2-Ethylhexanol Market Overview
The global 2-Ethylhexanol market size was estimated to be around USD 8.5 billion in 2023, and it poised to register a CAGR of ~3 during 2024-2036 to cross USD 12 billion by 2036. The significant growth can be attributed to increasing 2-Ethylhexanol demand from Plasticizers and 2-Ethylhexyl Acrylate application. 2-Ethylhexanol (2-EH) is a versatile chemical compound used primarily as a precursor in the production of plasticizers, coatings, adhesives, and other chemical products. It's an important raw material in the chemical industry and is manufactured industrially by the aldol condensation of n-butyraldehyde, followed by hydrogenation of the resulting hydroxyaldehyde.
2-Ethylhexanol is produced by aldol condensation of n-butyraldehyde followed by dehydration and hydrogenation. 2-Ethylhexanol is used in various end use industries paints and coatings, adhesives construction and others. The LP Oxo technology is the world's leading technology for the production of 2-ethylhexanol from n-butyraldehyde. 2-Ethylhexanol finds its application in the production of 2-Ethylhexanol acrylates, 2-Ethylhexanol Nitrate, and dioctyl phthalate (DOP) plasticizer. Global 2-Ethylhexanol Demand Supply Analysis, (kilo tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
2-Ethylhexanol Capacity Analysis
The global 2-Ethylhexanol capacity was estimated to be around 5,700 kilo tons in 2023, and it is estimated to cross 6,200 kilo tons by end of 2036, with majority of capacity planned in Asia Pacific. Asia Pacific, on the back of China is one of the largest 2-Ethylhexanol producer, accounting for around 68% of the global 2-Ethylhexanol capacity. China accounts for around 50% of the global 2-Ethylhexanol capacity which translates to around 2,800 kilo tons. In Asia Pacific, China is the largest 2-Ethylhexanol producer followed by South Korea, Japan, Taiwan, Indonesia, Malaysia, and India.
Global 2-Ethylhexanol Capacity, By Company, 2023 (kilo tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Nan Ya Plastics, LG Chem, Luxi Chemicals, BASF, Dow, Eastman Chemical Company, Andhra Petrochemical Limited, Oxea, Zaklady Azotowe Kedzierzyn, CNPC Jilin Petrochemicals, Sinopec Qilu Petrochemical, CNPC Sichuan, Shangdong Jianlin, Shangdong Lanfan Chemical, Mitsubishi Chemical Corporation, INEOS (Arkema), Sibur-Khimprom, Al Jubail Fertiliser Company SAMAD (Al Bayroni), Lihuayi Group (CNOOC), and Petro Oxo Nusantara are some of the leading 2-Ethylhexanol capacity producers globally. Luxi Chemical Company is the largest 2-Ethylhexanol manufacturer globally with a market share of more than 7%, followed by LG Chem, Eastman, and Tianjin Soda Plant accounting for around 5%, 5%, and 6% respectively.
In December 2022, SABIC announced the opening of its new manufacturing facility – the Saudi Industrial Chemicals Factory in Jeddah. The company will use SABIC’s 2-Ethyl hexanol (2-Ethylhexanol) to produce dioctyl terephthalate (DOTP), which is a key ingredient in the manufacture of plasticizers.
2-Ethylhexanol Demand Analysis
In 2023, the 2-Ethylhexanol demand was estimated to be more than 4,300 kilo tons in 2023 with Asia Pacific accounting for lion share followed by North America and Western Europe accounting for at 9% and 7%respectively. During the forecast period, the 2-Ethylhexanol demand is projected to register a CAGR of 2.6% to cross 6,100 kilo tons. Increasing demand for 2-ethylhexanol acrylate as a raw material in coatings, adhesives, acrylic rubber, construction materials, and emulsions will also drive the demand for 2-ethyl hexanol in the forecast period.
Asia Pacific dominates the global 2-Ethylhexanol market, accounting for over 70% of the global market followed by North America and Western Europe. Owing to rapid industrialization, the growth is anticipated to be higher in growing economies and the market is likely to witness a CAGR of about 2.6% in the long-term forecast till 2036.
Global 2-Ethylhexanol Demand By Region, 2023 (kilo tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
2-Ethylhexanol Applications
In terms of applications, the 2-Ethylhexanol market is segmented into 2-Ethylhexyl Acrylate, 2-Ethylhexyl Nitrate, Plasticizers, and Others. More than two-thirds of 2-ethylhexanol is used for the manufacture of plasticizers, specifically dioctyl phthalate (DOP), which is considered to be the largest plasticizer used in the production of PVC. The second largest Application is 2-Ethylhexanol, which is used in acrylic resins used in manufacturing of paints and coatings, contributing to around 15% of the global market demand. 2-Ethylhexyl Nitrate is used as a cetane improver for diesel fuels and will continue to experience growth as regions tighten diesel specifications aimed at improving air quality. DOP Plasticizers account for the largest share in the 2-ethylhexanol market followed by 2-ethylhexanol acrylate and 2-ethylhexanol Nitrate. The growth of 2-Ethylhexanol has been hampered due to government regulation on the usage of DOP due to health hazards and environmental concerns. 2-Ethylhexanol Acrylates and nitrates account are the major growth drivers currently accounting for more than 65% of the total 2-Ethylhexanol market in the European region. Global 2-Ethylhexanol Demand By Application, (kilo tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Factors Influencing 2-Ethylhexanol Demand
Rising demand from the End-Use Industries
The increasing demand for 2-ethylhexanol from various end-user industries such as construction, automotive, and consumer goods fuels the demand for 2-ethylhexanol, mainly in the production of plasticizers, coatings, adhesives, and solvents.
2-Ethylhexanol is commonly used as a solvent in the formulation of coatings, paints, and varnishes. The construction, automotive, and industrial sectors drive the demand for coatings and paints, which, in turn, boosts the need for 2-ethylhexanol. Increasing urbanization and infrastructure projects drive the demand for construction materials, including PVC products, which rely on 2-ethylhexanol-based plasticizers.
In the automotive industry, 2-ethylhexanol is used in the manufacturing of PVC-based automotive interiors, such as dashboards, door panels, and upholstery. The growth of the automotive sector, driven by rising consumer demand and technological advancements, supports the demand for 2-ethylhexanol.
Raw Material Prices Fluctuation
Fluctuations in the prices of feedstock materials, such as propylene and butyraldehyde, can affect the production cost of 2-Ethylhexanol, potentially impacting its market price and profitability.
Propylene is one of the primary feedstocks used in the production of 2-ethylhexanol. Propylene is derived from various sources, including crude oil refining and petrochemical processes. Fluctuations in the price of propylene can impact the production cost of 2-ethylhexanol. Factors affecting propylene prices include changes in crude oil prices, supply and demand imbalances, and geopolitical events.
Environmental Concerns
Environmental and health-related concerns, particularly regarding the use of certain plasticizers and chemical compounds in consumer products, can lead to increased regulatory restrictions and reduced demand for 2-ethylhexanol in specific applications. Due to these environmental and health concerns, regulatory agencies in various regions have implemented restrictions on the use of certain phthalates, especially in products intended for children and specific applications. These regulations have influenced the demand for alternative plasticizers and formulations.
The US and Western Europe has shifted their focus towards phthalate-free plasticizers, due to regulatory restrictions imposed in these regions. Health concerns such as damage to the liver, kidneys, and the reproductive system have led to DOP being largely replaced in the US, Japan, South Korea, and several Western European countries which has had a negative impact on the 2-Ethylhexanol market.
Competition from Alternatives
Competition from alternatives is a significant factor affecting the 2-Ethylhexanol (2-Ethylhexanol) market. The availability of alternative plasticizers and chemical compounds, including bio-based options, can pose a challenge to the growth of 2-Ethylhexanol, especially if these alternatives are considered more environmentally friendly or cost-effective.
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