Methylene Chloride Market by Application (Pharmaceuticals, Food & Beverages, Paints & Varnishes, Metal Cleaning, Chemical & Foam Manufacturing), by Geography (U.S., Canada, France, Germany, Spain, U.K., China, India, Japan, Indonesia, South Korea, Pakistan, Brazil, Mexico, South Africa) – Global Market Size, Share, Share, Development, Growth, and Demand Forecast, 2013–2023

Methylene Chloride Market Overview

The global methylene chloride market is estimated to be $1,818.3 million in 2017 and is projected to reach $2,485.5 million by 2023, witnessing a CAGR of 5.4% during 2018–2023. The market is mainly driven by the growing product demand for cleaning applications and increasing use in the paint and adhesive industry as a solvent.

GLOBAL METHYLENE CHLORIDE MARKET, BY APPLICATION, '000 TONS (2013-2023)

Methylene chloride is an organic compound with the formula CH2Cl2. It is a colorless, volatile liquid with a moderately sweet aroma. It is also known as dichloromethane (DCM) and are widely used as a solvent in paint removers. The other uses include aerosol formulations in the manufacturing of pharmaceuticals, degreasing agent in electronics manufacturing, and as an ethane foam blowing agent.

On the basis of application, the methylene chloride market is segmented into pharmaceuticals, food and beverages, paints and varnishes, metal cleaning, chemical and foam manufacturing, and others. Others application includes electronics, photographic films, and inks. Chemical and foam manufacturing is estimated to be the largest category, with more than 30.0% revenue share in 2017. This is attributed to the increasing demand of the compound in chemical processing and foam manufacturing due to its superior blowing performance and wide use in specialty chemical formulations. Additionally, it is commonly used as a solvent in the chemical and material industry.

Globally, Asia-Pacific has been accounting for the highest revenue share in the methylene chloride market, with an estimated contribution of more than 70.0% in 2017. This is attributed to the increasing production of chemical in the Asia-Pacific region. Additionally, increasing population and infrastructural activities in the region is also fueling the market growth.

Methylene Chloride Market Dynamics

The major trend identified in the methylene chloride market is the increasing production base in Asia-Pacific.

Trend

The major trend witnessed in the global methylene chloride market in recent years is the increasing production of the compound in the APAC region.

Producers are shifting their base to APAC owing to stringent environmental rules and regulations laid down by the governments of various countries in other regions, particularly Europe, banning the use of this compound in paint striper application. Additionally, India and China are among the largest consumers of this compound. China does not import the material in large quantities because of its sufficient local supply to meet the domestic demand. China, Taiwan, and Japan are among the major suppliers to Southeast Asia.

Drivers

The major drivers identified in the methylene chloride market are increasing demand for cleaning applications and increasing use as a key solvent in paint and adhesive formulations.

It is used as a key solvent in paint and adhesive formulations, owing to its strong dissolving strength, low flammability, and quick drying properties. Construction and automobile industries are the major end users of paints and adhesives. Due to the large-scale development of construction projects, such as bridges, buildings, and industrial facilities, across various parts of the world, the demand for paints and adhesives has increased substantially.

Also, the rapid increase in the sale of automobiles in developing nations has resulted in the increased demand for adhesives and paints. The growth in demand for paint and adhesives will enhance the market of methylene chloride in the coming years.

Restraints

The major restraint observed in the growth of methylene chloride market is the health hazards associated with the compound. It is a volatile liquid. Exposure to this liquid for a long period of time may cause health problems such as nausea and irritation in the respiratory tract and mucous membrane. Studies have shown that eight-hour exposure to the concentration of 100–200 ppm methylene chloride vapor causes carboxyhemoglobin (COHb) formation in blood.

Besides, it can cause pain and irritation if it comes in contact with the human eye and skin. Swallowing of this liquid may cause vomiting and nausea. The solvent has been considered “possibly carcinogenic to humans” (Group 2B) by the International Agency for Research on Cancer (IARC) and “reasonably anticipated to be a human carcinogen” by the National Toxicology Program (NTP). Additionally, it is considered a potential human carcinogen by the Occupational Safety and Health Administration (OSHA).

Methylene Chloride Market Competitive Landscape

Some of the major players in the methylene chloride market are Akzo Nobel N.V, Eastman Chemical Company, Asahi Glass Co. Ltd., KEM ONE, Olin Corporation, INEOS Group Holding S.A, Occidental Petroleum Corporation, Shin-Etsu Chemical Co. Ltd., PJSC Khimprom, and LOTTE Fine Chemical.