Press release
Allyl Chloride Market is expected to reach USD 3.67 billion by 2034, growing at a 4.6% CAGR
Allyl Chloride Market
Growing environmental concerns and strict regulations are pushing industries toward more efficient and cleaner chemicals-allyl chloride, being a versatile building block, fits well into that strategy. Furthermore, its role in the production of epichlorohydrin, a precursor for epoxy resins, reinforces its growing industrial relevance.
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Key Market Highlights:
• 2024 Market Size: USD 2.33 Billion
• 2034 Forecast Size: USD 3.67 Billion
• CAGR (2025-2034): 4.6%
• Major Demand Sources: Epichlorohydrin, Pharmaceuticals, Water Treatment
• Leading Producers: Olin Corporation, Solvay, Aditya Birla Chemicals, Kashima Chemical Co., Ltd., Sumitomo Chemical
Segmentation Analysis
By Production Method:
• Chlorination of Propylene
• Oxychlorination of Propylene
By Application:
• Epichlorohydrin Production
• Water Treatment Chemicals
• Pharmaceuticals
• Pesticides & Agrochemicals
• Allyl Alcohol & Derivatives
• Flame Retardants
• Adhesives & Sealants
By End-Use Industry:
• Chemicals
• Pharmaceuticals
• Agriculture
• Water Treatment
• Construction
Segmentation Summary:
Epichlorohydrin production dominates the allyl chloride market, accounting for over 60% of total demand. The compound's derivative applications in epoxy resins-used in electronics, adhesives, and coatings-make this segment the largest. Meanwhile, water treatment chemicals and pharmaceuticals are expanding steadily due to rising environmental and health regulations.
The use of oxychlorination as a cleaner production method is gaining attention, especially in regions where environmental regulations on chlorination waste are stricter.
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Regional Analysis
North America:
• High demand for epoxy resins and specialty chemicals.
• Dominance of key manufacturers such as Olin Corporation.
• Rising investments in infrastructure and water treatment.
Europe:
• Increasing regulations around flame retardants and chemical intermediates.
• Growth in epichlorohydrin applications in automotive and wind energy composites.
• Presence of R&D-driven companies focusing on green chemical synthesis.
Asia-Pacific:
• Largest consumer and fastest-growing regional market.
• China and India lead in construction, agriculture, and water treatment growth.
• Major production hubs for both allyl chloride and its derivatives.
Middle East & Africa:
• Infrastructure development and industrial water treatment drive demand.
• Limited production capacity but increasing import demand.
Latin America:
• Growing pharmaceutical and agriculture sectors in Brazil and Mexico.
• Slow but stable expansion in construction chemicals.
Regional Summary:
Asia-Pacific dominates the global allyl chloride market both in terms of consumption and production. North America and Europe are focusing on high-value specialty chemical applications, whereas Latin America and MEA are witnessing growth in agriculture, healthcare, and water purification.
Market Dynamics
Key Growth Drivers:
• Rising Demand for Epoxy Resins: Allyl chloride is used to produce epichlorohydrin, a key ingredient in epoxy resins used across construction, electronics, automotive, and coatings.
• Water Treatment Chemicals: Increasing global concern over water pollution boosts demand for allyl chloride-based disinfectants and flocculants.
• Pharmaceutical & Agrochemical Intermediates: Allyl chloride serves as a precursor for several active compounds in medications and pesticides.
• Construction Boom: Used in polymers and adhesives for construction, particularly in Asia and the Middle East.
Key Challenges:
• Toxicity & Handling Issues: Allyl chloride is classified as hazardous, requiring strict safety protocols.
• Environmental Concerns: Conventional production methods create chlorinated waste, leading to regulatory scrutiny.
• Fluctuating Propylene Prices: As a propylene derivative, its pricing is sensitive to upstream petroleum market volatility.
Latest Trends:
• Eco-Friendly Production Routes: Increasing R&D in oxychlorination and bio-based feedstocks to reduce emissions and waste.
• Shift Toward High-Purity Grades: Growing demand from the pharmaceutical sector for more refined allyl chloride intermediates.
• Expansion of Epoxy Resin Market: Growth in wind energy, electronics, and marine coatings fuels demand downstream.
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Competitor Analysis
Major Players:
• Olin Corporation
• Solvay S.A.
• Aditya Birla Chemicals
• Kashima Chemical Co., Ltd.
• Sumitomo Chemical Co., Ltd.
• INOVYN (an INEOS company)
• Showa Denko K.K.
• Osaka Soda Co., Ltd.
• Jiangsu Huachang Chemical Co., Ltd.
• Daiso Co., Ltd.
• Wuxi Baichuan Chemical Industrial Co., Ltd.
• Shandong Minghua Chemical Co., Ltd.
• Lianyungang Jindun Chemical Co., Ltd.
• Jiangsu Jinling Chemical Group Co., Ltd.
• Alkyl Amines Chemicals Ltd.
• Lotte Fine Chemical Co., Ltd.
Competitive Summary:
The market is moderately consolidated, with Olin, Solvay, and Aditya Birla Chemicals leading the charge in North America, Europe, and Asia respectively. These players are focusing on capacity expansion, vertical integration, and eco-friendly production technologies to remain competitive.
Strategic initiatives such as joint ventures, licensing of green production technologies, and expansion into emerging economies are becoming common.
Conclusion: A Vital Industrial Intermediate on the Rise
As industries across the globe seek more efficient and versatile chemical building blocks, allyl chloride's role continues to grow in importance. Whether in epoxy resin synthesis, clean water treatment, or active pharmaceutical ingredients, its versatility ensures it will remain a key material for the foreseeable future.
Environmental awareness and innovation in production technologies will be critical in shaping the future of this market. The shift from traditional chlorination to oxychlorination and greener feedstocks marks a transformative phase for chemical manufacturers.
Key Takeaways:
• Allyl chloride is essential to high-growth industries like epoxy resins, healthcare, and water treatment.
• Asia-Pacific dominates in both demand and manufacturing; Europe and North America emphasize quality and safety.
• Environmental compliance and production efficiency are the next frontiers of competition.
• Manufacturers are betting big on eco-friendly processes and high-purity formulations for future growth.
This report is also available in the following languages : Japanese (アリルクロリド市場), Korean (알릴 염화물 시장), Chinese (烯丙基氯市场), French (Marché du chlorure d'allyle), German (Allylchlorid-Markt), and Italian (Mercato del cloruro di allile), etc.
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