The global Naphthenic Acid market is expected to grow at a CAGR of over 1.5% during the forecast period. The major factor driving the market is the rise in demand for wood and textile preservatives. The environmental degradation caused by naphthenic acid is expected to significantly hinder the growth of the market studied.
- Asia-Pacific region is expected to dominate the global market during the forecast period and is also expected witness the fastest CAGR.
- Optimal and effective mechanisms used in refining process from crude oil is likely to act as opportunities in the future.
Key Market Trends
Growing Demand for Wood Preservatives
- Copper and Zinc salts of naphthenic acid known as copper or zinc naphthenate are used in wood preservation and for protecting other cellulosic materials from damage by decay fungi and insects.
- Their addition in wood preservatives helps to prevent the decay of wood products such as fences, poles, and furniture, and timber surfaces and structures in buildings. The decay may be caused by the sun, extremes of temperature, humidity or by fungi and insects (particularly termites and borers). Growing furniture production and booming construction industry is majorly expected to drive the demand for wood preservatives and hence the demand for naphthenic acid through the years.
- According to the China Furniture Association, there are more than 100,000 furniture manufactures located in the five major furniture manufacturing bases.
- In terms of quantity, Malaysia was the largest exports of wooden furniture (26,482,004 units), followed by Thailand (10,936,274 units). In terms of office wooden furniture, Malaysia and China dominated the market in exports.
- Overall, the growing furniture market is majorly expected to fuel the wood preservatives consumption; which, in turn, will increase the demand for naphthenic acid through the forecast period.
China to Dominate the Demand in Asia-Pacific Region
- The demand for Naphthenic acid in China is expected to rise at a great pace due to the increasing demand from furniture manufacturing companies as solvent based intermediaries for the wood preservative applications.
- China is topping the rank as a furniture producer, consumer and exporter. It accounts for around 40% of the global furniture production. The country's furniture industry is mainly driven by real estate sales.
- As per the Global Infrastructure Outlook report, China, Japan, South Korea, India and Singapore are the major countries comprising the investment needs for infrastructure which already share over half the global infrastructure market.
- Rising demand for home decoration, increased standard of living and its consumption in aerospace applications as an anti-corrosive agent in the production of jet fuel is likely to have a positive effect on the consumption of naphthenic acid in the country.
- Over the next 20 years, China is expected to be the world's largest single-country market for civil aircraft sales. Presently, the country is running 2,185 general aviation aircraft. Moreover, it is planning to build more than 5,000 aircraft and 500 airports, by 2020, which, in turn, is expected to boost the demand for jet fuels in the country.
- Owing to all the aforementioned factors, the market for naphthenic acid in the region is projected to grow during the forecast period.
The global naphthenic acid market is consolidated, where the top three players account for majority of the global market share. Major players in the market include Merichem Company, Umicore Cobalt & Specialty Materials (CSM), and Midas Chemical Company Limited, among others.
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