2-Cyclopropylethanol Market - Forecast(2023 - 2028)

2-Cyclopropylethanol Market Overview

The 2-Cyclopropylethanol market size is expected to grow at a CAGR of 5.5% during 2022-2027. 2-Cyclopropylethanol is also known as 2-Hydroxyethyl, widely used in the preparation of 2-Bromo-ethyl, cyclopropanecarbaldehyde by reacting with phosphorus tribromide. 2-Cyclopropylethanol is also used as a chemical reagent to synthesize 22-hydroxycholesterol derivatives, compounds that act as serum cholesterol-lowering agents and to synthesize potent 15-Hydroxyprostaglandin dehydrogenase inhibitors in chemical, metal and other sectors. According to the American Chemistry Council, the U.S chemical sector has seen a robust growth of 1.4% in 2021 and is expected to grow by 4.3% in 2022 and 2.1% in 2023. Therefore, the growing chemical sector along with growing demand from pharmaceuticals and others will boost the demand for 2-cyclopropylethanol during the forecast period. The Covid-19 pandemic has been a major challenge for the 2-cyclopropylethanol market owing to directly affecting the manufacturer's supply chain across the globe and shutting down the production facilities to minimize the risk of virus spread. The major sectors such as chemical, industrial and others have been highly impacted as the chemical sector converts raw materials into more than 70,000 diverse products essential to modern life and distributes those products to more than 750,000 end-users throughout the globe. Due to the social distancing policy, U.S. chemical shipments have declined by 13.5% in 2020. Chemical industry capital spending fell by 17.6% and basic chemicals and specialty chemicals declined by 10.8%.

Report Coverage

The report:“2-Cyclopropylethanol Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Global 2-Cyclopropylethanol industry.

Key Takeaways

• The Asia Pacific is expected to register a CAGR of 6.2% during the forecast period (2022-2027). The increasing demand from pharmaceutical sectors, among Asian countries such as China, India, Japan and South Korea is driving the 2-Cyclopropylethanol market size.
• Growing demand for 2-Cyclopropylethanol as the chemical reagent to synthesize 22-Hydroxycholesterol derivatives, compounds are expected to boost the demand for 2-cyclopropylethanol during the forecast period.
• Robust demand for crystals, etchants and metal gauzes in various end-use industries like metal and others will increase the demand for the 2-Cyclopropylethanol market.
• Bolstering demand from the pharmaceutical sector for the production of various drugs is driving the global 2-Cyclopropylethanol industry.

Figure: Asia Pacific 2-Cyclopropylethanol Market Revenue, 2021-2027 (US$ Million)

2-Cyclopropylethanol Market Segment Analysis – by Grade

The technical grade segments accounted for a major portion of the 2-Cyclopropylethanol market share in 2021 and are estimated to grow at a significant CAGR during the forecast period. Technical grade chemicals are best used in industrial and commercial operations like alloy, carbon, crystals, etchants and metal gauzes preparation. They are also used for inexact laboratory functions, such as dissolving, rinsing and chemical synthesis. According to the Aluminum Association of Canada, 3.1 million tons of aluminum was produced in Canada and generated a revenue of around US$5.64 billion revenue from primary aluminum export in 2020. Also, the global demand growth for aluminum is around 3.5% from 2020 to 2025. Thus, the rise in the production of aluminum alloy and other metals which is widely used in transportation, construction and others will drive the 2-Cyclopropylethanol market.

2-Cyclopropylethanol Market Segment Analysis - by Application

The pharmaceutical segment is expected to grow at a high CAGR of 6.3% in the application segment during the forecast period. The pharmaceutical segment acquired a significant portion of the 2-Cyclopropylethanol market share in 2021. The 2-Cyclopropylethanol is widely used as a chemical regent in the pharmaceutical sector for the chemical processing system for the development of active pharmaceutical ingredients like phenothiazines (neuroleptics, sedatives), apoptosis reagents, biochemical reagents, buffers, cell culture reagents, electrophoresis, enzymes and antibiotics. 2-cyclopropylethanol also serves as a synthesis component in the production of drugs. According to the Government of Canada, the Canadian pharmaceutical sector is one of the most innovative industries and contributes 2.1% of pharmaceutical sales share in the global market, making Canada the 9th largest world pharmaceutical market. Pharmaceutical exports have increased by 143% from 2011 to 2020, in Canada. Therefore, the growing pharmaceutical sector will drive the 2-Cyclopropylethanol market size during the forecast period.

2-Cyclopropylethanol Market Segment Analysis - by Geography

Asia-Pacific region held the largest portion of the 2-Cyclopropylethanol market share in 2021, owing to the growing chemical, mining and pharmaceutical sectors in developing countries like China, India, Indonesia and others. The 2-Cyclopropylethanol is widely used as chemical reagents, intermediates, active pharmaceutical ingredients, analytical & labware, catalysts products and others that can be used in various industries. According to the European Federation of Pharmaceutical Industries and Associations, China's pharmaceutical market size is around 8.2% and Japan holds around 7.0% of the market share in the world in 2020. Also, according to the India Brand Equity Research Federation, the chemical industry of India is anticipated to contribute US$300 billion to India’s GDP by 2025 and the manufacturing sector is growing with a CAGR of 11% from 2015 to 2021. Therefore, the growing chemical, pharmaceutical and others are boosting the demand for the 2-cyclopropylethanol market during the forecast period.

2-Cyclopropylethanol Market Drivers:

Robust demand for 2-Cyclopropylethanol in the Chemical sector

The robust demand for 2-Cyclopropylethanol in chemicals is helping in the growth of the 2-cyclopropylethanol market. 2-Cyclopropylethanol is widely used as a chemical reagent that can be used for scientific research, analysis and testing as well as the functional materials required by various industries. Also, it acts as a key raw material in the production of adhesives & sealants, paints, inks and others. These chemicals are widely used in various industries like plastic, paper, metal and others. According to American Chemistry Council, global industrial production is expected to expand by 4.6% in 2022. U.S. chemical volumes are expected to grow by 3.2% in 2022, while shipments will increase by 8.2% in 2022. Chemical industry capital spending will be up 3.1%, basic chemicals will expand by 3.4% and specialty chemicals will expand by 4.1% in 2022. Therefore, the growing chemical sector is boosting the demand for 2-cyclopropylethanol from various end-use industries, which in turn, will be driving the 2-cyclopropylethanol market during the forecast period.

Bolstering demand from the pharmaceutical sector for the production of drugs is driving the 2-Cyclopropylethanol market.

The 2-Cyclopropylethanol is widely used in the pharmaceutical sector for the production of drugs as 2-cyclopropylethanol acts as an ingredient for many drugs. The growth in the pharmaceutical sector will eventually drive the demand for the 2-Cyclopropylethanol market globally. According to India Brand Equity Foundation, the domestic pharmaceutical market of India is valued at US$42 billion in 2021 and estimated to reach US$65 billion by 2024 and further expand to reach US$120-130 billion by 2030. Also, North America accounted for 49.0% of world pharmaceutical sales and 23.9% of Europe sales in 2020. Moreover, around 63.7% of sales of new medicines launched during the period 2015-2020 were on the US market and 17.4% on the European market as per the European Federation of Pharmaceutical Industries and Association. Thus, a rise in the growth of pharmaceutical products across the globe will eventually drive the demand for 2-cyclopropylethanol during the forecast period.

2-Cyclopropylethanol Market Challenges:

Human Hazards due to excessive exposure to 2-Cyclopropylethanol

Excessive exposure while manufacturing various chemical intermediates causes skin & respiratory tract irritation, asthma and dermatitis, which is restraining the 2-Cyclopropylethanol market during the forecast period. Also, 2-cyclopropylethanol is highly flammable when in contact with high-temperature objects, sparks and strong oxidizing agents which can affect the lives of people, in turn, will restrain the market growth. Moreover, the lack of awareness of the 2-Cyclopropylethanol product among a specific section of the population is hampering the market growth during the forecast period.

Global 2-Cyclopropylethanol Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the 2-Cyclopropylethanol market. The top 10 companies in the 2-Cyclopropylethanol market are:

1. Alfa Chemistry
2. VWR International
3. 3B Scientific Corporation
4. ShangHai Wisacheam Pharmaceutical
5. Meryer Chemical Technology
6. Shijiazhuang Sdyano Fine Chemical
7. Nanjing Chemlin Chemical
8. Sinopharm Chemical Reagent
9. ShangHai Wisacheam Pharmaceutical
10. FUJIFILM Wako Pure Chemical Corporation

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