Global Market Outlook on Chelants

Increasing paper packaging and eco-friendly products are expected to drive the demand of chelants. Also, rising consumer awareness of home care products is expected to drive the demand growth of chelants in the future.Demand for APCA based chelating agents are expected to fall in the future owing to the key developments in bio-based alternatives

Key Trends of Chelants – Global and Latin American Market

  • Demand for chelating agents from agriculture, paper and pulp industries are expected to witness a high growth of around 4-5 percent Y-o-Y owing to its wide use in paper packaging and chelated micronutrients
  • APCA based chelating agents demand is expected to witness a fall in the future owing to the key developments in bio-based alternatives
  • Latin American market is expected to use more green chelants owing to the increasing environmental concerns over its petrochemical counterparts

 Global Chelants Capacity-Demand Analysis

The demand for EDTA and DTPA is expected to grow at a CAGR of 3-3.2 percent Y-o-Y till 2020 and continue to be the major consumer of Chelants.

Global Chelants Market Outlook

EDTA and DTPA to continue driving the demand of Chelants:

  • Chelants (EDTA/DTPA) find very specific applications across various industries and are chosen based on their sensitivity to pH and temperature, along with their selectivity and efficiency in extracting metal ions. EDTA and DTPA account for nearly 95% of Aminopolycarboxylic Acid (APCA) consumption. One niche area of application for APCAs are in Biodiesels where the chelants reduce the humidity and kinematic viscosity in the biofuel

Sufficient Capacity till 2021:

  • The current installed capacity will be enough to meet the global demand till 2021. The average operating rate of the suppliers is anticipated to be around 75-80 percent, which is more sufficient to meet the demand levels. More capacities are likely to be added in Western Europe and SE Asia by 2020

Increasing demand for plant-derived chelating agents and biodegradable chelating agents:

  • Increasing environmental and health concerns over synthetic chelating agents and stringent environmental/water conservation regulations by Latin American government is driving the demand for plant-derived chelating agents
  • Demand for biodegradable chelating agents is anticipated to improve in the future owing to the implementation of stringent environmental regulations, with includes the recent environmental checks in plants located in China

Key Trends, Industry Drivers and Constraints

Drivers

  • Rising demand for biodegradable chelating agents: With the technological advancements, supplier are constantly developing new and better biodegradable chelating agents. Based on the type, these are classified as Ethylenediamine-N, N-Disuccinic Acid (EDDS), Methylglycinediacetic Acid (MGDA), Glutamic Acid Diacetic Acid (GLDA) and others
  • Improving demand from disinfectants and pharmaceutical industries: Demand for biodegradable chelating agents in cleaning applications and pharmaceuticals have been increasing at a good pace. Rise in demand for biodegradable chelating agents in these industries is expected to propel the demand of these chelating agents in the future
  • Top three chelating agents driving the growth: Sodium Gluconate, EDTA and DTPA are the key growth constituents of chelants, which is projected to grow at a CAGR of 2.0-2.5 percent Y-o-Y until 2021

Constaints

  • Environmental concerns: Since chelants are derived from petroleum-based feedstock, there are certain environmental concerns that are associated with the product, which is a key constraint for the demand growth. To counter such issues, biodegradable chelating agents are gaining popularity in applications such as cleaning, water treatment, food and beverages and pharmaceutical
  • Common Chelating Agents are not bio-degradable: Some of the common chelating agents such as EDTA and DTPA are not bio-degradable, which can lead to severe environmental issues. Though new chelating agents are expected to boost the demand for biodegradable chelating agents, the rising cost of it could adversely affect the market growth in the future
  • Oversupplied market: The global chelants market is oversupplied, which caused the suppliers to reduce their operating rate or temporarily shutdown their plant. There are more capacity additions following in Western Europe and APAC region despite these market conditions, which is a big restraint for the industry