The global oxo alcohol market seems to reach USD 20.65 billion by 2028, at a CAGR of 4.85% from 2021 to 2028. Oxo alcohols are gaining huge popularity due to their versatile applications in the production of a variety of chemicals, materials, and fuels. The Oxo alcohol market is predicted to witness considerable growth shortly.
Oxo alcohols are a type of alcohol that is synthesized from propylene and syngas. The demand for oxo alcohols is increasing rapidly in various industries such as food & beverage, pharmaceutical, and personal care. They are used as solvents and carriers in the production of a variety of materials. The increasing demand for oxo alcohols in these industries is driving the growth of the oxo alcohols market.
The rising trend of using biodegradable packaging materials in the food & beverage and pharmaceutical industries is another factor driving the growth of the oxo alcohols market. The availability of a variety of bio-based oxo alcohols, such as C12-C14 and C16-C18 alcohols, is further propelling the growth of the oxo alcohols market.
Restraints of the Oxo Alcohols Market
- Stringent Government Regulations: The production, consumption, on, and trade of oxo alcohols are subject to stringent government regulations in most countries. This is because of the potential health and environmental risks posed by these materials. For example, in the US, the Environmental Protection Agency (EPA) has set strict regulations on the production and use of these materials.
- High Cost: Oxo alcohols are relatively expensive to produce due to the high cost of raw materials and the complex manufacturing process. Additionally, the transportation and storage of these materials can be costly due to their flammable and hazardous nature.
- Volatility in Raw Material Prices: The prices of raw materials used to produce oxo alcohols, such as olefins and isobutene, can be volatile. This can hurt the cost and availability of these materials, and consequently the oxo alcohols market.
The key players in the oxo alcohols market are BASF SE, DowDuPont, Cargill, and Shell Chemicals. These companies are investing in research and development activities to develop new products and expand their product offerings. They are also investing in collaborations and partnerships with small and medium-sized companies to strengthen their position in the oxo alcohols market.
