Monochloroacetic acid Market was valued at US$ 551.6 Mn

Monochloroacetic acid (MCAA) is categorized under the specialty organochlorine compound. It is a building block in major organic synthesis of compounds and is widely used across various end-user industries such as agrochemicals, pharmaceutical, personal care, food and beverage, and chemical industries. Moreover, it is also used in the oil and gas industry as mud stabilizers for drilling fluids and fracturing fluid purposes. Furthermore, it is also used in the precursor for the manufacturing of thioglycolic acid and thioglycolic acid is a key intermediate in the production of esters.

The global Monochloroacetic acid market is estimated to account for US$ 551.6 Mn in terms of value and 882.5 Kilo Tons in terms of volume by the end of 2018.

Drivers:

Rising demand for Monochloroacetic acid (MCAA) from the personal care industry in the production of thioglycolic salts that has application in a production of hair depilation product is a prime factor fueling the market growth of Monochloroacetic acid (MCAA) over the forecast period.

Market Opportunities:

Rising demand for Ibuprofen around the globe as it is used in the treatment of severe pain such as abdomen pain, headache, etc. is expected to offer an immense opportunity to the major player to expand their presence in the market. Hence this is expected to propel the market growth of Monochloroacetic acid (MCAA) over the forecast period.

Market Restraints:

The availability of substitutes for Monochloroacetic acids such as pyridine in the production of herbicides and insecticides is a major factor hampering market growth. Monochloroacetic acid route produces a huge amount of hazardous waste which can have a negative impact on the environment. Hence, rising environmental concern regarding the harmful products generates from the Monochloroacetic acid route is further expected to hinder the market growth.

Market Trends:

In Latin America, the market of Monochloroacetic acid (MCAA) is expected to gain significant growth over the forecast period and this can be attributed to rising demand for Monochloroacetic acid (MCAA) from chemical, pharmaceutical, and personal care industries. The growing focus of manufacturers in the Asia Pacific region for the expanding manufacturing facilities of the Monochloroacetic Acid (MCAA) is another major trend observed in the market. This is also expected to offer lucrative growth opportunities over the forecast period.

For instance, in April 2016, AkzoNobel N.V formed a joint venture with Atul Ltd, India, for the production of monochloroacetic acid. In line with this joint venture, the company will have an advantage in the strong vertical integration capabilities of Atul Ltd.

Competitive Section: Major players engaged in the market are AkzoNobel N.V., CABB Group, Nufarm Limited, Niacet Corporation, Jubilant Life Sciences Limited, Shandong Minji Chemical Co., Ltd., Archit Organosys Limited, IOL Chemicals & Pharmaceuticals Limited, Meridian Chem Bond Pvt. Ltd., and S.R.Drugs and Intermediates Pvt. Ltd.

Recent Developments:

1- CABB GmbH Strategy:

Company focuses on commissioning new production facilities in order to meet growing demand for monochloroacetic acid in domestic as well as international markets
In April 2016, it formed a joint venture with Jining Gold Power Co. Ltd for the production of monochloroacetic acid with an annual production capacity of 25 kilotons. The company will produce monochloroacetic acid in the form of flakes and later on in the form of liquid.

Market Taxonomy By Application: