Asia-Pacific is the largest market for LAB globally accounting for more than 50% of the global linear alkylbenzene consumption, in 2020. Surfactants are the largest application segment of linear alkylbenzene accounting for around 1900 kilotons of the regional demand. The demand for linear alkylbenzene has increased by three folds, between 1995 and 2020. Laundry detergents are the major end-use segment accounting for over 70% of the regional LAB demand, followed by industrial cleaners. Light-duty dishwashing liquids accounted for 7% of the linear alkylbenzene consumption in the region, while household cleaners hold a 4% share of the total consumption. All the other end-use segments including cosmetics & personal care, agriculture, and others accounted for 1.7% of the total demand.
There are over 15 producers of linear alkylbenzene in Asia-Pacific with a total combined capacity of about 2000 kilo tons in 2020 with the top five producers accounting for around 54% of the capacity. Fushun Petrochemical, Jin Tung Petrochemical, and Unggul Indah Cahaya are the top three producers in the region. In 2020, the Asia-Pacific region accounted for about 50% of the global LAB capacity. China and India are major countries in terms of demand as well as production and represented 36% and 26% share of total Asia-Pacific linear alkyl benzene capacities, respectively. Few capacity additions are expected in the region on account of increasing demand in developing countries in the region.
India is the leading consumer of linear alkylbenzene in the world accounting for 19% of the global demand and 37% of the total linear alkyl benzene demand. Total linear alkyl benzene demand in India has been estimated to be around 700-kilo tons, in 2020 which has increased from 182-kilo tons in 1995. Most of the demand for linear alkylbenzene in the country is expected to be from the laundry detergents industry owing to an increase in living standards and increasing purchasing power among consumers due to economic growth.
Linear alkyl benzene demand from the laundry detergents segment accounts for around 80% share of the total LAB demand in India. India has witnessed tremendous growth in surfactant demand over the past twenty-five years. A large chunk of the Indian population moved from rural areas into urban areas in search of better and more lucrative career opportunities. As a result of this, there has been a significant rise in demand for laundry detergent, light-duty dishwashing liquids, and household cleaners. Hindustan Unilever Limited, Procter & Gamble, Nirma, Rohit Surfactants Private Limited, and Jyothy Laboratories Limited are some of the major detergent manufacturers in India.
Reliance Industries Ltd. (RIL) is one of the major producers of linear alkylbenzene in Asia. The company has two manufacturing locations: Patalganga, Maharashtra (120 Kilotons) and Vadodara, Gujarat (60 Kilotons). The plant located at Vadodara; Gujarat has been shut down since 2015. Indian Oil commissioned its linear alkyl benzene plant at Vadodara, Gujarat in 2005 with a production capacity of 120-kilo tons. In 2019, the company announced to revamp linear alkyl benzene capacity from 120-kilo tons to 162-kilo tons. The increase in 35% linear alkyl benzene capacity will help the company cater to the rising domestic demand. Nirma Ltd. is the third-largest manufacturer of linear alkylbenzene in India accounting for around 20%. The company started production in late 1997 with a production capacity of 80-kilo tons which was de-bottlenecked in 2005 to produce 110-kilo tons. LAB demand in the country is under-supplied and imports are needed to supplement domestic production. Imports have averaged around 225-kilo tons in the past five years.
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