Global Neopentyl Glycol Market size (2024-2030)

The Global Neopentyl Glycol Market was valued at USD 1.46 Billion and is projected to reach a market size of USD 1.96 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 4.3%.

Industry Overview:

Neopentyl glycol which is additionally known as dimethylolpropan is a hygroscopic crystalline natural chemical compound. It is colorless-to-white in color. Neopentyl glycol is industrially synthesized by the aldol response of formaldehyde and isobutyraldehyde, ensuing in the formation of intermediate hydroxypivaldehyde. This can be transformed into neopentyl glycol with the assistance of catalytic hydrogenation of the aldehyde team to an alcohol group.

In a second and greater common process, the aldolization response is carried out in the presence of an amine catalyst. This is in addition hydrogenated in the presence of a catalyst and the molten NPG is solidified by means of the capability of a flaking roll, or a crystallizing or cooling belt. Neopentyl glycol (NPG) is typically used as a constructing block for coating resins such as saturated polyesters which have foremost utility in powder coatings, unsaturated polyesters which have utility in synthetic marble and gel coat for boats, and alkyd resins which have application in steel coatings. NPG is additionally used for the manufacturing of polyurethane resins which have utility as adhesives. Other functions of NPG consist of polyester lubricants and plasticizers. The major end makes use of NPG consist of automotive, construction, furniture, electronics, and pharmaceuticals.

Neopentyl glycol (NPG) is a special natural chemical compound that is drastically used in the synthesis of a range of products such as polyesters, paints, coatings, and lubricants. Excellent properties of the product such as ideal UV, hydrolytic and chemical resistance, and higher balance makes it a perfect candidate for industrial applications. Growing environmental issues related to the greater emission of unstable natural compound (VOC) is compelling industries to undertake low-emission VOC compounds, which is, in addition, augmenting the demand for neopentyl glycol. Neopentyl glycol is a top-notch alternative to various excessive VOC chemical compounds.

COVID-19 impact on the Neopentyl Glycol Market 

The COVID-19 pandemic badly hit the world and it also affected the drinks market in a very large aspect. Especially the laminate market was badly hit by the pandemic. COVID-19 is an infectious sickness that originated in the Hubei province of Wuhan town in China in late December. The highly contagious disease, prompted by a virus, extreme acute respiratory syndrome coronavirus two (SARS-CoV-2), is transmitted from human to human. Since the outbreak in December 2019, the ailment has unfolded to nearly 213 international locations around the globe with the World Health Organization declaring it a public fitness emergency on March 11, 2020.

In the context of COVID-19, government agencies in various countries, lookup institutes, and many biotech and pharmaceutical companies are focusing on tremendous and fast technologies for the fast prognosis of COVID-19. Automobile production has been disrupted, ensuing in a massive loss in the entire automotive sector. For instance, the number of passenger automobiles registered in the European Union declined by 53.4 percent to 526,645 devices in the second quarter of 2020, The demand for neopentyl glycol has lowered dramatically as the functioning of the car area has deteriorated, for this reason impacting the market increase in various countries.

MARKET DRIVERS:

Unique properties of Neopentyl such as scratch resistance is driving the growth of the market

The distinctive features of neopentyl glycol, such as higher scratch resistance, are gaining a lot of recognition these days. The compound is extensively utilized in the introduction of protecting coatings, which are employed in industries such as automotive, building, and construction. Manufacturers use chemical compounds to make artificial esters, polyester resin, hydraulic fluids, alkyd resins, and artificial lubricants. Physical scratches and neopentyl glycol each have high heat resistance. When spacecraft re-enters the Earth's atmosphere, this attribute is extraordinarily beneficial.

The low VOC content in the material is also driving the growth of the market

Low-VOC legislation is predicted to encourage the improvement of neopentyl glycol. Because of the fitness risks, regulatory companies such as the US Environmental Protection Agency (EPA) and the European Commission are gradually being pushed to minimize the stage of unstable organic compounds (VOCs) in all sorts of chemical goods, which include architectural and defensive coatings. Polyester resins processed as an intermediate with neopentyl glycol furnish a low-VOC alternative to different sorts of coating and are probable to play a crucial phase in advancing the sustainability movement.

MARKET RESTRAINTS:

The availability of the alternatives in the market such as Ethylene glycol is restraining the growth of the market

In the coming years, the risk of substitution through the availability of less expensive alternatives, such as ethylene glycol, should challenge market development. Compared to different natural fuels including methanol and ethanol, the advantages of ethylene glycol are excessive operation, excessive power density, low volatility, and excessive boiling point. The combination of water with ethylene glycol gives extra advantages for refrigerant and antifreeze solutions, such as stopping corrosion and acid degradation, as nicely as inhibiting the boom of most microbes and fungi. Therefore, these elements may additionally abate market growth.

NEOPENTYL GLYCOL MARKET REPORT COVERAGE:

This research report on the global Neopentyl Glycol Market has been segmented and sub-segmented based on the Type, Application, and regions.

Neopentyl Glycol Market - By Type:

• Flakes
• Molten
• Slurry
• Others.

Among these, Flakes stand as the largest segment, witnessing significant demand from industries worldwide. Neopentyl Glycol Flakes are widely used as a key building block in the production of high-performance resins and coatings, making them a crucial component in various applications.

On the other hand, the Slurry segment shows impressive growth potential during the forecast period. The adoption of Neopentyl Glycol Slurry is on the rise due to its suitability for specific applications and ease of handling. Industries seeking efficient and flexible processing of Neopentyl Glycol are turning to Slurry, making it the fastest-growing type in the market.

Neopentyl Glycol Market   - By Application:

• Coatings
• Adhesive
• Sealants
• Lubricants
• Fibres
• Dyes
• Others

Among these, the Coatings segment emerges as the largest consumer of Neopentyl Glycol. The compound's exceptional properties make it an ideal choice for high-performance coatings, including automotive coatings, industrial coatings, and protective coatings.

Moreover, the Adhesive segment showcases notable growth prospects during the forecast period. The demand for Neopentyl Glycol-based adhesives is on the rise due to their strong bonding capabilities and resistance to various environmental factors. As industries prioritize the development of advanced and reliable adhesives, the Adhesive segment is set to experience substantial growth.

Neopentyl Glycol Market - By Region:

• North America
• Europe
• Asia-Pacific
• South America
• The Middle East
• Africa

Among these, Asia-Pacific stands as the largest market for Neopentyl Glycol. The region's thriving automotive, construction, and packaging industries drive the demand for high-performance resins and coatings, thus boosting the consumption of Neopentyl Glycol.

Conversely, the Middle East & Africa region demonstrates the fastest-growing trend during the forecast period. Industries in this region are increasingly recognizing the benefits of Neopentyl Glycol in various applications, including adhesives, lubricants, and sealants. The growing infrastructure development and increasing focus on industrialization in the Middle East & Africa are propelling the market's growth for Neopentyl Glycol in this region.

Neopentyl Glycol Market Share by Company

1. AKEE GROUP
2. Guanhua Chemical
3. KNAGTEWEIYE
4. Xinhua Pharm
5. Jinan IFT Science & Technology
6. BASF SE
7. Eastman Chemical Company
8. LG Chem
9. MITSUBISHI GAS CHEMICAL COMPANY, INC.
10. OQ Chemicals GmbH
11. Perstorp
12. Wanhua
13. Celanese Corporation
14. Polioli S.p.A.
15. Oleon NV.
16. Zhenjiang
17. NYU Tandon

Mergers and acquisitions in the enterprise have enabled players to diversify and decorate their carrier services.

Recently, BASF-YPC expanded the production capacity of neopentyl glycol at its state of art Verbund site in Nanjing, China. The new expansion is aimed at strengthening the company's market position.

The market is highly fragmented. Prominent market players are pursuing a number of strategies, such as strategic joint ventures and partnership agreements, product innovations, lookup & development initiatives, geographical expansions, and mergers & acquisitions, to improve their foothold in the industry. They are especially focusing on providing cloud-based or on-premise options to giant enterprises to allow environment-friendly and effective money transfers in real time. Vendors are additionally focusing on increasing their product choices to enhance the consumer experience.

NOTABLE HAPPENINGS IN THE GLOBAL NEOPENTYL GLYCOL MARKET IN THE RECENT PAST:

• INCREMENT - In May 2022, QQ Chemicals, a global manufacturer of oxo intermediates and OXO derivatives, increased the prices for neopentyl glycol.