Epichlorohydrin is an organochlorine compound majorly used in the production of glycerol, plastics, epoxy glues and resins, and elastomers. Major chunk of the epichlorohydrin produced annually is employed in the production of synthetic glycerin. It is used as an intermediate in chemical synthesis; however, it is not available as a consumer good or commodity. It is a colorless liquid with a characteristic chloroform-like odour that is manufactured using chlorine, propylene and milk of lime as raw materials. Epichlorohydrin is poorly soluble in water. Epichlorohydrin can be manufactured through the allyl chloride route in two steps: addition of hypochlorous acid and reaction with base to give epoxide. In the other method, epichlorohydrin is reacted with bisphenol A diglycidyl ether to obtain resins and polymers that are employed in end-user industries such as pharmaceutical and personal care.
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Increasing demand for epoxy resins from industries such as paints & coatings, agrochemicals and textiles is expected to drive the demand for the epichlorohydrin over the next few years. In addition, growing demand for synthetic glycerin in various applications is expected to fuel the demand for epichlorohydrin further. However, presence of stringent regulations on the usage of epichlorohydrin owing to its harmful effects on health and environment is likely to curb the demand for epichlorohydrin in the near future. Nonetheless, increase in the production of bio-based epichlorohydrin is expected to open growth avenues for the epichlorohydrin market over the years.
The epichlorohydrin market is segmented by its raw materials viz. propylene and glycerin. Traditionally, epichlorohydrin is majorly produced via petro-based feedstock propylene. However, companies have started focusing on using glycerin which in turn is slowing replacing propylene. The increasing availability of bio-based glycerin from biodiesel production is making bio-based epichlorohydrin production possible. Thus, glycerin is expected to be the fastest growing raw material segment of the market within the forecast period.
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The epichlorohydrin market is segmented into applications such as adhesives, paper & pulp, textiles, water treatment, electronics & electrical, and others. Paints & coatings dominated the epichlorohydrin market in 2014 owing to the growing demand for epichlorohydrin based anti corrosion coatings in the automobile industry. Electronics & electrical application segment witnessed tremendous growth in the market in 2014 and accounted for more than 18% share in the market. Moreover, applications such as textiles, adhesives etc are expected to grow at an above average rate within the forecast period.
Asia Pacific was the largest regional market of epichlorohydrin in 2014, owing to high demand for epichlorohydrin based products in China and India. Currently, China accounts for the major chunk of the global epichlorohydrin market. Asia Pacific is also the fastest growing region for epichlorohydrin market owing to the increasing demand for epichlorohydrin in South Korea and Taiwan. This trend is expected to continue within the forecast period. Europe followed Asia Pacific in terms of epichlorohydrin demand in 2014. The demand for epichlorohydrin in Europe is ascribed to its increasing demand in paints & coating applications in Germany and France. Regulatory concerns regarding the harmful effects of ECH on health and environment and decreasing profit margins of manufacturers are estimated to hamper the ECH market in the near future in the North America.Thus, North America is expected to witness average growth in the near future.
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Some of the key participants in the epichlorohydrin market are Sumitomo Chemical Co., Ltd., Solvay, Aditya Birla Chemicals , Osaka Soda , Spolchemie A.S., Shandong Haili Chemical Industry Co. Ltd, Samsung Fine Chemicals Co. Ltd, The Dow Chemical Company, Jiangsu Yangnong Chemical Group Co., and Hexion Inc.The epichlorohydrin market is consolidated in nature.
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