Asia-Pacific green surfactant growth momentum

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According to the August 2012 study by the well-known US growth consulting firm Frost & Sullivan , the market for green surfactants in the Asia-Pacific region before 2018 (specifically, Australia, New Zealand, Singapore, Malaysia, Indonesia, Philippines, and Thailand) Sales revenue will increase faster.

Green surfactant refers to a surfactant that uses natural oils and fats such as palm oil and coconut oil as raw materials or plant carbohydrates such as sorbitol, sucrose, and glucose as raw materials. According to Frost & Sullivan's research, from 2011 to 2018, the compound annual growth rate of sales revenue of the green surfactant market in the Asia-Pacific region will reach 8.9%; the market sales volume can also reach a compound annual growth rate of 3.8%, It increased from 243,000 tons in 2011 to 316,000 tons in 2018. In 2011, the market income of green surfactants in the region was 590 million U.S. dollars.

From 2011 to 2018, there are several major market drivers for green surfactants in the Asia Pacific region:

The first is the increase in consumer purchasing power. The most important driving force for the growth of green surfactants in the Asia-Pacific region is the increase in consumer purchasing power. In these more economically developed regions of Australia and New Zealand, consumers are more aware of the importance of using green surfactants than other Southeast Asian countries. At the same time, as incomes have risen, residents in Southeast Asian countries have begun to pay attention to the naturalness of their products, especially personal care products. All these will promote the demand for green surfactants in the Asia Pacific region.

The second is that consumers recognize environmentally friendly products. Green surfactants such as fatty alcohol sulfates (FAS), polyoxyethylene fatty alcohol ethers (FAE), are widely recognized by consumers due to their excellent washing performance and superior biodegradability, thus making green surfactants With increased use, consumers in the Asia-Pacific region are gradually turning to green surfactants. Although green surfactants account for nearly 50% of the U.S. and European market, their share in the Asia Pacific region is only 29.9%. The market potential for green surfactants in the Asia Pacific region is vast.

The third is the increase in the production of green surfactants. In Southeast Asia, fatty acid methyl ester sulfonate (MES) is considered a new promising surfactant. With the increase of environmental awareness, MES will replace petroleum-based linear alkylbenzene sulfonate (LAS). MES is expected to get more applications in detergent formulations. At present, the main producer of MES is Lion King Corporation. They have production bases in Japan and Malaysia. At the same time, MES manufacturers Huish and Stepan companies, headquartered in the United States. In addition, Kuala Lumpur Group Company is also preparing to produce MES.

Fourth, adequate supply of raw materials. Green surfactants are mainly derived from vegetable oils such as palm kernel oil and coconut oil. Southeast Asian countries such as Malaysia and Indonesia are rich in palm plantations and can supply palm kernel oil. The Philippines is the second largest coconut producer in the world and can provide coconut oil as a raw material for fatty alcohol production.

The market resistance of green surfactants in the Asia-Pacific region should not be underestimated. According to research, Frost & Sullivan pointed out several factors that inhibit the development of the market. The first is that consumers are more sensitive to prices and prefer to choose cheaper products instead of better products when the economy is uncertain. Second, the price of raw material palm oil fluctuates. In 2007, the price of palm oil soared. In 2008, the price of coconut oil dropped from US$1,130 to US$500 per metric ton. The price fluctuations have limited the use of green surfactants, which has inhibited the growth of green surfactants in the Asia Pacific region. Third, the price of green surfactants is too high. In the past few years, the price of fatty alcohol, the main raw material of green surfactants, has increased by more than 50%. At the same time, the green surfactant alkyl polyglycoside (APG) is mainly used in personal care products, and its high price affects its widespread application.

In the foreseeable future, relevant governments in the Asia-Pacific region are likely to promulgate relevant laws and regulations to promote the development of green surfactants, which may lead to the future high growth of the market. Of all the green surfactants, fatty acid methyl ester sulfonate (MES) has very high growth potential. With the increasing awareness of environmental protection, especially in Thailand and Indonesia, the potential for the replacement of linear alkylbenzene sulfonate (LAS) is huge.

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