by Monochloroacetic acid or MCA is an important organic compound that is used in the production of a variety of chemicals including carboxymethyl cellulose (CMC), thioglycolic acid, and glycine. As a building block in chemical synthesis, monochloroacetic acid finds applications in pharmaceuticals, agrochemicals, detergents, water treatment, and other industries. CMC or sodium carboxymethyl cellulose, which is used as a thickener and stabilizer in food & beverages, finds increasing use in the personal care industry. With rising incomes and changing lifestyles, the demand for packaged foods as well as personal care products is consistently growing globally. Additionally, monochloroacetic acid also plays a vital role in water treatment as sodium salt of MCA is used for softening of water and removal of calcium and magnesium.
The global Monochloroacetic Acid Market is estimated to be valued at US$ 941.62 Mn in 2024 and is expected to exhibit a CAGR of 25% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends: One of the key trends in the monochloroacetic acid market size is the shift towards bio-based production. Earlier MCA was manufactured using petroleum-derived ethylene as the feedstock. However, researchers are now focusing on developing microbial fermentation process that uses renewable feedstock such as glycerol to produce bio-based MCA. This innovation has the potential to provide more sustainable manufacturing of MCA and related downstream products. With increasing emphasis on eco-friendly chemicals and circular bioeconomy concept, bio-based production of MCA is expected to drive future market growth.
Porter’s Analysis
Threat of new entrants: Low capital requirement and availability of raw materials allows new players to enter the market. However, presence of large established players and need for technical expertise acts as a barrier.
Bargaining power of buyers: Buyers have moderate to high bargaining power due to availability of substitutes. However, product quality and certification requirements restrict bargaining power to an extent.
Bargaining power of suppliers: Key raw materials suppliers have moderate bargaining power due to established supply chain and availability of alternative suppliers. However, suppliers may exert pressure due to fluctuating raw material prices.
Threat of new substitutes: Low threat as few substitutes are available and quality of monochloroacetic acid makes it difficult to replace in major applications.
Competitive rivalry: High as the major players compete on pricing, quality, and technical expertise. High R&D investments and capital requirements maintain industry competitiveness.
Key Takeaways
The global Monochloroacetic Acid market is expected to witness high growth. The global Monochloroacetic Acid Market is estimated to be valued at US$ 941.62 Mn in 2024 and is expected to exhibit a CAGR of 25% over the forecast period 2023 to 2030.
Regional analysis comprises Asia Pacific dominates the global market and is expected to maintain its lead over the forecast period aided by rapidly growing end-use industries in countries like China and India.
Key players operating in the Monochloroacetic Acid market are AkzoNobel N.V., CABB Group GmbH, Niacet Corporation, and Denak Co. Ltd. Growth strategies like capacity expansions and acquisitions allow companies to strengthen their market presence.
The global Monochloroacetic Acid market offers remunerative opportunities for both existing and new market players. Adoption in agrochemicals, cosmetics, and pharmaceutical manufacturing drive demand for Monochloroacetic acid resulting in market growth over the forecast period.
