Market Overview:
Monochloroacetic acid (MCAA) is an important organic compound used as an intermediate in the production of herbicides, dye coupling agents, and cellulose esters. It is a white crystalline solid or colorless liquid that is soluble in water and many organic solvents. MCAA has many industrial uses including in the production of glycine, glycolic acid, thioglycolic acid, and in textile dying and printing formulations. Its demand is expected grow in agrochemical applications as it is used in manufacturing of herbicides such as 2,4-D.
The Monochloroacetic Acid market is estimated to be valued at US$ 941.62 Mn in 2023 and is expected to exhibit a CAGR of 3.6% 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 is growing demand from agrochemical sector. MCAA serves as an important intermediate in manufacturing of various herbicides including 2,4-D, MCPA, and dichlorprop. Increasing adoption of herbicides in agriculture to control weeds and boost crop yield is expected to drive its demand over the forecast period. As per statistics, the global herbicide market was valued at over US$ 30 billion in 2020 and is projected to grow at over 4% annually through 2028. This in turn is expected to surge the consumption of monochloroacetic acid in agrochemical manufacturing.
Porter’s Analysis
Threat of new entrants: Low economies of scale and high capital requirements limit the threat of new entrants in the monochloroacetic acid market.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products.
Bargaining power of suppliers: Large buyers source raw materials from a few major suppliers giving suppliers a moderate level of bargaining power.
Threat of new substitutes: Substitute products like glyphosate herbicides pose a moderate threat to monochloroacetic acid.
Competitive rivalry: The monochloroacetic acid market has the presence of large players increasing competitive rivalry.
Key Takeaways
The Global Monochloroacetic Acid Market Size is expected to witness high growth, exhibiting CAGR of 3.6% over the forecast period, due to increasing demand from herbicides production.
Regional analysis: Asia Pacific dominates the global monochloroacetic acid market and is expected to grow at the fastest rate during the forecast period. This can be attributed to growth in the agriculture sector and increasing demand for herbicides from countries like India and China.
Key players: Key players operating in the monochloroacetic acid market are AkzoNobel N.V., CABB Group GmbH, Niacet Corporation, and Denak Co. Ltd. AkzoNobel N.V. is one of the leading producers of monochloroacetic acid with a wide distribution network across major countries.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it