2-Pyrrolidone Market - Forecast(2023 - 2028)

2-Pyrrolidone Market Overview

Global 2-pyrrolidone market size is forecast to reach US$532.7 million by 2027, after growing at a CAGR of 3.8% during 2022-2027. Increasing usage of 2-pyrrolidone as a precursor for N-vinylpyrrolidone synthesis, a solvent for animal injection, an optical co-solvent in the formulation of water-based inks, a process solvent for membrane filters, and a copolymer for floor polishes, is driving the growth of the market. Also, the rising demand for 2-pyrrolidone as a pharmaceutical derivative in cotinine, doxapram, piracetam, povidone, and ethosuximide is uplifting the global 2-pyrrolidone market growth. Additionally, 2-pyrrolidone is widely used as raw materials in the cosmetics industry. As such the rising growth of the cosmetics sector is estimated to propel the global 2-pyrrolidone industry forward over the forecast period.

COVID – 19 Impact:

The Covid-19 pandemic negatively impacted the growth of the global 2-pyrrolidone industry in the year 2020. Halt in several ongoing construction activities declined the demand for paints and coatings which dipped the demand of the market. For instance, according to the Journal published by the Institute of Physics Organization, the COVID-19 outbreak caused a US$5 billion loss in the Australian construction sector. Also, the shutdown of several other end-use sectors such as the cosmetics, pharmaceutical, electronics, detergents and other industries impacted the demand for 2-pyrrolidone. Thus, this reduced the consumption of 2-pyrrolidone which widely declined the market growth.

Report Coverage

The report "2-Pyrrolidone Market Report – Forecast (2022-2027)" by IndustryARC covers an in-depth analysis of the following segments of the global 2-pyrrolidone industry.

Key Takeaways

• The APAC region dominates the global 2-pyrrolidone market due to the huge government investments made in the pharmaceutical industries in emerging economies such as China, Japan, India, and South Korea. 
• Rapidly rising demand for 2-pyrrolidone owing to its high boiling point, chemically and thermally stable, and non-corrosive nature in solvents, plasticizers, and other applications, is estimated to drive the growth of the industry.
• Furthermore, rising acute health effects will hinder the growth of the global 2-pyrrolidone market in the forecast period.

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

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2-Pyrrolidone Market Segment Analysis – By Application

Solvents held the largest share in the global 2-pyrrolidone market and is expected to continue its dominance over the period 2022-2027. Owing to the alluring characteristics, 2-pyrrolidone is the widely used solvent. It has a high boiling point and is miscible with practically all other organic solvents such as (ethers, alcohols, aromatic hydrocarbons, esters, carbon disulfide, chlorinated hydrocarbons, and others). Additionally, the usage of global 2-pyrrolidone as solvents in synthetic resin, agricultural chemicals, and others is driving the growth of the industry. Synthetic resin is widely used in the production of glues, surface coatings, and synthetic textile fibres. In the upcoming years with the rising growth of the paints & coatings industry, the demand for synthetic resins is set to rise. Thus, which would further drive the growth of the global 2-pyrrolidone industry.

2-Pyrrolidone Market Segment Analysis – By End-Use Industry

The cosmetics sector dominated the global 2-pyrrolidone market with 23.6% in 2021 and is projected to grow at a CAGR of 4.3% during 2022-2027. The cosmetics industry is the largest consumer of 2-pyrrolidone, which is used as solvents in the skin care products. Also, 2-pyrrolidone is majorly used as a raw material in the cosmetic production. Rising growth and increasing demand for cosmetics is one of the major factor determining the growth of the global 2-pyrrolidone industry. For instance, according to the International Trade Administration, China is estimated to become the largest global market for cosmetic products within the next five years. In recent years, China's cosmetics business has grown steadily, driven by increased demand for premium products and an increase in the number of working women. By 2025, the personal care and cosmetic items in China is predicted to incline by 6.3%.

2-Pyrrolidone Market Segment Analysis – By Geography

The Asia-Pacific region dominated the global 2-pyrrolidone market with a share of 35% in terms of value in the year 2021. The market in the region is witnessing expansion with the increasing consumption of 2-pyrrolidone in several end-use sectors such as electronics, chemicals, cosmetics, and others. Currently, rising growth of the chemicals, electronics, cosmetics, sector has uplifted the growth of the 2-pyrrolidone industry. As per the International Trade Administration, in 2021 personal care segment held the largest market segment ($3.2 billion), followed by skin care ($2.1 billion), cosmetics ($1.7 billion), and fragrances ($0.4 billion) in Indonesia. Also, according to Invest India, the domestic electronic output in India has expanded from US$29 billion in 2014-15 to US$67 billion in 2020-21.

2-Pyrrolidone Market Drivers

Increasing demand for 2-pyrrolidone in the pharmaceutical sector.

Global 2-pyrrolidone is used as a raw material in the pharmaceutical industry. 2-pyrrolidone derivatives, such as cotinine, doxapram, povidone, and ethosuximide, and racetams, are used in a range of pharmaceutical medications. Globally, in the formulation of drugs 2-pyrrolidone is widely adopted. Rising growth of the pharmaceutical industry in emerging economies are driving the global 2-pyrrolidone market. For instance, as per Invest India, the pharmaceutical business in India inclined at a CAGR of 22.4% between 2015 and 2020 to reach US$ 55 billion. India's pharmaceutical exports totaled US$ 17.27 billion in fiscal year 2018, which increased to US$ 10.80 billion in fiscal year 2019. In recent years, an increase in the production and sales of drugs has also increased 2-pyrrolidone consumption in the pharmaceutical sector. For illustration, according to the European Federation of Pharmaceutical Industries and Association, in 2019, Europe accounted for 22.9% of world pharmaceutical sales. Also, according to the International Trade Administration, in Japan the local production for pharmaceuticals increased from USD 62,570 thousands in 2018 to USD 87,027 thousands in 2019.

2-Pyrrolidone Market Challenges

Health Effects Associated With 2-pyrrolidone

One of the major challenges that the 2-pyrrolidone market faces is acute health effects. 2-pyrrolidone causes serious eye irritation and damage in some people. This material can even cause skin inflammation. Also, reproductive toxicity is caused due to 2-pyrrolidone. With such growing health effects the demand for 2-pyrrolidone would slightly decline, thus, which is estimated to hinder the growth of the market over the projected period.

2-Pyrrolidone Industry Outlook

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

1. Mitsubishi Chemical Corporation
2. BASF SE
3.  Ashland
4. Johnson Matthey
5. Eastman Chemical Company
6. Abtonsment Chemical
7. J&K Chemicals
8. Lyondellbasell
9.  Prasol Chemicals Pvt. Ltd.
10. Alliedchem Industry Co., Ltd. and others
     

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