The global Neopentyl Glycol (NPG) Market is likely to register a USD 1,542.4 million in 2023. From 2023 to 2033, the market is set for slow acceleration at a CAGR of 4.6%. In 2033, it should record a valuation of USD 2,418 million.
Future Market Insights (FMI) predicts a 1.6x expansion of the market between 2023 and 2033. This prediction stems from increasing neopentyl glycol demand across a variety of applications such as adhesives & sealants, paints & coatings, lubricants, and plasticizers.
Neopentyl glycol is a crystalline substance. Its industrial synthesis occurs through the aldol reaction between isobutyraldehyde and formaldehyde. The reaction leads to the creation of intermediate hydroxypivaldehyde.
The conversion of intermediate hydroxypivaldehyde to neopentyl glycol happens through catalytic hydrogenation or adding excess formaldehyde.
While neopentyl glycol is chloroform, benzene, and water soluble, its solubility is significant in diethyl ether and ethanol. It is an organic compound with combustible characteristics. Its industrial uses include closed system functional fluids, dyes, paint & coating additives, and lubricants.
Neopentyl glycol’s chemical and thermal stability are exemplary. As a result, its use is popular for lubricating engines of automobiles and aircrafts. FMI expects both the global aircraft and automobile industries to thrive in the coming years. This should result in surging neopentyl glycol demand.
FMI also predicts significant market expansion owing to neopentyl glycol’s low volatile organic compound (VOC) content. Traditional resins are increasingly coming under fire for their high VOC content, but neopentyl glycol is an effective substitute. Escalating demand for powder coatings is also likely to impact market expansion positively.
According to FMI, neopentyl glycol sales will skyrocket across countries such as India, Indonesia, Mexico, and Korea. The economies of these countries are rapidly developing. All in all, this bodes well for both leading and emerging players in the market for neopentyl glycol.
Here’s a brief glance at the prominent characteristics that neopentyl glycol exhibits
| Attribute | Key Insights |
|---|---|
| Estimated Neopentyl Glycol (NPG) Market Value (2023) | ~USD 1,542.4 million |
| Projected Market Value (2033) | ~USD 2,418.4 million |
| Value-based CAGR (2023 to 2033) | ~4.6% |
| Top Players Share in 2022 | ~60 to 65% |
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Regulatory Agencies’ Efforts and Increasing Adoption of NPG across Several Industries to Spur Neopentyl Glycol Sales
Neopentyl glycol is an essential ingredient in various chemical products such as resins, plasticizers, inks, lubricants, hydraulic fluids, and greases. Its unique properties like increased scratch resistance and high stability make it widely utilized in these products. The rising demand for NPG-based products is driving the expansion of the global NPG industry.
The market for paints & coatings is expanding rapidly due to increasing demand from the construction and automotive industries. NPG is used in the production of polyester resins for alkyd coatings, powder coatings, gel coats, and more. Powder coatings made with NPG offer improved thermal and UV protection compared to other glycol-based coatings.
Apart from this, regulatory agencies such as the United States Environmental Protection Agency and the European Commission are promoting the reduction of VOCs in chemical products owing to health concerns. NPG-based polyester resins offer low-VOC options in coatings, contributing to environmental protection efforts, which is set to accelerate the market.
Availability of Cheaper Alternatives to Restrain Neopentyl Glycol Sales
2-Methyl-1,3-propanediol and ethylene glycols are substitutes for NPG. These substitutes are commonly used in the manufacturing of various products such as PET resin, brake fluids, lubricating oils, antifreeze liquids, and more.
These alternatives are less expensive and possess properties that make them more suitable for specific products compared to NPG. They both compete for the same set of products that cater to similar end-use industries. As a result, the acceleration of the market for neopentyl glycol may be restrained.
| Market Statistics | Details |
|---|---|
| January to June (H1), 2021 (A) | 2.3% |
| July to December (H2), 2021 (A) | 3.7% |
| January to June (H1),2022 Projected (P) | 4.3% |
| January to June (H1),2022 Outlook (O) | 4.4% |
| July to December (H2), 2022 Projected (P) | 5.1% |
| July to December (H2), 2022 Outlook (O) | 5.2% |
| January to June (H1), 2023 Projected (P) | 4.7% |
| BPS Change : H1, 2022 (O) - H1, 2022 (P) | (+) 10 ↑ |
| BPS Change : H1, 2022 (O) - H1, 2021 (A) | (+) 210 ↑ |
| BPS Change: H2, 2022 (O) - H2, 2022 (P) | (+) 10 ↑ |
| BPS Change: H2, 2022 (O) - H2, 2021 (A) | (+) 150 ↑ |
The chart above is representative of a comparative analysis of the neopentyl glycol market’s outlook, projected, and actual expansion rates from recent years. A variety of factors have combined to affect the dynamics of the market between 2020 and 2022.
These factors include global economic outlook, escalating industrialization and population, countries’ GDP expansion rates, and adoption of sustainability in the global chemicals industry.
For 2023, the outlook for the neopentyl glycol market is positive, with expectations of consistent demand from several end-use industries. Coatings, adhesives, and unsaturated polyester resins are examples of sectors that are exhibiting neopentyl glycol demand.
According to FMI observations, the market for neopentyl glycol registered a slow 4.4% CAGR between 2018 and 2022. After a drop in market acceleration due to the COVID-19 pandemic in 2020, the industry showed signs of recovery from 2021 to 2023.
During the first half of 2022, the construction industry's revival and the quick growth in the packaging sector led to a significant market surge. It registered an increase of 210 BPS compared to the first half of 2021. This trend continued into the second half of 2022 as neopentyl glycol demand soared from the coatings sector.
Neopentyl glycol is a special type of organic chemical that is widely used in making various items such as paints, coatings, polyesters and lubricants. Its exceptional properties like strong chemical and hydrolytic resistance, UV resistance, and good stability make it well suited for industrial use.
Factors such as rapid urbanization and industrialization and escalating adoption of low and non-VOC glycol products are likely to play key roles in accelerating the market. In recent years, the use of neopentyl glycol has also registered an upswing across the pesticides and pharmaceuticals industries.
| Country | The United States |
|---|---|
| Market Share (2023) | 12.4% |
| Market Share (2033 | 12.6% |
| BPS Analysis | +20 |
| Country | China |
|---|---|
| Market Share (2023) | 33.2% |
| Market Share (2033 | 34.1% |
| BPS Analysis | +80 |
| Country | Germany |
|---|---|
| Market Share (2023) | 5.6% |
| Market Share (2033 | 5.4% |
| BPS Analysis | -20 |
| Country | Japan |
|---|---|
| Market Share (2023) | 6.0% |
| Market Share (2033 | 5.7% |
| BPS Analysis | -30 |
| Country | India |
|---|---|
| Market Share (2023) | 4.4% |
| Market Share (2033 | 5.4% |
| BPS Analysis | +100 |
Government’s Support of Construction Sector to Spur Neopentyl Glycol Demand in India
Due to rapid industrialization and a thriving economy, India has become a global manufacturing hub. The coutry’s manufacturing capabilities have greatly improved in recent years. According to FMI, India will continue to be the most attractive industry for neopentyl glycol with 33.3% share in the South Asia market.
Infrastructure projects have been on the rise in India. Apart from this factor, increasing demand for paints & coatings and a strong presence of players in the domestic market are likely to take India forward in terms of NPG sales.
The Indian government, led by Prime Minister Narendra Modi, is incredibly supportive of the country’s construction sector. As a result, government investments are flooding in to support the sector and provide lucrative opportunities for both domestic and international NPG manufacturers.
Strong Manufacturer Presence and Rising Popularity of Paints & Coatings to Accelerate the United States Market for Neopentyl Glycol
According to FMI, the United States is set to continue as the most attractive market for neopentyl glycol in North America. Several factors are playing prominent roles in accelerating the United States market for neopentyl glycol. Among them, strong manufacturer presence and escalating paints & coatings demand are the most prominent.
As per a report published by the American Coatings Association, the United States paints & coatings industry registered a 25% expansion between 2020 and 2022. Burgeoning popularity of eco-friendly and powder forms of paints & coatings along with rising automobile production contributed to this expansion.
BASF, a reputed global name in the neopentyl glycol industry, is based in the United States. The company has collaborated with other manufacturers with an aim to increase its production capacity. This trend is set to continue as the North America market persists with a 13.1% share in the global industry.
Beneficial Characteristics of NPG Flakes Compared to Other Forms to Boost Neopentyl Glycol Sales
The market for neopentyl glycol is separated into three forms
According to FMI, NPG flakes are expected to remain the most favored form. This is due to the convenience, handling simplicity, and limited maintenance that NPG flakes offer. NPG flakes are also easier to use and transport compared to other forms.
NPG flakes are also commonly used for synthesizing several materials. In the long run, these benefits of neopentyl glycol are likely to drive NPG sales.
Building & Construction Market to Generate Significant Demand for Neopentyl Glycol
On the basis of end-use industry, NPG sales are likely to be dominated by the segment of building & construction. The rapid worldwide expansion of the building & construction sector is creating a high demand for paints, insulation materials, resins, and coatings. Between 2023 and 2033, this expansion should directly contribute to the development of the NPG industry.
Several governments around the world are also actively engaged in developing smart cities. These initiatives consist of hefty investments, and they are likely to increase the adoption and use of NPG from 2023 to 2033.
The market for neopentyl glycol at a global level is consolidated with key players holding a substantial share of the market. With increasing demand, key manufacturers are looking to increase their production capacities to remain competitive by providing neopentyl glycol at reasonable prices.
These manufacturers are also adopting strategies such as joint ventures, mergers, partnerships, and collaborations to extend their market presence.
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| Attribute | Details |
|---|---|
| Estimated Market Size (2023) | USD 1,542.4 million |
| Projected Market Size (2033) | USD 2,418.4 million |
| Anticipated Growth Rate (2023 to 2033) | 4.6% CAGR |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value |
| Quantitative Units | Revenue in USA Dollar Million, Volume in Tons, and CAGR from 2023 to 2033 |
| Key Regions Covered | North America; Latin America; Western Europe; East Asia; South Asia and Pacific; and Middle East and Africa |
| Key Countries Covered | The United States, Canada, Mexico, Brazil, Argentina, China, Japan, South Korea, India, Association of South East Asian Nations, Australia, New Zealand, Germany, France, Italy, Spain, BENELUX, Russia, Gulf Cooperation Council, Türkiye, Northern Africa, and South Africa |
| Key Segments Covered | Physical Form, Grade, Application, End-Use Industry, and Region |
| Key Companies Profiled | BASF SE; Eastman Chemical Company; MITSUBISHI GAS CHEMICAL COMPANY, INC.; OXEA GmbH; Wanhua Chemical Group Co., Ltd.; TCI Chemicals (India) Pvt. Ltd.; LG Chem Ltd.; Perstorp Holding AB; Shandong Dongchen Ind. Group. Corp.; Zouping Fenlian Biotech Co., Ltd.; Hefei TNJ Chemical Industry Co., Ltd. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities, and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
Rising demand from construction sector is fueling the United States market growth.
The growing paint and coating sector in Europe has led to the increased demand for neopentyl glycol.
The growth of smart technologies has necessitated neopently glycol adoption.
The United States held a maximum share of the global market in 2023.
North America is expected to witness lucrative growth opportunities during the forecast period.
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Neopentyl Glycol (NPG) Market
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