Allyl Chloride Market Trends

ID: MRFR/CnM/5781-CR

108 Pages

Priya Nagrale

February 2021

Allyl Chloride Market Research Report by Application (Epichlorohydrin, Allyl Amines, Allyl Sulfonates, Glycidyl Ether, Water Treatment Chemicals, Others), and Region - Global Forecast till 2035

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Market Trends

Key Emerging Trends in the Allyl Chloride Market

The Allyl Chloride Market is currently witnessing significant trends that are reshaping the industry across various applications. One notable trend is the increasing demand for allyl chloride in the production of epichlorohydrin, a key raw material for the manufacturing of epoxy resins. Epoxy resins find widespread use in industries such as construction, electronics, and automotive for their adhesive and coating properties. This trend is driven by the growing demand for epoxy-based products and the versatility of epoxy resins in providing durable and high-performance solutions.

Environmental sustainability is a key driver influencing market trends in the Allyl Chloride Market. As industries face heightened environmental concerns and regulatory pressures, there is a growing focus on developing greener and more eco-friendly processes for allyl chloride production. Manufacturers are exploring alternative raw materials and more sustainable synthesis methods to reduce the environmental impact of allyl chloride manufacturing. This trend aligns with the broader industry push towards adopting cleaner and more sustainable chemical processes.

Technological advancements play a pivotal role in shaping market trends in the Allyl Chloride Market. Ongoing research and development efforts focus on improving the efficiency and selectivity of allyl chloride production processes. Innovations in catalyst technologies, reaction engineering, and process optimization contribute to enhancing the overall sustainability and cost-effectiveness of allyl chloride manufacturing. These technological trends address the industry's need for advanced and eco-friendly production methods.

The pharmaceutical and agrochemical sectors are significant influencers of market trends in the Allyl Chloride Market. Allyl chloride serves as a key intermediate in the synthesis of various pharmaceutical and agrochemical compounds. Its role in the production of active pharmaceutical ingredients (APIs) and agrochemicals contributes to the growth of these sectors. This trend is driven by the continuous demand for pharmaceuticals and agrochemical products globally, highlighting allyl chloride's importance as a building block in the synthesis of essential compounds.

Supply chain dynamics and raw material costs are critical factors impacting market trends in the Allyl Chloride Market. The availability and pricing of raw materials, such as propylene and chlorine, can influence the overall cost of allyl chloride production. Fluctuations in raw material prices, geopolitical factors affecting the supply chain, and global economic conditions can pose challenges for manufacturers. Companies in the Allyl Chloride Market are actively managing their supply chains, exploring alternative raw materials, and adopting strategies to ensure a stable and cost-effective production process.

Moreover, there is a growing trend towards regulatory compliance and product safety in the Allyl Chloride Market. As industries face increasingly stringent regulations and standards, manufacturers are focusing on ensuring that allyl chloride and its derivatives meet the required quality and safety specifications. Compliance with regulatory frameworks and adherence to industry standards, such as Good Manufacturing Practice (GMP) in the pharmaceutical sector, are becoming integral aspects of allyl chloride production. This trend reflects the industry's commitment to delivering products that meet the highest quality and safety standards.

Market Highlights

Author

Priya Nagrale

Senior Research Analyst

With an experience of over five years in market research industry (Chemicals & Materials domain), I gather and analyze market data from diverse sources to produce results, which are then presented back to a client. Also, provide recommendations based on the findings. As a Senior Research Analyst, I perform quality checks (QC) for market estimations, QC for reports, and handle queries and work extensively on client customizations. Also, handle the responsibilities of client proposals, report planning, report finalization, and execution

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FAQs

How much is the global allyl chloride market worth in the future?

The valuation of the global allyl chloride market is projected to touch USD 2,845.1 MN by 2035,

At what CAGR is the global allyl chloride market projected to grow in the forecast period (2025-2035)?

Allyl Chloride Market is projected to expand at 4.11% CAGR during the review period (2025-2035).

Which are the leading segments in the global allyl chloride market?

Based on applications, the epichlorohydrin segment accounts for the leading share and the water treatment chemicals segment accounts for the second-largest share in the global allyl chloride market.

Which region holds the largest share in the global allyl chloride market?

Asia Pacific holds the largest share in the global allyl chloride market, followed by North America and Europe, respectively.

Who are the top players in the global allyl chloride market?

Kashima Chemical Co., Ltd. (Japan), Osaka Soda (Japan), Sumitomo Chemical Co., Ltd. (Japan), Alfa Aesar (US), Gelest, Inc. (US), Olin Corporation (US), DowDuPont (US), Solvay (Belgium), and Rizho Lanxing Chemical Industry Co., Ltd. (China), are some of the major players operating in the allyl chloride market.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

As per MRFR analysis, the Allyl Chloride Market Size was estimated at 1.9 USD Million in 2024. The Allyl Chloride industry is projected to grow from 1.98 in 2025 to 3.04 by 2035, exhibiting a compound annual growth rate (CAGR) of 4.36 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Allyl Chloride Market is poised for growth driven by diverse applications and regional dynamics.

The North American region remains the largest market for allyl chloride, primarily due to its extensive chemical manufacturing base.
In contrast, the Asia-Pacific region is emerging as the fastest-growing market, fueled by increasing industrialization and demand for agrochemicals.
The chemical synthesis segment dominates the market, while the pharmaceuticals segment is experiencing rapid growth due to rising healthcare needs.
Key market drivers include the increasing use of allyl chloride in chemical synthesis and the expansion of the plastics industry.

Market Size & Forecast

2024 Market Size	1.9 (USD Million)
2035 Market Size	3.04 (USD Million)
CAGR (2025 - 2035)	4.36%
Largest Regional Market Share in 2024	North America

Major Players

Olin Corporation (US), BASF SE (DE), Dow Chemical Company (US), Shin-Etsu Chemical Co., Ltd. (JP), Solvay S.A. (BE), Eastman Chemical Company (US), Huntsman Corporation (US), Kraton Corporation (US)

Market Trends

The Allyl Chloride Market is currently experiencing a dynamic phase characterized by evolving applications and increasing demand across various sectors. This compound, primarily utilized in the production of agrochemicals, pharmaceuticals, and polymers, appears to be gaining traction due to its versatility and effectiveness. The market landscape is influenced by several factors, including technological advancements, regulatory frameworks, and shifting consumer preferences. As industries seek more sustainable and efficient solutions, the relevance of allyl chloride is likely to expand, potentially leading to new opportunities for manufacturers and suppliers alike. Moreover, the global focus on environmental sustainability and safety standards is shaping the production and usage of allyl chloride. Companies are increasingly investing in research and development to enhance the efficiency of production processes while minimizing environmental impact. This trend suggests a growing awareness of the need for responsible chemical management, which could further drive innovation within the Allyl Chloride Market. As the market continues to evolve, stakeholders must remain vigilant to adapt to these changes and leverage emerging opportunities for growth and development.

Rising Demand in Agrochemicals

The demand for allyl chloride in agrochemical formulations is on the rise, driven by the need for effective crop protection solutions. This trend indicates a shift towards more efficient agricultural practices, where allyl chloride serves as a key intermediate in the synthesis of various pesticides and herbicides.

Technological Advancements in Production

Innovations in production technologies are enhancing the efficiency and sustainability of allyl chloride manufacturing. These advancements may lead to reduced production costs and lower environmental impact, positioning companies to better meet market demands.

Focus on Regulatory Compliance

Increasing regulatory scrutiny surrounding chemical safety and environmental impact is influencing the Allyl Chloride Market. Companies are adapting their practices to comply with stringent regulations, which may drive the development of safer and more sustainable products.

Allyl Chloride Market Market Drivers

Market Growth Projections

The Global Allyl Chloride Market Industry is projected to experience substantial growth over the next decade. With an estimated market value of 2.18 USD Billion in 2024 and a forecasted increase to 3.48 USD Billion by 2035, the industry is on a promising trajectory. The compound annual growth rate of 4.32% from 2025 to 2035 indicates a sustained upward trend, driven by various factors including increased demand from end-use industries and technological advancements. These projections highlight the market's potential and the opportunities that lie ahead for stakeholders.

Expansion of End-Use Industries

The expansion of end-use industries is a significant driver for the Global Allyl Chloride Market Industry. Sectors such as automotive, construction, and electronics are increasingly utilizing allyl chloride in the production of advanced materials and coatings. This trend is likely to enhance the market's growth, as these industries are projected to expand substantially over the next decade. The anticipated growth in these sectors suggests a potential increase in allyl chloride consumption, contributing to the market's expected valuation of 3.48 USD Billion by 2035. Such developments indicate a strong correlation between industry growth and allyl chloride demand.

Regulatory Support for Chemical Safety

Regulatory support for chemical safety is increasingly shaping the Global Allyl Chloride Market Industry. Governments worldwide are implementing stringent regulations to ensure the safe handling and use of chemicals, including allyl chloride. This regulatory framework is fostering a safer operational environment, encouraging manufacturers to comply with safety standards. As a result, companies are investing in safer production practices and technologies, which may enhance the industry's reputation and marketability. This regulatory landscape is likely to drive growth, as compliance can lead to increased market access and consumer trust.

Growing Demand in Chemical Manufacturing

The Global Allyl Chloride Market Industry is experiencing a notable surge in demand driven by its extensive applications in chemical manufacturing. This compound serves as a vital intermediate in the production of various chemicals, including glycerol and epoxy resins. As industries increasingly seek efficient and versatile chemical solutions, the market is projected to reach 2.18 USD Billion in 2024, reflecting a robust growth trajectory. The rising need for specialty chemicals across sectors such as pharmaceuticals and agriculture further fuels this demand, indicating a promising outlook for the industry in the coming years.

Technological Advancements in Production

Technological advancements in the production of allyl chloride are poised to significantly impact the Global Allyl Chloride Market Industry. Innovations in synthesis methods and process optimization are enhancing production efficiency and reducing costs. These advancements not only improve yield but also minimize environmental impact, aligning with global sustainability goals. As manufacturers adopt these technologies, the market is expected to benefit from increased production capacity and lower operational costs. This trend may contribute to a compound annual growth rate of 4.32% from 2025 to 2035, indicating a robust future for the industry.

Market Diversification and Product Innovation

Market diversification and product innovation are critical drivers of the Global Allyl Chloride Market Industry. Manufacturers are exploring new applications and formulations to meet the evolving needs of various industries. This includes the development of novel derivatives and blends that enhance performance characteristics. Such innovations not only cater to existing market demands but also open new avenues for growth. As companies invest in research and development, the market is likely to witness an influx of innovative products, further solidifying its position in the global chemical landscape.

Market Segment Insights

By Application: Chemical Synthesis (Largest) vs. Pharmaceuticals (Fastest-Growing)

In the Allyl Chloride Market, the application segments exhibit diverse dynamics, with Chemical Synthesis holding the largest market share due to its extensive use in producing a wide range of chemical compounds. Following closely, Pharmaceuticals is gaining traction, largely driven by the increasing demand for innovative drugs and therapeutic agents that utilize this compound in their production processes. Agricultural Chemicals and Polymer Production represent essential niche applications, contributing to the overall market but at a slower pace compared to the leading segments.

Chemical Synthesis (Dominant) vs. Pharmaceuticals (Emerging)

Chemical Synthesis serves as the cornerstone of the Allyl Chloride Market, dominating the landscape through its critical role in manufacturing various chemicals and intermediates. This segment benefits from established industrial processes, ensuring consistent demand. On the other hand, the Pharmaceuticals segment is emerging robustly, fueled by heightened research and development in healthcare. The growing focus on developing novel medications reinforces the position of pharmaceuticals as a vital area for allyl chloride applications. As regulatory frameworks favor innovative therapies, the pharmaceutical application is poised for accelerated growth, making it a captivating area alongside the more established chemical synthesis.

By End Use Industry: Chemical Manufacturing (Largest) vs. Agriculture (Fastest-Growing)

The Allyl Chloride Market shows a diverse distribution of market share among its end-use industries. Chemical manufacturing holds the largest portion due to its extensive applications in producing various chemical intermediates. Agriculture is also a significant sector utilizing allyl chloride in herbicides and other formulations, albeit with a relatively smaller share. The pharmaceuticals and plastics industries also contribute to the market, albeit to a lesser extent, highlighting the diversified nature of allyl chloride's applications across various sectors.

Chemical Manufacturing (Dominant) vs. Agriculture (Emerging)

In the Allyl Chloride Market, chemical manufacturing stands out as the dominant end-use industry, leveraging allyl chloride extensively for synthesizing various chemicals, ranging from epoxides to organics used in coatings. The established nature of this sector ensures a consistent demand for allyl chloride, driving its usage in multitude of applications. Conversely, agriculture is emerging strongly, particularly with innovations in agrochemicals that utilize allyl chloride-derived products. This growth is fueled by the increasing need for effective pest control solutions and sustainable agricultural practices, making agriculture a pivotal player in the future landscape of the allyl chloride market.

By Form: Liquid (Largest) vs. Gas (Fastest-Growing)

In the Allyl Chloride Market, the segment distribution reveals that liquid form holds the largest share among the three forms due to its widespread applications in producing various chemicals and polymers. Gas and solid forms, while smaller in terms of market share, are significant contributors as well. The gas form, in particular, has been gaining traction owing to its unique properties that lend themselves to specific industrial applications, thus carving out a notable presence in the market.

Form: Liquid (Dominant) vs. Gas (Emerging)

Liquid allyl chloride is the dominant segment, largely favored for its versatility and ease of handling in chemical processes. It is extensively used in manufacturing advanced materials and specialty chemicals. Conversely, the emerging gas form is witnessing increased adoption due to its advantages in specific reactions and storage. This form is particularly appealing for manufacturers seeking efficiency and flexibility in production processes. As more industries recognize the potential of gas allyl chloride, its growth trajectory is set to accelerate, fueling competition in the market.

By Purity Level: High Purity (Largest) vs. Medium Purity (Fastest-Growing)

The Allyl Chloride Market exhibits a clear distribution of market shares across different purity levels. High Purity products dominate the market due to their superior quality and application in industries that demand stringent material standards. In parallel, Medium Purity has begun to carve out a significant presence, capturing attention for applications where budget constraints are pivotal but quality is still essential. Low Purity products likely hold a smaller share, primarily appealing to niche markets or applications less sensitive to purity standards. Growth trends indicate that the segment for High Purity Allyl Chloride will continue to thrive, driven by increasing demand from sectors such as pharmaceuticals and specialty chemicals where purity is non-negotiable. Conversely, Medium Purity is recognized as the fastest-growing segment, as businesses seek cost-effective solutions without compromising on quality. This trend is also fueled by the overarching need for sustainable practices which guide decisions toward more economical options.

High Purity (Dominant) vs. Medium Purity (Emerging)

High Purity Allyl Chloride represents the dominant segment of the market, characterized by its application in high-stakes industries such as pharmaceuticals and advanced materials, where the stakes of purity are critical. This segment's growth is driven by stringent regulatory frameworks and a constant demand for the highest quality outputs. In contrast, Medium Purity products are emerging as a viable alternative, offering a balance between quality and cost. They cater to a broad base of applications, particularly in sectors that require moderate standards yet remain price-sensitive. The growing preference for Medium Purity is indicative of market shifts towards efficiency without the full premium of high purity, making it an attractive option amidst fluctuating economic conditions.

By Distribution Channel: Direct Sales (Largest) vs. Online Sales (Fastest-Growing)

In the Allyl Chloride Market, the distribution channels play a crucial role in reaching various consumer segments. Direct Sales represents the largest share of the market due to established relationships and trust between manufacturers and end-users. This channel leverages direct contact with clients, guaranteeing a tailored approach and immediate feedback, which can be instrumental for product innovation and customer satisfaction. Online Sales, while currently smaller in market share, is rapidly expanding as digital transformation pushes more transactions online, particularly among tech-savvy consumers. The growth trends for distribution channels in the Allyl Chloride Market are heavily influenced by changing buyer behaviors and advancements in technology. Distributors continue to face stiff competition from direct sales, which provide more personalized service. However, the online sales channel is emerging as a strong contender, driven by consumers' increasing preference for convenience and accessibility. The ease of online transactions is propelling this segment, attracting not only individual buyers but also small-to-medium enterprises looking to procure onions efficiently, thereby altering the competitive landscape of the market.

Direct Sales (Dominant) vs. Online Sales (Emerging)

Direct Sales in the Allyl Chloride Market remains a dominant force due to its ability to foster direct relationships with clients, ensuring high levels of customer satisfaction and loyalty. This channel allows manufacturers to communicate their value propositions face-to-face, facilitating tailored solutions for specific customer needs. On the other hand, Online Sales is an emerging segment that is revolutionizing how transactions take place. This mode offers a convenient platform for consumers to access products without geographical barriers. The rising preference for online solutions is compelling traditional players to rethink their distribution strategies. As more industries embrace e-commerce, Online Sales is likely to expand its footprint, appealing to a broader audience and enhancing market competition.

Get more detailed insights about Allyl Chloride Market Research Report - Forecast to 2035

Regional Insights

Key Players and Competitive Insights

The Allyl Chloride Market is characterized by a competitive landscape that is increasingly shaped by innovation, sustainability, and strategic partnerships. Key players such as Olin Corporation (US), BASF SE (DE), and Dow Chemical Company (US) are actively pursuing strategies that emphasize technological advancements and operational efficiencies. Olin Corporation (US) has focused on enhancing its production capabilities through investments in state-of-the-art manufacturing technologies, which not only improve output but also reduce environmental impact. Meanwhile, BASF SE (DE) has been leveraging its extensive research and development resources to innovate new applications for allyl chloride, thereby expanding its market reach and reinforcing its position as a leader in chemical solutions. Dow Chemical Company (US) appears to be concentrating on strategic collaborations with regional players to enhance its supply chain resilience and market penetration, indicating a trend towards localized operations in response to global market dynamics.

The business tactics employed by these companies reflect a moderately fragmented market structure, where localized manufacturing and supply chain optimization are pivotal. The collective influence of these key players is significant, as they not only drive technological advancements but also set industry standards that smaller competitors must follow. This competitive environment encourages innovation while also fostering a sense of collaboration among major players, as they seek to address common challenges such as regulatory compliance and sustainability.

In November 2025, Olin Corporation (US) announced a strategic partnership with a leading renewable energy firm to develop a more sustainable production process for allyl chloride. This move is likely to enhance Olin's sustainability credentials and align with global trends towards greener manufacturing practices. The partnership may also provide Olin with access to new technologies that could further optimize its production efficiency.

In October 2025, BASF SE (DE) launched a new line of specialty chemicals derived from allyl chloride, aimed at the automotive sector. This strategic initiative not only diversifies BASF's product offerings but also positions the company to capitalize on the growing demand for high-performance materials in automotive applications. The introduction of these products could potentially strengthen BASF's market share and reinforce its reputation as an innovator in the chemical industry.

In September 2025, Dow Chemical Company (US) expanded its manufacturing facility in Texas, focusing on increasing the production capacity of allyl chloride. This expansion is indicative of Dow's commitment to meeting rising global demand and enhancing its competitive edge. By increasing capacity, Dow is likely to improve its supply chain reliability and responsiveness to market fluctuations, which is crucial in a dynamic market environment.

As of December 2025, the competitive trends in the Allyl Chloride Market are increasingly defined by digitalization, sustainability, and the integration of advanced technologies such as AI. Strategic alliances are becoming more prevalent, as companies recognize the need to collaborate in order to innovate and meet evolving customer demands. The shift from price-based competition to a focus on innovation, technology, and supply chain reliability is evident, suggesting that future competitive differentiation will hinge on the ability to adapt to these trends and leverage them for strategic advantage.

Key Companies in the Allyl Chloride Market market include

Industry Developments

November 2021: Manufacturers of specialty chemicals, such as Galaxy Surfactants, the market leader in alkyl polyglucoside surfactants, continue to benefit from robust demand, but supply chain constraints are limiting the advantages. The September quarter performance reflected the same. However, the company's total revenues increased by 22% year on year in the September quarter, supported by improved realisations. Galaxy's stock prices increased by more than 3% in early trading. Volumes in all areas were modest, including surfactants and specialist care products. The supply chain for critical raw materials presented issues, and increased input costs had an adverse effect on operating performance.

Supply-side restrictions were exacerbated by volatility in feedstock costs, unavailability of important feedstocks, and extended lead times.

INOVYN, a UK based chemical company, launched an environmentally sustainable and bio-based new allyl chloride into the market in March 2023 to expand its specialty chemicals products range as well as enhance environmental sustainability.Kashima Chemicals has been actively involved in producing allyl chloride. In 2024, it still maintained its strong presence in the specialty chemical markets, especially because of unremitting innovations in the area of allyl chloride.On May 2023, the Dongying Economic and Technological Development Zone of Shandong Province approved a new project by Dongying Yi Rui Zengnew Material Technology Co.

LTD., which aim is to develop electronic-grade epoxy resin and brand-new special resin materials with an annual capacity of 200k tons.Osaka Soda Co., Ltd., another major player in the allyl chloride market, has been focusing on developing and commercializing allyl chloride as well as derivatives. It is important, however, that as of March 2024, the firm still intends to broaden its product range while keeping hold of its market share through intensive research and development.UK’s major chemical firm INOVYN innovated a new product in the field of allyl chlorides in March 2023.

It comprises an environment-friendly version made out of bio-based substances, hence addressing concerns for the surrounding area while various eco-chemical solutions are being sought. Here, INOVYN demonstrates its dedication to a better future through greener alternatives rather than traditional Allyl Chloride Market products.Gelest Inc., a specialized chemicals producer located in the USA, announced a strategic partnership with a leading Asian corporation manufacturing chemicals in January 2022.

The goal was to expand Gelest’s position within the Ally Chloride market by enhancing supply chain capabilities and increasing its customer base across the APAC region.In June 2021, BASF SE, a Germany-based global chemical company, has revealed its intention to amplify the production of Allyl Chloride Market. The organization is contemplating on creating a new plant in Ludwigshafen, Germany so as to meet increasing demands from major sectors like pharmaceuticals, plastics and agrochemicals.

Future Outlook

Allyl Chloride Market Future Outlook

The Allyl Chloride Market is projected to grow at a 4.36% CAGR from 2024 to 2035, driven by increasing demand in chemical synthesis and agrochemical applications.

New opportunities lie in:

Expansion into emerging markets with tailored product offerings.
Development of eco-friendly production processes to attract sustainability-focused clients.
Investment in R&D for innovative applications in pharmaceuticals and specialty chemicals.

By 2035, the Allyl Chloride Market is expected to achieve robust growth, solidifying its global presence.

Market Segmentation

Allyl Chloride Market Form Outlook

Liquid
Gas
Solid

Allyl Chloride Market Application Outlook

Chemical Synthesis
Pharmaceuticals
Agricultural Chemicals
Polymer Production

Allyl Chloride Market Purity Level Outlook

Low Purity
Medium Purity
High Purity

Allyl Chloride Market End Use Industry Outlook

Chemical Manufacturing
Agriculture
Pharmaceuticals
Plastics

Allyl Chloride Market Distribution Channel Outlook

Direct Sales
Distributors
Online Sales

Report Scope

MARKET SIZE 2024	1.9(USD Million)
MARKET SIZE 2025	1.98(USD Million)
MARKET SIZE 2035	3.04(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	4.36% (2024 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Million
Key Companies Profiled	Olin Corporation (US), BASF SE (DE), Dow Chemical Company (US), Shin-Etsu Chemical Co., Ltd. (JP), Solvay S.A. (BE), Eastman Chemical Company (US), Huntsman Corporation (US), Kraton Corporation (US)
Segments Covered	Application, End Use Industry, Form, Purity Level, Distribution Channel
Key Market Opportunities	Growing demand for bio-based chemicals presents opportunities in the Allyl Chloride Market.
Key Market Dynamics	Rising demand for allyl chloride in pharmaceuticals drives competitive dynamics and regulatory scrutiny in chemical manufacturing.
Countries Covered	North America, Europe, APAC, South America, MEA