Epichlorohydrin Market: Global Industry Analysis and Forecast (2024-2030) By Feedstock, Application, End User, and Region

Epichlorohydrin Market Overview

Epichlorohydrin is a chemical intermediary used to make epoxy resins, synthetic glycerine, and other specialized compounds. Its adhesive characteristics, durability, and chemical resistance make it useful in a wide range of sectors, including coatings, adhesives, electronics, and pharmaceuticals.

 

Several factors will drive the growth of the epichlorohydrin market, including ongoing infrastructure developments around the world, which will increase the demand for high-performance coatings and composites, where epoxy resins are widely used. Similarly, technological advancements improve the efficiency and versatility of epichlorohydrin production processes, increasing supply capabilities. Likewise, growing consumer awareness and preference for environmentally friendly and long-lasting materials will boost the epichlorohydrin market.

 

As of 2023, the global epichlorohydrin market saw significant production, with estimates indicating a total manufacturing volume of approximately 2.5 million metric tons annually. Consumption of epichlorohydrin closely followed production, driven by high demand in a variety of industries, including automotive, construction, electronics, and coating. The demand for epichlorohydrin is primarily concentrated in Asia-Pacific, Europe, and North America, where industrialization and infrastructure development are key drivers of market growth. China, the United States, and Germany are key producing countries, with industries in China, the United States, and Japan as major consumers. The epichlorohydrin market's supply-demand balance is constantly changing, influenced by economic factors, technological advancements, and regulatory developments that affect global manufacturing capacity.

 

In 2023, various important end-use sectors had a significant impact on the epichlorohydrin market. Paints and coatings accounted for a significant share of consumption due to epoxy resin applications, followed by electronics for encapsulating. Epichlorohydrin was used in adhesives and sealants in construction, and it was also heavily used in pharmaceuticals and other industries, demonstrating its wide range of applications and market significance.

 

For instance,

• In September 2019, Meghmani Finechem, India's premier essential chemical company, has planned to construct a 50,000-tonne-per-year Epichlorohydrin plant based on TechnipFMC's EPICEROL innovation. The company aimed to increase production to meet growing domestic demand for epichlorohydrin market.
• In August 2022, OCIM Sdn. Bhd. and KUMHO P&B CHEMICALS., INC. partnered to manufacture epichlorohydrin in Malaysia. The annual production capacity of the plant is 100 KTPA. The ECH will be mainly used to produce epoxy resins using bio-based raw materials.

 

To get more Insights: Request Free Sample Report

 

Epichlorohydrin Market Trend

From Automotive to Aerospace: Epoxy Resins Propel Epichlorohydrin Market Expansion

The increasing demand for epoxy resins in industries such as automotive, construction, electronics, and aerospace is a major driver behind the growth of the epichlorohydrin market. Epoxy resins are valued for their excellent adhesive properties, corrosion resistance, and durability, making them essential for coatings, adhesives, composites, and electronic encapsulates. As these industries expand globally over the forecast period, driven by infrastructure development, technological advancements, and rising consumer demand, the epichlorohydrin market will see a surge in demand. This growth trajectory highlights the importance of epoxy resin in sustaining and supporting epichlorohydrin's expanding applications in a variety of industrial sectors.

 

For instance,

• In 2024, Momentive Performance Materials Inc. and Aditya Birla Chemicals established supply chain partnerships to ensure reliable epichlorohydrin supply for Momentive's epoxy resin production, supporting global market expansion strategies.
• In 2023, BASF SE and Solvay S.A. partnered to explore innovations in epoxy resin technologies, focusing on sustainability and performance improvements through optimized epichlorohydrin utilization.
• In 2021, Hexion Inc., a leading producer of epoxy resins, announced the acquisition of the epoxy business of the Swiss chemicals company Clariant AG. This move aimed to strengthen Hexion's position in the epoxy resin market and enhance its production capabilities, potentially impacting the epichlorohydrin market.
• In 2022, several advancements in epoxy resin formulations were made, including improved durability and corrosion resistance, enhanced thermal and electrical properties, adhesion and flexibility, and environmentally friendly formulations, to improve their performance in a variety of applications, including automotive coatings and electronic encapsulants. These advancements tend to boost the demand for epichlorohydrin as a key raw material.

 

Epichlorohydrin Market Dynamics

The developing paints and coatings industry, as well as rapid industrialization, are expected to drive the epichlorohydrin market

The growth of the paints and coatings industry, along with rapid industrialization, is expected to drive the epichlorohydrin market significantly during the forecast period. Epichlorohydrin is a critical raw material for epoxy resins and is used to create coatings with superior adhesion, durability, and resistance to chemicals and weathering. As global industrialization accelerates, particularly in emerging economies, there will be an increased demand for high-performance coatings in the construction, automotive, and industrial sectors.

 

These coatings are critical for protecting infrastructure and machinery from corrosion and wear, necessitating the need for dependable and efficient epichlorohydrin sources. Thus, the expanding paints and coatings industry, combined with industrial growth, ensures a strong outlook for the epichlorohydrin market as it meets the growing demand for long-lasting and versatile resin solutions worldwide.

 

For instance,

• In 2024, BASF and Covestro collaborated in 2024 to develop high-performance coatings using advanced epoxy resin formulations. The collaboration aims to introduce coatings with improved sustainability profiles and performance characteristics, driven by innovations in epichlorohydrin-based technologies.
• In 2023, Sherwin-Williams launched eco-friendly coatings in 2023, utilizing epoxy resins sourced from sustainable epichlorohydrin production processes.
• In 2021, AkzoNobel completed the acquisition of Tikkurila, a leading manufacturer of decorative paints and industrial coatings. This acquisition aimed to strengthen AkzoNobel's position in the European epichlorohydrin market.

 

Harmful Health Effects of using epichlorohydrin can impact market growth

Epichlorohydrin poses significant health risks, including acute dermal exposure symptoms such as redness, swelling, and blistering, along with eye and throat irritation, nausea, and headaches from vapor inhalation. Long-term exposure has been linked to serious health issues, including cancer, leukemia, and heart disease, according to epidemiological studies. These health hazards pose challenges for the epichlorohydrin market despite its widespread use in glycerine production, essential for pharmaceuticals, cosmetics, and personal care products due to its moisturizing and antimicrobial properties, crucial for managing conditions like atopic dermatitis affecting millions globally.

 

For instance,

• According to the World Health Organization (WHO), an epidemiological analysis was carried out on 863 workers at two chemical plants with possible exposure to epichlorohydrin (ECH).

 

Epichlorohydrin Market Segment Analysis

Based on Feedstock, the propylene-based segment dominated the epichlorohydrin market in 2023 and is expected to maintain its lead throughout the forecast period. Propylene-based epichlorohydrin production is preferred over glycerine-based methods due to its established infrastructure, low cost, and efficient production processes. Also, propylene is widely available as a feedstock worldwide, ensuring a stable and dependable supply chain for the epichlorohydrin market.

 

Currently, the classic propylene high-temperature reaction with chlorine followed by hydrolysis still provides about 85% of the industrial epichlorohydrin demand. Looking forward, technological advancements in propylene-based production methods, combined with economies of scale and rising demand from key end-use industries such as epoxy resins and water treatment chemicals, will strengthen its position in the epichlorohydrin market.

 

For instance,

• In 2024, INEOS completed the acquisition of a glycerine-based epichlorohydrin production facility, enhancing its capability to cater to niche markets and diversify its feedstock sources.
• In 2023, Shell and a consortium of partners collaborated to develop a sustainable glycerine-based epichlorohydrin production process, aiming to utilize bio-based glycerine as a feedstock, aligning with sustainability goals.
• In 2022, Hexion Corp. announced plans to increase production of epichlorohydrin (ECH) at its Pernis, Netherlands, plant while incorporating more sustainable technology after completion. This growth plan includes a new expansion, which is part of Hexion’s overall sustainability strategy by adding another annual output of twenty-five thousand metric tons with input from bio-based renewable feedstocks through glycerine-to-hydride glycerine technology and supports efforts towards energy reduction in ECH manufacturing throughout whole mix at Pernis site.

Epichlorohydrin Market Regional Insights

The epichlorohydrin market exhibited a robust regional distribution, with the Asia-Pacific epichlorohydrin market commanding the largest market share in 2023. This dominance was driven by strong demand from rapidly industrializing countries like China and India, where epichlorohydrin is primarily used in the production of epoxy resins for applications in building construction and electronics manufacturing. The region's expansive infrastructure development and growing consumer class further bolstered market growth.

 

The North American epichlorohydrin market followed with a significant market share, supported by high demand for chemical products, capital investments, and expansions in industries such as oil exploration. In Europe, growth was propelled by advancements in the automotive sector and increasing applications in pharmaceuticals. The Middle East, Africa, and South America regions also saw emerging demand due to activities in petroleum refining and infrastructure development. 

 

For instance,

• In August 2022, China announced that it would be spending 300 billion Yuan (USD 44 billion) on infrastructure development and announced more stimulus policies for growth in this sector.
• In March 2022, Grasim Industries Limited (India) and Aditya Birla Chemicals (Thailand) Pt. Ltd said that they intended to expand its global epichlorohydrin (ECH) production capacity during Quarter 1 of 2025.
• In 2021, DCM Shriram approved an investment worth USD 133.9 Mn. to develop downstream capabilities in the chemical space. The proposed investments include a hydrogen peroxide unit of 52,500 tonnes per year and an epichlorohydrin unit of 51,000 tonnes, as well as a glycerine purification facility for the Bharuch plant in Gujarat.

 

Top 5 Importers of the Epichlorohydrin Market in 2023 were India, Vietnam, United States, Russia, and Ukraine.

 

The top 5 Exporters of the Epichlorohydrin Market in 2023 were China, South Korea, Japan, Thailand, and Germany.

 

Epichlorohydrin Market Competitive Landscape

The epichlorohydrin market was defined by fierce competition among key players attempting to capitalise on rising demand across a variety of industrial applications. Solvay SA maintained its leadership position thanks to its extensive global presence, diverse product portfolio, and strong R&D capabilities. Solvay's strategic initiatives centred on sustainability and innovation, such as investments in the epichlorohydrin market and advanced manufacturing technologies, bolstered its market leadership.

 

Dow Chemical Company has also emerged as a key player in the epichlorohydrin market, owing to its integrated supply chain and technological expertise in propylene-based epichlorohydrin production. Dow's competitive advantage stemmed from its ongoing investment in capacity expansions, operational efficiencies, and strategic partnerships to increase market penetration and meet specific customer needs.

 

Epichlorohydrin Market Scope

Epichlorohydrin Market
Market Size in 2023	USD 3.00 Bn.
Market Size in 2030	USD 4.52 Bn.
CAGR (2024-2030)	6.02%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Epichlorohydrin Market Segments	By Feedstock Propylene-based Glycerine-based
	By Application Epoxy Resins Synthetic Glycerine Water treatment Chemicals Others
	By End-Use Paints & coatings Electronics Construction Pharmaceutical Others
Regional Scope	North America – United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Russia, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa – South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Epichlorohydrin Market Key players

North America

1. Dow Chemical Company (US)
2. Momentive Performance Materials Inc. (US)
3. Olin Corporation (US)
4. The Chemours Company (US)
5. Hexion Inc. (US)
6. LANXESS Corporation (US)

Europe

1. Solvay SA (Belgium)
2. Spolchemie AS (Czech Republic)
3. Zachem SA (Poland)

Asia Pacific

1. Samsung Fine Chemicals Co. Ltd (South Korea)
2. Sumitomo Chemical Co. Ltd (Japan)
3. Aditya Birla Management Corporation Pvt. Ltd (India)
4. Formosa Plastics Corporation (Taiwan)
5. Hanwha Chemical Corporation (South Korea)
6. LOTTE Fine Chemical Co. Ltd. (South Korea)
7. Jiangsu Yangnong Chemical Co., Ltd. (China)
8. Osaka Soda Co., Ltd. (Japan)
9. Daisco Co., Ltd. (Japan)
10. Meghmani Finechem Limited (MFL) (India)

Middle East and Africa (MEA)

1. NAMA Chemicals (Saudi Arabia)
2. Saudi Basic Industries Corporation (SABIC) (Saudi Arabia)

South America

1. Braskem S.A. (Brazil)
2. Oxiteno (Brazil)