Nanoclay Reinforcement Market - Forecast(2023 - 2028)

Nanoclay Reinforcement Market Overview

The Nanoclay Reinforcement Market is forecast to reach US$8.3 billion by 2027 after growing at a CAGR of 19% during the forecast period 2022-2027. Nanoclay Reinforcement is usually bound to a polymer matrix and is extensively used for a wide range of applications which include flame retardants, adhesives, coatings,  medium density fiberboard, polymer films, glass fiber reinforced epoxy, and other applications. It has properties such as dimensional stability, toughness, better thermal resistance, stiffness, improved barrier properties, improved mechanical strength, flexibility at high temperatures, and better chemical resistance. Hence, it is widely used by multiple industries such as Packaging, Agriculture, Pharmaceutical, Textile, Construction, Automotive, Marine, Electronics, Military & Defense, and others. An increase in demand from the construction and electronics industry acts as a major driver for the market. On the other hand, strict regulations regarding the use of nanoclay may act as a major constraint for the market.

COVID-19 Impact

There is no doubt that the COVID-19 lockdown has significantly reduced construction, and production activities which in turn has resulted in the country-wise shutdown of construction sites, shortage of labor, and the decline of supply and demand chain all over the world, thus, affecting the market. Studies show that the outbreak of COVID-19 sharply declined the production of raw materials in 2020 due to a lack of operations across multiple countries around the world. However, a slow recovery in new development and construction contracts has been witnessed across many countries around the world since 2021. For instance, the Indian government had made an announcement of the World One Tower construction project worth $ 321 million which is to be built in Mumbai and is currently undergoing development in 2021.

Since the use of Nanoclay Reinforcement plays a major role in the modern construction industry, a slow and steady increase in construction activities will require the use of Nanoclay Reinforcement for construction materials like adhesives, paints, coatings, reinforced concrete & steel, and other materials required for construction applications. This will eventually lead to an increase in demand for Nanoclay Reinforcement which indicates a slow and steady recovery of the market in the upcoming years.

Report Coverage

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

By Application: Flame Retardants, Adhesives, Coatings, Drug Delivery Systems, Electronic Components & Appliances, Others.

By End-Use Industry: Packaging, Agriculture, Pharmaceutical, Textile, Construction, Automotive, Marine, Electronics, Military & Defense, Others.

By Geography: North America (USA, Canada, and Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America), the Rest of the World (the Middle East, and Africa)

Key Takeaways

• The Adhesives segment held the largest share in the Nanoclay Reinforcement Market due to its increasing demand from the packaging and construction industry.
• Nano clay Reinforcement is often bounded to a polymer matrix and offers a variety of properties such as dimensional stability, toughness, better thermal resistance, stiffness, improved barrier properties, flexibility at high temperatures, improved mechanical strength, and better chemical resistance, which makes it ideal for the production of packaging, and construction materials along with electronic components, and appliances.
• Asia-Pacific dominated the Nanoclay Reinforcement Market in 2021 with China most likely to drive the market growth. The major reason behind this is the increasing demand for adhesives and plastics from the packaging industry, along with construction activities that require the use of Nanoclay Reinforcement, thus, boosting the market growth.
  

  Figure: Asia-Pacific Nanoclay Reinforcement Market Revenue, 2021-2027 (US$ Billion)

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Nanoclay Reinforcement Market Segment Analysis – By Application

The Adhesives segment held the largest share in the Nanoclay Reinforcement Market in 2021 and is expected to grow at a CAGR of 19.3% between 2022 and 2027. This is mainly due to the increasing demand for adhesives from the construction and packaging sectors in multiple regions across the world. According to a recent study published by The European Adhesive and Sealant Industry in 2020, the adhesives sector saw an increase in the production of adhesives across multiple regions. Asia-Pacific saw an increase of 36.8%, Europe by 34.5%, North America by 23.1%, the Middle East by 1.3%, and Africa by 1.1% in 2020. This, in turn, increased the demand for Nanoclay Reinforcement since it is primarily used for the production of these adhesives, thus, leading to the growth of the market in the upcoming years.

Nanoclay Reinforcement Market Segment Analysis – By End-Use Industry

The Packaging Industry held the largest share in the Nanoclay Reinforcement Market in 2021. This is mainly due to the increase in demand for Nanoclay Reinforcement for the production of adhesives, reinforced plastics, and other packaging materials. According to a recent study published on Interpack, the consumption of food packaging is expected to increase to 447,066 million in 2023. Likewise, it also states that the Chinese packaging companies such as 3D, SIP, and WLCSP alone achieved a revenue of around $5.88 billion with end packaging. Since Nanoclay Reinforcement provides high barriers properties, it is the primary component required in the production of packaging materials. This is expected to lead the growth of the Nanoclay Reinforcement Market in the upcoming years.

Nanoclay Reinforcement Market Segment Analysis – By Geography

The Asia Pacific held the largest share in the Nanoclay Reinforcement Market in 2021 up to 30%, owing to the increasing demand for Nanoclay Reinforcement from the packaging and construction industry. For instance, according to a recent study published on Food & Beverage (FnB) news, India is considered to be one of the top five markets for food packaging in the world, along with ranking second largest in Asia, while China holds the largest market. It states that the annual sales volume of packaged food in India reached around 34 million tons in 2018 and increased to 47 million tons during the fourth quarter of 2020, and it is expected to grow in the upcoming years as well. Likewise, a recent study published by the US Department of Agriculture states that the total annual sales of packaged food and beverage in Japan was about $ 483.2 billion in 2019, and is expected to rise up to 20%-30% post-Covid-19 pandemic in the upcoming years. Since Nanoclay Reinforcement is the primary component required in the production of packaging materials, it is expected to lead the growth of the Nanoclay Reinforcement Market in the upcoming years.

Furthermore, the Middle East also saw significant growth in Nanoclay Reinforcement Market in 2021. Nanoclay Reinforcement is also widely used in the production of construction materials across the world. The FIFA World Cup that is to be held in 2022 in Qatar is expected to generate the huge potential for construction materials used in the country. This project required the use of materials like adhesives, protective coatings, reinforced concrete, steel, and other raw materials in order to build such a huge stadium. Likewise, other countries such as Kuwait, Morocco, and Iran are also estimated to have higher growth in the construction sector during the forecast period. All of the above factors will directly result in an increase in demand for Nanoclay Reinforcement required for the production of these raw materials in these regions, thus, boosting the market growth.

Nanoclay Reinforcement Market Drivers

An increase in construction activities is most likely to increase demand for the product

Construction activities are considered to be the pillar of growth for a country and also play a major role in increasing the overall global economy since 2019, countries like China and India have come up with multiple construction projects. For instance, the Indian government has also invested in another construction project for building Gujarat International Finance Tec-City which is undergoing development in 2021. The project is valued at a total cost of US$20 billion and is expected to cover a construction area of around 8.5 million square meters which will include 200 skyscrapers. The project also includes the construction of buildings and towers for the powerhouse. Moreover, the government of China approved 26 infrastructure projects with an estimated total investment of 981.7 billion yuan ($ 142 billion) in 2019. Other countries like Bangladesh also have two ongoing power plant projects estimated at $17.65 billion in total which is due delivery by 2025. Furthermore, in 2020, the US announced the commencement of the Second Avenue Subway Construction Project worth $ 17 billion in New York City which is still undergoing development in 2021. Likewise, Egypt also announced the commencement of the Skywalk Mixed-use Project worth $ 513 million in 2020 which is scheduled to be delivered by 2026. This 800-unit project includes the construction of offices, commercial units along with a 5-star-hotel. In this way, an increase in construction activities will most likely increase the demand for raw materials such as adhesives, paints, coatings, and other raw materials. Since Nanoclay Reinforcement is widely used for the production of these construction materials due to the properties such as higher flexibility, stiffness, toughness, thermal stability improved mechanical strength, and better chemical resistance, which can lead to significant growth in Nanoclay Reinforcement Market in the upcoming years.

An increase in demand from the electronics industry is most likely to increase demand for the product

Nanoclay Reinforcement is widely used in electronic applications such as polymer films, electronic encapsulation, sensors, medium density fiberboard, and other electronic components and appliances due to ideal properties such as excellent mechanical properties and barrier properties. A recent study published on PricewaterhouseCoopers (PwC) states that the GDP growth rate of consumer electronics in regions like India, China, the US, and Europe is expected to reach up to 8.1%, 5.7%, 1.4%, and 1.7% respectively by 2022. This will further drive the demand for Nanoclay Reinforcement in the upcoming years.

Nanoclay Reinforcement Market Challenges

Strict regulations regarding the use of nanoclay may cause an obstruction to the market growth

Although nanoclay is usually bounded to a matrix polymer and is not available in a free form, there is always a potential risk of release of these materials. According to the relevant Europen Union (EU) regulation,18 the overall migration limit of nanoclay constitutes to foodstuffs is 10 mg dm-2 of the surface area of the packaging material in the case of plastic-based food packaging or articles. However, in the case of food containers or filled articles for which the surface area in contact with foodstuffs or the surface area of stoppers, gaskets, caps, or similar devices for sealing cannot be measured, the above limit can be extended to 60 mg of the nanoclay constitutes released per kilogram of foodstuffs. None of the substances should release these nanoclay constitutes over the permissible limit or it will be charged with a penalty. Hence, strict regulations regarding the release of nanoclay constitutes from food packaging units may confine the market growth.

Nanoclay Reinforcement Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Nanoclay Reinforcement Market. Nanoclay Reinforcement Market top 10 companies include:

• DowDuPont
• Foster Corporation
• Axson Technologies SA
• Nanophase Technologies
• Inframat Corporation
• BYK Additives
• Nanocor Incorporated
• Powdermet
• Evonik Degussa
• Cabot Corporation

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