Global Market Outlook on CMEA

  • Global CMEA demand is estimated to be ~82 Thousand MT in 2017 | Mature market with developed regions accounting for  2/3rd of the global demand
  • CMEA is gradually replacing CDEA due to carcinogenic concerns with the latter especially in Europe due to REACH regulation
  • The global CMEA demand was pegged at close to 82 KMT in 2017. CMEA constitutes approximately 1.2% of the global nonionic surfactants demand and is about 40% of the fatty alkanolamide demand
  • Fatty Acid Alkanolamides (FAA) are a mature market and the home and personal care industries have reformulated a part of their recipes to surfactants, such as amphoterics, alkylpolyglucosides and fatty amine oxides, which are perceived as milder and safer for humans and the environment. The primary reasons for these changes are-

–Increasing use of controlled-foam heavy-duty laundry powders and liquids (which do not require the use of FAAs)

–Concerns about the possible formation of N-nitrosoamines, which are suspected carcinogens, in FAAs based on DEA and can be absorbed through the skin and accumulated in organs. N-nitrosoamines may form due to contamination in raw materials (the most common raw materials that contain N-nitrosamines are alkanolamines, more particularly DEA and DEA derivatives) or formation in cosmetic products by reaction of fatty acid diethanolamides with nitrite preservatives

CMEA: Global Demand by End Application

  • Home Care (especially detergents based on FAES) is the largest end application (41%), followed by Personal Care (34%).Off late Cosmetics is growing to be a major end use application sector due to mild to skin properties
  • CMEA imparts properties such as foam boosting, viscosity enhancement and antistatic | Typical usage level ~ 0–5%

Global Demand of CMEA by End Application (2017)

  • CMEA is compatible with other anionic, nonionic, cationic or amphoteric surfactants and functions as a co-surfactant in formulation systems. Typical usage levels of CMEA are 0–5% in a formulation
  • CMEA is known for boosting detergency and foaming properties of detergents of all kinds (especially those based on fatty alcohol sulphates). This is reflected in the end application pie where Home Care contributes to 45% of the global demand for CMEA
  • Personal Care is the second largest demand segment for CMEA globally. CMEA is popularly used as foam booster for shampoos and conditioners. The product imparts excellent viscosity enhancing and foam stabilization in anionic systems based on Sodium Lauryl Ethersulfates (SLES) such as hand washing liquids, shampoos, body cleansers, foam baths, deodorant sticks and other personal care products

Cost Analysis for CMEA: Key Cost Components

CMEA manufacturing cost structure

  • Raw Materials (Coconut Oil, MEA, Catalyst) 70% contribution
  • Utilities and Labour combined 18%
  • Other Fixed and Non-cash costs combined 12%

CMEA Cost Components and Average Industry Margin, 2017 (Estimated)

  • The specifications, properties and applications of fatty acid alkanolamides depend on the manufacturing conditions. Accordingly, they are manufactured by specialty chemicals companies, sometimes custom tailored or only for captive use.
  • While oleochemical raw materials (coconut oil, palm kernel oil, coconut fatty acid, palm kernel fatty acid or the respective FAMEs) are globally traded commodities MEA (although a basic chemical) is only manufactured by a limited number of suppliers. Accordingly, in-house supply may offer a marginal cost benefit.

 Global Supply and Demand for Monoethanolamine (MEA)

  • Global MEA capacity (2017) is enough to meet current demand; Capacity additions will be required after 2–3 years
  • Cosmetics, surface-active agents, emulsifiers are the major demand driver of MEA
  • The global MEA capacity stood at just over 1 MMT in 2017 with demand between 90–95% of the overall capacity
  • Monoethanolamine (MEA) is the most high valued chemical among the family of ethanolamines (MEA, DEA and TEA). It finds application as a chemical intermediate in the manufacture of cosmetics, surface-active agents, emulsifiers, pharmaceuticals, and plasticizing agents; a gas-scrubbing agent for the absorption and removal of H2S and CO2 from refinery and natural gas streams and carbon dioxide and ammonia manufacturing
  • MEA demand is expected to grow at a CAGR of about 5% globally experiencing highest demand from Europe ,Asia and Middle East where higher alkylamines are not so predominant.