Category Intelligence on LAB&LAS covers the following
Currently, APAC accounts for ~50 percent of the global LAB capacity. While APAC is the largest demand market for LAB, MEA has a cheaper feedstock advantage, which positions it favourable for exports to other regions .Present global installed capacity of HLAS (Captive + Merchant) is around 5.9 MMT, and is sufficient to meet the current demand levels of HLAS.
Increasing demand for detergents, especially in the developing regions like China, India, LATAM, etc., due to growing disposable income and infrastructural growth is expected to drive the demand for LAB and LAS
Demand from North America and Europe is expected to remain flat or reduce slightly due to the regional shift from powder to liquid detergents, which consumes less LAS, leading to reduced demand for LAB. Liquid detergents consumer ~40 percent less LAS compared to powder detergents
LAB Procurement: LAB buyers in Europe and North America currently procure 40 percent of their requirements from the spot market with the rest being contracted with major suppliers. Whereas in APAC, dependence on spot is only 20 percent, due to LAB availability issues.