The National Investment Promotion and Facilitation Agency of India states that the pharmaceutical industry of India received foreign direct investment (FDI) of $17.990 billion from April 2020 to March 2021. Further, the government of Canada invested over $1 billion to facilitate industrial research and innovations in pharmaceuticals and vaccines and expand biomanufacturing capacity. The surging investments being made in the pharmaceutical sector will, therefore, create a huge requirement for benzalkonium chloride, because of its ability to serve as an antiseptic, antimicrobial, disinfectant, preservative, wetting agent, and solubilizing agent.
Moreover, the booming oil and gas sector will help the benzalkonium chloride market exhibit a CAGR of 9.6% between 2020 and 2030. According to P&S Intelligence, the market revenue stood at $525.0 million in 2019, and it will reach $1,301.1 million by 2030. The International Energy Agency (IEA) forecasts that The Organisation for Economic Co-operation and Development (OCED) countries and non-OECD countries will supply 29.9 million barrels per day (mb/d) and 32.1 mb/d of oil, respectively, by 2025.
In the coming years, benzalkonium chloride 50% will be consumed in larger volume, as compared to benzalkonium chloride 80%, due to the less toxic nature of the former. Owing to its less toxicity, benzalkonium chloride 50% is largely used in pharmaceuticals, such as hand sanitizers, spermicidal creams, disinfectants, and eye, ear, and nasal drops, and personal care products, such as shampoos. Other application areas of both compounds are agriculture chemicals, coatings, water treatment chemicals, and timber protection chemicals.
Currently, the benzalkonium chloride needs of the chemical, horticulture and household, leather, textile, pulp and paper, pharmaceuticals and cosmetics, and oil and gas sectors are being met by Kao Corporation, Ava Chemicals Private Limited, Haihang Industry Co. Ltd., KLK OLEO, Tokyo Chemical Industry Co. Ltd., Novo Nordisk Pharmatech A/S, Dishman Carbogen Amcis Ltd., Shanghai Bichain Industrial Chemical Co. Ltd., and Neogen Corporation. Nowadays, these companies are proactively focusing on geographical expansion to cater to a greater number of end users.
Over the last few years, the North American region has emerged as the leader of the benzalkonium chloride market due to the increasing E&P activities in Canada and the U.S., owing to the mounting investments being made in the oil and gas sector. Additionally, the increasing opportunities for oilfield equipment manufacturers of the U.S. and Canada will also facilitate the adoption of the compound in the region. Owing to these reasons, North America will retain its lead in the foreseeable future as well.
Furthermore, the Asia-Pacific (APAC) region is expected to consume a considerable volume of benzalkonium chloride in the upcoming years. This will be on account of the rapid development in the chemical industry, owing to the increasing presence of chemical manufacturers and exporters in the region. In recent years, global chemical companies have expanded their presence in India, Malaysia, and Vietnam. For example, in April 2020, Reckitt Benckiser, the producer of Dettol disinfectant, unveiled its plan to construct a production unit for Dettol in Taicang, Jiangsu province, China.
Thus, the expanding pharmaceutical sector and flourishing oil and gas industry will propel the consumption of benzalkonium chloride in the forthcoming years.