Benzyl Alcohol Market - Growth, Trends, and Forecasts (2022 - 2027)

The global benzyl alcohol market is projected to register a CAGR of over 5% during the forecast period (2022-2027).

The outbreak of the novel coronavirus has impacted most industries all around the world. Excluding the pharmaceutical applications, the demand for benzyl alcohol in cosmetics reduced in 2020 due to the lockdown scenario, coupled with halted production units. However, in 2022, the situation is coming on track and now the market is stable and growing steadily.

Key Highlights

• Over the short term, the increasing demand from the food and beverage and cosmetics, and personal care industries is expected to drive the market's growth.
• On the flip side, a high concentration of benzyl alcohol causes toxic effects on humans is hindering the growth of the market.
• Intensification of nitrobenzaldehydes synthesis from benzyl alcohol as an inherently safe continuous flow process in a microreactor is expected to offer various opportunities for the growth of the market over the forecast period.
• Asia Pacific represents the largest market and is expected to be the fastest-growing market over the forecast period due to the increasing consumption from countries, such as China, India, and Japan.

Key Market Trends

Food and Beverage Industry Segment to Dominate the Market

• Food additives and preservatives derived from benzyl alcohol are intensively used in the food and beverage industry. The food and beverage industry is anticipated to register a CAGR of more than 8% during the forecast period.
• The food preservative market is expected to register a CAGR of more than 6% during the forecast period, owing to the rising consumption of processed and packaged food. This is expected to ensure the regular demand for benzyl alcohol as many preservatives are derived from it.
• The worldwide food additives market is projected to show rapid growth during the forecast period. Benzyl alcohol is a food additive permitted for direct addition to food for human consumption, as a synthetic flavoring substance.
• Germany's food and beverage industry is the fourth-largest industry with a promising outlook for the future. The industry is characterized by its small and medium-sized enterprise sector of over 6,000 companies. The revenue in the food and beverage market was ~ USD 3,222 million in 2021.
• In 2021, the total value of all retail food and beverage (F&B) sales in Japan totalled USD 467.20 billion, a 2.3 % decrease over 2020 sales of USD 478.12 billion, which negatively impacted the market studied.
• Therefore, the factors mentioned above are expected to show a significant impact on the market in the coming years.

Asia Pacific to Dominate the Market

• Asia Pacific is expected to be the dominant market in benzyl alcohol consumption. This is because China dominates the market for the end-user industries, such as paints and coatings, adhesives and sealants, chemical processing, and cosmetics and personal care. China's consumption of adhesives accounts for about a 32% share of global consumption.
• Asia Pacific is also expected to be the fastest-growing market during the forecast period, owing to the demand for applications like solvents, preservatives, food additives, etc.
• The Asia Pacific food additive market is expected to register a CAGR of more than 6% during the forecast period. Benzyl alcohol is regularly used as a food additive in various applications.
• Benzyl alcohol is widely used in the production of construction industry products, like adhesives, paints, coatings, sealants, and others. The paints and coatings industry, where benzyl alcohol is used as a general solvent, is expected to witness a CAGR of approximately 6% during the forecast period in the region. This is because China is expected to witness the highest growth in construction activities, followed by India. In China, government spending on constructing affordable housing facilities has been increasing to cater to the housing demand. Additionally, the public-private partnership (PPP) projects have been boosting the domestic construction sector.
• China has the largest construction market in the world, encompassing 20% of all construction investments globally. China is expected to spend nearly USD 13 trillion on buildings by 2030, creating a positive market outlook for the paint and coating industry and thus driving the studied market.
• Furthermore, the Japanese construction market was valued at USD 593.3 billion in 2021. The market is projected to grow at a CAGR of ~4% during the forecast period.
• Paints and coatings find their application in the automotive industry as well. In 2021, China produced 26,082,220 vehicles, registering a growth rate of about 3%, which drives the demand for the studied market.
• The Asian cosmetics and personal care market is gaining popularity, worldwide. It is expected to register a CAGR of more than 5%, during the forecast period, with Japan, Singapore, South Korea, Hong Kong, and China among the top 10 global cosmetics exporters. Benzyl alcohol is used in various cosmetic formulations as a fragrance component, preservative, solvent, and viscosity-decreasing agent.
• China is one of the major consumers of cosmetics. Benzyl alcohol is widely used in cosmetic formulations as a fragrance component, preservative, solvent, and viscosity-decreasing agent. The L'Oreal Group witnessed an increase of 34.2% year on year in sales in the first half of 2021 on the Chinese mainland. In May 2021, the company announced several new brands, beauty tech solutions, and a unique beauty triangle featuring skincare in the country.
• Therefore, the factors mentioned above are expected to show a significant impact on the market in the coming years.

Competitive Landscape

The benzyl alcohol market is fragmented in nature. The major companies in the market studied include Alfa Aesar, Elan Chemical, LANXESS, Merck KGaA, and Valtris Specialty Chemicals, among others (not in any particular order).

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support