Chlorinated Paraffin Market - Forecast(2023 - 2028)

Chlorinated Paraffin Market Overview

Chlorinated Paraffin Market size is forecast to reach $2.8 billion by 2026, after growing at a CAGR of 4.3% during 2021-2026. The chlorinated paraffin are made by chlorinating the straight chain of hydrocarbons by petroleum distillation. The Chlorinated Paraffins are mostly classified based on the length of carbon chain and the percentage of chlorination. The length of carbon chain varies from C10 to C30 and the percentage of chlorination lies between 35-70%. Chlorinated paraffin is suited for usage in rubber, plastics, sealants, industrial coatings, adhesives, and other applications due to its flame retardants qualities. Due to a lack of laws preventing their use in lubricating additives and metalworking fluids in the Asia-Pacific region, and particularly in China, production of chlorinated paraffin for use in lubricant additives and metalworking fluids will rise significantly in the future years.

COVID-19 Impact

Currently, the Chlorinated Paraffin Market has been affected due to COVID-19 pandemic where most of the industrial activity has been temporarily shut down. This in turn has affected the demand and supply chain as well which has been restricting the growth in year 2021. Moreover, the impact on end use industry has severely hampered the growth of chlorinated paraffin market. The construction industry has been affected due to COVID-19 pandemic where most of the industrial activity has been temporarily shut down. Due to the difficult operating environment faced by a substantial portion of the domestic sector, FY20 was particularly difficult for overall demand conditions. Because of the liquidity crunch and the resulting tight borrowing circumstances for real estate and infrastructure projects, household decorative and industrial paint demand was put under strain.

Report Coverage

The report: “Chlorinated Paraffin Market - Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Chlorinated Paraffin Industry.

By Type: Short-Chain Chlorinated Paraffin (C10-13), Medium-Chain Chlorinated Paraffin (C14-17) and Long-Chain Chlorinated Paraffin (C18-30).
By Application: Lubricating Additives, Plastic Additives, Metal Working Fluids, Flame Retarders, Adhesives & Sealants and Others.
By End Use Industry: Paints & Coatings, Textile Industry, Leather Industry, Rubber Industry, Manufacturing Industry and Others.
By Geography: North America (U.S, Canada and Mexico), Europe (UK, France, Germany, Italy, Spain, Russia, Netherlands, Belgium, and Rest of Europe), APAC (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), and RoW (Middle East and Africa).

Key Takeaways

• Asia Pacific dominates the Chlorinated Paraffin Market owing to a rapid increase in the rubber manufacturing because of its increasing use in automotive, packaging and building & construction industries.
• The market drivers and restraints have been assessed to understand their impact over the forecast period.
• The report further identifies the key opportunities for growth while also detailing the key challenges and possible threats.
• The other key areas of focus include the various applications and end use industry in Chlorinated Paraffin Market and their specific segmented revenue.
• Due to the COVID-19 pandemic, most of the countries have gone under temporary shutdown, due to which operations of Chlorinated Paraffin Market related industries has been negatively affected, thus hampering the growth of the market.

Chlorinated Paraffin Market Segment Analysis - By Type

The Medium-Chain Chlorinated Paraffin held the largest share of 46% in the Chlorinated Paraffin Market in 2020. MCCPs (Medium-Chain Chlorinated Paraffins) is a blend of chlorinated hydrocarbons with a chain length of 14 to 17 carbon atoms and a chlorine content of 40-70 percent. The medium chain chlorinates paraffin type is generally used as a plasticizer in the rubber, leather, and textile industry because it has good stability, compatibility, chemical resistivity, waterproof and it is non-flammable. It is ideally used as a lubricant, adhesive, sealant, and a metal-working fluid additive. Medium-chain chlorinated paraffins are harmful to aquatic creatures, have low biodegradability, and end up in the food chains of humans and animals. They have been found at trace quantities in most environmental compartments, including water, soil, biota, and human tissue.

Chlorinated Paraffin Market Segment Analysis - By Application

Metal Working Fluids held the largest share of 36% in the Chlorinated Paraffin Market in 2020. The top investment pocket in the chlorinated paraffin industry is metalworking fluids. This is due to a rise in the need for severe pressure additives in metalworking fluids, which enable the machining of difficult-to-machine materials. The metalworking fluids and lubricating adhesive are used because they are viscous in nature, have higher compatibility with oils, and release hydrochloric acid at higher temperature. This released hydrochloric acid reacts to the metal surface and form a thin film of the metal chloride lubricant. These are added to improve the resistance to chemicals and water and make them suitable for usage in the marine paints, as a coating agent for the floors, swimming pools, roads, and vessels. Higher is the degree of chlorination the more flame retardant is the application.

Chlorinated Paraffin Market Segment Analysis - By End Use Industry

Paints and Coating Industry held the largest share in the Chlorinated Paraffin Market in 2020 with a CAGR of 4.1%. The rise in paints and coatings industry is due to the development of new infrastructural projects and development projects. The chlorinated paraffin is added to the paints in order to improve the water and chemical resistance. It is suitable to be used on all type of surfaces like marine, floors, swimming pools, roads, and others. These paints with chlorinated paraffins are having good flame retarding property which make the additives important for the industry. The higher is the degree of chlorination the more flame retarding the paint is and is used as additives and sealants. Paints and Coating industries segment is witnessing growth due to the rising penetration from untapped markets. First-mover advantage in untapped regions and relatively low acquisition costs remain key driving forces in this application market. According to American Coatings Association, U.S. paint and coatings industry is around $26 billion in 2020. Furthermore, R&D in diamond coating will support the growth of the Chlorinated Paraffin Market.

Chlorinated Paraffin Market Segment Analysis - By Geography 

Asia-Pacific (APAC) dominated the Chlorinated Paraffin Market with a market share of 44% followed by North America and Europe. APAC as a whole is set to continue to be one of the largest and fastest growing material markets globally. Large and more developed markets such China, India, Japan, and South Korea are expected to grow more in the coming years. China is driving much of the Chlorinated Paraffin Market demand in Asia-Pacific region followed by India and Japan. According to Care Ratings, Indian domestic paint industry consists of the decorative and industrial paint segment is estimated to be around $6.75 billion in 2020. Decorative paints account for more than 75% of the paint market and are mostly utilized in real estate for exterior and interior wall paints, wood finishes, enamels, undercoats such as primers, putties, and other applications. Of the five fastest growing regions in chlorinated paraffin sector, other than the U.S., all are Asian countries including China and India who majorly drive the demand for chlorinated paraffin on different material in these regions. The strong and healthy growth in industrial sector is associated with growing population and middle-class economy, which tend to drive APAC building and construction and rubber industry.

Chlorinated Paraffin Market Drivers

Rise in Demand for the Flame Retardants

The innovation had led to the development of flame retarders and many industries like paints & coatings, rubber, electrical and electronics, textile, building and construction and others. This rise in demand is due to the different implementations by different government rules regarding the standards for fire retardants like NFPA 703, NFPA 255, NFPA 220 and many others in different countries. Flame retardant sales will also be boosted by strict fire standards and flammability requirements, particularly in building materials and consumer products. Faster rises will be limited by health concerns about some flame retardant chemicals, particularly halogenated flame retardants, which are being phased out by the industry despite their effectiveness.

Chlorinated Paraffin Market Challenges 

High Risk Associated with Chlorinated Paraffin

Chlorinated paraffins (CPs) are common pollutants in the environment. According to the United Nations Economic Commission for Europe, they meet all of the criteria for persistent organic pollutants (POPs). The short chain chlorinated paraffins are non-biodegradable and are very harmful and toxic to the environment. The change in preference of people for using the bio-based product is restraining the chlorinated paraffin market’s growth. Without defined analytical procedures for obtaining reliable occurrence data, risk evaluation of chlorinated paraffins (CPs), which are widely used in industry, is difficult.

Chlorinated Paraffin Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Chlorinated Paraffin Market. Major players in the Chlorinated Paraffin Market include:

• Aditya Birla Chemicals
• Dover Chemicals Corporation
• INOVYN
• INEOS Chlor
• Altair Chimica Spa
• Handy Chemical Corporation ltd.
• KLJ Group
• Caffaro Industries s.p.a
• Quimica Del Cinca s.p.a
• Leuna-Tenside GmbH and Others

Acquisitions/Technology Launches/ Product Launches

• In May 2021, Lockhart Chemical Co. acquired chlorinated paraffin manufacturing rights and related assets in a transaction with North Carolina-based Qualice LLC. Lockhart obtained the Qualice brand names, membership in the Chlorinated Paraffins Industry Association and its Joint Data Acquisition Task Force, consent decrees and pre-manufacture notices from the Environmental Protection Agency, and other assets as part of the deal.
  
• In September 2019, Univar Solutions appointed the distributor for INOVYN’s Chlorinated Paraffin in US under the brand name CERECLOR. This will help the customers to drive the new generation solutions.

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Report Code: CMR 0037