The Stearates market is estimated to be valued at US$ 6.15 Bn or Mn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Stearates are metallic soaps with long chain fatty acids like stearic acid. They have superior properties like excellent thermal stability, lubricity, water-repellency etc. which makes them suitable for use in plastics, rubber, paints, cosmetics and other applications. They are primarily used as acid scavengers, lubricants, release agents and stabilizers.
Market Dynamics:
The growing plastics and rubber industries are driving the demand for Stearates. Plastics and rubber industries utilize Stearates as acid scavengers, release agents and lubricants. According to UN trade data, global plastics production increased from 335 million tons in 2020 to 351 million tons in 2021, registering a growth of over 4.5%. Rapid urbanization and industrialization along with increasing use of plastics in automotive, packaging and construction industries is expected to propel the demand for Stearates over the forecast period. Secondly, Stearates find major use in paints, coatings, adhesives and sealants industries as lubricants and stabilizers. Expanding construction activity globally is augmenting the sales of paints and coatings which in turn is fueling the Stearates market.
SWOT Analysis
Strength: Stearates have high compatibility with various polymers and have wide application areas. They provide cost benefits and excellent performance characteristics. Stearates impart properties like anti caking, release and lubrication.
Weakness: Majority of stearates are derived from palm oil and soybean oil leading to fluctuation in prices based on availability of raw materials. Strict regulations regarding use of certain stearates can hamper growth.
Opportunity: Growing personal care and cosmetics industry worldwide offers opportunity for stearates producers. Increasing application of stearates in rubber and plastics also presents growth prospects.
Threats: Availability of alternatives such as oleates and erucates posing threat to stearates market. Stringent environment regulations regarding disposal of stearates can negatively impact market.
Key Takeaways
The global stearates market is expected to witness high growth, exhibiting CAGR of 8.0% over the forecast period, due to increasing demand from rubber and plastics industries. Stearates serve as release agents, lubricants and anti caking agents in these industries.
Regional analysis: Asia Pacific dominates the global market and is expected to continue its dominance, growing at a CAGR of over 9% till 2030. China, India and Indonesia have been major consumers due to large rubber and plastics manufacturing base in the region. North America and Europe are other major markets driven by personal care and polymer applications.
Key players: Key players operating in the stearates market are American eChem Inc., Baerlocher GmbH, Corporation Sierra Madre S.A. de C.V., Dover Chemical Corporation, FACI S.p.A., Ferro Corporation, Hummel Croton, Inc., Mallinckrodt Pharmaceuticals, Mexichem S.A.B. de C.V. and Nitika Pharmaceutical Specialties Private Limited (Nikita Chemicals). The players focus on new product launches, partnerships and expansion strategies to gain market share.
