CHPTAC Market

Escalating Demand for CHPTAC as a Chemical Additive in Paper Industry to Drive Market Growth

Increasing consumption of 3-chloro-2-hydroxypropyl trimethyl ammonium chloride (CHPTAC) in a wide range of industries including but not limited to paper industry, textile and water treatment industry will reap fruitful opportunities in the market.

Efficacy of CHPTAC to act as a liquid cationic etherification agent has significantly driven its demand in textile industry. The scenario is expected to continue owing to its usage as a warp sizing agent.

Increased consumption of CHPTAC in water treatment industry as a flocculant is projected to create ample opportunities in the market. Escalating need for water treatment plants across the globe is forecast to create remunerative opportunities for the market.

The factors above are set to propel the CHPTAC market at moderate rate of ~4% throughout the forecast period (2019-2029)

Since, last few years, prices of CHPTAC have been stable. As per Fact.MR estimates, the prices of CHPTAC are expected to have minimal fluctuation over the forecast period.

Markets like Middle East & Africa and Latin America will witness pricing on higher side owing to limited number of suppliers coupled with less demand from the region.

Furthermore, ongoing trade conflicts with China might affect the trade flow, which would eventually influence price fluctuation in the region.

Paper Industry to Account for Lions Share in CHPTAC Market

Paper industry is projected to remain a highly lucrative industry and is forecast to account for more than half of the market share by 2029.

Myriad applications of CHPTAC including but not limited to internal binders, reinforcers, and packing will create remunerative opportunities in the market. Trend of fillers and fine fibers trapped additives in paper industry will augment the demand for CHPTAC during the forecast period.

Furthermore, personal care is forecast to witness burgeoning growth rate over other industries and is poised to expand a positive rate of ~8% over the assessment period.

Ability to act as cationic surfactants in cosmetics will increase its demand in personal care industry creating lucrative opportunities in the market. Additionally, Nutraceutical industry is set to emerge as a driving factor in CHPTAC market which would amplify the market’s growth.

North America to Remain in Vanguard, with Europe Close Behind

North America has dominated the market in 2018, and is forecast to maintain its supremacy in the market over other regions during the forecast period. United States is one of the prominent regions in paper industry and ongoing expansion in U.S. shale gas production capacities will pave new opportunities in the market.

U.S has dominated the North America CHPTAC market and is projected to account for over three fourth of the regional share by 2029.

North America is followed by Europe and is likely to experience sluggish growth rate throughout the assessment period. European region is driven by EU-4 countries, which have accounted for near half the regional share.

Germany, being the top paper producer in the region will dominate the demand pie in the regional share. Whereas, NORDIC is set to reap lucrative opportunities in the market and is expected to account for near one third of the market share by 2029.

Furthermore, APEJ is poised to witness dominating growth rate of ~5.5% and is set to gain 320 BPS in its market share by the end of 2029. The anticipated growth is backed by China which is the world’s largest paper and textile producing country, driving the regional demand over the forecast period. India is projected to emerge as highest lucrative region expanding annually at a growth rate of ~7%.

Application Specific Products Generate New Revenue Streams for CHPTAC Market Players

CHPTAC market is a partially consolidated market, where Chemigate Oy, Dongying, Guofeng Fine Chemicals Co, Ltd, Dongying J&M Chemical Co, Ltd, Dow, Hefei TNJ Chemical Industry Co.,Ltd. and Sachem Inc. are the key stakeholders.

Market players have been observed to follow a conservative approach during the historical period.

However, Chinese players have been involved in production capacity expansion of cationic etherifying agents to expand their regional and global roots. CHPTAC offers a range of applications which has pushed the market players to expand their product portfolio.

• For instance, Dongying J&M Chemical Co., Ltd offers Cationic Reagent Quat 188, which acts as an impregnation agent and as a raw material in the dye industry.
• Similarly, Quat 188 65% Cationic Monomer offered by Dow imparts increased hygroscopicity which makes it material of choice in fabric softener applications.

CHPTAC Market: Segmentation

Fact.MR has segmented the CHPTAC market on the basis of application, end use and region.

Application	Cationization of starch Quaternisation of cellulose, protein, guar and other derivatives
End Use	Paper Textiles Water treatment Oil & gas Personal care Others
Region	North America Latin America Europe Japan APEJ MEA

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