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Hydroquinone Market Overview
Global
Hydroquinone Market size is forecast to reach US$589.8 million
by 2027, after growing at a CAGR of 4.6% during
2022-2027. Hydroquinone is an aromatic organic molecule with the chemical
formula C6H4(OH)2, which is a kind of phenol and a derivative of benzene.
Hydroquinone finds its application as an antioxidants, intermediate, polymerization
inhibitors and photosensitive chemical in different industries including
polymers, cosmetics, paints and adhesives and rubber among others. Hence the
growth in these industries will expand Global Hydroquinone Market size during
the forecast period. Hydroquinone is also used in the production of polyetheretherketone
(PEEK) which is an engineering material widely preferred in aerospace and
automotive industries. Hydroquinone and its derivatives can also be prepared by
oxidation of various phenol. Hydroquinone is also used as an intermediate
in the paints and coatings industry. According to the facts published by Indian
Paint Association (IPA), The Indian paint industry is currently valued at US$
6.6 billion are poised to grow at a healthy rate and is expected to reach
US$9.3 billion by 2022. The industry is expected to grow at a CAGR of 12-15%
during 2021-2022. The COVID-19 outbreak led to major economic problems and
challenges for the Hydroquinone industry globally. Governments all across the globe announced strict measures to slow
the spread of the coronavirus and only the production of essential commodities was
allowed, which impacted the non-essential commodity industries, thereby impacting
the Global Hydroquinone Market size.
Hydroquinone Market Report Coverage
The “Hydroquinone Market Report – Forecast
(2022-2027)” by IndustryARC, covers an in-depth analysis of the following
segments in the Global Hydroquinone industry.
By Application: Intermediate, Antioxidants, Polymerization Inhibitors,
Photosensitive Chemical and Others
By End-Use Industry: Cosmetics,
Polymers, Paints & Adhesives, Rubber and Others
By Geography: North
America (USA, Canada and Mexico), Europe (UK,
France, Germany, Italy, Spain, Netherlands, Belgium and Rest of Europe), Asia-Pacific
(China, Japan, India, South Korea, Australia and New Zealand and Rest of APAC),
South America (Brazil, Argentina, Colombia, Chile, Rest of South America) and Rest of the world (Middle East (Saudi Arabia,
UAE, Israel and Rest of Middle East) and Africa (South Africa, Nigeria and Rest
of Africa).
Key Takeaways
- The Asia-Pacific region is expected to grow at a high CAGR of 5.1% during the forecast period. One of the key drivers driving the market is rapid growth in polymer and synthetic rubber production.
- However, the availability of alternative products is likely to hamper the market growth during the forecast period.
- A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Global Hydroquinone Market Report.
Figure: Asia-Pacific Hydroquinone Market Share, by End-Use Industry, 2021 (%)
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Hydroquinone Market Segment Analysis – by Application
The polymerization
inhibitors segment held the largest share with 43% in
the Global Hydroquinone industry
in 2021 and is anticipated to grow at a significant CAGR during the
forecast period 2022-2027. Polymerization inhibitor
is used to stabilize reactive monomers such as acrylic acid, methyl
methacrylate and cyanoacrylate which are used during the manufacturing of the
polymers. Growing plastic production will increase the
demand for polymerization
inhibitor, thereby driving the Global Hydroquinone
industry during the forecast period. According to Plastic Europe, in 2019, the
global plastic production stood at 368 million tonnes showing 2.5% increase in
comparison with 359 million tonnes produced in 2018. The intermediate segment
is expected to grow at a significant CAGR of 4.7% during the forecast period. Hydroquinone
as an intermediate help in preparing rubber, cosmetics and paints among others.
Hydroquinone Market Segment Analysis - by End-Use Industry
The polymers
segment held the largest share of 37% in the Global
Hydroquinone industry in
2021 and is anticipated to grow at a significant CAGR during the forecast
period 2022-2027. Hydrquinone is used in the production of polymerization
inhibitor which is further used in the production of polymers. The growing
demand for polymers such as polyester from various end-use industries such as
automotive, textiles, furniture and sportswear has resulted in an increase in
the production polymers, which is further driving the market for hydroquinone.
According to the Chemicals and Petrochemicals Manufacturers' Association
(CPMA), in 2020, the production of polymers in India was 12.35 million tons and
in 2021, it was 13.54, an increase of 9.63%. The rubber segment is expected to
grow at a significant CAGR of 4.4% during the forecast period. According to
International Rubber Study Group, in 2021, the global rubber production stood
at 29.4 million tones showing 7.29% increase from 2020. Hence the growth in
rubber production is driving the market for hydroquinone during the forecast
period.
Hydroquinone Market Segment Analysis – by Geography
The Asia-Pacific region dominated the Hydroquinone industry in terms of revenue with a share of 51% in 2021 and is projected to dominate the market during the forecast period (2022-2027). The presence of key manufacturers including, Solvay, Camlin, Eastman, Mitsui Chemicals and UBE, are driving the market growth for Hydroquinone in the Asia-Pacific region. The presence of abundant raw materials and increasing production of polymers and rubber in the region is also driving the demand for Hydroquinone. Hydroquinone is widely used in the production of paints & adhesives. For instance, the total production of adhesives is around 7,090,000 tons and is valued at US$15.01 billion in 2020 with an increase of 4.4% and 3.6% as compared to 2019 in China. The growing cosmetics industry in Asia-Pacific is also supporting the market for hydroquinone during the forecast period. According to Invest India, the beauty and personal care product market in India is currently valued at US$26.8 billion and is forecast to reach US$37.2 billion by 2025. These are some of the major factors expanding the Global Hydroquinone Market size during the forecast period.
Hydroquinone Market Drivers
Surging Application of Hydroquinone in Polymers
Hydroquinone is produced by direct oxidation of phenol. Hydroquinone has various
essential properties such as a high melting point of 171.0 °C, a high boiling
point of 286°C, moisture content of 0.6 % and other such properties. These
properties make it ideal for the polymer industry. Thus, in the manufacturing
of various polymers such as high-density polyethylene (HDPE), polyethylene
terephthalate (PET) and others, hydroquinone is used as a polymerization
inhibitor to extend the shelf life of polymers. The factors such as surging demand
from the packaging industry, enhanced demand from the transport industry to
ensure superior durability & flexibility and others are the vital factors
accelerating the polymers industry growth. According to Plastics Europe, a
plastics association in Europe, the high-density polyethylene (HDPE) polymer
production in the European Union region was 6.29 million tons in 2019 and 6.32
million tons in 2020 an increase of about 0.5%. Also, in 2019, the production
of polyethylene terephthalate (PET) was 3.99 million tons and in 2020, it was
4.14 million tons, an increase of 3.8%. Hence, the growth of polymer production
at the global level is fueling the adoption of hydroquinone to ensure higher
polymer durability. This factor is driving the global market growth during the
forecast period.
Increasing Demand from Cosmetics and Personal Care Products
Hydroquinone is a bleaching agent for the skin. It is utilized as
intermediates, antioxidants and stabilizers in skin lighting creams, powders and other products to
treat the hyperpigmentation skin conditions such as melasma, freckles, or
lentigines. The surging disposable income of people, a gradual consumer shift
toward premium and luxury cosmetic brands is boosting the demand for cosmetics
and personal care products which is further driving the demand for hydroquinone.
For instance, according to the Accord Australasia, in 2019, the personal care
industry of Australia was US$26.06 billion and in 2020 it was US$26.3 billion,
an increase of about 1%. According to International
Trade Administration and Invest Korea, in 2019, the South Korean cosmetics
industry was valued at US$9.43 billion and in 2020, it was US$12.6 billion, an
increase of 33.6%. Also, according to the Cosmetics Europe Personal Care
Association, in 2020, the cosmetics and personal care industry of Europe was
valued at €76.7 billion (US$87.61 billion) and in 2021, it was €80 billion
(US$94.62 billion), an increase of 4.4%. Hence the growing production of
cosmetics and personal care products is supporting the market growth for
hydroquinone.
Hydroquinone Market Challenges
Availability of Hydroquinone Substitutes
The alternative products for hydroquinone include
ascorbates, mequinol, retinoids, azelaic and other. These materials have similar
and, in some cases, superior properties over hydroquinone. Thus, making such
substitutes ideal for application in cosmetics & personal care, rubber,
polymer and other similar industries. Ascorbates have several superior
properties, such as a high boiling point at 553 °C, a high melting point at 190
°C and other similar properties that make them highly durable and safe
materials compared to hydroquinone. Some studies suggest that hydroquinone can
be irritating to the skin and may also act as a carcinogen. While alpha arbutin
is less irritating and far less dangerous than hydroquinone. Hence the availability
of alternative products is likely to hamper the market growth of hydroquinone during
the forecast period
Hydroquinone Industry Outlook
Technology
launches, acquisitions and R&D activities
are key strategies adopted by players in the Global Hydroquinone Market. The
top 10 companies in the Global Hydroquinone Market include:
1. Solvay
2. Eastman
3. Mitsui Chemicals
4. UBE
5. Camlin
6. Goodyear
7. Yancheng Fengyang Chemical Co., Ltd
8. Kawaguchi Chemical Industry Co., LTD
9. Megpie Chemicals
10. RX Chemicals
Recent Developments
- In September 2020, Camlin Fine Sciences announced the commercial production of hydroquinone at the company’s newly set up Diphenol manufacturing plant at Dahej SEZ, Baruch district, Gujarat. which will increase the company’s production capacity of hydroquinone.
- In September 2020, Solvay which is a leading manufacturer of hydroquinone formed a collaboration with Oqema and such collaboration will distribute Solvay’s hydroquinone product in Benelux, the United Kingdom, Ireland, France, Italy, Germany, Switzerland, Poland, Czech Republic, Slovakia, Slovenia and Baltic countries.
- In April 2019, Solvay expanded the Hydroquinone capacity in its Zhenjiang, China plant with the main focus of expanding its presence in the Asia-Pacific market.
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