February 21, 2024
Monochloroacetic Acid Market

Monochloroacetic Acid Market is Estimated to Witness High Growth Owing to Increasing Demand from Herbicides

Monochloroacetic acid (MCAA) is an important organic acid used extensively in the production of herbicides such as 2,4-D. It finds applications in the manufacture of cyanuric acid, carboxymethylcellulose, and glyoxal. MCAA also acts as intermediates in the production of dyes, drugs, and pesticides. With rising agricultural productivity to feed the growing population, herbicides assume greater significance in enhancing crop yields. As monochloroacetic acid remains the prime staple in herbicide synthesis, its demand is forecast to rise proportionately with the growth in herbicide consumption.

The global monochloroacetic acid market is estimated to be valued at US$ 700 Mn in 2023 and is expected to exhibit a CAGR of 25% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The herbicide application segment currently dominates monochloroacetic acid consumption. Stringent regulations have led farmers to replace non-selective herbicides with selective variants that explicitly target weed species, allowing crop cultivation. This transition drives MCAA requirement. Moreover, developing economies are expanding their arable areas to ensure food security for their growing populations. Greater herbicide usage here further props up monochloroacetic acid demand. The escalating concerns regarding declining crop yields stimulate agricultural R&D for high-yielding seeds and crop protection chemicals, swelling monochloroacetic acid need.

SWOT Analysis
Strength: Monochloroacetic acid has wide applications in many industries such as herbicides, drugs, and plasticizers. This wide range of applications has led to high demand for monochloroacetic acid globally. The market is also growing due to increasing agricultural activities which further increases demand for herbicides. Production of monochloroacetic acid is a well-established process and major players have strong production facilities.

Weakness: Stringent environmental regulations regarding the production and disposal of monochloroacetic acid pose a challenge for manufacturers. Production of monochloroacetic acid also produces hazardous byproducts like chlorinated organic compounds which require proper treatment as per regulations. Dependence on limited number of raw materials for production can impact supply security.

Opportunity: Growing demand for biodegradable and eco-friendly products offers opportunities for manufacturers to develop new application areas for monochloroacetic acid. Emerging economies offer huge growth potential as agrochemical and pharmaceutical sectors are growing rapidly in countries like India and China. Partnerships with regional players can help global manufacturers strengthen their foothold.

Threats: Volatility in raw material prices particularly caustic soda and chlorine can impact profit margins. Presence of substitutes and easy availability of smugged low cost products in developing markets pose challenges. Strict environmental norms in European region constrain expansion opportunities.

Key Takeaways

The Global Monochloroacetic Acid Market Share is expected to witness high growth over the coming years supported by growing demand from end use industries. The agricultural sector will be a major driver of demand growth for monochloroacetic acid based herbicides.

Regional analysis- Asia Pacific dominates the global monochloroacetic acid market currently due to large demand from India and China. Both these countries have large agricultural bases and pharmaceutical industries which sources significant monochloroacetic acid. India and Thailand also have a large number of monochloroacetic acid producers catering to domestic as well as international markets.

Key players- Key players operating in the monochloroacetic acid market are Akzonobel, CABB, Daicel, Shandong Minji Chemical, and PCC SE. These players have strong production facilities and global presence. Akzonobel and CABB together account for over 50% of global monochloroacetic acid production capacity. The market is consolidated with few global players dominating production and trade. New product development and expansion into high growth regions will be the focus of these players to maintain leadership.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it