Isostearic Acid Market - Forecast(2023 - 2028)

Isostearic Acid Market Overview

The isostearic acid market size is forecast to reach US$880.2 million by 2027 after growing at a CAGR of 3.2% during 2022-2027. The rising demand of isostearic acid for the manufacture of cosmetics and personal care products such as skin conditioning agents, moisturizing creams, shower gel formulations, liquid soaps, and others, will drive the market growth. Isostearic acid exhibits characteristics such as thermal stability, ultraviolet rays resistant, and odor stability. The increasing demand for isostearic acid in food additive, lubricants & greases, adhesives, coatings & paints, and solvents, in automotive and other industries will act as a driving factor for the market growth. Furthermore, the rise in public awareness about growing environmental safety regulations and health & hygiene are forecasted to expand the growth opportunities for the isostearic acid market.

COVID-19 Impact

The COVID-19 outbreak widely affected the textile & apparel, food & beverage, and transportation industries over 2020. Economies of each sector got affected and resulted in stagnation of activities across the sectors that use isostearic acid. Owing to nationwide lockdown, the production process of various goods in these industries declined due to the non-functioning of the manufacturing plants. For instance, according to International Organization of Motor Vehicle Manufacturers, in 2020, the motor vehicle production declined by 22% in Europe, and 20% in America. However, once the agriculture and transportation activities get back on track and start functioning fully, by 2022, the market for isostearic acid products is estimated to incline.

Report Coverage

The report: “Isostearic Acid Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the isostearic acid industry.

By Form: Liquid, and Powder.
By Application: Chemical Esters, Lubricants & Greases, Adhesives, Coatings & Paints, Packaging, Finishing agents, Sealants, Solvents, Surfactants, Viscosity Adjusters, and Others.
By End-Use Industry: Cosmetics & Personal Care (Skin Cream, Hair Conditioners, Moisturizing Creams, Shower Gel Formulations, Fine Soaps, and Others), Agriculture, Pharmaceutical & Healthcare, Textile & Apparel, Transportation (Aerospace, Marine, Automotive), Food & Beverage, Building and Construction, and Others.
By Geography: North America (U.S.A., Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East and Africa).

Key Takeaways

• The Asia Pacific region dominated the isostearic acid market owing to the rising growth and increasing investments in the building & construction industry. For instance, according to International Trade Administration, in China, construction industry revenue was reported to increase from US$ 968 billion in 2019 to US$ 1.1 trillion in 2021.
• Rapidly rising usage of isostearic acid in the agriculture industry for the production of fungicides and fertilizers has driven the growth of the isostearic acid market.
• The growing demand for isostearic acid in the transportation sector due to their use as adhesives, corrosion inhibitors, and lubricants, will be a critical factor driving the growth of the of the isostearic acid market in the upcoming years.
• However, availability of alternatives at lower costs can hinder the growth of the isostearic acid market over the forecast period.

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

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Isostearic Acid Market Segment Analysis – By Application

The chemical esters segment held the largest share in the isostearic acid market in 2021. Different types of chemical esters based on isostearic acids are isopropyl isostearate, sorbitan isostearate, isostearyl isostearate, trimethylopropane tri-isostearate, glycerol monoisostearate, tri-isostearin, and ethyl isostearate. Chemical esters provide a wide range of functions such as adhesion, solublizer, dispersion, pigment promoters, emollient, effective solvent, water repellent, and plasticizer. Thus, due to which it is widely used in the cosmetics and personal care sector. The cosmetics and personal care industry is increasing rapidly in emerging economies such as in India, United States, China, and other countries, which is driving the market for chemical esters. For instance, according to the International Trade Administration, in Indonesia, in 2021, the revenues in cosmetics and personal care industry are projected to reach US$ 7.5 billion and is estimated to rise at a 6.5 percent compound annual growth rate through 2025. Thus, such growth in cosmetics and personal care industry will drive the usage of isostearic acid in chemical esters applications and would raise the growth of the market over the forecast period. 

Isostearic Acid Market Segment Analysis – By End-Use Industry

The cosmetics and personal care industry held the largest share in the isostearic acid market in 2021 and is estimated to grow at a CAGR of 4.1% during 2022-2027. In the cosmetics and personal care products industry, isostearic acid finds usage in numerous applications such as hair care, lip color cosmetics, skin conditioning agent, sun protection cream, bath & shower products, liquid soaps, and others. It exhibits excellent characteristics such as thermal stability, ultraviolet ray’s resistant, and odor stability. The cosmetics and personal care industry is increasing rapidly in emerging economies such as in India, United States, China, and other countries, due to which the demand for isostearic acid is also rising. For instance, according to the International Trade Administration, in 2019, the U.S. exported personal care and cosmetic products to China valued at US$820 million, up by 28% from 2018. Thus, with the growth of the cosmetics and personal care products sector, the market for isostearic acid will further rise over the forecast period. 

Isostearic Acid Market Segment Analysis – By Geography

Asia-Pacific region dominated the isostearic acid market with a share of 38% in the year 2021. APAC region is one of the leading isostearic acid manufacturers globally, with China and India being the key consumers and suppliers of isostearic acid. Isostearic acid is used in chemical esters, lubricants & greases, adhesives, coatings & paints, packaging, food additive, finishing agents, sealants, solvents, surfactants, viscosity adjusters, and other applications. Moreover, the rising growth of several end-use industries such as building & construction, food & beverage, transportation, and others, has uplifted the development of the isostearic acid market in the APAC region. For instance, according to the World Bank, in 2020, the building and construction industry reached US$ 11.9 trillion, with an increase of about 4.2% from 2019. Additionally, according to Organisation Internationale des Constructeurs d'Automobiles (OICA), in Austria, motor vehicle production increased from 1,64,900 units in 2018 to 1,79,400 units in the year 2019. Similarly, in Vietnam, the production of motor vehicles increased from 2,37,000 units in 2018 to 2,50,000 units in the year 2019. With the increasing production of automobiles, it is estimated that in the upcoming years the requirement for isostearic acid will rise. Thus, the rising usage of isostearic acid in various end-use industries will drive the market growth in the forecast period. 

Isostearic Acid Market Drivers

Increasing Demand for Isostearic Acid in Transportation Industry

In the paints and coatings, adhesives, and lubricants, isostearic acid is used as an additive. Isostearic acid provides great advantages in preventing rust and corrosion on automotive body parts. It provides high strength, and cost-effectiveness materials for automotive composite requirements. Additionally, it possesses high bond, chemical resistance, and low surface energy, for automotive body parts. They have been used in automobile manufacture as lubricants & greases, adhesives, and coatings. In recent years the rising production of automotive has further raised the demand for isostearic acid. For instance, according to Indian Brand Equity Foundation, domestic automobiles production increased by 2.36% CAGR between 2016 - 2020 with 26.36 million vehicles being manufactured in the country in year 2020. Overall, domestic automobiles sales increased at 1.29% CAGR between 2016 – 2020, with 21.55 million vehicles being sold in 2020. With the increasing production and sales of automobiles, it is estimated that in the upcoming years the requirement for isostearic acid in the transportation industry will rise. Thus, which will boost the growth of the market.

Increasing Demand for Fertilizers and Fungicides Made from Isostearic Acid in Agriculture Industry

In the agriculture industry, isostearic acid finds usage in numerous applications such as in alkyl chlorides and amides for agricultural products, fungicides, reactive intermediates, carrier fluid and solvent. Also, it works as a soil binder, being essential for all living tissues and average growth of plants, as fungicides for plant protection from fungi, for soil treatments, and many more. In recent years, rising investment in the agriculture sector has raised the demand for the isostearic acid market. For instance, according to IBEF (Indian Brand Equity Foundation), from 2017 - 2020, India received funding of US$ 1 billion in agritech. Also, Indian agritech companies are likely to observe investments worth US$ 30-35 billion by 2025. Thus, with the growth of the agriculture sector, the market for isostearic acid will further rise over the forecast period.

Isostearic Acid Market Challenges

Availability of Alternates to Isostearic Acid Will Hamper the Market Growth

There are a number of alternative solutions, such as lauric acid, palmitic acid, stearic acid, oleic acid, myristic acid, coconut fatty acid, and others which can replace isostearic acid. Since these alternates possess large availability in the market due to the lower prices as compared to isostearic acid. For instance, according to TCI Chemical PVT. LTD., 25gm isostearic acid costs US$ 26.79 and stearic acid costs US$ 24.11. Also, these alternates find more usage in food & beverage, and chemical industry, as compared to isostearic acid. Thus, availability of alternates to isostearic acid will create hurdles for the growth of the market.

Isostearic Acid Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies players adopt in this market. Isostearic acid top 10 companies include:

1. Jarchem Industries Inc.
2. Croda International Plc.
3. Oleon NV
4. Parchem fine & specialty chemicals
5. KOKYU ALCOHOL KOGYO CO., LTD
6. KLK EMMERICH GmbH
7. Kraton Corporation
8. KRATON CORPORATION
9.  Foreverest Resources Ltd.
10. Santa Cruz Biotechnology, Inc.
    

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