Allyl Chloride Market Strategies and Forecast Worldwide, 2019 to 2027

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Allyl Chloride: Introduction

• Allyl chloride is a transparent, yellow, or brown liquid with an unpleasant pungent odor. It is generally derived from the chlorination of propylene or by the reaction of allyl alcohol and phosphorous chloride.
• Allyl chloride is insoluble in water but miscible in organic solvents such as alcohol, chloroform, ether, acetone, benzene, carbon tetrachloride, heptane, and toluene. Allyl chloride is primarily used in the production of epichlorohydrin. Allyl chloride is used as a raw material to produce epichlorohydrin, which is further employed in the production of plastic or polymers. Epichlorohydrin is also used to manufacture epoxy resins, surfactants, flame retardants, water treatment chemicals, and various other products.
• Allyl chloride is also used as alkylating agent in the manufacture of various chemical compounds. It is toxic and flammable material; therefore, it carries regulatory concerns across the globe.

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Key Drivers of Allyl Chloride Market

• Allyl chloride is used as raw material to produce epichlorohydrin, which is an intermediate product widely used in the production of  epoxy resins, textiles, paper products, inks, dyes, automotive and aircraft parts, biocides, personal care products, pharmaceutical, and ion-exchange resins. Increase in demand for allyl chloride in manufacture of pesticides is one of the key drivers of the allyl chloride market.
• Demand for pharmaceutical products has been rising significantly, even during the COVID-19 pandemic. Pharmaceutical is one of the few sectors that has been positively impacted by COVID-19. According to a report published by India Ratings and Research, the pharmaceutical sector in India is projected to expand by 3% to 5% in FY 2021 compared to that in FY 2020. The global pharmaceutical industry was valued at US$ 1.11 Trn in 2018 and is estimated to expand owing to the rise in demand for drugs and vaccine for COVID-19 across the globe. Increase in revenue of major global pharmaceutical companies such as Pfizer Inc., Johnson & Johnson, F. Hoffmann-La Roche AG, and Dr. Reddy Laboratories can help in expansion and new product development. Usage of allyl chloride as alkylating agent is estimated to increase in the near future owing to growth in the pharmaceutical industry.
• Allyl chloride is used as key element in the production of water treatment chemicals. Countries such as India and China are facing issues related to water pollution. The Government of India launched the Namami Gange project in 2016 to clean the polluted rivers of India. The government announced the budget of US$ 105 Mn under the Namami Gange project for 2020 to 2021. This is estimated to boost the consumption of water & sewage treatment chemicals, thereby increasing the demand for allyl chloride in the country.

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Applications of Allyl Chloride

• Allyl chloride is used in a wide range of applications. For instance, it is employed in the production of epichlorohydrin, allylic esters, allylic ether resins, alkyl & allylic silanes, pesticides, adhesives, flame retardants, chelating agents, detergents, dyestuffs, flavorings, metal brighteners, perfumes, pharmaceuticals, and urethanes.
• Allyl chloride is primarily used in the manufacture of epichlorohydrin, an important monomeric precursor that is used as a main developing element in the production of epoxy resins. Epichlorohydrin is further converted into Bisphenol A diglycidyl ether, a building block used in the manufacture of epoxy resins. Increase in demand for epoxy resins, which is majorly manufactured from epichlorohydrin, is likely to drive the allyl chloride market in the near future.
• Allyl chloride is also employed in the production of allylic esters, which are prepared by reacting allyl chloride with alkaline salt of either aromatic or aliphatic carboxylic acids. Polymers with pendant allyl groups are generally produced by reacting allyl chloride with copolymers of acrylic or methacrylic acid.
• Allyl or allylic ethers of Bisphenol A and novolac phenolic resins are manufactured with the help of allyl chloride as a reactant. Allyl chloride is cured through allylic unsaturation to produce molding resins and coatings. It is also used in the preparation of chelating agents.