Polycaprolactone Market Segmentation by Form (Polycaprolactone Pellets, Polycaprolactone Nanosphere, Polycaprolactone Microsphere), by Manufacturing Process (Ring-Opening Polymerization (ROP), Polycondensation of Carboxylic Acid) - Regional Forecast 2021-2031

Polycaprolactone Market Outlook

Polycaprolactone market valuation is anticipated to increase at a CAGR of 10% over the forecast period of 2021 to 2031 and reach a valuation of US$ 545 Mn by 2031, which amounts to around 11% share of the overall biodegradable polyester market.

An upsurge in the demand for eco-friendly disposable and packaging plastic products for various applications, including agricultural films and food & beverage packaging is driving demand for biodegradable polyester. With the growing requirement for biodegradable polyester, demand for polycaprolactone is also increasing.

Globally, polycaprolactone consumption experienced a downfall in 2020 due to the COVID-19 pandemic. However, as things open up, owing to rising demand followed by increasing production, the market has seen growth again since the beginning of 2021.

Fact.MR, a market research and competitive intelligence provider, analyzed that polycaprolactone usage in manufacturing thermoplastic polyurethanes holds a significant market share, and this trend is likely to continue over the coming years.

Polycaprolactone Consumption Analysis from 2016 to 2020 Vs Market Outlook for 2021 to 2031

The global polycaprolactone market witnessed a strong growth rate of 7.6% over the historical period (2016 to 2020), with sales pegged at US$ 360 Mn in 2020. PCL, a synthetic polycaprolactone polymer, has found widespread demand in numerous applications due to several characteristics, including long-span biodegradability, biocompatibility, polycaprolactone 3D printing techniques, and regenerative polycaprolactone properties.

The global market for polycaprolactone has evolved significantly in recent years on the back of increasing investments in new technologies to overcome performance and quality issues associated with the manufacturing of polycaprolactone.

Moreover, shifting preference towards plastics derived from biodegradable and fossil fuels is also creating growth avenues in new potential markets for polycaprolactone suppliers.

Based on the aforementioned trends, the global polycaprolactone market is expected to surge ahead at a CAGR of 10% over the long-term forecast period (2021-2031).

• Polycaprolactone pellets hold the highest market share and demand is anticipated to rise rapidly at a CAGR of 11.4% during the forecast period. Polycaprolactone films demand is also expected to be strong over the coming years.
• Europe accounted for a major chunk of the market. The regional market expanded at a CAGR of 9.8% during 2016-2020, and is anticipated to progress at a CAGR of 11.6% through 2031.
• Demand for polycaprolactone in healthcare and drug delivery is anticipated to grow at a significant pace over the forecast period.
• Polycaprolactone manufacturing from Ring-Opening Polymerization (ROP) is the most significant process followed by manufacturers across the globe.

Which are the Prominent Driving Factors for Polycaprolactone Sales?

Over the past few years, demand for high-performance polyurethane elastomers such as polycaprolactone across diverse end-use industries matured, as well as is niche applications where they have witnessed amplified demand. This is attributed to increasing need for better infrastructure, highly efficient and permeable polymers, coupled with cost-effective solutions. Polycaprolactone is mainly used in the production of thermoplastic polyurethane.

Polycaprolactone-based polyurethanes are widely used in coatings, adhesives, sealants, and elastomers. Sales of polycaprolactone (PCL) in thermoplastic polyurethane were pegged at more than US$ 166 Mn in 2020.

Furthermore, niche applications of PCL are anticipated to create remunerative opportunities in the market owing to increasing demand for polycaprolactone (PCL) for drug delivery, tissue engineering, orthopedics, sutures, wound healing products, and dental implants.

Country-wise Analysis

Why China a Prominent Market for Polycaprolactone Manufacturers?

China is considered the second-largest market for polycaprolactone. In terms of value, the market is anticipated to expand at a CAGR of 12.7% over the forecast period of 2021-2031.

The thermoplastic polyurethane market China is one of the largest contributors across the globe. China’s huge footwear industry is one of the primary reasons for the growing utilization of thermoplastic polyurethane in the country. 

With growing demand for thermoplastic polyurethane, the Government in China is encouraging manufacturers to produce biodegradable products. Hence, there is 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, demand for polycaprolactone is booming in China.

How is Polycaprolactone Demand Shaping Up in the U.S.?

The healthcare industry is one of the largest consumers of polycaprolactone due to 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, cartilages, skin, muscles, and bladder.

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

Category-wise Analysis

How is Continuous Emphasis on Eco-friendly and Cost-effective Raw Materials Bolster Polycaprolactone Pellet Sales?

Polycaprolactone pellets hold a leading share in the global market, accounting for around 4/5 of overall sales in 2020. Rise in application of PCL in packaging and 3D printing is expected to be a key contributor to the spurring sales of pellets.

In addition, ring-opening polymerization (ROP) is commercially preferred and is the most prevalent technique for manufacturing polycaprolactone materials, mainly pellets. This is attributed to the higher polycaprolactone molecular weight achieved, higher monomer conversion (yield), along with its lower operation cost as compared to the polycondensation of hydro carboxylic acid.

Moreover, new initiatives taken by governments for environmental protection and balancing the demand for eco-friendly raw materials are anticipated to boost demand for polycaprolactone pellets at a growth rate of 12.1% CAGR over the coming years.

How are Investments in Better Healthcare Proliferating Polycaprolactone Industry Growth?

Europe led global demand for polycaprolactone in 2020 with more than 1/3 market share owing to increasing number of new market entrants with considerable production capacities over the last few years. Usage of polycaprolactone in healthcare applications is expected to rise.

Among the regions, North America holds significant potential for penetration in the market. Furthermore, with better healthcare infrastructure and strong foothold of key chemical companies, the region is expected to witness a moderate growth rate over the forecast years.

In addition, polycaprolactone production is limited to a few countries only but widely open for future investments across high-potential markets of South Asia and East Asia.

Collectively, these two regions are anticipated to gain more than 380 BPS by 2031. Moreover, advancements in technology and increased efforts from research centres will create future growth opportunities for polycaprolactone suppliers.

Competitive landscape

Key market players are focusing on increasing their market share in the Asia Pacific and European markets by entering into strategic partnerships and joint ventures with regional players as well as investment groups.

On the other hand, regional market players are focusing on forging long-term relationships to sustain continuous revenue flow. In addition, global and domestic manufacturers in the market are focusing on adopting alternative distribution channels, such as online sales, to strengthen their market presence.

Polycaprolactone Industry Report Scope

Polycaprolactone Industry Research: Key Segments

• By Form

  • Polycaprolactone Pellets
  • Nanosphere
  • Microsphere

• Manufacturing Process

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

• By Application

  • Thermoplastic Polyurethane
  • Healthcare
  • Drug Delivery
  • Wound Care Management
  • Sutures
  • Wound Dressing Tapes
  • Tissue Engineering
  • Orthopedic
  • Dental Implants
  • Others