The allyl chloride market is projected to increase by USD 1.56 billion between 2023 and 2028, growing at a CAGR of 4.1%, driven by its extensive use across diverse industrial applications. From the synthesis of epichlorohydrin to applications in electronics, aerospace, marine, pharmaceuticals, and construction, allyl chloride serves as a pivotal intermediate chemical compound.
Allyl chloride remains indispensable for industries like:
Electrical and Electronics: Used in the manufacture of printed circuit boards and insulators.
Aerospace and Marine: Transparent liquid resins made from allyl chloride coat aircraft and boats.
Construction: Acts as a plasticizer and emulsifier; also used in PVA and PVC resin production.
Textiles and Pharmaceuticals: Integral to generic drug synthesis and polymer applications.
Coatings and Adhesives: Epoxy resins derived from allyl chloride are favored for their durability and chemical resistance.
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The core driver fueling the growth of the allyl chloride market is its broad range of derivative applications:
Epichlorohydrin production, used to manufacture epoxy resins.
Synthesis of allyl derivatives, including allyl alcohol, allylamine, allyl sulfonates, and glycidyl ethers.
Use in pharmaceuticals, pesticides, adhesives, and coatings.
Application in plasticizers, emulsifiers, and flame retardants.
Consumption in surfactants, water treatment chemicals, and chelated agents.
Despite its toxicity and flammability, the compound remains in high demand due to its versatility and indispensable role in material and chemical production.
An emerging trend is the increased adoption of epichlorohydrin-based epoxy resins for water treatment applications. These resins are favored for their non-toxic, durable, and heat- and chemical-resistant properties. In 2023, the rise in demand for coatings on pipes and water containers to avoid contamination from residues is driving the need for more allyl chloride-based formulations.
Epichlorohydrin’s role in bio-based alternatives, such as bio-epichlorohydrin and glycidyl ethers, is gaining attention as companies seek eco-conscious material solutions without compromising performance.
The biggest challenge lies in stringent environmental regulations tied to allyl chloride production:
The process emits hazardous gases and uses propylene, a potentially toxic feedstock.
By-products like hypochlorous acid risk water pollution.
Exposure to propylene can cause serious health issues, including respiratory problems, skin irritation, and central nervous system damage.
The regulatory landscape is pushing manufacturers to innovate cleaner production methods and consider bio-based feedstocks such as bio-based epichlorohydrin and allyl amines.
This segment is expected to show significant growth during the forecast period.
Epichlorohydrin continues to see rising demand in construction, aerospace, marine, automotive, and electronics.
Produced through the reaction of allyl chloride with chlorine and water, it is a miscible, chlorine-containing epoxy compound vital to the production of epoxy resins, surfactants, elastomers, and water treatment chemicals.
Other application segments include:
Chelating Agents
Allylic Ether Resins
Allylic Esters
Others
Contributing 72% to the global market growth.
Leading countries:
China
India
Japan
South Korea
Taiwan
China leads both production and consumption of allyl chloride, driven by demand for epichlorohydrin-based products in epoxy resins.
In India, Taiwan, and South Korea, growth is linked to construction industry expansion and increasing use of paints and coatings that incorporate epichlorohydrin.
Key country:
United States
The U.S. market benefits from robust activity in pharmaceuticals, adhesives, and coatings, supported by advanced industrial capabilities and regulatory frameworks that incentivize cleaner production technologies.
Key country:
Germany
Germany’s chemical manufacturing sector continues to drive demand, especially for epoxy resins, electronic components, and high-performance materials.
These regions show potential for future growth, particularly as industries in oil and gas, paints, and textiles seek efficient chemical intermediates for high-volume production.
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The Allyl Chloride Market is integral to the production of various high-value chemical intermediates used in industries like pharmaceutical synthesis, agrochemical production, and polymer additives. As a key precursor in the manufacturing of epichlorohydrin, allyl alcohol, and allyl ethers, allyl chloride plays a pivotal role in producing allyl derivatives such as allylic esters and allyl silane. Its applications span across synthetic glycerine production, water treatment, and surfactant chemicals that are essential in formulations for emulsifier agents and plasticizers. Allyl chloride's chemical reactivity is crucial in industries such as epoxy resins and elastomer production, where it serves as a building block for high-strength polymers and coating resins, enhancing corrosion resistance and lightweight materials. The rise of bio-based epichlorohydrin production also signifies a shift toward eco-friendly solutions in resin synthesis and eco-friendly coatings, further boosting market demand.
AB Enterprises
BOCSCI Inc.
Chemical Corp. Pvt. Ltd.
China Petrochemical Corp.
Daiso Chemical Co. Ltd.
DuPont de Nemours Inc.
INOVYN Europe Ltd.
Kashima Chemical Co. Ltd.
Leo Chemo Plast Pvt. Ltd.
Mitsubishi Chemical Corp.
Olin Corp.
OSAKA SODA CO. Ltd.
SIELC Technologies
Solvay SA
Sumitomo Chemical Co. Ltd.
Thermo Fisher Scientific Inc.
These companies are focused on:
Strategic alliances
Mergers and acquisitions
Geographic expansion
Sustainable production methods
Product and service launches
In-depth analysis of the allyl chloride market reveals significant growth driven by demand in specialty chemicals and adhesive binders production. Allyl monomers derived from allyl chloride are widely used in chlorohydrination and propylene chlorination processes, making them central to the production of epoxide compounds and various allyl derivatives for pesticide formulation and resin synthesis. Additionally, allyl chloride is critical in the creation of allylamine and allyl isothiocyanates, which find applications in industries ranging from agrochemical production to pharmaceutical synthesis. As demand for industrial catalysts and chemical reactivity increases, the market is also seeing rising usage in allyl alcohol derivatives for epoxy resins and chemical intermediates. The push for fuel efficiency and plasticizer formulations has further solidified allyl chloride's position as a crucial component in lightweight materials and corrosion resistance coatings. The growing trend toward eco-friendly coatings and bio-based alternatives continues to support the development of sustainable production methods and formulations.
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