check the compliance level as per the Government regulations, as the chemical industry is already witnessing stringent regulations world.