by Monochloroacetic acid finds widespread application in the manufacturing of herbicides and it is one of the key intermediate used for the production of various agrochemicals. It acts as a building block chemical for the synthesis of various agrochemicals including 2,4-D, MCPA, and dicamba herbicides. Monochloroacetic acid is used as an intermediate in the production of numerous herbicides such as dicamba, 2,4-D, MCPA, and others that are extensively applied across various crop fields to control weeds. In recent years, the demand for agrochemicals has witnessed significant growth with the increasing requirement to boost agricultural yield to support the growing global population. This rising need for herbicides from the agricultural industry is expected to drive the demand for monochloroacetic acid over the forecast period.
The global Monochloroacetic Acid Market is estimated to be valued at US$ 941.62 Mn in 2023 and is expected to exhibit a CAGR of 25% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends gaining traction in the monochloroacetic acid market is increasing adoption of bio-based production methods. Conventional production of monochloroacetic acid involves use of petroleum-derived raw materials such as methane or ethylene. However, with the growing emphasis on reducing dependence on petrochemicals and developing sustainable production technologies, industry players are focusing onbio-based production methods. For instance, in 2019, CABB GmbH successfully completed the world’s largest bio-based monochloroacetic acid plant with annual production capacity of 60,000 tons per year. The plant utilizes bio-ethanol instead of ethylene to produce monochloroacetic acid, thereby reducing dependency on fossil fuel-derived feedstock. Such initiatives are expected to boost the market growth of monochloroacetic acid over the forecast period.
Porter’s Analysis
Threat of new entrants: High capital requirements to enter the industry act as a barrier for new players. Stringent environmental regulations further increase entry barriers.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products. However, specialized applications of Monochloroacetic acid limit bargaining power.
Bargaining power of suppliers: A few major players control the supply of key raw materials, giving them significant influence over prices. However, availability of raw material substitutes provides some countervailing power.
Threat of new substitutes: Threat of substitutes is moderate as Monochloroacetic acid has specialized applications in herbicides and pharmaceuticals that are not easily substitutable.
Competitive rivalry: The market is moderately competitive with the major players differentiating based on consistency in quality and supply reliability. Price competition is moderate due to specialized production processes.
Key Takeaways
The Global Monochloroacetic Acid Market Size is expected to witness high growth over the forecast period of 2023 to 2030 supported by growing demand from herbicides and pharmaceuticals industries. The market size is projected to reach US$ 941.62 Mn by 2023, registering a CAGR of around 25% during the forecast period.
Regional analysis: North America dominated the global Monochloroacetic acid market in 2022 supported by strong demand from herbicide and pharmaceutical manufacturing industries in the region. Asia Pacific is anticipated to be the fastest growing market over the forecast period with China and India emerging as major consumers.
Key players: Key players operating in the Monochloroacetic acid market are AkzoNobel N.V., CABB Group GmbH, Niacet Corporation, and Denak Co. Ltd. AkzoNobel and CABB collectively account for over 50% of the global production capacity. Players are expanding production facilities as well as vertically integrating into downstream applications to gain competitive advantage.
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