Naphthol AS-IRG Market Trends

Growth Drivers

• Rapidly Growing Dyes and Pigments Industry – Naphthol AS-IRG is in high demand from the dyes and pigments industry as it is suitable for dyeing and printing, pigment manufacturing, and tie and dye industries. Moreover, naphthol AS-IRG is also used as a key ingredient for various dye intermediates and pigments which is beneficial for the synthesis of active pharmaceutical ingredients such as midodrine. Therefore, growth in the dyes and pigments industry is expected in the global naphthol AS-IRG market during the forecast period. As per recent statistics, the global dyes and pigments industry gathered almost 40 billion in 2022 and is projected to further increase with a 5% CAGR.

• High Investments in the Construction of Buildings and Infrastructures – In the recent period, rapid urbanization and industrialization have led to the demand for construction activities across the world. Naphthol AS-IRG is highly used in the building sector owing to its expanding application in constructing infrastructures. Hence, the rising focus on investing in the construction of buildings and infrastructures for economic development is expected to increase the utilization rate of Naphthol AS-IRG which in turn is anticipated to fuel the global market in the assessment period. Recent statistics stated that commercial investment in the United States increased by almost 13% in the fourth quarter of 2021 as compared with the previous quarters. Furthermore, the industrial construction investment in the same region rose by approximately 5% in the fourth quarter of 2022.

• Increased Demand for Plastic Products – Naphthol AS-IRG has found its application in the plastic industry as a colorant for coloring plastic pigments. Therefore, with the increase in plastic products, the plastic industry is estimated to grow which is subsequently projected to create favorable opportunities for major key players operating in the market. The recent data disclosed in 2022, around one million plastic bottles are purchased every minute and around five trillion plastic bags are used every year across the world.

• Swelling of Chemical Industry – Latest reports stated that the revenue garnered by the global chemical industry in the year 2021 was approximately 4 trillion dollars, a considerable increment from the previous year with 3 trillion dollars.

• The Surge in the Expenditure on Research and Investment Activities - Key players of the global market are investing huge amounts in developing technologically developed components such as Naphthol AS-IRG in the upcoming years for bridging the gap between supply and demand of naphthol AS-IRG in various end-use industries. Thus, the high expenditure on research and development activities is expected to create a positive outlook for market expansion in the upcoming years. The World Bank released the global expenditure made in the Research & Development (R&D) sector which showed that in 2020 it was 2.63% of the total GDP. This is an increase from year 2.14% of the total GDP in 2016.

Challenges

• The Rising Awareness of Environmental Degradation - The whole world is aware of the fact that inorganic components are not suitable for humans as well as for the environment. As naphthol AS-IRG has chemical and toxic constituents, therefore, the first challenge that arises in front of this market is the harmful effects of naphthol AS-IRG on humans and the environment. This factor is estimated to hamper market growth during the forecast period.
• Increased Preference for Organic Products by Consumer Base
• The Surge in the Awareness Level of Associated Health Risks