Neopentyl Glycol (NPG) Market Size, Share, Trends, Growth and Forecast 2030

Neopentyl Glycol (NPG) Industry Prospective:

The global Neopentyl Glycol (NPG) market size was evaluated at $1,543 Million in 2022 and is slated to hit $2,419 Million by the end of 2030 with a CAGR of nearly 5.2% between 2023 and 2030.

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Neopentyl Glycol (NPG) Market: Overview

Neopentyl glycol is an organic chemical compound and crystalline in nature. The compound is utilized in the synthesis of plasticizers, polyesters, lubricants, and paints. Furthermore, it finds lucrative applications in polyester production along with improving the product stability towards water, heat, and light. The rise in the demand for products in the automotive, transportation, and building & construction sectors has enhanced its popularity across the globe. A surge in the demand for sealants & adhesives and housing subsidies along with huge production of industrial chemicals are likely to contribute majorly towards the global market.  

Key Insights

• As per the analysis shared by our research analyst, the global neopentyl glycol (NPG)market is projected to expand annually at an annual growth rate of around 5.2% over the forecast timespan (2023-2030).
• In terms of revenue, the global neopentyl glycol (NPG) market size was evaluated at nearly $1,543 million in 2022 and is expected to reach $2,419 million by 2030.
• The global neopentyl glycol (NPG) market is anticipated to grow rapidly over the forecast timeline owing to the increased use of neopentyl glycol (NPG) in the paints, automotive, construction, chemicals, plastics, and textile industries.
• In terms of type, the flake segment is slated to register the highest CAGR over the forecast period.
• Based on the end-use industry, the paints & coatings segment is slated to dominate the segmental expansion over the period from 2023 to 2030.
• Region-wise, the Asia-Pacific neopentyl glycol (NPG) industry is projected to register the fastest CAGR during the assessment timeline.

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Neopentyl Glycol (NPG) Market: Growth Factors

Beneficial features of product will steer the growth of the neopentyl glycol (NPG) market globally by 2030

The global neopentyl glycol market is likely to witness substantial growth within the forecast years. There is humongous potential for the neopentyl glycol (NPG) market due to its excellent properties, variety of applications, and growing demand in the market. Some of the properties that make neopentyl glycol prominent are superior thermal stability, good chemical and stain resistance, excellent hardness, ideal glass transition temperature range, good fluidization characteristics, and outstanding weathering.

These attributes are leading to increased consumption of neopentyl glycol (NPG) in the paints, automotive, construction, chemicals, plastics, and textile industries. Moreover, some excellent properties such as high resistance to oxidation, non-polar chemical nature, and improved stability towards heat, water, and light are leading to its increasing adoption as an intermediate in producing enormous chemical products, which are ultimately expected to uplift the growth of the neopentyl glycol (NPG) market over the forecast years.

Neopentyl Glycol (NPG) Market: Restraints

Easy availability of alternate products can hinder the global industry expansion over forecast timeline

The factor that might impede the growth of the global neopentyl glycol (NPG) industry over the forecast period is the availability of substitutes such as ethylene glycol, at a much cheaper price. Apart from this, the high toxicity of the product can further put brakes on the growth of the global industry.

Neopentyl Glycol (NPG) Market: Opportunities

Rise in the product use in pharma & personal care product will steer the global market expansion

The huge investment in new product development, especially in the pharmaceuticals and personal care industry is the major factor that is expected to fuel the growth of the neopentyl glycol market globally over the forecast timeframe owing to its utilization in pesticide vibration dampers as a base product. 

Neopentyl Glycol (NPG) Market: Challenges

Stringent legislation prohibiting huge production & usage of product in various end-use sectors can challenge the global industry surge

Strict laws implemented by the government restricting large-scale production & use of the product owing to their VOC emissions and toxicity can pose a huge challenge for the global neopentyl glycol (NPG) industry over the years ahead.

Neopentyl Glycol (NPG) Market: Segmentation

The global neopentyl glycol (NPG) market is sectored into type, application, end-user, and region.                                              

In type terms, the neopentyl glycol (NPG) market globally is bifurcated into molten, flake, and slurry segments. Furthermore, the flake segment, which amassed nearly 80% of the global market revenue in 2022, is anticipated to register the fastest rate of annual growth over the forecast timeline. The expansion of the segment during 2023-2030 can be due to exception flake features. Moreover, neopentyl glycol (NPG0 in flame form is easy to manage during storage and this can enhance the demand for neopentyl glycol in flake form in coatings as well as resin sectors.

Based on the end-use industry, the neopentyl glycol (NPG) industry across the globe is sectored into construction, paints & coatings, plastics, automotive, chemicals, and textiles segments. Furthermore, the paints segment, which gathered nearly two-thirds of the global industry revenue in 2022, is anticipated to dominate the global industry size over the forecast timeline. The expansion of the segment during 2023-2030 can be owing to their large-scale use in powder coatings and coil coatings. Moreover, favorable features of powder coatings such as durability and resistance along with their use in agrochemicals & vehicle insulation will further drive the segmental surge.

Based on the application, the global neopentyl glycol (NPG) market is divided into adhesives & sealants and insulation segments.

Neopentyl Glycol (NPG) Market: Report Scope

Neopentyl Glycol (NPG) Market: Regional Insights

North America is predicted to retain its monopoly in the global neopentyl glycol (NPG) market growth over the forecast timeframe

North America, which contributed about two-fifths of the global neopentyl glycol (NPG) market revenue in 2022, is likely to be a leading region over the forecast timeline. Moreover, the regional market expansion over the forecasting years can be subject to an increase in urbanization in the region. Additionally, a rise in product penetration in the automotive, steel, and cement sectors will steer the regional market growth.

The Asia-Pacific neopentyl glycol (NPG) industry is set to record the fastest CAGR in the next couple of years. The growth of the industry in the sub-continent over the forecast timeframe can be attributed to a rise in the production of the chemical in countries such as India, Indonesia, Philippines, Bangladesh Thailand, and China. Moreover, the presence of giant players in the region will increase the production as well as sale of products along with enhancing the profitability of the industry in the sub-continent.

Key Developments

• In the second half of 2022, QQ Chemicals introduced a key NPG derivative referred to as neopentyl glycol diheptanoate. The newly launched product is anticipated to be a key ingredient in the personal care & cosmetic sectors.
• In the last quarter of 2022, BASF SE decided to invest in a new neopentyl glycol unit in China that can output nearly over 50,000 metric tons of product.

Neopentyl Glycol (NPG) Market: Competitive Space

The global neopentyl glycol (NPG) market profiles key players such as:

• BASF SE
• Eastman Chemical Company
• LG Chem
• Celanese Corporation
• Perstorp Orgnr
• Polioli S.p.A.
• MITSUBISHI GAS CHEMICAL COMPANY INC.
• OXEA GmbH
• Oleon NV
• Shandong Dongchen New Technology Co Ltd.

The global neopentyl glycol (NPG) market is segmented as follows:

By End-Use Industry

• Paints & Coatings
•  Automotive
• Construction
• Chemicals
• Plastics
• Textiles

By Type

• Flake
• Molten
•  Slurry

By Application

• Adhesives & Sealants
•  Insulation

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa