Global Market Outlook on Dimethicones

  • The global silicones market has surplus capacity, with more than half of the capacity concentrated in North America and Europe. The overall demand is expected to grow at 4-5 percent CAGR, to reach 2.5 million MT by 2022. The market has been facing several production issues during 2017, which are likely to continue in 2018–2019
  • The supply of linear siloxanes, like dimethicones, have been impacted, along with upward price movement 
  • Downstream demand is expected to witness a surge from the personal care industry, especially in APAC and LATAM


Demand Market Outlook

Global dimethicone demand is projected to grow at 3 percent until 2022. APAC will be the major region driving demand for dimethicones, due to high growth rates from the hair care and skin care markets 
Dimethicone growth rates would be lesser in North America and Europe, due to mature personal care industry as compared to APAC

Industry Best Practices

  • CPG buyers usually source dimethicones via the contract model. The contract length is typically a year or less, due to constant innovations and high  quality standards required by downstream personal care products  
  • CPG buyers commonly opt for Single Sourcing, as supplier switching is not a viable option in order to mitigate the risks associated with quality  reduction 

Sourcing Model

  • Single sourcing model is followed by most CPG buyers 
  • Supplier switching is not usually practiced in the dimethicone market, as CPG buyers will not lower the quality standards of their personal care ingredients 
  • CPG buyers can leverage the innovation and quality standards offered by the supplier

Contract Length 

  • Typical length of contract followed is usually one year or less, and incorporates quarterly price revisions of both the feedstock prices–methanol and silicon metal 
  • Contract terms would include technical assistance from dimethicone manufacturers, in terms of quality and innovation 
  • These are two key parameters, as there is constant demand from the downstream hair care and skin care segments, for customized and novel dimethicones