Market Trends of Benzyl Alcohol Industry
This section covers the major market trends shaping the Benzyl Alcohol Market according to our research experts:
Food and Beverage Industry Segment to Dominate the Market
- Food additives and preservatives derived from benzyl alcohol are intensively used in the food and beverage industry. The food preservative market is expected to register a compound annual growth rate (CAGR) of more than 6% during the forecast period, owing to the rising consumption of processed and packaged food. This is expected to ensure the regular demand for benzyl alcohol as many preservatives are derived from it.
- The food and beverages industry worldwide generated a revenue of USD 740 billion in 2022. The market is expected to grow at a (CAGR) of 7.14% during 2022-2027 annually, resulting in a projected market volume of USD 1.10 billion by 2027.
- According to the Bureau of Economic Analysis (BEA), the total value added by the food and beverages industry (including tobacco products) in the United States in the first three quarters of 2022 was about USD 967.6 billion, 1.3% more than the previous year's value added in the same period.
- Furthermore, the overall value added by food and beverage retail outlets in the third quarter of 2022 was roughly USD 201.5 billion, representing an almost 10% increase over the value generated in the third quarter of 2021 (around USD 183 billion).
- In 2022, the Europe food and beverages industry employed approximately 4.6 million people and generated EUR 1.1 trillion (USD 1.159 trillion) in revenue and EUR 230 billion (USD 242.37 billion) in value-added, making it one of the largest manufacturing industries in Europe, increasing the food and beverages industry in the region.
- Therefore, the abovementioned factors will significantly impact the market in the coming years.
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Asia Pacific to Dominate the Market
- In terms of benzyl alcohol consumption, Asia-Pacific is likely to be the major market. This is due to China's dominance in end-user sectors such as paints and coatings, adhesives and sealants, chemical processing, cosmetics, and personal care. China's glue usage accounts for around 32% of global consumption.
- Benzyl alcohol is commonly used in construction to make adhesives, paints, varnishes, sealants, and other goods. The paints and coatings industry, where benzyl alcohol is used as a general solvent, is predicted to grow at a compound annual growth rate (CAGR) of around 6% in the region over the projection period. This is because China is predicted to experience the highest increase in construction activity, followed by India.
- The Chinese government has increased its investment in inexpensive housing facilities to meet housing demand. Furthermore, public-private partnership (PPP) projects have boosted the domestic construction sector.
- China has the largest construction market in the world, encompassing 20% of all construction investments globally. China is expected to spend nearly USD 13 trillion on buildings by 2030, creating a positive market outlook for the paint and coating industry and thus driving the studied market.
- Furthermore, according to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) of Japan, the total investment in the construction sector in the year 2022 was about 66,990 billion yen (USD 508.16 billion), which is an increase of around 0.6% as compared to the previous year.
- Paints and coatings find their application in the automotive industry as well. According to the China Association of Automobile Manufacturers (CAAM), the production of automobiles in the country also saw an increase of 3.4% in the year 2022, as compared to 2021. The total production in 2022 was approximately 27 million units; in 2021, it was about 26 million.
- Benzyl alcohol is also used in various cosmetic formulations as a fragrance component, preservative, solvent, and viscosity-decreasing agent. China is also one of the major consumers of cosmetics. In 2022, wholesale and retail companies' retail sales of cosmetics in China reached CNY 393.6 billion (USD 57 billion). This was a slight decrease compared to the previous year, which was about CNY 402.6 billion (USD 58.6 billion).
- Therefore, the abovementioned factors are expected to impact the market in the coming years significantly.
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