Published: Oct, 2016
The global stearates market is highly fragmented due to the presence of numerous manufacturers, states Transparency Market Research (TMR) in a new research report. The competitive rivalry among the leading companies is high as they strive to maintain a strong hold on the market. As a result of this, many key companies are entering into partnerships and collaborations with raw material suppliers in regions such as Southeast Asia. The four leading companies operating in the global stearates market, Baerlocher GmbH, FACI S.p.A, Norac Additives Inc., and Dover Chemical Corporation, accounted for a share of 30.6% in 2013.
The global stearates market is expected to rise at a CAGR of 5.0% between 2014 and 2020. The market stood at US$3.89 bn in 2015 and is expected to touch a valuation of US$4.99 bn by the end of 2020. Among end users, the plastic and rubber processing industry emerged dominant in terms of consumption of stearates. It held a share of 57.9% in 2013 in the global stearates market and is expected to account for 57.5% in 2020. In the plastic and rubber processing industry, stearates are used as stabilizing agents and lubricants to reduce adhesion between unvulcanised rubber layers. The rising need to improve rubber-metal adhesion during the manufacturing of rubber tires is one of the primary factors that is likely to accelerate the sales of stearates in the plastic and rubber processing industry over the forecast period.
Asia Pacific to Surge Ahead Owing to High Demand from Emerging Economies
Geographically, Asia Pacific dominated the global stearates market in terms of consumption. Asia Pacific accounted for a share of 46.3% in 2013 and is likely to account for a share of 47.3% in 2020 in the global stearates market. Demand for stearates is significantly high from countries such as South Korea, India, Japan, and China and it is expected to intensify over the forthcoming years. The growth of the stearates market in Asia Pacific can be attributed to the growing demand for sodium stearate in the region from various end-user industries. The mounting consumption of stearates in the plastic and rubber processing industry is another factor that is anticipated to positively impact the growth of the stearates market in Asia Pacific.
Demand from Building and Construction Industry to Aid Growth of Market
According to a TMR analyst, “Rising concerns regarding damage to buildings and constructions due to harsh environmental conditions and situations such as water logging and damping has impelled owners to focus on the adoption of alternative solutions.” As a result of this, building and construction companies are using hydrophobic agents such as stearates to protect structures from degradation. Stearates such as sodium, zinc, and calcium have high swelling capacities and are used as sealing agents. They also prevent water from penetrating into the mortar installed in the structure. Stearates have various building applications such as plasters, joint filers, concrete and dry mortar. They are further used as an additive in construction cement and paints. Moreover, the use of stearates is extensively high in the plastic and rubber processing industry as a lubricating, anti-caking, gelling, and stabilizing agent. Stearates are also used for portioning in the plastic and rubber processing industry.
High Raw Material Prices and Environmental Concerns to Act as Hindrance in Market Growth
Stearates are made from stearic acid which is a derivate of animal fat and vegetable oil. However, as compared to vegetable oil, stearic acid is abundant in animal oil. The vegetable oils from which stearic acid is derived are soy oil, shea butter, cocoa butter, and palm oil. The mounting prices of oil and fat are expected to inhibit the market growth of stearates. Moreover, stearates such as lead and zinc are under threat due to the implementation of environmental regulations associated with their use. Lack of consumer awareness is further expected to impede the adoption of stearates on a large scale.
This review is based on a Transparency Market Research report, titled, “Stearates Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014–2020.”
The market has been segmented as below:
Stearates Market - Product Segment Analysis
- Calcium stearate
- Sodium stearate
- Zinc stearate
- Magnesium stearate
- Aluminum monostearate
- Others (Including lithium stearate, etc.)
Stearates Market - End-user Analysis
- Plastic & rubber processing
- Building & construction
- Paints & coatings
- Others (Including paper & pulp, etc.)
Stearates Market - Regional Analysis
- North America
- Asia Pacific
- Rest of the World (Including Latin America, Middle East and Africa)
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