Monochloroacetic Acid Market

The rising use of MCAA derivatives in end-user industries propels market growth

Monochloroacetic Acid Market CAGR for monochloroacetic acid is being driven by the rising use of MCAA derivatives in end-user industries. The primary use of MCAA is in the manufacturing of carboxymethyl cellulose (CMC), which is used as a finishing agent in the textile, adhesives, detergents, leather, and paper industries.CMC is used to create foam-resistant, non-staining films with good adhesiveness and stretchability. It maintains the texture of the yarn. With their hectic lifestyles, an increasing number of people are turning to processed meals.

One of the primary drivers for the food processing and packaging sector is the increasing rate of innovation in the preservatives and packaging categories.

Nutrition supplements are becoming more popular as people's health worries and inactive lifestyles grow. CMC is found in nutritional supplements such as sweetener tablets. Thus, rising demand for food packaging as well as the health and nutrition industries is expected to drive the worldwide MCAA market during the forecast period.

MCAA capacity has more than doubled in the last five years, with China and India leading the way. AkzoNobel and Atul India formed a joint venture to manufacture MCAA in India in 2016. In addition, Nouryon confirmed its commitment to India in April 2021 when it announced a joint venture with Atul to begin manufacturing at Anaven, the country's largest MCAA factory in Gujarat.

Rising agricultural technical innovation, limited supply of arable land, rising environmental concerns, and breakthroughs in plant breeding and management knowledge all over the world are all driving to increased use of agrochemicals. Pests and pathogens cost over $40 billion in plant and forest food output in the United States each year, according to a study published in the Proceedings of the National Academy of Sciences (PNAS). This number reflects the widespread need for agricultural chemicals such as insecticides, herbicides, fungicides, and pesticides.

Because monochloroacetic acid is used in the production of numerous agrochemicals such as insecticides, pesticides, herbicides, and fungicides, the need for these products is driving the demand for monochloroacetic acid.

February 2024: In Germany, CABB Group has invested €15 million to upgrade its facilities for the production of monochloroacetic acid. This will raise efficiency and capacity at the plant enabling them to meet rising demand from agrochemicals as well as pharmaceuticals.January 2024: Daicel Corporation is planning to expand its production capacity for monochloroacetic acid in Japan, with an investment of ¥2bn ($18m). Output will be lifted by a fifth in response to increased orders from both textiles and agrochemicals.

The Global Monochloroacetic Acid Market Industry experiences substantial growth driven by the increasing demand from the agrochemical sector. Monochloroacetic acid is a vital intermediate in the production of herbicides and pesticides, which are essential for enhancing agricultural productivity. As global food demand continues to rise, the agrochemical industry is projected to expand, thereby boosting the consumption of monochloroacetic acid. In 2024, the market is valued at approximately 0.84 USD Billion, reflecting the critical role of this compound in supporting agricultural innovations. This trend is expected to persist, with the market anticipated to reach 1.05 USD Billion by 2035.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. In 2022, Asia Pacific had the highest revenue share. Rising demand for monochloroacetic acid in agriculture, adhesives, and medicines is propelling the market in this region's revenue growth. Monochloroacetic acid is quickly exported in the agricultural industry of nations such as India, China, Japan, Thailand, and Malaysia for the production of a wide range of chemicals such as herbicides, fungicides, and other agricultural chemicals.

Moreover, China’s Monochloroacetic Acid Market held the largest market share, and the Indian Monochloroacetic Acid Market was the fastest-growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2:  MONOCHLOROACETIC ACID MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's Monochloroacetic Acid Market accounts for the second-largest market share due to rising demand for monochloroacetic acid in sustainable agriculture and reduced pesticide wastage across farmlands are predicted to drive up demand for monochloroacetic acid manufacturing in this region. Further, the GermanMonochloroacetic Acid Market held the largest market share, and the UK Monochloroacetic Acid Market was the fastest growing market in the European region

The North America Monochloroacetic Acid Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the rising usage of monochloroacetic acid in the sector for the synthesis of bio-based acetic acid is driving market revenue growth in this area.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Monochloroacetic Acid Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Monochloroacetic acid industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the  Monochloroacetic Acid industry to benefit clients and increase the market sector. In recent years, the Monochloroacetic Acid industry has offered some of the most significant advantages to medicine. Major players in the Monochloroacetic Acid Market, including Xuchang Dongfang Chemical Co. Ltd. (China), Shandong Minji Chemical Co., Ltd. (China), Shiv Chem Industries (India), Abhishek Impex (India), Merck KGaA (Germany)  and others, are attempting to increase market demand by investing in research and development operations.

CABB Group is a premier contract development and manufacturing organization (CDMO) for raw materials, active compounds, and advanced intermediates. We specialize in producing bespoke, very complex compounds for top firms in agricultural sciences, life sciences, and performance materials. In April 2019, CABB GmbH has signed a memorandum of understanding (MoU) with Jinwei Huasheng Chemical Co. Ltd. and Jining Gold Power Co. Ltd. to establish a joint venture firm for the marketing and production of high-quality monochloroacetic acid. Furthermore, both corporations paid USD 160 million to build a manufacturing plant in China with a capacity of 50,000 tons per year.

Akzo Nobel N.V. is a Dutch multinational corporation that manufactures paints and performance coatings for both industry and customers across the world. The corporation, headquartered in Amsterdam, operates in over 150 countries. After Sherwin-Williams and PPG Industries, AkzoNobel is the world's third-largest paint manufacturer by revenue. In April 2019, AkzoNobel, a Dutch maker of paints and performance coatings, announced a joint venture with Atul Chemicals to establish a mono-chloroacetic acid production plant in Atul Chemicals' existing facility in Gujrat, India.