Global Cellulose Acetate Butyrate (CAB) Market - 2023-2030

Overview

Global Cellulose Acetate Butyrate (CAB) Market reached US$ 413.5 million in 2022 and is expected to reach US$ 723.13 million by 2030, growing with a CAGR of 7.4% during the forecast period 2023-2030.

The paint and coatings sector is one of CAB's main users. It is perfect for a variety of coating applications due to its film-forming properties, solvent compatibility and capacity to provide a glossy, smooth finish. The market for CABs is favorably impacted by the rising demand for high-performance coatings in sectors including automotive and construction.

The demand for CAB is mostly driven by the importance placed on building and infrastructure development on a globally scale. It is extensively utilized in coatings for industrial purposes, interior finishes and architectural constructions. Emerging nations are seeing increasing urbanization and building, which is driving up demand for high-performance materials like CAB.

Asia-Pacific is among the growing regions in the global cellulose acetate butyrate (CAB) market, covering more than 1/3rd of the market. The Asia-Pacific CAB market is expanding as a result of manufacturers searching for recyclable materials, a trend that is especially noticeable in the packaging and consumer products industries. Businesses in the CAB sector must a careful eye on these regional trends and adjust their approaches accordingly to take advantage of the growing prospects in the Asia-Pacific.

Dynamics

Construction Activity is Expanding Rapidly in Emerging Countries

The rapid increase of building activity in emerging nations is driving major growth in the global market for cellulose acetate butyrate or CAB. The demand for building materials with better performance is rising as these countries enhance their infrastructure and become more urbanized. Excellent adhesion and durability are only two of the special qualities and adaptability of CAB that make it a significant ingredient in coatings, adhesives and other construction-related products.

The application of CAB in coatings for industrial, interior finishes and architectural structures adds to the durability and visual attractiveness of construction projects, which is in line with the growing demand for construction in rising countries. In addition to satisfying performance standards, the use of CAB in construction applications supports the sector's environmental initiatives. The globally cellulose acetate butyrate market is expanding due to the increase of construction activities in emerging nations and the growing focus on sustainable building materials within the construction industry.

Increasing Demand for Paints and Coatings

The increasing demand for paints and coatings across a range of sectors is driving expansion in the global cellulose acetate butyrate (CAB) market. Because of its special qualities such as superior adhesion, durability and chemical resistance, CAB is an essential component in coating formulation. High-performance coatings are in greater demand as the global construction and automotive industries grow and businesses trying to improve the caliber and longevity of their coatings increasingly turn to CAB.

The introduction of CAB has also been boosted by the focus on sustainable and ecologically friendly coatings. CAB is in line with the industry's move towards environmental solutions due to its bio-based composition and less environmental effect as compared to some alternatives. The market for sustainable coatings is expanding due to an increasing focus on sustainable development activities among customers and regulatory agencies.

High Reactivity of Cellulose Acetate Butyrate When Combined with Solvents

The global market is significantly impacted by the high reactivity of cellulose acetate butyrate (CAB) when combined with solvents. Processing challenges and unwanted reactions might result from CAB's known sensitivity to specific solvents. Because of its high reactivity, the final product's consistency and quality may suffer from problems like gelation or precipitation.

Because of the consequence of CAB's erratic interactions with solvents, manufacturers in sectors such as coatings, adhesives and plastics may find it difficult to achieve the appropriate formulation and application qualities, which limits the material's broad use in some applications. Furthermore, the reactivity issue creates problems for compatibility with other materials in formulations, which may reduce CAB's adaptability in some multi-component systems.

High Cost of Raw Materials

The more expensive cost of cellulose acetate butyrate (CAB) as opposed to some of its substitutes presents a substantial challenge to the global market. Several processing stages and the use of specific raw materials are required in the production of CAB, which raises manufacturing costs. Because of this, the final product has a higher price tag, which makes it less financially feasible for some applications where cost sensitivity is essential.

The market penetration of Cellulose Acetate Butyrate may be restricted in industries where cost-effectiveness is valued more highly than particular performance qualities. Under such circumstances, alternative materials offering comparable functionality at a lower cost might be chosen. Additionally, in sectors like plastics, adhesives and coatings, there is often a strong emphasis on achieving cost efficiency in the competitive arena. Manufacturers and end-users typically seek economically viable solutions that do not compromise quality.

Segment Analysis

The global cellulose acetate butyrate (CAB) market is segmented based on product, application, end-user and region.

Increasing Demand for Paints and Coatings Industries

Paints & coatings segment is among the growing regions in the global cellulose acetate butyrate (CAB) market covering more than 1/3rd of the market. The paint and coatings sector, where cellulose acetate butyrate (CAB) is an essential component because of its special qualities, is a major driver of the expansion of the CAB market globally. Due to its excellent adhesion, durability and chemical resistance, CAB is commonly employed in formulating coatings for various substrates.

Paints and coatings manufacturers opt for it due to its compatibility with a diverse range of solvents and resins. Furthermore, CAB is well-known for its ability to form films, allowing it to create coatings with a glossy, smooth surface. The usage of CAB is anticipated to develop steadily as the need for high-performance coatings across industries, including automotive, industrial and construction, continues to rise globally.

Geographical Penetration

Increasing Expansion of the Infrastructure and Construction Industries in Asia-Pacific

Asia-Pacific has been a dominant force in the global cellulose acetate butyrate (CAB) market and the rapid expansion of the infrastructure and construction industries in nations like China and India is essential. The building sector uses CAB extensively for coatings, adhesives and other purposes. The region's continuous development projects and fast urbanization make CAB advantageous in this regard.

The market for CAB, a high-performance and adaptable material, is expected to expand steadily as long as Asia-Pacific countries continue to engage in large-scale infrastructure projects. The demand for CAB is mostly driven by the expanding automobile sector in Asia-Pacific. CAB is used in automobile coatings, interior components and other applications; China, Japan and South Korea are significant centers of the automotive manufacturing industry.

Due to its exceptional adhesion and impact resistance, CAB is well-positioned for continuous use in the production of automotive components as the automotive industry innovates and emphasizes lightweight and sustainable materials.

For Instance, in 2023, "IMCD India has acquired two business lines from CJ Shah & Company for Cellulose Acetate Butyrate, Coalescing Agent, Polyolefin Polymers and other chemicals primarily for Paints, Coatings, Adhesives and Lifesciences applications." IMCD N.V. is a leading global distribution partner and formulator of specialty chemicals and ingredients.

Additionally, India's infrastructure, automotive and construction sectors have all grown quickly, which has raised demand for adhesives and coatings. By acquiring these companies, the company can significantly expand our product offerings and capabilities, solidifying our position as the industry leader in coatings and construction.

COVID-19 Impact Analysis

The COVID-19 pandemic has had a major effect on several businesses, including the global cellulose acetate butyrate (CAB) business. The epidemic caused supply chain hiccups that had an impact on the shipping and production of raw materials needed to manufacture CABs. Lockdowns, travel bans and social distancing policies enforced in different areas interrupted manufacturing processes, leading to delays and lowering total production capabilities.

The pandemic's effects on consumer behavior and the demand for CAB in sectors including consumer products, automotive and construction also had an impact on consumer behavior. The market has been volatile because of the impact of the pandemic-induced economic slowdown on many end-use sectors of CAB. Delays in project completion and lower investment caused slowdowns in several locations for the construction sector, which is a major user of CAB in applications including coatings and adhesives.

Additionally, the automobile industry had difficulties when its production sites were closed, which had an impact on the need for CAB in products like interior parts and vehicle paints. To navigate through the uncertainty, CAB makers needed to be adaptable and make strategic modifications due to the dynamic nature of the pandemic and its influence on several industries.

Furthermore, the pandemic caused by COVID-19 highlighted the significance of product safety and cleanliness, impacting customer choices and business norms. The market for particular CAB applications, such as those used in packaging, healthcare or other industries that prioritize hygienic practices and safety aspects, may rise as a result of this change of priority.

Russia-Ukraine War Impact Analysis

The current situation between Russia and Ukraine may have a variety of effects on the market for cellulose acetate butyrate. Initially, logistical difficulties, trade prohibitions or pauses in the processing and delivery of raw materials can all cause supply chain disruptions. Uncertainties that impact the availability and cost of these inputs may exist in key areas involved in the manufacture of CAB or its precursor components.

Furthermore, exchange rate volatility and economic uncertainty might result from geopolitical conflicts. The uncertainties might affect pricing tactics and the cost structure of CAB manufacturing and ultimately raise costs for consumers and businesses. Furthermore, the demand for CAB may vary geographically due to alterations in consumer behavior and industrial operations brought about by geopolitical events that alter market dynamics.

Additionally, the globally commerce of chemical products may be impacted by regulatory modifications and sanctions placed on Russia or Ukraine, which may have an impact on the import and export of cellulose acetate butyrate. Trade restrictions and tariff structure modifications have the potential to upset long-standing market trends and reduce market participants' productivity.

By Product

• Butyryl Content Below 17-38 wt%
• Butyryl Content Below 50-53 wt%
• Others

By Application

• Paints & Coatings
• Nail Care
• Printing Inks
• Lacquers
• Others

By End-User

• Coatings and Inks
• Adhesives
• Automotive
• Electrical and Electronics
• Consumer Goods
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Competitive Landscape

The major global players in the market include: Eastman Chemical Company, Dayang Chem (Hangzhou) Co., Ltd., Simagchem Corporation, Shandong look chemical Co., Ltd., Daicel Corporation, Celanese Corporation, Merck KGaA, Haihang Industry Co., Ltd, Unilong Industry Co., Ltd and Spiratex Company.

Why Purchase the Report?

• To visualize the global cellulose acetate butyrate (CAB) market segmentation based on product, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of cellulose acetate butyrate (CAB) market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global cellulose acetate butyrate (CAB) market report would provide approximately 61 tables, 62 figures and 195 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies