Polycaprolactone Market

Polycaprolactone (PCL) Market Outlook

Polycaprolactone (PCL) is semicrystalline and biodegradable in nature. It is a hydrophobic polyester with high toughness and biocompatibility, that is broadly applied in biomedical applications, such as scaffolding for repairing tissue, tissue engineering, drug delivery, and drug carrier, among others.

The global polycaprolactone market is valued to be US$ 494.8 million in 2023 and it is anticipated to grow at a CAGR of 9.2% to reach US$ 1,193.1 million by the end of 2033.

Report Attributes	Details
Polycaprolactone Market Size (2022A)	US$ 453.1 Million
Estimated Market Value (2023E)	US$ 494.8 Million
Forecasted Market Value (2033F)	US$ 1,193.1 Million
Global Market Growth Rate (2023 to 2033)	~9.2% CAGR
Europe Market Share (2023)	~38.0%
China Market Growth Rate (2023 to 2033)	~12.7% CAGR
Key Companies Profiled	Perstorp Holding AB; BASF SE; Diacel Corporation; Sigma Aldrich Corporation (Merck); Durect Corporation; Corbion Purac (Corbion N.V.); Shenzhen Esun Industrial Co., Ltd.; Haihang Industries Co., Ltd.; Polyscienes, Inc.

Historic and Future Pathway Analysis for the Polycaprolactone Market

PCL is a non-toxic, biocompatible, and biodegradable polymer that is frequently used in the manufacture of medical equipment, drug delivery systems, and bone engineering.

The Food and Drug Administration (FDA) has approved PCL for use in the human body for certain applications such as adhesion barriers, sutures, and drug delivery devices, among others.

Also, the demand for biodegradable polyester is rising as consumers' preference shifts towards more eco-friendly disposable and packaging plastics for a variety of uses, including agricultural films and food and beverage packaging. The demand for polycaprolactone is rising along with the demand for biodegradable polyester.

• Short Term (2023 to 2026): The thriving construction sector to create lucrative opportunities for the polycaprolactone market growth over the forecast period as polycaprolactone is used in building materials production.
• Medium Term (2026 to 2029): Flourishing packaging and pharmaceutical industries across the Asia-Pacific region to drive medium-term market growth.
• Long Term (2029 to 2033): Government approvals and efforts led by market players to remain competitive in the market are anticipated to create ample growth opportunities for the polycaprolactone market in a long run.

On the back of the aforementioned facts, the market is anticipated to grow at a CAGR of 9.2% during the forecast period from 2023 to 2033, According to the Fact.MR, a market research and competitive intelligence provider.

Market Dynamics Overview

“Growing Application across Construction Sector to Augment Growth”

The growing population coupled with government initiatives towards infrastructure development attracts high investment in the construction sector over the years.

• The global construction sector was valued at US$ 8.2 trillion in 2022 and is anticipated to reach a valuation of US$ 14.4 trillion in 2030. Further,
• The market for real estate will increase from $9.30 billion in 2019 to $1.72 billion in 2040. India's real estate market is projected to grow to US$ 1 trillion by 2030 from US$ 200 billion in 2021 and to contribute 13% of the nation's GDP by 2025.
• Hospitality, commercial, and retail real estate are also expanding greatly, delivering the much-needed infrastructure for India's multiplying requirements.

Polycaprolactone-based thermoplastic polyurethane is used in making thin films and sheets used in underground pipes, and as adhesives, it is used in cement which lowers its carbon emission. Hence, the increase in construction activities will lead to more usage of polycaprolactone for such building materials, which will have a positive impact on the growth of the polycaprolactone industry.

“Fluctuating Raw Material Prices to Hamper Polycaprolactone Consumption”

Polycaprolactone is chemically extracted from crude oil by ring-open polymerization. Consequently, the fluctuation in the price of crude oil owing to supply chain mishaps or geopolitical reasons ultimately disrupts the flow of crude oil to markets and impacts the pricing of polycaprolactone.

Further, the ongoing Russia-Ukraine invasion, China and Taiwan geopolitical tension, also COVID-19 in China, the UAE reducing oil production, sanctions on Iran oil trade, and the US inflation are all factors majorly affecting the crude oil production and supply, thus, rapid fluctuation can be seen in the crude oil prices in past few years affecting end-use industries production and profit margins.

Hence, the disruption in crude oil supply causes manufacturers to produce polycaprolactone irregularly, which results in a shortage of products based on polycaprolactone for important end users like the construction, automotive, and dental industries.

Country-wise Insights

What are the Factors Driving Polycaprolactone Demand Across the US?

The healthcare industry is one of the largest consumers of polycaprolactone due to the emerging demand for tissue engineering. The U.S. is one of the developed countries across the globe performing tissue engineering to a great extent.

Due to its advanced healthcare system, the country is always one step ahead in terms of development in medical procedures.

Tissue engineering covers a wide range of applications in the U.S. In practice, it is related to applications that repair or replace portions of tissues such as blood vessels, bone, cartilage, skin, muscles, and bladder.

The growing practice of tissue engineering along with other medical applications such as drug delivery, dental implants, wound care management, wound dressing tapes, and others, is responsible for the high demand for polycaprolactone in the country to a large extent.

Why is China’s Polycaprolactone Market Expected to Be Highly Lucrative?

The Chinese thermoplastic polyurethane market is one of the major contributors to the market growth of polycaprolactone across the globe. China’s vast footwear industry is one of the primary reasons for the growing use of thermoplastic polyurethane across the country.

With the growing demand for thermoplastic polyurethane, the Government in China is encouraging manufacturers to produce biodegradable products. Hence, there is a demand being generated for bio TPU in China, since the government implemented certain policies and support systems.

Being the most prominent biodegradable polyester to manufacture thermoplastic polyurethane, the demand for polycaprolactone is booming in China.

Category-wise Insights

How are Polycaprolactone Pellet Sales Spurs the Market’s Growth Outlook?

Polycaprolactone, a biodegradable polyester, can be easily manufactured, fabricated, and blended into pellet form. As a result, these pellets are primarily used as a raw material in the manufacture of thermoplastic polyurethane, which has a variety of end uses, including the construction and automotive industries. The consumption of polyurethane has increased due to the mushrooming construction and automotive sectors.

• For instance, the total value of construction stood at USD 1.5 trillion in December 2020 and raised to USD 1.6 trillion in December 2021. Among these, total residential construction stood at USD 714.0 billion in December 2020 and raised to USD 819.1 billion in December 2021, a 14.7% change.
• Further, a total of 3.8 million units were sold in India in 2022, which is 23.1% higher than the prior year.

In the construction industry, thermoplastic polyurethane is used to make building materials, repair and renovate underground pipe networks, and create adhesives. In the automotive industry, it is used to create parts like panels and ditch covers.

The growing production output of the construction and automotive sectors is anticipated to increase the demand for thermoplastic polyurethane, which will increase the use of polycaprolactone pellets in the manufacture of thermoplastic polyurethane.

How does the Application of Polycaprolactone in Healthcare Ignite Sales Growth?

Polycaprolactone is hydrolyzed by its ester linkages under certain physiological conditions (like in humans), owing to this polycaprolactone has drawn a lot of interest for utilization as an implantable biomaterial. Further, polycaprolactone due to its even slower rate of degradation than polylactide, polycaprolactone is particularly intriguing for the creation of long-term implantable devices.

PCL is witnessing high demand from long-term implants and applications involving controlled drug release. However, PCL has some drawbacks in tissue engineering, including a slow rate of degradation, subpar mechanical characteristics, and low cell adhesion.

Hence, by combining calcium phosphate-based ceramics and bioactive glasses with PCL, a class of hybrid biomaterials with noticeably improved mechanical properties, manageable degradation rates, and increased bioactivity is developed. These materials are suitable for bone tissue engineering. Such factors are driving the growth of the healthcare segment in the polycaprolactone market during the projection period.

Eminent Players Key Stratagems

Eminent polycaprolactone manufacturers are Perstorp Holding AB, BASF SE, Diacel Corporation, Sigma Aldrich Corporation (Merck), Durect Corporation, Corbion Purac (Corbion N.V.), Shenzhen Esun Industrial Co., Ltd., Haihang Industries Co., Ltd., and Polyscienes, Inc., among others.

Manufacturers are inclined towards adopting sustainable manufacturing processes to follow stringent guidelines. Further, the development of standard product meeting end-use requirements augments polycaprolactone’s growth. Further, enhancing sales channels to improve the overall profit margins of the market titans.

Fact.MR has provided detailed information about the price points of key manufacturers of polycaprolactone positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Polycaprolactone Industry Research

• By Manufacturing Process :

  • Ring-Opening Polymerization (ROP)
  • Polycondensation of Carboxylic Acid

• By Form :

  • Pellets
  • Nanosphere
  • Microsphere

• By Application :

  • Coating and Thermoplastic Polyurethane (TPU)
  • Healthcare
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA