Linear Alkyl Benzene (LAB) Market - Growth, Trends, and Forecast (2020 - 2025)
The market for linear alkylbenzene (LAB) is expected to register a CAGR of around 3% during the forecast period. Major factors driving the market studied are the rise in demand for cleaners and increased shale gas production. However, increasing focus on environmental regulations is expected to hinder the growth of the market studied.
The laundry detergents industry dominated the market and is expected to grow during the forecast period, fueled by the rising penetration of washing machines in developing countries.
The growing personal care industry in AsiaPacific is likely to act as an opportunity in the future.
AsiaPacific dominated the market across the world, with the largest consumption from the countries, such as China and India.
Key Market Trends
Laundry Detergents to Dominate the Market
Linear alkylbenzene sulfonate (LABS) is a colorless organic compound and an intermediate chemical, used mainly for the purpose of manufacturing household and industrial cleaning agents. LABS also enjoys a good demand from the detergent industry as its basic raw material.
The applications of LABS include heavyduty laundry liquids, lightduty dishwashing liquids, laundry powders, etc.
Major detergent manufacturers prefer using LABS, owing to its costperformance ratio and versatility nature. LABS is also considered as one of the safest anionic surfactants from human health and environmental point of view.
Countries such as India, China,etc., are the leading manufacturer of laundry detergent.
For instance, in recent times, India is one of the largest producers of soaps and detergents, globally. Government initiatives, such as the Swachh Bharat Mission, promote health and hygiene. Such initiatives, along with growing usage of soaps and detergent, have led to the growth of the manufacturing industry, which is further boosting the demand for LABS in the country.
Furthermore, the detergent industry of the United States includes around 630 establishments (single and multilocation companies), with combined annual revenue of about USD 25 billion.
In Germany the market for the soap and detergent manufacturing industry is dynamic, and the industry is known for strong product innovation, as the manufacturers compete to retain consumer interest.
All the aforementioned factors are likely to increase the demand for linear alkylbenzene sulfonate over the forecast period.
AsiaPacific Region to Dominate the Market
AsiaPacific region dominated the global market share and is likely to continue its dominance during the forecast period. With the growing personal care industry and increasing need for cleaners in countries, such as China, India, and Japan, the usage of linear alkylbenzene is increasing in the region.
The market for the soap, washing powder and synthetic detergent industry in China has grown at an average annual rate of more than 10%, in the past six years, due to increasing awareness about hygiene and development in the liquid soap segment.
China is becoming the largest market in terms of cosmetics and skincare products, globally. The beauty sector in the country has witnessed an average growth of over 5% in the past 10 years.
Likewise, growing consumerism is stimulating the demand for personal care products, which, in turn, is driving the linear alkylbenzene (LAB) market in India.
Today, India is one of the largest producers of soaps in the world. The per capita consumption of toilet/bathing soap in the country is around 800 grams. Around 65% of the Indian population resides in rural areas, and the increasing disposable incomes and growth in the rural markets are making the consumers shift to premium products.
The aforementioned factors are contributing to the increasing demand for linear alkyl benzene (LAB) consumption in the region, during the forecast period.
The market for linear alkylbenzene is consolidated in terms of production capacity. The top five players account for more than 40% of the global market share. The major companies include Cepsa Química Bécancour, Ho Tung chemicals, Sasol, Huntsman International LLC, and Reliance Industries Limited.
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