Stearates are classified as additives that are widely used across polymer, packaging, pharmaceutical, and paints &coatings industry. They are classified into metal stearates and non-metal stearates. Stearates helps in reducing the friction between two components especially polymers as they tend to get sticky during the production process. They are also used across the metal industry to enhance the processing of the machines.
The global stearates market is estimated to account for US$ 4,747.0 Mn in terms of value and 1,604.3 Kilo Tons in terms of volume by the end of 2019.
High demand for stearates from the polymer and rubber industry is primarily fueling market growth. They offer excellent gelling, lubricating, stabilizing, and anti-caking properties during the production process. Moreover, they also reduce the extruder pressure during the compounding of polyolefins and PVC. Metal stearates used in the polymer industry act as an acid scavengers for plastic applications. Thus, the expansion of the polymer industry is augmenting the market growth of stearates.
Increasing production of plastics especially across China is projected to serve major growth opportunities for the market of stearates. At present China is accounted for the largest producers of the plastics. Growth in plastic production is attributed to the increasing demand for plastics from various end-user industries such as electronics, automotive, pharmaceuticals, and packaging. Thus growing production of plastics is augmenting the market growth of the stearates over the forecast period.
Lack of awareness regarding the stearates such as magnesium stearates is expected to restrict the market growth. Few studies show that magnesium stearates are safe to consume. For instance, the Food and Drug Administration (FDA) has approved magnesium stearate for use as an additive in food and supplements. Thus lack of consumer awareness regarding the safe to consume of magnesium stearates is expected to hinder the market growth.
Plastic and rubber processing segment dominated the global stearates market in 2019, accounting for 56.4% share in terms of value, followed by building & construction and others segment, respectively.
Sodium stearate segment dominated the global stearates market in 2019, accounting for 24.9% share in terms of value, followed by zinc stearate and others segment, respectively.
Growing demand for cosmetic and personal care products due to growing fashion sense awareness is expected to foster the market growth of the stearates. Calcium stearate is widely used in the cosmetic industry as an anti-caking additive in the manufacturing of powders. Increasing disposable income is encouraging consumers to spend on cosmetics and personal care products. This is expected to propel the market growth of the stearates over the forecast period.
Distribution agreement for metallic stearates among key players for business expansion and enhancing supply chain is a current trend in the market. For instance, in January 2017, Nordmann, Rassmann GmbH (NRC), and Faci S.p.A have entered into a partnership in which NRC has taken over the distribution of a number metallic soaps, e.g., calcium stearate, zinc stearate, magnesium stearate, sodium stearate, and aluminum stearate as well as other additives from Faci in Germany.
Global Stearates Market - Impact of Coronavirus (Covid-19) Pandemic
The rising demand of pharmaceutical industry during the pandemic period is expected to drive the stearates market globally owing to rising consumption of medicines. The stearates are the main components used in manufacturing of capsules and medicines thereby, expected to grow at a noteworthy rate by the year 2027.
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