Global Oxo Alcohol Market - 2022-2029

Global Oxo Alcohol Market - 2022-2029

Market Overview

The global oxo alcohol market size was worth US$ XX Million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

Oxo chemicals are derivative and intermediate chemical compounds primarily used in the chemical and manufacturing processes of plasticizers, coatings, paints, adhesives and lubricant additives. The chemicals are produced by hydro-formylation of olefins with a synthesis gas, a universal route to C3-C15 aldehydes, further converted to alcohol and other complex compounds.

Oxo alcohols are a fundamental part of construction, OEM industry and automotive as they play a vital role in the manufacturing and producing various types of polymers, surface coating and solvents. Most importantly, oxo alcohols are widely utilized for the plasticizers application as the major derivatives of Oxo Alcohols are plasticizers.

Isononyl (INA) and 2-Propylheptanol (2-PH) are two significant oxo alcohols mostly utilized in plasticizers. Isononyl alcohol (INA) is used primarily to manufacture soft-PVC products in the construction and automotive industries. In addition, di-isononyl phthalate, di-isononyl cyclo-hexanoate, di(iso)-pentyl- terephthalate and others are utilized for the plasticizers application.

Market Dynamics

Strong demand for oxo alcohols in plasticizer applications for oxo polyvinyl chloride (PVC), suitable for vinyl flooring, clothing and electric wire coatings, are expected to drive the market. However, the limited availability of feedstock propylene and force majeure are expected to hinder the oxo alcohols market.

Strong demand for oxo alcohols in plasticizer applications for oxo polyvinyl chloride (PVC), suitable for vinyl flooring, clothing and electric wire coatings are expected to drive the market

About 90 % of all plasticizers produce flexible polyvinyl chloride (PVC), also known as vinyl used for flooring, wall coverings, roofing membranes, electrical cable and wire insulation, automotive applications, medical devices, manufactured leather goods and many others. In addition, some plasticizers can be used in rubber products, paints, adhesives and sealants.

C4-based alcohol is oxo alcohol predominantly used as a key component for manufacturing high-performance plasticizers that can be utilized in an extensive range of applications. In addition, di-isononyl phthalate is an isononyl alcohol-based oxo alcohol plasticizer with an excellent cost and performance ratio. It is the most versatile plasticizer used in thermoplastic and plastisol-processing of flexible PVC.

Exxon Mobil Corporation developed a Jayflex MB10 plasticizer, synthesized by combining benzoic acid and isodecyl alcohol. It features good compatibility with thermoplastic resins, particularly polyvinyl chloride (PVC). Jayflex MB10 acts as a secondary plasticizer to reduce the plastisol viscosity without the need for more volatile hydrocarbon viscosity depressants. In addition, it has a boiling point well above 300°C, which helps reduce VOC content. Its sustainability advantage, together with excellent resistance to stains, makes it an ideal choice for flooring formulators.

Limited availability of feedstock propylene and force majeure are expected to hinder the oxo alcohols market

Rising costs and short feedstock supply have given pressure down to n-butanol derivative markets, with prices reaching the highest levels for multiple products. In addition, force majeures from major companies such as BASF, Sasol, Dow and others have resulted in tight supply and continued pricing pressure across the Oxo alcohols markets.

For instance, in February 2021, Dow Chemical declared force majeure on numerous intermediate chemicals, including vinyl acetate monomer and methyl methacrylate, at sites in Texas, Louisiana and Kentucky.

COVID-19 Impact Analysis

COVID-19 crises have generated a slew of new realities for which there is no set strategy blueprint for chemical companies. Many items are seeing a drop in demand and some businesses, particularly those with considerable exposure to sectors like automotive, oil and gas and aerospace, are fighting to stay afloat. Border restrictions and travel bans are also causing major delays in supply chains and other company activities.

Moreover, reduced cash flow is another issue, with many customers delaying orders or falling behind on payments and goods becoming tangled in supply chains that have been interrupted.

Segment Analysis

Based on application, the global oxo alcohol market is segmented into plasticizers, acetate, glycol ethers, acrylates, lubes, resin, solvents and others.

A plasticizer is a substance added to a material to make it softer flexible, increase its plasticity and decrease its viscosity during the manufacturing handling. Plasticizers are commonly added to polymers such as plastics and rubber to facilitate handling the raw material during fabrication. For instance, plasticizers are commonly added to polyvinyl chloride (PVC), making it soft and pliable, suitable for vinyl flooring, clothing and electric wire coatings.

About 90 % of all plasticizers produce flexible polyvinyl chloride (PVC), also known as vinyl used for flooring, wall coverings, roofing membranes, electrical cable and wire insulation, automotive applications, medical devices, manufactured leather goods and many others. In addition, some plasticizers can be used in rubber products, paints, adhesives and sealants.

Oxo alcohols dominate the plasticizers application as the major derivatives of oxo alcohols are plasticizers. Isononyl (INA) and 2-propylheptanol (2-PH) are two significant oxo alcohols mostly utilized in plasticizers. Isononyl alcohol (INA) is used primarily to manufacture soft-PVC products in the construction and automotive industries. In addition, di-isononyl phthalate, di-isononyl cyclo-hexanoate, di(iso)-pentyl- terephthalate and others are utilized for the plasticizers application.

Geographical Analysis

The global oxo alcohol market is segmented into North America, Europe, South America, Asia-Pacific, and Middle East & Africa based on geography.

Asia-Pacific has high availability of low-cost labor and raw materials. Due to large-scale industrialization, Oxo alcohols demand in China and India is very high. Countries have an extensive demand for coatings, paints, adhesives & varnishes and reinforced regional construction spending.

Moreover, in June 2021, the government of India and the state-owned Indian Oil Corporation (IOC) signed up an MOU for 'Investment Promotion' setting up a petrochemical and lube integration project and acrylics or oxo alcohol project along with other infrastructure projects at Gujarat Refinery, India.

The petrochemical and lube integration project would produce import substitutes like lube oil base stock (LOBS) and polypropylene. The oxo alcohol project at Dumad and Gujarat refinery will manufacture value-added butyl acrylate for paints, coatings, adhesives, plasticizer industry and similar products.

The company aims to expand refining capacity by 4.3 million tons per annum to 18 million tons and add plants to produce 500,000 tons per annum of polypropylene and 2,35,000 tons of lube oil base stock at the site.

Competitive Landscape

The global oxo alcohol market is moderately competitive and consolidated with several end-use industries such as automotive and aerospace companies, resulting in high investment by multinational and local companies, contributing to the major share in the market growth. In addition, major players contributing to the market's growth are BASF SE, Dow Chemical Company, Eastman Chemical Company, ExxonMobil Chemical Company, Arkema SA, Evonik Industries, The Andhra Petrochemicals Limited, Ineos, BAX Chemicals, LG Chem and others. In addition, the companies are adopting growth strategies such as expansions, acquisitions, product launches and collaborations, contributing to the market growth globally.

BASF SE

Overview: BASF SE is a Germany-based multinational chemical business that is the world's largest chemical producer. It is headquartered in Ludwigshafen, Germany, is the company's headquarters. The BASF Group maintains six integrated manufacturing sites and 390 smaller production sites throughout Europe, Asia, Australia, Americas and Africa and has subsidiaries and collaborations in more than 80 countries.

Product Portfolio: BASF SE offers oxo alcohols solvents used mainly as precursors for coatings and paints. In addition, they are also used in products and manufacturing processes for pharmaceuticals, agrochemicals, lubricants, adhesives, cosmetics and personal care.

Key Development:
In September 2021, BASF SE introduced Oxo alcohol catalyst Ni 3354 E to be presented during the European Petrochemical Associations Conference (EPCA). It exhibits performance that combines high activity with exceptionally high selectivity.

Why Purchase the Report?
Visualize the composition of the oxo alcohol market segmentation by the production process, application, end-user and region, highlighting the key commercial assets and players.
Identify commercial opportunities in the oxo alcohol market by analyzing trends and co-development deals.
Excel data sheet with thousands of data points of oxo alcohol market-level 4/5 segmentation.
PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
Product mapping in excel for the key product of all major market players

The global oxo alcohol market report would provide access to an approx. 61 market data tables, 61 figures and 180 pages.

Target Audience
Manufacturers of Oxo Alcohol
Chemical Intermediate Manufacturers
Chemical Companies
Traders, Distributors and Suppliers of Oxo Alcohol
Investment Research Firms