The plasticizers market size stood at $13,967.9 million in 2018, and it is projected to reach $16,700.6 million by 2024, growing at a CAGR of 3.5% during 2019–2024.
The Asia-Pacific (APAC) market for plasticizers will demonstrate the fastest growth in the coming years. This can be attributed to the high-volume consumption of plasticizers in the manufacturing, automotive, construction, chemicals, and electrical and electronics industries. These sectors require plasticizers to impart flexibility to or smoothen the end product.
The plasticizers industry is observing a major shift in the demand for some base chemicals owing to the toxicological profile of their ingredients. The majority of the plasticizers, nearly 90.0%, produced across the globe, primarily phthalates, are used in the manufacturing of flexible polyvinyl chloride (PVC). Phthalates accord toxicity to PVC, which imposes a major challenge for the market. Owing to this, most of the nations have started to shift toward non-phthalate variants for PVC production.
The expansion of the construction sector has created a high demand for plasticizers globally, as this sector requires a notable quantity of building materials and tools. Most of these materials and tools are manufactured from PVC, which, in turn, creates a high demand in the plasticizers market. PVC production requires dioctyl phthalate (DOP), diisononyl phthalate (DINP), dioctyl terephthalate (DOTP), and dibutyl phthalate (DBP) for softness. Moreover, the better temperature resistance and ultraviolet (UV) light resistance of PVC products have resulted in their increasing consumption in the construction industry.
The non-phthalates category, under the product segment, will exhibit the faster growth during 2019–2024 due to the toxicological characteristics of certain phthalate plasticizers. Several developed countries have put a ban on major phthalate plasticizers, primarily on the products used by children under the age of three, due to the increasing health concerns in these nations.
The wires and cables category, within the end use segment, accounted for the largest share in 2018, in terms of volume and value. Moreover, the category will demonstrate a promising growth rate in the foreseeable future owing to the wide use of wires and cables in the automotive, construction, and electrical and electronics industries. The production of wires and cables requires large volumes of PVC to offer protection and insulation.
Globally, the APAC region accounted for the largest share in the plasticizers market in 2018, of over 60.0%, in terms of value and volume. This can be attributed to the expansion of the manufacturing, healthcare, infrastructure and construction, chemical, and other end-use industries in India, Indonesia, China, and several other Southeast Asian nations. All these sectors require plasticizers in flexible PVC, which is ultimately used in the production of end-use products. Thus, the surging use of PVC in these industries will propel the demand for plasticizers in the coming years.
The plasticizers market is highly dispersed in nature, and only one market player, UPC Technology Corporation, had a significant market share in 2018. The Taiwan-based UPC Technology Corporation maintains a strong global presence, by having a broad product portfolio and well-established supply chain. It has sales operations in Taiwan, China, Southeast Asia, Northeast Asia, South Asia, the U.S., Canada, the Middle East, and New Zealand, where it offers basic plasticizers, such as DOP, DNOP, DINP, DIDP, DPHP, DBP, DBIP, DOTP, TOTM, TNTOM, and DOA, and various specialty plasticizers. In order to increase their market share, like UPC Technology Corporation, several other companies have started adopting strategic measures, including mergers and acquisitions, facility expansions, and product launches.
Apart from UPC Technology Corporation and Perstorp Holding AB, the key players in the global plasticizers market include BASF SE, Evonik Industries AG, Exxon Mobil Corporation, Eastman Chemical Company, Nan Ya Plastics Corporation, Mitsubishi Chemical Corporation, LG Chem Ltd., KLJ Group, Arkema SA, and Lanxess AG.
For instance, in June 2019, Perstorp Holding AB launched a new renewable polyol ester plasticizer (non-phthalate), named Pevalen Pro. This plasticizer for flexible PVC is cost effective, plasticizing-efficient, UV stable, and soft.
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