Desiccants Market Trends

Growth Drivers:

• Increasing demand from pharmaceuticals and foods: Growing demand from the pharmaceutical and food industries on behalf of large end users for desiccants to protect the integrity of many of their products in storage and transit. Sensitivity to shelf life and safety has been enhanced, improving demand for high-performance desiccants. For example, in October 2022, CILICANT began Active Packaging Solutions, which were developed in the desiccants market for protecting food products from moisture alongside oxidation, thus increasing shelf life.
• Growing e-commerce and global trade: The increasing prevalence of e-commerce and global trade across a wide spectrum of sectors has created a need for packaging solutions that will give assurance against any damage from moisture. Desiccants have proven to be extremely effective in making sure products are adequately and well-preserved when they finally reach the market, despite the long shipping times and weather conditions. For example, in February 2024, Aptar CSP Technologies partnered with ProAmpac to introduce ProActive Intelligence Moisture Protect, a packaging solution to reduce degradation risks during transportation.

Challenges:

• Compliance and environmental concerns: The desiccant manufacturers must stay compliant with stringent regulations, especially regarding environmental impact, which has increased their investment in research and development. In September 2022, the European Union put in place tight regulations such as REACH to manage chemical risks, including desiccants. Such regulations increase the manufacturer's expenses on inspection and compliance hence limiting expansion prospects. 

• Supply chain disruptions and material shortage: The material shortages in the desiccants industry are due to the failure of the same general supply chains that also shut down the other varied industries. Due to such disruptions in the supply chain, important raw materials of the desiccants, such as silica gel and calcium chloride, have been affected. Factors such as these are anticipated to limit the desiccant market expansion during the forecast period.