The global propanol market has a relatively fragmented competitive landscape as a vast number of small and large propanol vendors thrive across the globe. This has rendered the market highly competitive, states Transparency Market Research (TMR) in a recent report. Owing to the high intensity of competition, companies in the market are focusing on growth strategies such as increased funds diverted towards research and development of bio-based product varieties, mergers and acquisitions, and collaborations.
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Companies are also focusing on capacity expansion as a way to ramp up their potential of grabbing a larger consumer base across high growth potential regions. Oxea, one of the market’s leading vendors, has begun construction of a new propanol manufacturing unit in the U.S. The unit, located in Bay City, is expected to produce 100,000 mt of propanol on an annual basis and is projected to begin operations in 2018.
The report states that the global propanol market will expand at a 2.3% CAGR over the period between 2017 and 2025, rising from an opportunity of US$2.19 bn in 2016 to US$2.68 bn by 2025.
Iso-propanol to Retain Leading Position in Terms of Consumption
Of the key varieties of propanol used industrially, the segment of iso-propanol is presently the dominant product type. The segment held a massive 88% of the overall revenue of the global propanol market in 2016. The vast usage of the product across a vast range of applications is expected to help it retain its dominance in the global propanol market over the forecast period as well. From a geographical perspective, the market for propanol in Asia Pacific is presently the leading contributor of revenue to the global market. The regional market accounted for a significant 45% of the global market in terms of volume in 2016 and is likely to exhibit promising growth opportunities over the report’s forecast period as well.
Promising Demand from Cosmetics and Personal Care Industries to Fuel Growth Opportunities
Personal care and cosmetics industries are some of the primary consumers of propanol and growth of these sectors invariably affects the overall development of the global propanol market. Market analysts predict impressive growth prospects for these industries in the coming years, with factors such as rising disposable incomes, increased expenditure on premium personal care brands, easy availability of international brands across developing economies, and the vast demand for anti-ageing products driving growth. These factors, in turn, are expected to ramp up the growth opportunities of the global propanol market.
Fluctuating Costs of Raw Material Could Hinder Growth Rate of Market
One of the key factors inducing a negative impact on the global demand for propanol is the rising preference of acetone manufacturers to the cumene process, cutting down the demand for propanol significantly. The cost of production of acetone with the help of the cumene process is relatively lesser than the cost of production with the help of propanol. As acetone production is one of the key areas of application of the propanol market, increased preference to the cumene process is expected to negatively affect the profit margins of companies in the global market.
The volatile cost of raw materials is also projected to affect the overall growth prospects of the global propanol market negatively over the report’s forecast period. Nevertheless, rising demand for bio-based products has opened up a new window of opportunity for chemical manufacturers and could help propanol companies renew growth opportunities.
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