Benzyl chloride market size will witness notable growth from 2021 to 2027 owing to rising adoption across a gamut of industries for the production of alcohol. Significant advancements in the paints and coating sector have led to higher incursion of benzyl alcohol. Moreover, the growing penetration of the product in plasticizers and surfactants along with perfumes, flavors, pharmaceutical, and personal care products will drive the market forecast.
Benzyl chloride is mainly a colorless, fuming organochlorine liquid compound derived from benzo trichloride through benzoic acid or water and has an irritating odor. However, its adverse effects, such as breathing problems, throat infections, and eye irritation may hamper the product demand to some extent.
With regards to grade, the benzyl chloride market is segmented into qualified grade, excellent grade, and others. The market share of qualified grade benzyl chloride will rise commendably with increasing adoption in the production of benzyl alcohol, benzoic acid, and benzyl cyanide. Apart from being used in the generation of plasticizers, flavorants and perfumes, the product is employed in the preparation of phenylacetic acid. In addition, higher adoption in organic synthesis as alkylating agents will act as a significant contributor to the industry growth.
On the basis of application, the benzyl chloride market size from benzyl esters will expand with higher usage in various fruit-based scents. This can be ascribed to the surging awareness pertaining to several beauty care products.
On the other hand, the market revenue from the benzyl alcohol segment is poised to rise with the increasing adoption of solvent epoxy resin coatings, waxes, inks, and paints. On account of its production through hydrolysis in a salt elimination reaction, the product offers excellent viscosity enhancing attributes to permit mixtures to cling on paint surfaces.
In terms of end-use, the demand for benzyl chloride from the pharmaceutical sector is anticipated to see notable proceeds driven by higher usage in the treatment of lice infestation. The market size from paint and coating applications, impelled by the increasing advancements in the infrastructure and automobile sector.
With respect to regional market dynamics, Asia Pacific is likely to record a significant consumption of benzyl chloride owing to the growing product adoption in the pharmaceutical and agrochemicals sectors. The increasing government spending on infrastructure has led to the significant growth of paints and coating applications.
The North America benzyl chloride market will see inclination owing to the increasing use of perfumes. The changing lifestyles in the region have paved way for rising advancements of the fragrance vertical and higher healthcare integration. The growing demand for benzyl cyanide will influence the regional market growth.
Leading players in the benzyl chloride industry include Hubei Phoenix Chemical Company Ltd., Jiangsu Jiamai Chemical Company Ltd., Xintai Lanhe, Jiangsu Yuanyang Pharmaceutical Company Limited, Nippon Light Metal, Jiangyin Jianheng, Ineos (INEOS Limited), and Lanxess.
These chemical bigwigs are actively incorporating inorganic marketing partnerships, such as acquisitions and mergers, investments, capacity expansions, alongside novel product launches to proliferate their product base and customer portfolio.
For instance, Valtris Specialty Chemicals, in June 2019, invested a significant sum to proliferate the production capacity of its benzyl derivatives. The company added a production capacity at its two advanced organics sites located at Tessenderlo, Belgium, and Maastricht, Netherlands.
The current COVID-19 outbreak radically slowed down the global economy while laying substantial impacts on a huge number of businesses across the world. The dearth of raw materials and workforce arising from the regulation of lockdowns and social distancing norms hindered the production of benzyl chloride. However, the gradual resumption of most business operations will help the market pick substantial steam in the post-pandemic period.