The dynamic psychographics of consumers in terms of cosmetic usage have now shaped into a tendency to streamline their daily beauty care routines. Multifunctional cosmetic products are therefore gaining traction, as they offer several benefits at once, such as cleansing, anti-aging, antioxidant, moisturizing, UV protection, etc. Guerbet alcohol is ideal for uses such as pigment dispersion, and solubilization of small particle solids and actives. Moreover, it acts as an anti-foaming agent, diminishing the tendency of skin care products to generate foam when they are shaken. These aforementioned characteristics exhibited guerbet alcohol render them ideal for use in several novel beauty and personal care products. As such, the demand for safer alternatives and efficacy of guerbet alcohols for a wide range of end uses are expected to propel the growth of the guerbet alcohol market over the forecast period (2020 to 2030).
Sustained Demand of Guerbet Alcohol-based Ethoxylates as Substitute for Octylphenol Ethoxylates
Ethoxylates derived from guerbet alcohols have, over the recent past, emerged as alternatives for octylphenol ethoxylates (OPEs), which have been widely used as cleaning agents. OPEs find wide application in coatings, paints, and textile treatment in emulsion processes, and as binders, emulsifiers, and chemicals used in paper production. OPEs break down into pctylphenol (OPs), which are relatively more harmful and can be hazardous to the environment.
Moreover, guerbet alcohol-based ethoxylates are non-ionic surfactants that exhibit a combination of wetting and foaming properties, and are thus being commonly used as wetting/emulsifying agents, chemical intermediates, and detergents & cleaners in liquid dishwashing preparations, and as textile processing aids, metal cleaners, hand cleaning gels, cosmetic creams, and toilet cleaners, among others.
As such, guerbet alcohol ethoxylates have emerged as effective, efficacious, and at the same time safer alternatives to octylphenol ethoxylates. Thus, increasing adoption and use of guerbet alcohol-based ethoxylates across a myriad range of industrial applications, are, in turn, expected to drive the growth of the guerbet alcohol market during the forecast period.
Growing Market Consolidation: Key Players Focusing on Capacity Expansion and New Capacity Addition
Overall global guerbet alcohol production is concentrated among two major producers - BASF SE and Sasol Limited. These two companies, together, accounted for over 80% of the global guerbet alcohol market in 2019. The two players have their production facilities in Germany.
Over the recent past, demand for guerbet alcohol has witnessed steady growth. Moreover, the trend is expected to continue during the forecast period too. As such, in order to better cater to the growing demand for guerbet alcohol from end-use industries such as cosmetics and personal care from regions across the globe, manufacturers are focused on strategically expanding their production capacities.
For instance, Sasol Limited is constructing a Lake Charles Chemical project in Louisiana, U.S. The project is expected to produce 1.5 million tons of ethylene annually, which will be further used in downstream plants on-site to produce high-value derivatives, including mono-ethylene glycol, ethylene oxide, low-density polyethylene, ethoxylates, Ziegler, and guerbet alcohols. After its completion, an additional capacity of around 30 KTPA will be added to company’s global guerbet alcohol production capacity
Fine Organic Industries Pvt Ltd, an India-based specialty additives producer for food, rubbers, plastics, paints, cosmetics & personal care, inks, and coatings, among other specialty applications, has proposed to establish a new oleo chemicals production facility in order to produce fatty amines, fatty acid esters, and guerbet alcohol. Its production capacity of guerbet alcohol is expected to be 1,000 MTPA.
Impact of COVID-19 on Guerbet Alcohol Market
As COVID-19 affects the overall chemical industry, the guerbet alcohol market will witness a dual impact of the pandemic. Attributing to supply chain disruptions in major regions, and travel restrictions, the consumption of guerbet alcohol may decline. Furthermore, the uncertainty in the global economy and capital markets is likely to pose a challenge to the market to follow the projected growth rate. However, the burgeoning demand for personal care products such as sanitizers and moisturizers is expected to create opportunities for players in the guerbet alcohol market.
Guerbet Alcohol Market – Competition Landscape
The guerbet alcohol market is a highly consolidated market space, and key players held around 90% share of the total market in 2019. The top 10 market players collectively hold 85-90% of the total market share.
Some of the prominent manufacturers operating in the market are BASF SE, Sasol Ltd, New Japan Chemical Co., Ltd, Kao Corporation, Kisco Ltd., Kokyu Alcohol Kogyo Co., Ltd, DowPol Corporation, Jarchem Industries, and EMCO DYESTUFF P.LTD.
Guerbet Alcohol Market: Structure Analysis
East Asia is expected to capture a prominent share in the global guerbet alcohol market, and is a market that will offer lucrative opportunities to manufacturers in this space. Manufacturers of guerbet alcohol are focusing on collaboration and expansion for increasing their product portfolios and enhancing the supply chain. The ever-increasing demand for personal care products will keep pushing the growth of the guerbet alcohol market.
Guerbet Alcohol Market: Report Scope
This study offers a ten-year forecast for the guerbet alcohol market from 2020 to 2030. The guerbet alcohol market report considers 2019 as the base year, with market values estimated for 2020, and forecasts developed for the duration of 2020 to 2030. The Compound Average Growth Rate (CAGR) in the guerbet alcohol market study has been represented from 2020 to 2030.
This guerbet alcohol market study covers various perspectives of the market, including market dynamics, value/supply chain analysis, competition analysis, segmental and regional growth comparison, and macro-economic and industry growth analysis, along with segment-level projections in a comprehensive manner.
The PMR report on the guerbet alcohol market carefully analysis the market at a regional and global level through market segmentation on the basis of key parameters – application, product type, and region. This guerbet alcohol market report is structured to facilitate the reader to develop a detailed understanding of the market. The report begins with the definition of the market, followed by the market background, market dynamics, analysis of the market by key segments, regional analysis of the market, and competition landscape. Each section of the guerbet alcohol market report includes a quantitative and qualitative assessment of the market on the basis of historical developments, facts, and key opinions collected from various industry participants through dedicated interviews and trends in the market.
Guerbet Alcohol Market: Segmentation
The guerbet alcohol market report begins with an introduction of the market, which includes the market taxonomy and product definition. In the following section, the guerbet alcohol market report describes the market development background, covering industry factors and macroeconomic factors affecting the market for the base year that has been considered for the study.
The next section of the guerbet alcohol market report discusses the dynamics of the market, such as the drivers (demand and supply side), restraints, opportunities, and trends impacting the market growth at a global level. Market potential for manufacturers has been presented in the following section of the same chapter. This section also includes an assessment of the impact of market dynamics on the global guerbet alcohol market.
Subsequent sections of the report provide value (US$ Mn) and volume (consumption in tons) projections for the guerbet alcohol market on the basis of the above-mentioned segments at a global level. Values for the global market represented in these sections have been agglomerated by collecting data and information at the regional level.
All the above sections evaluate the present market scenario and growth prospects in the global guerbet alcohol market, while the forecasts presented in the sections assess the market size in terms of volume and value.
Additionally, it is imperative to note that, in an inconsistent global economy, we not only conduct forecasts in terms of CAGR, but furthermore analyze the market on the basis of crucial parameters such as Year-on-Year (Y-o-Y) growth, to understand the predictability of the guerbet alcohol market and identify the accurate opportunities available.
In order to understand the key market segments in terms of growth and demand for guerbet alcohol across concerned regions, PMR has developed an attractiveness index, which will help providers identify real market opportunities.
Another significant feature of the guerbet alcohol market report is the analysis of all key segments, sub-segments, regional adoption, and revenue forecasts in terms of absolute dollar opportunity. This is traditionally overlooked while forecasting the market; however, the absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve as well as identify potential resources from a sales and delivery perspective in the Guerbet Alcohol market.
In the concluding section of the Guerbet alcohol market report, a competitive landscape has been included to provide report audiences with a dashboard view, categorised on the basis of providers present in the value chain, their presence in the market, and key differentiating factors and strategies. This section in the report is primarily designed to provide clients with an objective and detailed comparative assessment of the key providers specific to a market segment in the value chain of the guerbet alcohol market. Examples of some of the key competitors covered in this report include BASF SE, Sasol Ltd, New Japan Chemical Co., Ltd, Kao Corporation, Kisco Ltd., Kokyu Alcohol Kogyo Co., Ltd, DowPol Corporation, Jarchem Industries, and Emco Dyestuff P. Ltd.