According to Stratistics MRC, the Global Allyl Chloride Market is accounted for $0.98 million in 2025 and is expected to reach $1.53 million by 2032 growing at a CAGR of 6.6% during the forecast period. Allyl chloride is an organic compound used as a key intermediate in chemical synthesis, particularly in the production of resins, pharmaceuticals, and pesticides. It is a colorless liquid with a pungent odor and is highly reactive due to the presence of a double bond. Derived from chlorine and propylene, allyl chloride serves as a precursor for various industrial applications. Its volatility and potential health hazards require careful handling, making proper storage and controlled usage essential in manufacturing processes.
According to the World Paint and Coatings Industry Association, the global sales volume of paints and coatings reached USD 179.9 billion in 2022, with an annual growth rate of 3.1%, demonstrating the robust demand for allyl compounds in coating applications.
Market Dynamics:
Driver:
High demand for glycerol epichlorohydrin route
Allyl chloride is a crucial precursor in the production of epichlorohydrin, widely used in resins, adhesives, and specialty chemicals. The shift toward glycerol-based production enhances sustainability, reducing dependency on petrochemical-derived feedstocks. Additionally, expanding applications in pharmaceutical and polymer manufacturing are reinforcing the demand for allyl chloride, supporting innovation in process optimization and resource-efficient production methods.
Restraint:
Environmental concerns regarding propene-based production
The use of propene as a feedstock generates emissions and byproducts that require stringent regulatory controls, impacting operational feasibility. Additionally, compliance with environmental standards necessitates investment in emission reduction technologies, increasing overall manufacturing costs. Industries are exploring alternative production pathways, including bio-based approaches, to address sustainability concerns while maintaining efficiency.
Opportunity:
Development of greener production technologies for propene-based route
Innovations in catalyst design and reaction optimization are enhancing process efficiency while minimizing environmental impact. Additionally, advancements in carbon capture and utilization methods are contributing to cleaner production cycles, reducing industrial emissions. Research in sustainable chemical engineering is fostering the adoption of low-energy processes, improving cost-effectiveness without compromising performance growth in evolving regulatory landscapes.
Threat:
Public perception and concerns about chlorinated chemicals
Perceptions about toxicity and environmental impact influence market acceptance. Regulatory bodies are imposing stricter guidelines on chlorinated compounds, requiring industries to implement safer handling and disposal practices. Additionally, the rise of non-chlorinated alternatives in specialty chemical applications may shift demand away from traditional formulations.
Covid-19 Impact:
The pandemic effected supply chains and industrial operations temporarily affecting allyl chloride production and distribution. Fluctuations in demand from end-use industries, including coatings, pharmaceuticals and resins, influenced market stability. However, post-pandemic recovery efforts have revived investment in chemical manufacturing, reinforcing supply chain resilience and innovation.
The industrial grade segment is expected to be the largest during the forecast period
The industrial grade segment is expected to account for the largest market share during the forecast period due to its extensive use in large-scale manufacturing. Industrial-grade allyl chloride serves as a vital raw material in polymer, pharmaceutical, and agrochemical production. Additionally, its role in resin formulation and specialty chemical synthesis enhances its relevance across multiple industrial sectors. Advancements in purity optimization and process standardization are further strengthening its market dominance.
The flame retardants segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the flame retardants segment is predicted to witness the highest growth rate driven by increasing demand for fire-resistant materials in construction, automotive, and electronics industries. Allyl chloride plays a key role in the formulation of flame-retardant additives, improving material durability and safety. Additionally, stricter fire safety regulations are driving investment in advanced retardant compounds, reinforcing market expansion.
Region with largest share:
During the forecast period, the North America region is expected to hold the largest market share boosted by strong chemical manufacturing infrastructure and regulatory compliance initiatives. The presence of major industry players and ongoing research into cleaner production technologies is reinforcing regional market leadership. Additionally, steady demand from resin and pharmaceutical applications is ensuring sustained growth.
Region with highest CAGR:
Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR attributed to the expanding industrial operations and technological advancements in chemical synthesis. Rapid urbanization and increasing investment in specialty chemicals are contributing to market expansion. Additionally, the region’s growing focus on sustainable production practices is fostering innovation in eco-friendly processing technologies.
Key players in the market
Some of the key players in Allyl Chloride Market include Zeochem AG, Solvay, Befar Group Co. Ltd., Gelest Inc., INEOS, Dow Chemical Company, BASF SE, Arkema S.A., W. R. Grace & Co., Mitsubishi Chemical Corporation, Olin Corporation, Sorbead India, Clariant AG, ResinTech Inc., Lenntech B.V., Cabot Corporation and Hengye Inc.
Key Developments:
In May 2025, Gelest Inc. opened a new 50,000 ft² production facility focused on developing precursor chemicals for EUV lithography, supporting next-generation semiconductor technologies.
In May 2025, INEOS Launched the first European-built offshore CO₂ carrier in collaboration with Royal Wagenborg, advancing carbon capture and storage capabilities.
In April 2025, Solvay partnered with Cavalinho to reduce transportation carbon footprint in Brazil, aiming to enhance sustainability in logistics operations.
Grades Covered:
• Industrial Grade
• Reagent Grade
• High Purity Grade
Production Processes Covered:
• Chlorination of Propylene
• Reaction of Allyl Alcohol with Phosphorus Trichloride
• Other Production Processes
Applications Covered:
• Epichlorohydrin Production
• Water Treatment Chemicals
• Allyl Alcohol Production
• Pesticides & Herbicides
• Pharmaceutical Intermediates
• Flame Retardants
• Polymeric Materials & Resins
• Dyes & Pigments
• Other Applications
End Users Covered:
• Agrochemicals
• Textile Industry
• Paints & Coatings
• Adhesives & Sealants
• Other End Users
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
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