Esterquats Market Size, Share & Trend Analysis Report By Application (Fabric Care, Personal Care, Industrial), By Region (North America, Europe, Asia Pacific, Latin America, GCC, KSA, Rest of MEA), And Segment Forecasts, 2016 - 2024

Industry Insights

The global esterquats market size was valued at USD 1.35 Billion in 2015 and is expected to grow at a CAGR of 10.6% from 2016 to 2024. Increasing demand for high performance and scented fabric softeners is expected to have a positive impact on growth over the forecast period.

Factors, such as growing consumer awareness & disposable income coupled with innovation in fabric softener products, are likely to have a positive impact on the demand over the period. Advancements in technology and the requirement for high-performance & low-cost products have led to the adoption of esterquats in the manufacturing of fabric softeners. Low toxicity and biodegradability of esterquats have resulted in the replacement of DHTDMAC in fabric softeners in Europe and North America over the past years.

North America is a major esterquats market with high penetration in the fabric care sector. The region contributed to over 30.0% share in the global market in 2015. The presence of a large number of market players in the region has led to the development of market over the past years. Extensive R&D initiatives undertaken by companies including Colgate-Palmolive, P&G, and AkzoNobel in the region are likely to propel product use in the coming years.

Growing hair care market is one of the major growth drivers for the industry. Rising awareness regarding the use of environmentally friendly products and consumer inclination toward health & beauty is expected to augment demand over the forecast period.

Increasing youth population in developing economies, urbanization, employment rate, and improving economic conditions are expected to promote the use of hair care products over the forecast period. The availability of numerous products by companies such as P&G and Unilever and increasing trends of salon hair care are likely to further augment demand.

The biodegradability of esterquats makes them an important ingredient in the manufacturing of car washes. The solutions are gaining popularity as they not only help in improving aesthetics but also extend car’s life due to anti-rust and anti-corrosion properties.

Application Insights

The major application segments of the esterquats market are fabric care, personal care, and industrial applications. Fabric care was the largest application, accounting for 91.5% of the revenue share in 2015. Growing awareness regarding use of the chemical as a fabric softener, which helps in maintaining the quality and the texture of the cloth is anticipated to positively affect the market growth.

Esterquats are highly utilized in manufacturing of fabric softeners on account of their superior properties which enhances the quality of textiles. The previously developed fabric softeners were fatty acid based which would soften the cloth but make it less absorbent. These softeners were non-biodegradable which led to increase in demand for biodegradable and environment friendly fabric softener ingredients.

The usage of esterquats in softener formulations helped to gain added advantages of excellent stability, good softening performance, solvent free, no odor, and also helps in getting a good ironing effect. The environmental exposure of textile chemicals that contain esterquats is also less.  The newly developed softeners have been integrating perfumes to improve the scent of fabrics after washing.

Factors such as changing consumer lifestyle and increasing buying power are expected to propel growth over the forecast period. Rising demand for washing machines is also likely to aid market growth of fabric softeners.

Personal care is anticipated to witness the fastest growth at a predicted CAGR of 12.4%, in terms of volume, over the forecast period. Personal care products such as beauty products, shampoos, shaving equipment, soaps, and shower gels play an important role in a consumers life. Consumers prefer personal care products that are efficient. This trend has prompted manufacturers to innovate new formulations and preparation methods to integrate esterquats in numerous personal care products.

Esterquats are used as cationic surfactants in industrial applications such as washing, cleaning products, and paper softening. The surface activity, substantively, antimicrobial, and antistatic properties of esterquats make them a popular choice for use in industrial applications. The use of cleaning solutions helps in preventing corrosion and enhance the life of the equipment.

Regional Insights

Europe was the largest market for esterquats with a share of 37.5% in 2015. Countries such as the UK, Germany, Spain, and Italy are the major consumers in the region. The demand is majorly driven by government regulations related to the use of eco-friendly products for end-use applications. The availability of numerous variants of fabric softeners offering consumer-friendly characteristics as soft hand and mildness are likely to augment the utilization of the product in the region.

Dryer sheets are highly popular as fabric softeners in North America. About 85% to 90% of fabric softener sales in the region is dryer sheet based. However, the market is likely to witness shift in demand towards concentrated liquid fabric softeners which is expected to propel increase in volume consumption over the forecast period. In addition, detergents containing fabric softeners are also being increasingly used, thereby augmenting demand for esterquats in the region.

The demand in Asia Pacific is driven by countries such as South Korea, Japan, and China. The growing awareness among consumers about the ingredients used in the manufacturing of personal care and fabric care products is likely to aid growth in this region. The major manufacturers in the region are involved in expanding plant capacities that manufacture formulations comprising esterquats. Companies such as AkzoNobel, BASF SE, and Huntsman Corporation are engaged in capacity expansions to cater to the growing demand in personal care and fabric care markets in the region.

Latin America is one of the fastest-growing markets for esterquats globally. Rising environmental concerns such as the conservation of water majorly contribute toward a rise in product demand. Reducing the number of rinse cycles help in short cycle time, reduction in efforts, and saving water. Manufacturers of fabric softeners in the region are attempting to develop products that require less water.

Esterquats Market Share Insights

The expansion of distribution channels is a key strategy adopted by companies in the past years. A large number of companies are involved in the development of technologies. In addition, manufacturers are undertaking extensive R&D for the development of effective and high-quality products.

Key companies involved in the production and supply of esterquats are Stepan Company, Kao Chemicals Europe, Evonik Industries, AkzoNobel, Chemelco International B.V., ABITEC Corporation, BASF SE, Lubrizol, Italmatch Chemicals, and Clariant Chemicals. In July 2015, BASF in collaboration with Solazyme Inc. launched first commercial microalgae oil-based surfactant for use in personal care and home