Global Epichlorohydrin (ECH) Market size is slated to expand substantially during the projected period 2021-2027. The product demand is driven by the increasing consumption of epoxy resins across automotive, aerospace, construction and other key areas. Continuous investments in wastewater treatment infrastructure and the need for water treatment chemicals will further propel ECH demand.
Heightened use of epichlorohydrin-based rubber in the automotive sector will augment the global epichlorohydrin industry forecast. ECH-based rubber is a specialty, multipurpose polymer which finds use in fuel applications such as automotive fuel systems, die-cut sealing, and bladders. Synthetic glycerin is another key area of application of ECH where it is utilized as an intermediate.
Epichlorohydrin is a liquid epoxide generally obtained by the chlorohydrination of allyl chloride. ECH can be classified as bio-based ECH and petro-based ECH depending on the raw materials. Bio-based epichlorohydrin market is projected to witness notable demand through 2027. It is produced using biobased feedstock products such as glycerol. Its adoption is increasing owing to the rising environmental concerns and the need for sustainable products. Manufacturers are expanding the output of biobased products to meet the demand. For example, in October 2020, Solvay had ramped up the production of biobased solvents which use glycerin as one of the major raw materials in Brazil.
Considering the application landscape, the synthetic glycerin segment is anticipated to acquire a substantial share of the epichlorohydrin industry in the forthcoming years. The consumption of synthetic glycerin in food products, pharmaceuticals, nutritional supplements, personal care products, and oral care products is increasing. In the pharmaceutical sector, it is widely used as a sweetener in syrups and commonly found in eardrops, creams, gel capsules, and other products. Growing demand for synthetic glycerin across myriad end-use sectors will bolster the epichlorohydrin market outlook significantly.
Europe epichlorohydrin market size is expected to grow at a notable CAGR up to 2027, largely due to the increasing demand for protective coatings in the region. Europe is one of the leading producers of paints & coatings which are widely used in the automotive sector. Epoxy resin-based coatings are one of the most widely used coating formulations in automotive, aerospace, construction, and other areas. Epoxy resins being a major area of application of epichlorohydrin, the regional market will witness an upward growth trend over the next few years.
Dow Chemical Company, Solvay SA, Sumitomo Chemicals, Aditya Birla Chemicals, Lotte Fine Chemical, Kashima Chemical, Yee Fong Chemical & Industrial Co., Ltd., Hanwha Chemical, Spolchemie AS, Nama Chemicals, and Shandong Haili Chemical Industry Co Ltd. are among the major companies involved in the production and supply of epichlorohydrin. Manufacturers are focusing on expanding their production capacities to keep up with the increasing epichlorohydrin industry demand.
COVID-19 impact on ECH industry forecast
The COVID-19 pandemic has had a significant impact on the epichlorohydrin market due to strict government restrictions, reduced industrial output, and weakened product demand. The decline in manufacturing activities across key end-use verticals owing to supply chain issues and lockdown measures has led to the decreased ECH consumption. Numerous manufacturers were forced to shut down production activities or operate a diminished capacity, causing production and supply delays. In addition, the global economic slowdown caused by the pandemic has created numerous challenges for the market players.