Carbonate Market Expected to Reach $7.1 Billion by 2030

According to a new report published by Allied Market Research, titled, "Carbonate Market by Type, Application, and End Use: Global Opportunity Analysis and Industry Forecast, 2021–2030," the global carbonate market was valued at $3.5 billion in 2020, and is projected to reach $7.1 billion by 2030, growing at a CAGR of 7.2% from 2021 to 2030.

Carbonates are salts or carbonic acid esters that are synthesized from carbonic acids. Organic carbonates are mainly of two types such as linear and cyclic. Dimethyl carbonate is an organic compound that is synthesized from carbon monoxide and methanol. It is a clear, flammable, non-toxic, and versatile chemical compound classified under carbonate ester group.

Environmentally friendly characteristics of dimethyl carbonate makes it suitable to be used as a solvent for manufacturing of coatings, cleaning agents, and adhesives. In addition, it can also be used as a raw material in reactions such as organic synthesis, methylation, carbonylation, and carbomethoxylation reactions. Demand for lithium-ion batteries (LIB) in notebook PCs, cell phones, and other electronic products is increasing rapidly. Development of hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) is another factor that is escalating demand of LIB. Use of dimethyl carbonate as an electrolyte in lithium-ion batteries is anticipated to escalate growth of the global market. These factors are predicted to notably contribute toward the global market.

Moreover, use of propylene carbonate in electrolytes offers advantages such as good conductivity and viscosity values. However, major disadvantage of using propylene carbonate in electrolyte application is that it cannot be used with combination of single solvent. These further increases cost of batteries and is anticipated to hamper growth of the global market.

Non-corrosive nature of propylene carbonate makes it versatile solvent to be used in the cosmetics industry. Skin cleaning products, lipsticks, eye shadows, and mascaras are major applications of propylene carbonates in the industry. Propylene carbonate enhances electrolyte solubility, ionic conductivity, and minimizes vapor pressure of dioxides in lithium batteries. It can also be used during production of carbamates, as a viscosity reducer in the coating industry, resin cleanup solvent, and a polar additive agent during production of clay gellants. Hence, owing to its physical and chemical properties, it is used as a foundry binder catalyst and in the textile industry as a dye carrier. This factor is anticipated to create remunerative opportunities for expansion of the carbonate market in the future.

The carbonate market is segmented on the basis of type, application, end use, and region.

By type, the market is segregated into dimethyl, propylene, ethylene, glycerol, 1,2-epoxydodecane, 1,2-hexadecene, styrene, epichlorohydrin, and others. The glycerol segment dominated the global market, in terms of revenue in 2020, with over one-third of the total share. Increase in concerns about sustainability and versatility of glycerol carbonate has enhanced demand for the product as it is used to valorize waste glycerol, which is the key market trend. In addition, several research and development activities have been carried out to expand the use of glycerol carbonate in industrial sectors.

By application, the global carbonate market is classified into solvent, catalysts, electrolytes, additives, cleaners, and others. The solvent segment dominated the global market, in terms of revenue in 2020, with over two-seventh of the total share. Low toxicity and biodegradability of dimethyl carbonates makes it ideal chemical compound for formulation of degreasing solvents. In addition, dimethyl carbonate is widely used electrolyte solvent in lithium-ion batteries, owing to its solvation and low viscosity. Use of dimethyl carbonate is used as a solvent during production of traffic paints, floor coatings, and concrete sealers, which propels the market growth.

By end use, the global market is divided into cosmetics & personal care, paints & coatings, pharmaceuticals, textile, energy & power, polymer, and others. The paints & coatings segment dominated the global market in terms of revenue in 2020, with over one-third of the total share. Carbonate products are cost-effective solution that are used as multifunctional filler for improving pastiness, opaqueness, and matting characteristics of paints & coatings. Moreover, carbonates are used as alternatives over titanium oxide in the paints & coatings industry.

Region-wise, the carbonate market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific carbonate market size is projected to grow at the highest CAGR during the forecast period and accounted for 42% of the carbonate market share in 2020. Propylene carbonate is used in cosmetics & personal care products formulation for dissolving or suspending other ingredients into cosmetic products. In addition, it is used to minimize the thickness of cosmetic and personal care formulations. The cosmetics & personal care market is booming and one of the fastest growing consumer markets in the U.S. Factors such as generational shift with new consumers entering the cosmetics market and development in ecommerce has lasting effects on sales of beauty products.

Key players operating in the global carbonate market include BASF SE, Huntsman International LLC, LyondellBasell Industries Holdings B.V., Empower Materials, Anmol Chemicals Group, Kowa Company Ltd., Shandong Lixing Chemical Co. Ltd., ReactChem Co. Ltd., SMC Global, and TOAGOSEI Co. Ltd.

COVID-19 analysis

The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The carbonate market has been moderately impacted due to the wake of COVID-19 pandemic owing to its dependence on cosmetic & personal care, paints & coatings, textile, and polymer industry. Skin care, color cosmetics, hair care, fragrance, and personal care are sub-categories that are part of beauty industry. Propylene carbonate is used in cosmetics & personal care products formulation for dissolving or suspending other ingredients into cosmetic products.

In addition, it is used to minimize the thickness of cosmetic and personal care formulations. Key players in the cosmetics & personal care industry are switching their primary production to hand sanitizers and cleaning agents. In addition, they are also offering free beauty services for frontline response workers, which has gained positive response from the beauty sector in the COVID-pandemic. Majorly, beauty products are sold in-store and accounted for 85% prior to emergence of COVID-19 pandemic. Owing to emergence of new variants of coronavirus, premium beauty-product outlets were closed and nearly 30% of outlets stores are still closed. This factor has negatively impacted the global market during the COVID-19 pandemic.

Moreover, known Japanese make up brand KATE is also facing supply demand gap for its best-selling products such as mask friendly lipsticks, lip monsters, and others. However, key-players in the cosmetic industry are launching innovative products that are manufactured from natural extracts that are proven to mimic the medication effect on the skin. For instance, 3DL Inc. is a Taiwan’s leading key-player in the cosmetic industry that has launched new series of skin care products. These products are proven to enhance beta-endorphin release inside the skin.

Polar characteristics and mineral wetting property of propylene carbonate makes it suitable to be used in the coating industry for applications such as wire enamels, polyurethane production, and epoxies. Antiviral coatings are gaining importance amid the COVID-19 pandemic. This factor is anticipated to escalate growth of the global market amid COVID-19 pandemic situation.

Key findings of the study

• The dimethyl carbonate segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 8.1% from 2021 to 2030.
• The additives segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 7.9% from 2021 to 2030.
• The polymer segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 8.2% from 2021 to 2030.
• Asia-Pacific garnered the highest share of 42.6% in 2020, in terms of revenue, growing at a CAGR of 8.0%.