Non-Phthalate Plasticizer Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Type (Adipates, Trimellitates, Epoxies, Benzoates, Others), By Application (Flooring & Wall Covering, Wire & Cable, Coated Fabric, Consumer Goods, Film & Sheet, Others), By Region and Competition

Market Overview

Global Non-Phthalate Plasticizer Market has valued at USD 3.32 billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 4.27% through 2028. Plasticizers are derived from chemicals, which can be added to polymers to soften the brittleness and hardness of plastic. The usage of plasticizers assists in offering flexibility and softness, hence improving the material toughness. Non-phthalate plasticizers, such as those derived from esters of adipic acid or benzoic, are commonly utilized to accord properties of flexibility, durability, and plasticity to the substrate while reducing its environmental impact. Generally, non-phthalate plasticizers find their application in sensitive areas such as medical, food contact, and toys, primarily focusing on engagements that involve close human contact, including childcare and toys applications. They serve as a prominent alternative to conventional plasticizers, which are known to be harmful upon direct human contact and possess toxic properties. The increasing growth of the construction and buildings sector across the globe, coupled with the proliferating usage of non-phthalate plasticizers in wall coverings and floorings, significantly contributes to the augmented growth of the Global Non-Phthalate Plasticizers Market. Furthermore, the demand for non-phthalate plasticizers is mainly driven by sensitive applications, including medical, toys, food, and other products that involve human contact. These plasticizers provide an effective alternative to conventional plasticizers that are toxic and potentially harmful when coming into direct contact with humans. This substantial increase in demand for non-phthalate plasticizers is expected to boost the global market size. Additionally, government-imposed regulations regarding the ban on the use of conventional plasticizers have played a significant role in driving market growth. The rising demand for PVC products across a wide range of residential, industrial, and commercial applications further fuels the market in the upcoming years. Advancements in non-phthalate plasticizer products to improve properties, such as enhanced abrasion resistance and higher temperature tolerance, also contribute to the market growth. Thus, the aforementioned factors are expected to drive the Non-Phthalate Plasticizers Market over the forecasted period. However, there are certain restraints and challenges that may hinder the market growth. One of the major restraining factors is the higher cost associated with the use of non-phthalate plasticizers compared to other traditional plasticizers. Additionally, factors such as rising raw material prices, including an increase in the price of adipic acid, and a lack of awareness about the disadvantages and harmful effects of using phthalate plasticizers in many regions, might hamper the growth of the market to a certain extent during the forecasted period.

Key Market Drivers

Growing Demand of Non-Phthalate Plasticizer from Construction Industry

The construction industry has been identified as a major end-user of non-phthalate plasticizers due to their versatile applications. These plasticizers are increasingly being utilized in the production of resilient flooring, wall coverings, roofing membranes, and other construction materials. As the construction sector continues to experience robust growth globally, the demand for non-phthalate plasticizers is expected to surge.

Moreover, the growing emphasis on sustainability has prompted a significant increase in the demand for bio-based plasticizers. These eco-friendly alternatives are derived from renewable resources and offer comparable performance to traditional plasticizers. Importantly, they also contribute to reducing the carbon footprint of the construction industry. This shift towards more sustainable practices aligns with the industry's commitment to environmental responsibility and is expected to further propel the growth of the non-phthalate plasticizers market.

In conclusion, the construction industry's growing demand for non-phthalate plasticizers is a key driving factor in the global market. The ongoing shift towards sustainable and high-performing materials in the construction sector is anticipated to continue, creating a positive momentum for the non-phthalate plasticizers market. With the industry's focus on both functionality and environmental impact, non-phthalate plasticizers are poised to play a crucial role in shaping the future of construction materials.

Growing Demand of Non-Phthalate Plasticizer from Packaging Industry

Non-phthalate plasticizers are gaining popularity due to their superior performance characteristics and lower environmental impact compared to traditional phthalates. These plasticizers, which are additives used to enhance the flexibility and workability of PVC, offer excellent compatibility with the material, making them ideal for various packaging applications. They not only provide the necessary flexibility and durability for packaging materials but also contribute to reducing the overall carbon footprint of the packaging industry.

Speaking of the packaging industry, it serves as a significant end-user of non-phthalate plasticizers. These substances find extensive use in the production of flexible packaging materials, including food wraps, pouches, and bags. With the rise of e-commerce and changing consumer preferences, the packaging industry is experiencing substantial growth, leading to an increased demand for non-phthalate plasticizers. As more companies and consumers prioritize sustainable practices, the demand for bio-based plasticizers derived from renewable resources is also on the rise. These bio-based alternatives offer similar performance to traditional plasticizers but with a reduced environmental impact, contributing to the overall sustainability goals of the packaging industry.

In conclusion, the packaging industry's growing demand for non-phthalate plasticizers is significantly driving the global market. As the industry continues to evolve and prioritize sustainability, the use of non-phthalate plasticizers is expected to rise, further propelling the growth of this market. With their superior performance characteristics, lower environmental impact, and increasing availability of bio-based options, non-phthalate plasticizers are poised to play a crucial role in shaping the future of sustainable packaging solutions.

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Key Market Challenges

Limited Availability of Raw Materials

Non-phthalate plasticizers are primarily derived from raw materials such as carboxylic acids, which are essential components in their production. However, the increasing prices and limited availability of these raw materials pose a significant challenge for producers in the non-phthalate plasticizers market. This situation is further exacerbated by the constant fluctuations in the prices of petrochemical-based feedstocks, which are often utilized in the manufacturing process of these plasticizers.

The volatility of raw material prices and their limited availability not only impact the production costs of non-phthalate plasticizers but also have far-reaching consequences for the overall profitability of manufacturers in this market. As the costs of these raw materials continue to rise, manufacturers are faced with the difficult task of balancing production expenses and maintaining competitive pricing. Consequently, the rising cost of non-phthalate plasticizers becomes a major challenge that necessitates strategic planning and innovation within the market.

Key Market Trends

Increased Adoption of Non-Phthalate Plasticizer in Medical Devices

Non-phthalate plasticizers are gaining popularity due to their superior performance characteristics and lower environmental impact compared to traditional phthalates. These innovative plasticizers offer excellent compatibility with PVC, providing enhanced flexibility, workability, and durability. These properties are particularly essential for materials used in medical devices, especially those that come into direct contact with the human body.

With increasing pressure on device manufacturers to move away from DEHP in PVC, Original Equipment Manufacturers (OEMs) are actively seeking a plasticizer option that not only performs well but also ensures the utmost safety for patient use. Interestingly, the cost is no longer a primary barrier to adopting non-DEHP varieties, as the differences in prices often range below 10%. This cost-effectiveness has led to a growing trend of using non-phthalate plasticizers in various medical devices, including tubing and other critical components.

The shift towards non-phthalate plasticizers in the medical device industry is not solely driven by performance and cost factors. It also holds significant implications for patient safety. Traditional phthalates can potentially leach out of PVC products, posing a risk of exposure when patients handle or mouth these items. In contrast, non-phthalate plasticizers are considered safer and less toxic, reducing the potential risk of exposure, and ensuring a higher level of safety for patients.

In conclusion, the increased adoption of non-phthalate plasticizers in the medical device industry is a significant trend that is reshaping the global non-phthalate plasticizer market. This trend reflects the industry's unwavering commitment to enhancing product performance, reducing costs, and most importantly, prioritizing patient safety. As the demand for safer and more effective medical devices continues to grow, the use of non-phthalate plasticizers is expected to rise, further propelling the growth and advancement of this market.

Segmental Insights

Type Insights

Based on the category of type, the adipates segment emerged as the dominant player in the global market for Non-Phthalate Plasticizer in 2022. The advantageous properties of adipates, such as UV light resistance, preferability for food contact, and strong low-temperature performance, make them highly sought after in various industries. These phthalate-free plasticizers are experiencing a surge in demand, with the construction industry being a major contributor. In the United States, construction spending has been on the rise, increasing from $1,728 billion in February 2021 to $1,730 billion in March 2022, as reported by the U.S Census Bureau.

Similarly, in India, the construction sector is projected to reach a staggering $1.4 trillion by 2030, with the real estate sector estimated to hit $1 trillion by the same year, according to the National Investment Promotion & Facilitation Agency. With the growing number of building and residential construction activities, the demand for non-phthalate plasticizers, including adipates, is set to soar. These plasticizers will find applications in wall coverings, flooring, coatings, and other areas, further boosting the growth of adipates non-phthalate plasticizers in the market during the forecast period.

Application Insights

The flooring & wall covering segment is projected to experience rapid growth during the forecast period. The Non-Phthalate Plasticizers, including aliphatic acid esters, benzoates, trimellitates, and others, are witnessing increasing demand in the construction sector. These plasticizers find applications in various construction materials such as wall coverings, flooring, and others. The growth of the building and construction industry can be attributed to factors such as the rising demand for modular construction units, government initiatives on affordable housing, and rapid urbanization.

According to the United States Census Bureau, the number of privately-owned housing units in February 2022 reached 1,769,000, marking a significant 6.8% increase compared to the revised value of 1,657,000 in January 2022. Similarly, Statistics Canada reported that the total investment in building construction amounted to US$20.3 billion in March 2021, indicating a notable 1.8% growth compared to the previous month. These statistics highlight the robust growth in the housing and building development activities.

As the housing and building construction activities continue to surge, the demand for Non-Phthalate Plasticizers is expected to witness substantial growth. These plasticizers are increasingly utilized in various applications such as building walls, flooring, coatings, and others. The utilization of Non-Phthalate Plasticizers in these sectors is anticipated to create significant growth opportunities for the industry during the forecast period, further contributing to the expansion of the building and construction industry.

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Regional Insights

Asia Pacific emerged as the dominant player in the Global Non-Phthalate Plasticizer Market in 2022, holding the largest market share in terms of value. The robust growth of Non-Phthalate Plasticizers in the Asia-Pacific region is influenced by the flourishing base and increasing demand for phthalate-free plasticizers. These plasticizers find wide application in the construction, automotive, and other end-use sectors.

The construction industry in the Asia-Pacific region is witnessing rapid growth, driven by government initiatives for housing, commercial building, and infrastructural development. For instance, according to the International Trade Administration, the construction sector in China is projected to grow at an annual average of 8.6% between 2022 and 2030. Similarly, the Government of India's Make in India campaign aims to provide housing for all urban areas through the Pradhan Mantri Awas Yojana (Urban) - PMAY (U) from 2020 to 2021. Additionally, infrastructure development in the region requires investments worth US$965.5 million by the year 2040.

Moreover, the demand for automotive vehicles is on the rise in major countries such as India, China, South Korea, Japan, and others. According to the International Organization of Motor Vehicle Manufacturers (OICA), there has been significant growth in automotive vehicle production, with China witnessing a 3% increase, Taiwan an 8% growth, India a 30% growth, and Thailand an 18% growth in 2021.

With the increasing automotive vehicle production, ongoing building projects, and high demand from major industries, the demand for phthalate-free plasticizers is expected to rise for various applications including wall and flooring, coatings, sealants, and others. This, in turn, will boost the demand for Non-Phthalate Plasticizers in the Asia-Pacific region during the forecast period.

Recent Developments

• In 2021, BASF SE, a leading chemical company, announced the strategic acquisition of Solvay’s global polyamide business for a substantial amount of €1.6 billion. This acquisition is poised to significantly bolster BASF's engineering plastics portfolio, empowering the company to further strengthen its position in the highly competitive global market for polyamide materials. By integrating Solvay's expertise and resources, BASF aims to enhance its capabilities in delivering innovative and sustainable solutions to meet the evolving needs of industries such as automotive, electrical, and consumer goods.
• In a remarkable move to meet the growing demand for non-phthalate plasticizers, ExxonMobil Corporation, a renowned multinational energy company, embarked on a major expansion project in 2020. With a staggering 65% increase in production capacity, ExxonMobil's Singapore petrochemical complex now boasts an enhanced capability to manufacture Exxelor polymer resins. These high-quality resins serve as non-phthalate plasticizers, offering a safer and more environmentally friendly alternative to traditional phthalate-based additives. This expansion not only underscores ExxonMobil's commitment to sustainability but also solidifies its position as a leading supplier of non-phthalate plasticizers in the global market.
• Keeping pace with the dynamic demands of the industry, Eastman Chemical Company, a pioneer in specialty chemicals, introduced an innovative non phthalate plasticizer in 2020. Named Eastman VersaMax Plus Plasticizer, this cutting-edge solution sets a new benchmark in efficiency and compatibility when compared to conventional phthalate plasticizers. By leveraging their extensive research and development capabilities, Eastman Chemical Company has successfully engineered a plasticizer that not only meets stringent regulatory requirements but also offers improved performance and versatility, catering to a wide range of applications in various industries.
• In a bid to provide sustainable solutions to the flexible PVC market, Arkema S.A., a global specialty materials company, launched an innovative range of non-phthalate plasticizers called Pevalen Pro in 2020. This groundbreaking product line, specifically designed for flexible PVC applications, boasts exceptional performance attributes, and is manufactured using renewable raw materials. With the introduction of Pevalen Pro, Arkema S.A. demonstrates its commitment to driving sustainability in the plasticizer industry while catering to the evolving needs of customers seeking environmentally friendly alternatives.
• Perstorp Group, a leading global supplier of specialty chemicals, made a significant investment in 2020 with the construction of a state-of-the-art plant in the United States. This new facility is dedicated to the production of non-phthalate plasticizers, addressing the growing demand for sustainable plasticizer solutions in North America. By expanding their market presence through this strategic investment, Perstorp Group aims to better serve their customers in the region while reinforcing their commitment to innovation and sustainability in the specialty chemicals industry.

Key Market Players

• Eastman Chemical Company
• BASF SE
• Exxonmobil Corporation
• LG Chem Ltd.
• UPC Technology Corporation
• Aekyung Petrochemical Co. Ltd.
• DIC Corporation
• Evonik Industries AG
• Nan Ya Plastics Corporation
• OXEA Corporation

Report Scope:

In this report, the Global Non-Phthalate Plasticizer Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Non-Phthalate Plasticizer Market, By Type:

o   Adipates

o   Trimellitates

o   Epoxies

o   Benzoates

o   Others

• Non-Phthalate Plasticizer Market, By Application:

o   Flooring & Wall Covering

o   Wire & Cable

o   Coated Fabric

o   Consumer Goods

o   Film & Sheet

o   Others

• Non-Phthalate Plasticizer Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Kuwait

§  Turkey

§  Egypt

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Non-Phthalate Plasticizer Market.

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Company Information

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