High demand in paints and coatings industry to drive global carboxylic acids-based esters market

Carboxylic acids-based esters, the compounds formed due to the reaction of an alcohol with a carboxylic acid, are highly popular as a solvent in industries, such as paints and coatings, cosmetics, inks and a variety of personal care products. The realisation that global carboxylic acids-based esters market are good alternatives to the several raw materials used across these industries, which are known to be harmful air pollutants, has led to a significant rise in their demand for carboxylic acids-based esters in the past.

A recent market research report published by Transparency Market states that the market will expand at a healthy 5.3% CAGR over 2015 – 2023 and rise to US$13.43bn by 2023.

Excellent growth in the building and construction industries, especially in developing regions of the world, in the past few years has bolstered the demand for paints and coatings on a global level. The overall development and growth of the paints and coatings industry, being a crucial end user of carboxylic acids-based esters, has a direct impact on the growth prospects of the global market for carboxylic acids-based esters. With excellent future growth prospects, the paints and coatings market will play a significant role in the overall development of the market in the near future.

The manufacturing sector, which is steadily recovering from the effects of the recent global depression, is also projected to aid growth of the market in future years. The high demand of printing inks, especially in the packaging industry, is also expected to lead to an increased demand for carboxylic acids-based esters over the near future. The rising use of carboxylic acids based esters as flavours and fragrances in the food and beverages industry will also drive the market.

However, volatility in prices of raw materials is likely to surface as a crucial factor restraining the growth of the market in the near future. The petrochemical source of origin of key raw materials, such as butyric acid, propionic acid, acetic acid, ethanol, propanol and butanol makes them prone to high price volatility owing to the high fluctuations in short-term demand and supply.

Asia Pacific accounts for more than half the shares in global market

On a geographic front, the regional market for carboxylic acids-based esters in Asia Pacific constituted for a nearly 50% share in the global market in 2014. The region is likely to maintain the leading position over the next few years. The flourishing construction industry, which subsequently gives impetus to the paints and coatings industry and the presence of manufacturing plants of numerous crucial end-use industries in Asia Pacific will drive the market in this region.

In Europe, the second largest regional market for carboxylic acids-based esters is also expected to be driven by the high demand for carboxylic acids-based esters in the paints and coatings industry. In North America, the market will be driven by high demand for carboxylic acids-based esters in the perfumes and fragrances sector.