Monochloroacetic acid is an organic compound primarily used in the manufacture of herbicides for weed control in agricultural fields and lawns. It acts as an intermediate in the production of numerous agrochemicals including 2, 4-D, Dalapon, and other chlorophenoxy herbicides. Monochloroacetic acid also finds applications in the production of carboxymethyl cellulose and other cellulose derivatives that are used as thickeners in foods and cosmetics. With rapid urbanization and rising global population, demand for food grains has increased manifold, thereby fueling the agrochemical industry. This has significantly driven the consumption of monochloroacetic acid over the years.
The global monochloroacetic acid market is estimated to be valued at US$ 941.62 Mn in 2023 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 Dynamics:
The monochloroacetic acid market is expected to witness substantial growth over the forecast period owing to the rising demand from the agrochemical industry. As mentioned earlier, monochloroacetic acid is majorly consumed in the production of various herbicides and pesticides. With the growing population worldwide, there is an increasing need to boost agricultural yield to meet the food demand. This has accelerated the usage of agrochemicals, thereby augmenting the market of monochloroacetic acid, which is used as an intermediate in agrochemical production. Furthermore, the growing applications of monochloroacetic acid in various other end-use industries including pharmaceuticals and cosmetics are also anticipated to support the market growth over the forecast period.
Segment Analysis
Monochloroacetic acid market is segmented into applications such as herbicide & defoliant, plasticisers, personal care products, drugs & pharmaceuticals, dyes & detergents and others. Herbicide & defoliant is the dominating segment in the monochloroacetic acid market and accounted for over 35% of total market share in 2022. Monochloroacetic acid plays a vital role in production of various herbicides which are used to control unwanted vegetation which makes herbicide & defoliant the largest application segment.
PEST Analysis
Political: Any strict regulation regarding usage of herbicides containing monochloroacetic acid can hamper the market growth. However, no major political changes are expected in the forecast period.
Economic: Increase in demand for herbicides from agricultural industry and growth of plastic, pharmaceutical and personal care industries will drive the economic growth of monochloroacetic acid market.
Social: Rising awareness about environmental protection and health concerns may negatively impact the herbicide application segment. However, growth in personal care and pharmaceutical industries will support the social factor.
Technological: Efforts to develop bio-based production techniques of monochloroacetic acid and innovations to reduce production costs can provide new opportunities for market growth.
Key Takeaways
The Global Monochloroacetic Acid Market Size is expected to witness high growth at a CAGR of 25% during the forecast period of 2023 to 2030.
Regional analysis comprises North America dominates the global monochloroacetic acid market followed by Asia Pacific. Stringent regulations in North America and Europe regarding usage of harmful chemicals is driving demand in Asia Pacific region.
Key players operating in the monochloroacetic acid market are AkzoNobel N.V., CABB Group GmbH, Niacet Corporation, and Denak Co. Ltd. Key players are focused on capacity expansion plans to cater increasing demand for monochloroacetic acid. The market size for monochloroacetic acid is expected to reach US$ 941.62 Mn by 2023.
