Global Market Outlook on Ethanolamine

Pesticides are expected to be the major demand driver of ethanolamine due to the increase in agrochemicals production in China and India. Rising disposable income in Asia and other developing economics is expected to spur the demand for detergents and personal care products, the major downstream industries for ethanolamine

Demand Market Outlook

Ethanolamine demand is expected to grow at 3.5-4 percent until 2022. Asia Pacific will be the major demand driving region for ethanolamine due to high growth rates in herbicides production and home and personal care products demand 
Ethanolamine growth rate in Europe and North America will be low due to mature downstream markets

Industry Best Practices 

  • Large volume buyers usually prefer buying through contracts across all major regions. Whereas, small volume buyers, opt for spot 
  • Buyers in Europe and Asia can prefer sourcing from the US due to cheap cost 
  • Mix of contract/spot pricing is preferred in NA to excess capacity and Asia prefer more of spot buying

Global Market Size–Ethanolamine

  • The global market size for ethanolamine is expected to grow at a CAGR of 5 percent Y-o-Y, mainly driven by the demand from detergent and herbicides industry.
  • Steady increase in detergent consumption and glyphosate consumption across the globe will attribute to the sales of ethanolamine in the future

Global Capacity–Demand Analysis

  • Ethanolamine has enough capacity to cater to the demand until 2022, which is expected grow at 3.5–4 percent. Sadara is the only company adding a new capacity of 20,000 MT per annum of ethanolamine in Jubail, Saudi Arabia

Market Outlook

Sufficient Capacity until 2021: 

  • The current installed capacity will be enough to meet the global demand until 2022.
  • The average operating rate of the suppliers is anticipated to be around 75–80 percent, which is more sufficient to meet the demand levels 

Detergent and Herbicides Industries to Drive the Demand: 

  • Ethanolamine global demand was mainly driven by the demand from Detergent and Herbicides industries, which is expected to grow by 5 percent and 6.2 percent respectively until 2020 

Increasing Demand from Other Applications: 

  • Other downstream industries of ethanolamine like gas treatment and cement production is expected to have a less impact on ethanolamine prices, as their market size is about 20 percent of the total end-use market