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The market for calcium stearate is expected to grow at a CAGR of more than 5.5% during the forecast period. One of the major factors driving the market studied is the increasing demand for PVC and other plastics.
– Shift toward magnesium stearate is likely to hinder the growth of the market studied.
– Asia-Pacific dominated the market across the globe with the largest consumption coming from countries such as India, China, and others.
Key Market Trends
Increasing Demand for Construction
– Calcium stearate is widely used as a waterproofing agent and also to prevent efflorescence in the construction industry. It is mixed with concrete and is used in construction activities such as buildings, floors, and also prefabrication industry. It is used in powder form in mortars and putties, and emulsion forms for prefabricated systems.
– The construction sector has witnessed strong growth in regions, like Asia-Pacific, North America, and Europe till 2019. In the early 2020, the construction industry has observed a decline due to the COVID-19 pandemic situation coupled with the lockdown in major countries of the North America, Europe, and APAC regions. However, the situation is expected to dilute by the end of 2020. Hence, the construction projects are expected to pick up pace in 2021.
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– Moreover, in 2021, the governments of various countries like China, India, United States, etc. are expected to increase the workforce to substantiate the projects that are put on hold in 2020. This, in turn, is expected to drive the market in the construction segment.
– Additionally, the increasing presence of foreign companies in the Asia-Pacific region has created a demand for the construction of new offices, buildings, production houses, etc., thereby, driving the growth of the construction sector in the region.
– The building and construction industries in ASEAN countries and India represent the fastest-growing markets, and they are anticipated to account for a major share in the global construction market. Countries, such as Indonesia, Singapore, Thailand, Vietnam, the Philippines, and India, in the Asia-Pacific region have been witnessing a robust growth in construction activities.
– Across the region, the prices of conventional residential properties increased beyond the reach of the working-class population. Hence, the governments of various countries came up with various policy initiatives, in order to open up the market for the large-scale construction of affordable houses.
– Moreover, the construction sector in North America witnessed significant growth in the past few years. According to the US Census Bureau, the construction spending in the United States increased from USD 788 billion in 2011 to USD 1,294 billion in 2018. The value of new construction put in place during 2016-2018 indicated an increase from USD 1,191.81 billion to USD 1,293.99 billion, and it is expected to reach USD 1,396.03 billion by 2022.
– In the Middle East, several booming commercial construction activities, owing to various government initiatives, such as Saudi Arabia's Vision 2030 and the United Arab Emirates' Abu Dhabi Economic Vision 2030, are driving the market studied. Construction projects in Saudi Arabia, such as Qiddiya, SharaanResort at Al-Ula, Al Widyan, King FahadMedical City Expansion Project, and King Abdullah Bin AbdulazizMedical Complexes, also indicated positive influence on market growth.
– However, lockdown measures to contain the spread of COVID-19 have immensely affected the manufacturers and led them to cut down their production, as the pandemic has forced all construction activities to halt for several months, which, in turn, may have a negative impact on the growth of the market in the short term.
– Such factors are likely to impact the market for calacium stearate in the construction industry during the forecast period.
China to Dominate the Asia-Pacific Region
– India is a growing economy, and it holds great potential for future market opportunities. The country witnessed a decline in its GDP growth in 2019 of around 5%, from 7.1% in 2018. The stagnation caused in the industrial output, greenfield investment, and flattened demand led to the decline in the growth rate in the country.
– The outbreak of COVID-19 further affected the domestic construction and industrial and manufacturing activities in the first half of 2020. The impact of the COVID-19 outbreak is expected to persist in the third quarter of 2020 as well, affecting the demand in the market studied during the year.
– India is expected to become the world's third-largest construction market by 2022. The availability of affordable housing in the country is expected to rise by around 70% by 2024. By 2022, India is expected to contribute about USD 640 billion in the construction industry owing to government initiatives in infrastructure development and affordable housing such as housing to all, smart city plans, etc. Despite the slowdown due to the COVID-19 outbreak, the potential growth in construction activities in India are projected to support the growth of calcium stearate over the forecast period.
– Moreover, the Indian government has been actively boosting housing construction, as it aims to provide home to about 1.3 billion people in near future. The country is likely to witness around USD 1.3 trillion of investment in housing over the next seven years and is likely to witness construction of 60 million new homes in the country.
– India is the third-largest pharmaceuticals in terms of volume and thirteenth most significant in terms of value as it has a large raw material base and availability of a skilled workforce. According to the India Brand Equity Foundation, India's pharmaceutical export stood at USD 19.13 billion in 2018-2019, reached USD 13.69 billion in 2019-2020 (till January 2020) and is expected to grow by 30% to reach USD 20 billion by the end of 2020.
– The country has one of the lowest manufacturing costs in the world, more economical than that of the USA and almost half of Europe, it is the largest supplier of generic medicines in the world (20% to 22%of global export volume). It has fuelled the research and development of efficient packing solutions for the pharmaceutical sector that substantially prevents contamination, provides drug safety, and convenience of delivery and handling.
– At present, the penetration of personal care products in the country is low when compared to developed or even other developing economies. However, improving the economic environment and increasing purchasing power of the Indian population are expected to increase the adoption of personal care products in the country.
– Even though international players dominate the Indian market, Make in India and other various reasons including promising characteristics of the products, the demand for domestic products is gaining significance at a healthy growth.
– According to a report published by the Ministry of Economy and Industry, the beauty and personal care (BPC) industry in the country is expected to reach more than USD 10 billion by 2021, at an estimated growth rate of 5%-6% annually.
– Owing to the COVID-19 impact coupled with the extended lockdown in the country during the first half of 2020, various manufacturing facilities have been temporarily shutdown and halted production for quite a long period. This, has negatively affected the consumption of calcium stearate in the production of personal care and cosmetics, plastics, rubber, etc. in the country in 2020.
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Competitive Landscape
The calcium stearate market is fragmented in nature. Some of the major players in the market include BELIKE, FACI SPA, Mittal Dhatu Rashayan Udyog, Baerlocher GmbH, and Seoul Fine Chemical, among others.
1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Drivers
4.1.1 Increasing Demand For PVC and Other Plastics
4.1.2 Other Drivers
4.2 Restraints
4.2.1 Shift Toward Magnesium Stearate
4.2.2 Unfavorable Conditions Arising due to COVID-19 Impact
4.3 Industry Value-Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5 MARKET SEGMENTATION
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