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Neopentyl Glycol (NPG) Market

Neopentyl Glycol (NPG) Market

Neopentyl Glycol (NPG) Market

Neopentyl Glycol (NPG) Market By Physical Form (Flakes, Molten and Slurry), Grade (Pharmaceutical Grade, Technical Grade) & Region - Forecast 2022 - 2028

Neopentyl Glycol (NPG) Market Outlook – 2022-2028

[278 pages Report] The global neopentyl glycol (NPG) market size is estimated to be worth around US$ 1.47 Bn in 2022. With rising adoption of neopentyl glycol for the synthesis of paints, polyesters, lubricants, plasticizers and several other materials, the overall market is projected to expand at a 4.6% CAGR between 2022 and 2028, totaling a valuation of US$ 1.93 Bn by 2028.

Attribute

Details

Neopentyl Glycol (NPG) Market Estimated Size in 2022

US$ 1.47 Bn

Neopentyl Glycol (NPG) Market Value-based CAGR (2022-2028)

4.6 %

Neopentyl Glycol (NPG) Market Projected Size in 2028

US$ 1.93 Bn

Regionally, India will continue to dominate the neopentyl glycol (NPG) market, accounting for a major share of 34.8% in 2022. Increasing demand for neopentyl glycol across some of the leading industries such as construction and automotive will continue driving sales in the market over the assessment period.

2013-2021 Neopentyl Glycol (NPG) Market Outlook Compared to 2022-2028 Forecast

Demand is projected to increase at a CAGR of 4.6% between 2022 and 2028, in comparison to the 4.7% CAGR registered between 2013 to 2021.

Rapid industrialization and urbanization, growing popularity of low VOC-compounds, surging demand for paints and coating and rising adoption of neopentyl glycol across diverse applications such as paints & coatings, lubricants and adhesives are some of the key factors primarily driving the market.

Neopentyl glycol (NPG) is a unique organic chemical compound which is extensively used in the synthesis of various products including polyesters, paints, coatings, and lubricants. Excellent properties of the product such as superior UV, hydrolytic and chemical resistance and better stability makes it an ideal candidate industrial applications.

Growing environmental concerns regarding the higher emission of volatile organic compound (VOC) is compelling industries to adopt low emission VOC compounds, which is further augmenting the demand for neopentyl glycol. Neopentyl glycol is an excellent alternative to various high VOC chemical compounds.

Moreover, rising adoption of neopentyl glycol for the production of pharmaceuticals and pesticides is anticipated to aid the growth of the market over the forecast period.

Backed by the aforementioned factors, a total valuation of US$ 1.93 Bn has been projected for the global neopentyl glycol (NPG) market by FMI through 2028.

Will Surging Demand for Paints and Coatings Continue to Boost Sales?

Growing popularity of neopentyl glycol (NPG) across the paints & coating industry is augmenting the growth of the market. Functional properties of neopentyl glycol, such as enhanced scratch resistance and high-water resistance, are boosting its adoption for manufacturing protective coatings and paints.

It is extensively used in the production of saturated and unsaturated polyester resins for the manufacturing of alkyd coatings, powder coatings, gel coats, etc. Neopentyl glycol-based paints and coating are far more superior and ecofriendly than other conventional products.

The ongoing expansion of the residential and commercial sectors, coupled with surging demand for paints and coating in the automotive industry will continue to driving the neopentyl glycol market during the forecast period.

Country-wise Insights

Why is Demand for Neopentyl Glycol Surging Rapidly Across India?

“Rising Construction Activities to Boost Demand for Neopentyl Glycol”

Factors such as rapid industrialization and booming economy have transformed India into a global manufacturing hub. India’s manufacturing capabilities have grown considerable over the last few years.

As per FMI, India will continue to remain the most lucrative market for neopentyl glycol, accounting for a share of 34.8% in 2022. Growth in the country is mainly driven by surging infrastructural activities, growing demand for paints & coatings and the presence of various domestic market players.

Rapidly increasing population and rising disposable income across India is resulting in the expansion of the construction sector. According to the Indian Brand Equity Foundation (IBEF), India is anticipated to become the world’s third largest construction market by 2022. Rising investments by the government for the improvement of the country's infrastructure is attracting both national and international neopentyl glycol manufactures.

Moreover, growth of the. chemicals industry and rise in export business will drive the market in India over the assessment period.  

What is Driving the U.S. Neopentyl Glycol Market?

“Neopentyl Glycol Demand Skyrocketing Across the U.S Paints & Coatings Industry”

The U.S. will continue to remain the most lucrative market for neopentyl glycol across North America. Increasing demand for paints & coating across various end-use industries, the presence of leading market players and the implementation of stringent regulations are some factors driving the U.S. neopentyl glycol market.

Rising consumption of paints and coatings is driving sales in the country. According to the American Coatings Association, the U.S. paint and coatings industry reached around US$ 24.9 billion, courtesy of 1.33 billion gallons produced in 2018. Increasing vehicle production and growing inclination towards ecofriendly powder paints and coatings (including powder coatings) will continue to fuel the sales.

Heavy presence of leading market players including BASF is further boosting the sales of neopentyl glycol. Market players are continuously collaborating with other companies to increase their production capacity as well as strengthen their bases across several regions.

Amid rising demand for neopentyl glycol across various industries, a market share of over 13.1% has been predicted for North America neopentyl glycol market, led by the U.S.

How will Growth Unfold in the U.K. Neopentyl Glycol Market?

As per FMI, the U.K. neopentyls glycol market is poised to grow at a considerable pace on the back of increasing construction activities, implementation of government regulations and rising adoption of neopentyl glycol as an ideal intermediate compound for synthesis of paints, coatings, and other materials.

To develop the country’s infrastructure and address the rising environmental concerns, various initiatives and policies are being launched by the U.K. government. For instance, in 2021, the U.K government launched a new U.K. infrastructure bank to support local growth and tackle climate change.

This is positively impacting the growth of neopentyl glycol market, as majority of paints, coating, sealants and insulating material required for construction are made from neopentyl glycol.

Growing focus towards sustainability is prompting industries to adopt low VOC compounds. This will continue to fuel the sales of neopentyl glycol in the U.K. The Western Europe neopentyl glycol market, spearheaded by the U.K. is projected to account for over 20.5% share in 2022.

Category-wise Insights

Which Form of Neopentyl Glycol is Most Preferred?

On the basis of form, NPG market has been segmented into flakes, molten and slurry. Among these, NPG flakes will continue to remain the most preferred form in the global neopentyl glycol market.

High convenience quotient, easy usability, and low maintenance in terms of transportation and application is fueling the adoption of NGG flakes across major industries. Growing usage of NPG flakes for the synthesis of diverse materials will continue boosting the neopentyl glycol market over the forecast period.

Which Neopentyl Glycol Grade Remains the Top Selling Product?

“End Users Prefer Technical Grade Neopentyl Glycol for Majority of Applications”

Based on the grade, neopentyl glycol market is segmented into technical grade and pharmaceutical grade. According to the FMI’s latest analysis, technical grade remains the most utilized neopentyl glycol by grade.

Technical grade is the most commonly used grade for industrial applications. Growing adoption for the commercial production of paints, coatings, insulating materials, lubricants and other products is driving the global neopentyl glycol market.

Growing demand for these products across the world is anticipated to create lucrative growth opportunities for neopentyl glycol market players.

Why is Neopentyl Glycol Extensively Used for Synthesis of Paints and Coatings?

As per FMI, the paints & coatings industry is anticipated to remain the most lucrative application for neopentyl glycol, accounting for a dominant share in 2022.

In the last few decades demand for protective paints and coatings has been on the rise. Majority of the manufacturers are utilizing neopentyl glycol for the synthesis of paints and coatings on account of its starch and water resistance properties.

Moreover, rising focus towards sustainability and implementation of stringent government regulations is favoring the adoption of low VOC products such as NPG in paints and coatings. Increasing demand for paints and coatings across leading industries such as construction and automotive will drive the neopentyl glycol market over the forecast period.

Which is the Leading End-Use Industry for Neopentyl Glycol?

"Demand for Neopentyl Glycol to Remain Concentrated in Building and Construction Industry”

Sales in the building & construction segment will continue gaining traction over the forecast period. Expansion of the building & construction industry across the globe is creating huge demand for resins, paints, coatings, and insulation materials. As majority of these products are developed by using neopentyl glycol, increasing sales of these products will boost the growth of neopentyl glycol market.

Furthermore, increasing investments by government to develop public as well as residential infrastructures through smart city initiatives is anticipated to create lucrative growth prospects for neopentyl glycol market during the forecast period.

Competitive Landscape

Leading players operating in the neopentyl glycol (NPG) market are focusing on increasing their production capacities. Besides this, they are adopting various growth strategies such as partnerships, acquisitions, collaborations, partnerships, and new facility establishments to dominate the market. For instance:

  • In September 2020 BASF-YPC (a 50-50 joint venture between BASF and SINOPEC) expanded the production capacity of neopentyl glycol at its state of art Verbund site in Nanjing, Chinas. The new expansion is aimed at strengthening the company's market position.
  • Similarly, in September 2019, BASF, one of the world's leading NPG manufacturers, increased the capacity of its neopentyl glycol (NPG) plant by 1000 metric tons per year at the Verbund site in Ludwigshafen, Germany. 
  • IN December 2021, QQ Chemicals, a global manufacturer of oxo intermediates and OXO derivatives, increased the prices for neopentyl glycol.

Scope Of The Report

Attribute

Details

Forecast Period

2022-2028

Historical Data Available for

2013-2021

Market Analysis

Units for Volume and US$ Mn for Value

Key Regions Covered

North America, Latin America, Western Europe, Eastern Europe, Southeast Asia & Pacific, China, India, Japan East Asia and the Middle East & Africa

Key Countries Covered

US, Canada, Mexico, Brazil, Germany, U.K., France, Italy, Spain, Russia, Poland, China, Japan, South Korea, India, ASEAN, Turkey and South Africa

Key Segments Covered

Form, Grade, Application, End-Use Industry and Region

Key Companies Profiled

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

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Neopentyl Glycol (NPG) Market By Category

Physical Form:

  • Flakes
  • Molten
  • Slurry

Grade:

  • Pharmaceutical Grade
  • Technical Grade

Application:

  • Paints & Coatings
  • Adhesives & Sealants
  • Lubricants
  • Plasticizers
  • Insulation Materials
  • Others

End-Use Industry:

  • Automotive & Transportation
  • Building & Construction
  • Industrial Plant & Equipment
  • Furniture & Interiors
  • Others

Region:

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • Southeast Asia & Pacific
  • China
  • India
  • Japan
  • Middle East & Africa

Key Questions Answered in the Report

What is the current neopentyl glycol (NPG) market valuation?

The neopentyl glycol (NPG) market is estimated to be worth around US$ 1.47 Bn in 2022.
As per FMI, the neopentyl glycol (NPG) market is forecast to register a CAGR of 4.6% between 2022 and 2028.
The neopentyl glycol (NPG) market grew at a CAGR of 4.7% between 2013 and 2021.
Increasing adoption of neopentyl glycol for the synthesis of various chemical products, implementation of stringent regulations and expansion of construction and automotive industries are some of the key trends shaping the growth of neopentyl glycol market.
The North American neopentyl glycol (NPG) market demand is set to account for 13.1% share in 2022.
The neopentyl glycol (NPG) market in Western Europe is projected to account for 20.5% by 2022.
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., and Hefei TNJ Chemical Industry Co., Ltd. are some of the leading players operating in the neopentyl glycol (NPG) market.

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