Piperazine Market - Forecast(2023 - 2028)

Piperazine Market Overview

piperazine market size is forecast to reach US$543.2 million by 2027, after growing at a CAGR of 5.3% during 2022-2027. Piperazine is an organic compound of the amine group with various derives like methyl diethanolamine, hexahydropyrazine, and others widely used in the pharmaceutical and chemical sector. Also, piperazine is used in the production of polyamide resins, ethylene glycol, chemical intermediates, pesticides, adhesives, and sealants and is commonly used as a raw material for several commercially available drugs. According to the Association of the British Pharmaceutical Industry, the pharmaceutical industry in the UK is valued at around US$48.23 billion with research and development investment is around 6.57 billion. Therefore, the growing research & development in the pharmaceutical sector and growing demand from automotive, chemical, and others will boost the piperazine market during the forecast period.

COVID-19 Impact

The Covid-19 pandemic has been a major challenge for the piperazine market owing to directly affecting the manufacturer's supply chain across the globe and shut down the production facilities to minimize the risk of virus spread. The major sectors such as chemical, food & beverages, and others have been highly impacted. The COVID-19 pandemic has collapsed the global economic activity, with an estimated 3.5% contraction in 2020 and is expected to grow 4.2% in 2022. Around 114 million people lost their full-time equivalent jobs. Aggressive and swift monetary, fiscal, and financial sector policies have helped prevent worse outcomes. Governments are taking a wide range of measures in response to the pandemic, with countries spending over USD 14 trillion to deal with the economic consequences of COVID-19 according to the International Federation of Pharmaceutical Manufacturers & Associations. Therefore, the initiation taken by the government and private sector will help to recover the piperazine market during the forecast period.

Report Coverage

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

Key Takeaways

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

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Piperazine Market Segment Analysis – By Grade

The pharmaceutical grade segments accounted for around 56% of the market share in 2021 and are estimated to grow at a significant CAGR during the forecast period. The pharmaceutical grade piperazine helps in the formulation of active pharmaceutical ingredients that can be used as a raw material for various commercially available drugs. Pharmaceutical grade-based hexahydropyrazine piperazine is used as a dough conditioner and also as an oxidant added to lotions and ointments for antiseptic, disinfectant, and deodorant. According to the European Federation of Pharmaceutical Industry and Association fact & figure 2021, the pharmaceutical production in European Union is around US$326111.50 million. Also, the pharmaceutical industry invested more than US$41929.94 million in 2019 and around US$43375.80 million in 2020 on research & development in the European region. Therefore, the investment in research & development activity will boost the demand for Pharmaceutical grade-based piperazine, which in turn will drive the piperazine market during the forecast period.

Piperazine Market Segment Analysis - By End-Use Industry

The pharmaceutical segment holds the major share in the piperazine market and is expected to grow at a significant CAGR of 5.4% during the forecast period. Piperazine is widely used for the development of active pharmaceutical ingredients like phenothiazines (neuroleptics, sedatives), floxacine, antihelminthics, and quinolones (antibiotics). Moreover, piperazine serves as a synthesis component in the production of drugs. According to the Government of Canada, the pharmaceutical sector is one of the most innovative industries in Canada and contributes 2.1% of pharmaceutical sales share in the global market, making Canada the 9th largest world pharmaceutical market. From 2011 to 2020, pharmaceutical exports have increased by 143% in Canada. Therefore, the growing pharmaceutical sector will drive the piperazine market during the forecast period.

Piperazine Market Segment Analysis - By Geography

Asia Pacific region held the largest share in the piperazine market in 2021 up to 36%, owing to the growing food & beverages, agriculture, pharmaceutical, chemical, industries in developing countries like China, India, Indonesia, pesticides, and others will boost the demand for chemical intermediates, iodization of table salt, active pharmaceutical ingredients, and others. According to India Brand Equity Research Federation, the chemical industry of India is expected 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. Also, according to the European Federation of Pharmaceutical Industries and Associations, in 2020, China's pharmaceutical market size is around 8.2% and Japan holds around 7.0% of the market share in the world. Therefore, the growing chemical, pharmaceutical, agriculture, and others are boosting the demand for the piperazine market during the forecast period. 

Piperazine Market Drivers:

The rising demand for piperazine in the Chemical sector

The rising demand for piperazine in chemicals is helping in the growth of the piperazine market. Piperazine is widely used in chemical intermediates like amides, ethylene glycol which is acting 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 piperazine from various end-use industries, which in turn, will be driving the piperazine market during the forecast period.

Growing demand for pesticides in the Agriculture sector is boosting demand for Piperazine

The agriculture sector is one of the major sectors driving the piperazine market. The growing population across the globe is increasing the demand for food. The growing research and development activities in agrochemical and acceptance of advanced technology in agriculture in developing countries like India, China is increasing demand for agrochemical products like pesticides, insecticides, fungicides, and others. The agrochemical helps to increase the production of crops, fruits and flowers are driving the piperazine market during the forecast period. According to Invest India, agriculture is the backbone of India’s economy and Gross Value Added (GAV) is 20.2% in 2020-21. Agriculture contributes around 16.5% of India’s GDP and 58% of the people are into farming. The market size of Agricultural Technology is US$ 204 million in 2020 and it is estimated to reach US$24.1 billion by 2025. The increase in demand for agricultural products like pesticides is fuelling the global market for piperazine.

Piperazine Market Challenges:

Rising Environment Concern about the production of Piperazine Products

The production of piperazine products involves the release of various VOC (Volatile Organic Compounds) into the surroundings which will cause pollution such as air pollution, water pollution, etc. This has attracted various regulations from Government bodies across the globe. It is highly toxic to the environment, especially to aquatic life forms like fish and crustaceans. Excessive exposure while manufacturing various chemical intermediates causes skin & respiratory tract irritation, asthma, and dermatitis, which is restraining the piperazine market during the forecast period.

Piperazine Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the piperazine s industry market. piperazine market top 10 companies include

1. BASF
2. Akzo Nobel
3. Dow Chemicals
4. Diamines and Chemicals Limited (DACL)
5. Hebei Hejia Pharmaceutical Group
6. Nippon Nyukazai
7. Adani Pharmachem
8. Shaoxing Xingxin New Materials Co., Ltd
9. Tosoh
10. Catapharma

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