Benzyl Chloride Market Research Report - Global Forecast till 2027

Global Benzyl Chloride Market Information By Application (Production of Benzyl Alcohol, Production of Benzyl Quaternary Ammonium Compounds, Production of Benzyl Cyanide, Others), By End-Use (Paints & Coatings, Pharmaceutical, Personal Care, Agrochemicals, Others) and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa) - Forecast to 2027

ID: MRFR/CnM/8164-HCR | February 2021 | Region: Global | 150 pages

MARKET SYNOPSIS


According to MRFR analysis, the Global Benzyl Chloride Market is projected to register a CAGR of above 4% during the forecast period, 2020–2027, with Asia-Pacific dominating the market.


Benzyl chloride, also known as α-chlorotoluene, is an organic chemical with a strong, unpleasant odor. It is a colorless liquid at room temperature. Benzyl chloride is majorly used as an intermediate, i.e., as a substrate to produce various chemicals varying from benzyl alcohol, flavor products, dyes, and pharmaceutical products. It is also used as a photographic developer and in the production of quaternary ammonium compounds, phthalates, and benzyl cyanide (which is used as a precursor for penicillin G).


The protuberant factors driving the growth of the global market is the increasing demand for the product in the production of alcohol, which is further applicable in a plethora of applications. The growing demand for benzyl alcohol in the paints and coatings industry, coupled with the healthy growth of this industry across the globe, is further expected to boost the demand for benzyl chloride during the forecast period. As per MRFR analysis, the expenditure in the global construction industry was USD 11.2 trillion in 2018 and is rising significantly year-on-year, expected to reach USD 13.4 trillion by the end of 2024. Furthermore, the widespread use of benzyl chloride in the chemical industry is expected to drive the growth of the market in the years to follow. However, the health hazards associated with the use and handling of benzyl chloride is estimated to be a key factor hampering the market growth in the years to follow.


REGULATORY FRAMEWORK


There are various regulations imposed on the use of benzyl chloride, as it is a carcinogenic product.


Some of the regulatory standards for benzyl chloride in the EU: regulatory standards for benzyl chloride in the EU


Source: Danish Environmental Protection Agency and MRFR Analysis


MARKET DRIVERS



  • Surging demand for benzyl chloride in the production of benzyl alcohol

  • Increasing use of the product as a chemical intermediate in the production of benzyl quaternary ammonium compounds


MARKET RESTRAINTS



  • Health hazards associated with the product


SEGMENTATION


By Application



  • Production of Benzyl Alcohol: This segment held the largest share of the market, above 50%, in 2019. Benzyl alcohol is produced by the hydrolysis of benzyl alcohol. It is used in a wide range of applications such as solvents, pharmaceuticals, cosmetics, natural health products, flavor products, and textile dyes.



  • Production of Benzyl Quaternary Ammonium Compounds: The benzyl quaternary ammonium compounds segment held the second-largest share of the global market in 2019. Benzyl quaternary ammonium products are used as active ingredients in pest control products, surfactant in numerous products such as hard surface sanitizers, industrial and institutional cleaners, corrosion inhibitors, and household and personal care products.



  • Production of Benzyl Cyanide: The production of benzyl cyanide is a significant application segment, which held around 14% of the market in 2019. Benzyl cyanide is majorly used in the pharmaceutical and agrochemical-market-749'>agrochemical industries.



  • Others: The other segment includes the production of phthalates, benzyl esters, benzyl magnesium compounds, benzyl lithium compounds, and biocides.


By End-Use Industry



  • Paints & Coatings: The paints & coatings segment accounted for the largest share of over 40% in 2019, owing to the surging demand for benzyl alcohol as a solvent for paints, inks, lacquers, and epoxy resin coatings. Moreover, it is used in paint strippers in industrial paint stripping and architectural stripping applications. The growth of the construction industry in the emerging economies of Asia-Pacific and the Middle East & Africa is expected to favor the growth of the segment in the coming years.



  • Pharmaceutical: The pharmaceutical industry is the other major consumer of products produced using benzyl chloride, such as benzyl alcohol and benzyl cyanide.



  • Personal Care: Widely used in the manufacturing of chemicals used to produce hand sanitizers, industrial and institutional cleaners, and household and personal care products.



  • Agrochemicals: Mainly used to produce germicides, herbicides, and other agrochemicals.



  • Others: The others segment includes the food, textile, and oil & gas industries.


By Region



  • North America

  • Europe

  • Asia-Pacific

  • Latin America

  • Middle East & Africa


REGIONAL ANALYSIS



  • North America: The regional market held an approximately 12% share of the market in 2019. The use of an alternative production process for benzyl alcohol is limiting market growth in North America. However, the other application segments, including the production of benzyl quaternary ammonium compounds and benzyl cyanide, are expected to contribute to the growth of the regional market in the years to follow.



  • Europe: The European market is expected to register sluggish growth during the forecast period. Stringent regulations pertaining to the use of benzyl chloride is expected to limit the market growth in the years to follow. High demand for benzyl chloride in benzyl alcohol production in Western Europe is estimated to be the primary factor driving the regional market during the forecast period.



  • Asia-Pacific: The market in Asia-Pacific for benzyl chloride accounted for the largest share of over 50% in 2019 and is projected to remain the dominant regional market during the forecast period. This is mainly attributed to the high demand for the product in the expanding pharmaceutical and paints & coatings industries in China, India, and South East Asian countries.



  • Latin America: The regional market is expected to register healthy growth owing to the fast-growing construction sector in the developing economies.



  • Middle East & Africa: The regional market in the Middle East & Africa for benzyl chloride held a relatively smaller share in 2019. The regional market is expected to witness healthy growth in the coming years owing to the high potential of the construction and personal care industries in the region.


KEY PLAYERS



  • LANXESS (Germany)

  • Valtris Specialty Chemicals (US)

  • Charkit Chemical Company LLC (US)

  • Henan GP Chemicals Co., Ltd (China)

  • Henan Haofei Chemical Co., Ltd (China)

  • The Chemical Company (US)

  • Danyang Wanlong Chemical Co., Ltd (China)

  • Shimmer Chemicals Pvt. Ltd (India)

  • KLJ Group (India)

  • Jiangyin Jianheng Chemical Co., Ltd (China)



Report Scope:
Report Attribute/Metric Details
  Market Size   2027: USD 210 Million
  CAGR   4% (2020-2027)
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Application, End-Use, Region
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   LANXESS (Germany), Valtris Specialty Chemicals (US), Charkit Chemical Company LLC (US), Henan GP Chemicals Co., Ltd (China), Henan Haofei Chemical Co., Ltd (China), The Chemical Company (US), Danyang Wanlong Chemical Co., Ltd (China), Shimmer Chemicals Pvt. Ltd (India), KLJ Group (India),Jiangyin Jianheng Chemical Co., Ltd (China)
  Key Market Opportunities

  • Expenditure in the global construction industry
  • Widespread use of benzyl chloride in the chemical industry
  •   Key Market Drivers

  • Surging demand for benzyl chloride in the production of benzyl alcohol
  • Increasing use of the product as a chemical intermediate in the production of benzyl quaternary ammonium compounds


  • Frequently Asked Questions (FAQ) :


    Global benzyl chloride market is expected to record a substantial market valuation by 2027.

    Global benzyl chloride market is projected to register a moderate 4% CAGR in the forecast period.

    The production of benzyl alcohol segment is poised to observe substantial demand over the review period.

    The paints and coatings segment is slated to expand as the fastest-growing segment.

    A few eminent market players operating in the global benzyl chloride market are LANXESS (Germany), Valtris Specialty Chemicals (US), Charkit Chemical Company LLC (US), among others.