Chlorinated Paraffin Market Expected to Reach $2.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Chlorinated Paraffin Market," The chlorinated paraffin market size was valued at $1.6 billion in 2021, and is estimated to reach $2.7 billion by 2031, growing at a CAGR of 5.4% from 2022 to 2031.

Chlorinated paraffin is colorless or yellowish, viscous, dense oils, except for the chlorinated paraffins of long carbon chain length with high chlorine content (about 70%), which are solid. Chlorinated paraffin offers advantages such as flame retardancy and low-temperature strength as well as increases the flexibility of the materials. They improve the resistance to water and chemicals, which is most suitable when they are used in marine paints as coatings for industrial flooring, vessels, and swimming pools.

Rising demand for chlorinated paraffin in applications such as lubricating additives, plastics, rubber, paints, metal working fluids, and adhesives is predicted to drive chlorinated paraffin market growth during the forecast period. Chlorinated lubricant additives are utilized to improve the qualities of the basic stock under clean, cool, lubricate, and seal. Lubricant additives improve fluid lubricity by adsorbing to form a coating on the metal surface, minimizing metal-to-metal contact.

Chlorinated paraffin is commonly used for cosmetic or spa products, as an adhesive due to the ability to control the viscosity, form fast bonds and provide elongation benefits. Furthermore, it is utilized as a plasticizer as well as flame retardant in sealants, coatings, adhesives, and PVC compounds. It is also suitable for usage in roof coatings and polyvinyl acetate emulsion adhesives. Chlorinated paraffin paint is used to affect the gloss of the completed coating film and to increase its surface hardness, scratch resistance, scuff & mar resistance. Chlorinated paraffin is also used as an extreme pressure additive in metalworking lubricants. It reacts with the surface under high temperature and pressure conditions to offer maximum lubrication. Thus, chlorinated paraffin use is increasing rapidly from various applications, due to which it is expected to witness lucrative growth rate over the forecast period.

Further, chlorinated paraffin is used as a fire retardant, and a secondary plasticizer soft PVC product. Secondary plasticizers are largely used as alternatives to primary plasticizers (phthalates). Chlorinated paraffin is added to PVC, to improve its flame retardancy while maintaining the low-temperature properties such as the strength of plastic. Commercial grades of chlorinated paraffin utilized for PVC commonly have 45%, 52%, and 58% chlorine content. Most commercial chlorinated paraffin products are in liquid state and range from relatively low to high viscosity. Chlorinated paraffin provides enhanced flexibility at lower temperatures than traditional plasticizers. Hence, it is usually added to products which require increased flexibility in colder weather, such as PVC flooring, garden hose, and wires &cables. During the production of PVC, chlorinated paraffin is added to increase its elasticity.

In addition, chlorinated paraffin serves as a viscosity regulator for plastisol. This is incredibly crucial in the production of PVC plastisol. Besides, growth in the global PVC industry is expected to boost the demand for chlorinated paraffin in the near future. In addition to this, technological advances coupled with growth in demand for products with PVC content such as sheets, tubes, pipes, wires, and cables across the globe, are further expected to drive the demand for chlorinated paraffin during the forecast period. However, stringent regulations pertaining to use of short chain chlorinated paraffin in many regions and availability of alternatives is expected to hamper the growth of this chlorinated paraffin industry in the near future.

The chlorinated paraffin market is segmented into product type, application, and region. By product type, the chlorinated paraffin market analysis is categorized into short chain, medium chain, and long chain. On the basis of application, the market is categorized into lubricating additives, plastics, rubber, paints, metal working fluids, and adhesives. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. The chlorinated paraffin market share and chlorinated paraffin market trend are analyzed across all significant regions and countries.

The major players operating in the global chlorinated paraffin market include, Aditya Birla Chemicals; Altair Chimica S.p.A.; Caffaro Industrie; Dover Chemical Corporation; Handy Chemical Corporation, Inc.; Ineos Chlor; Inovyn; KLJ Group; LEUNA Tenside GmbH; and Química del Cinca. These players have been adopting numerous strategies in order to gain higher share or to retain leading positions in the market.

COVID-19 Analysis:

• The COVID-19 pandemic influenced the global chlorinated paraffin market due to the impact on end-use sectors such as plastics, lubricating additives, metal working fluids, rubber, paints, and adhesives.
• The pandemic negatively impacted the rubber industries owing to a decline in rubber demand as containment measures limited economic activities and influenced livelihoods.
• However, the increasing demand for lubricating adhesives in industrial applications along with growth in paints and adhesives sector is anticipated to propel the chlorinated paraffin industry's growth in the coming years.

Key Findings Of The Study

• By product type, the medium chain segment was the highest revenue contributor to the market in 2021.
• On the basis of application, the metal working fluids segment was the highest revenue contributor to the market in 2021, and is growing with a CAGR of 5.7%.
• Region-wise, Asia-Pacific was the highest revenue contributor in 2021, growing with a CAGR of 5.7%.
• China was the highest revenue contributor in 2021
• South Korea and Japan are expected to witness considerable CAGRs of 5.7% and 5.1%, respectively, during the forecast period.