Ethoxylates Market Size, Share & Trends Analysis Report By Product (Alcohol, Fatty Amine, Fatty Acid, Ethyl Ester, Glyceride), By Application, By End Use, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global ethoxylates market size was valued at USD 13.2 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 4.0% from 2020 to 2027. The market is anticipated to be driven by the consumption of ethoxylates across various industries, including personal care, pharmaceutical, industrial, and household cleaning. The product is widely being used as a foaming and wetting agent in detergent and cosmetic product formulations.

Commercially, ethoxylates are obtained by reacting raw materials, such as amines or alcohols, with ethylene oxide in the presence of a catalyst. Some of the commonly used catalysts are potassium hydroxide and zirconium dodecanoxide sulfate. However, market players such as Stepan Company and Royal Dutch Shell Plc. use hydrotalcite/magnesium/aluminum and rare earth as a catalyst in its ethoxylation process.

The majority of the market players involved in ethoxylates manufacturing are backward integrated and focused towards sustainable sourcing of ethylene oxide, thereby reducing the manufacturing cost as the major cost incurred in the production process is that of the raw material. In addition, demand for ethylene oxide is higher among other industries, including automobile, agriculture, food, paints, and plastics, which may result in an uninterrupted supply of raw material, thereby proving to be a major market restraint.

The market exhibits the presence of stringent regulations employed by authorities, such as the European Commission and U.S. EPA. In addition, the restrictions imposed on the demand for ethoxylates are expected to hamper the market growth over the forecast period. Growing consumer inclination towards environmentally friendly as well as naturally sourced products, coupled with consumer willingness to spend on premium and high-end products, is expected to act as a beneficial factor in product consumption.

However, demand for ethoxylates is expected to be restrained by concerns regarding the toxicity of the products. The surfactants used in coatings, detergents, and cleaners are based on ethoxylates. The ethoxylate products such as alcohol ethoxylates pose a threat to the sediment organisms and sewage treatment plant organisms, thereby posing a threat to the environment. In addition, products such as nonylphenol ethoxylates (NPEs) have been found to cause damage to human health and consequently been banned by several governing agencies, such as the European Union and the government of Canada.

Product Insights

Alcohol ethoxylates accounted for the largest revenue share of 48.4% in 2019. Alcohol ethoxylates (AE) are among the prominent commodities in surfactant manufacturing. It is also the largest downstream sector of fatty alcohols. They offer properties such as rapid biodegradation, superior cleaning of man-made fibers, and tolerance toward water hardness, which make them favorable for use in laundry detergent formulations. The product is commercially manufactured from synthetic as well as natural sources. Synthetic form of the product is majorly used in Europe and U.S., whereas the natural form of alcohol ethoxylates, including fatty alcohol ethoxylates (FAE), is largely preferred in the Asia Pacific owing to large scale availability of raw materials.

Alcohol ethoxylates also play a vital role in the textile industry for scouring, lubricating, and dyeing processes, where they help to reduce curds and scouring time. These applications have witnessed a rise in the consumption on account of an increase in population, coupled with growing disposable income. Demand from the paint industry for emulsification is expected to rise owing to the infrastructural development across the globe.

Amine ethoxylates are used across various industries, including textile, personal care, agrochemical, industrial cleaners, metal cleaners, homecare, and paints and coatings. Their application in these industries can be attributed to their emulsifying, wetting, defoaming, stabilizing, and dispersing properties. They are developed by reacting ethylene oxide with amines, such as stearyl amines, oleyl amine, tallow amines, amino acids, and coco amine. Widely utilized fatty amine ethoxylates include coco-amine, lauryl, and oleyl amines, which majorly find their applications in the formulation of textiles and detergents. LEUNA-Tenside GmbH, Oxiteno, Stepan Company, Ethox., BASF SE, and SILVER FERN CHEMICAL, INC. are some of the players involved in the production of amine ethoxylates.

Application Insights

The household and personal care application segment accounted for the largest revenue share of 32.4% in 2019 and is anticipated to maintain its lead over the forecast period. The growth in this segment is attributed to its extensive use in the formulation of various household cleaning products, such as laundry detergents in liquid and powder forms, dishwashing gels and detergents, fabric conditioners, glass cleaners, carpet cleaners, oven cleaners, air fresheners, and hard floor and surface cleaners.

Ethoxylates are widely used in the pharmaceutical industry in ointments, tablets, syrups, and gels as emulsifiers. The growing prevalence of chronic diseases, driven by environmental degradation and negligence towards health and hygiene has propelled the demand for innovative and effective pharmaceutical formulations. This is expected to drive the ethoxylates demand in the pharmaceutical industry over the forecast period. Moreover, demand for generic drugs is rising among the developing countries that use ethoxylates for the manufacturing process, which is further anticipated to propel its consumption.

End-use Insights

The detergent segment accounted for a major revenue share of 33.0% in 2019.  Products infused with naturally derived ethoxylates are mild and have minimal effect on human skin when used. As a result, several detergent manufacturers are now inclined towards including naturally sourced ethoxylates in their formulations. In addition, ethoxylates are inert, non-toxic, non-corrosive, and they usually possess a high flash point, which does not affect marine life, hence proving to be environmentally friendly. 

Linear alcohol ethoxylates are utilized on a large scale in soaps and detergent manufacturing, which includes both liquid and powdered forms. However, an increasing number of substitutes such as Oley amine ethoxylates and coco amine ethoxylates, which are used for the same purpose and possess similar properties are expected to hamper its consumption in detergent products manufacturing.

Consumption of personal care products is higher in the developed regions as their lifestyle is inclined towards the consumption of such products driven by heightened consumer concerns regarding personal hygiene. Demand for cosmetics is higher in North America and Europe due to high disposable income, thereby driving the market for ethoxylates. In addition, the growing adoption of personal care products by the consumers in the Asia Pacific is expected to drive the market over the forecast period.

Demand for ethoxylates used in herbicides manufacturing is expected to grow on account of growing agricultural activities. In addition, the consumption of herbicides is primarily concentrated in the agrarian regions. The concerns regarding the negative effects of long term use of herbicides on the fertility of land are responsible for a relatively low growth rate of the segment over the forecast period.

Regional Insights

Europe accounted for the largest volume share of 33.9% in the market in 2019 owing to augmented demand from the personal care, pharmaceuticals, and household and industrial cleaning industries. Improving lifestyle of the people, coupled with heightened awareness regarding personal hygiene, has driven the consumption of personal care products. Augmented efforts and initiatives undertaken by the national governments as well as the European Commission in reviving the end-use markets for the ethoxylates, including pharmaceuticals and agrochemicals, are expected to propel product demand over the forecast period. The aforementioned factors, coupled with the superior properties of the ethoxylates, are expected to bolster regional market growth over the forecast period.

Germany accounts for a considerable share of the overall consumption in the Europe market. Consumption of alcohol ethoxylates is observed to be maximum due to the high demand for the product in the industrial and institutional cleaning applications. The presence of a well-established manufacturing industry also generates demand for industrial products, such as lubricants, which also perform as corrosion inhibitors and emulsifiers for chemical thickening. 

The Asia Pacific is the second largest consumer of ethoxylates after Europe. The market growth in the region can be attributed to the high consumption of ethoxylates owing to rapidly flourish pharmaceutical, personal care, and cleaning industries in developing economies, including China, India, Japan, and South Korea. Moreover, the region is one of the largest producers as well as exporters of palm oil with Indonesia and Malaysia constituting 60 percent of total world exports. Palm oil is one of the major raw materials used for developing fatty alcohols and amines, which are primary raw materials for obtaining ethoxylates. Uninterrupted supply of raw materials, coupled with growing demand for household cleaners, is expected to drive the product consumption in the region over the forecast period.

Key Companies & Market Share Insights

The market has been characterized by the presence of a large number of manufacturers catering to the local market as well as international markets. The companies enter into a long-term contract with the raw material suppliers to ensure a constant supply. In addition, the companies operate through a dedicated distribution channel for major players, such as Procter & Gamble Co. and Unilever, in order to sustain sales.

The companies lay high emphasis on developing advanced technologies to develop advanced solutions for use in cleaners, detergents, and other applications in order to gain a strong foothold as well as sustain in the market. Moreover, companies are adopting competitive pricing strategies to increase annual revenues. In addition, key players are focused on developing environmentally friend products containing minimal VOC contents, which is expected to drive the market over the forecast period.  Some of the prominent players in the global ethoxylates market include:

• Stepan Company

• BASF SE

• Huntsman International LLC

• Nouryon

• Dow

• Arkema SA

• Clariant AG

• E.I. du Pont de Nemours and Company

• Evonik Industries AG

Ethoxylates Market Report Scope

Segments Covered in the Report 

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global ethoxylates market report on the basis of product, application, end use, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Alcohol

  • Fatty Amine

  • Fatty Acid

  • Ethyl Ester

  • Glyceride

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Household & Personal Care

  • Institutional & Industrial Cleaning

  • Pharmaceutical

  • Agrochemicals

  • Oilfield Chemicals

  • Others

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Detergents

  • Personal Care

  • Ointments & Emulsions

  • Herbicides

  • Insecticides

  • Foam Control & Wetting Agents

  • Lubricants and Emulsifiers

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa