Chloroacetyl Chloride Market Analysis

Chloroacetyl chloride is one of the most versatile compounds that is used as an intermediate in the synthesis of many organic chemical compound. It has chemical formula C2H2Cl2O and the major use of the chloroacetyl chloride is in the preparation of herbicides and is also useful as a chemical building block. The product is obtained by the process of chlorination of acetyl chloride in the presence of stronger aliphatic acids. Moreover, this chemical is also used in the preparation of various pharmaceutical formulation. Some of the major herbicides that are manufactured by using chloroacetyl chloride are chloroacetyl chloride.

Global chloroacetyl chloride market is estimated to reach US$ 735.7 million in terms of revenue by the end of 2027, growing at a CAGR of 5.6% during the forecast period (2019-2027)

Drivers

Increasing usage of herbicides due to rising population base and decrease in the arable land is predominantly fueling the market growth of Chloroacetyl chloride. Also, shortage of labor has further increased the dependency on herbicides which is again propelling the market growth. Moreover, rising usage of herbicides such as acetochlor, butachlor, and alachlor for enhancing the production yield of corn, soybean, and sorghum is also expected to foster the market growth of chloroacetyl chloride over the forecast period.

Growing production of adrenaline for medical usage for treating a serious condition such as anaphylaxis, cardiac arrest, and croup is expected to fuel the market growth of the chloroacetyl chloride. Also, sometimes the body is unable to produce adrenalin hormone, in this situation synthetically prepared adrenalin hormone is supplied to the patient which is produced through the reaction of catechol and chloroacetyl chloride. Hence, the rising demand for synthetically prepared adrenalin hormone is projected to propel the market growth of chloroacetyl chloride.

Regionally, Asia-pacific dominated the global chloroacetyl chloride market in 2018, reporting 39.5% market share in terms of revenue, followed by Latin America and North America, respectively.

Market Restraints

Growing adoption of biodegradable herbicides in agrochemical industry is a prime factor expected to hinder the market growth of chloroacetyl chloride. Rising concern over environment sustainability due to growing cases of soil erosion and water pollution which ultimately leads to the degradation of land and water. Due to this various organization are is further anticipated to restrict the usage of herbicide in the agrochemicals industry, which in turn hampering the market growth of chloroacetyl chloride.

Ban of pesticide in Europe due to rising concern over the environment is expected to hinder the market growth of Chloroacetyl chloride. For instance, in March 2019, the EU bans UK's most-used pesticide over health and environmental concern. European Union will ban the most-commonly used pesticides after safety officials reported human health and environmental concerns. Hence, the ban of pesticide in Europe is expected to negatively affect the market growth chloroacetyl chloride.

Market Opportunities

Rising demand for acids anhydrides that are mainly produced from chloroacetyl chloride is projected to propel the market growth over the forecast period. Acids Anhydrides are widely used in the preparation of pharmaceutical formulation, industrial chemicals, and perfumes. Moreover, it is also used in the manufacturing of aspirin and synthesis of heroin by diacetylation of morphine reaction. Therefore, growing demand for Acids Anhydrides from the aforementioned application is expected to propel the market growth.

Expanding chemical industry around the globe especially in Asia Pacific region is projected to propel the market growth of chloroacetyl chloride. According to The Economic Times, the India chemical industry is expected to grow at around 9% per annum to reach US$ 304 billion by FY25, from US$ 163 billion in FY18. The growth is likely to be driven by rising demand in end-use segments for specialty chemicals and petrochemicals intermediates. Hence, expanding chemical industry is expected to foster the market growth over the forecast period.

We are a chloroacetyl chloride manufacturer. If you are interested in our products, please contact us now!