Organic Dispersants Market Trends

Growth Drivers

• Extensive Use in Automotive Industry – Dispersants are added to lubricating oils in engines to prevent the buildup of sludge and varnish on cylinder walls, keeping them clean. This demand is anticipated to improve the organic dispersants’ market share. For instance, China’s domestic production of vehicles is expected to reach around 35 million by the year 2025. In 2020, it sold over 25 million vehicles.
• Treatment of Oil Spills - In an oil spill, dispersants break down petroleum into smaller droplets and help to clear the oil from the water's surface. As per the International Tanker Owners Pollution Federation (ITOPF), approximately 10,000 tons of oil were spilled in 2021, far more than in 2020.
• Increasing Use in Paper Industry - The growing demand for good quality, cost-effective paper in developing countries such as China and India are predicted to drive the market for organic dispersants. As per the latest studies, India alone manufactures more than 12 million tons of paper, contributing to around 3% share of the world’s paper production.
• Rising Use in Agriculture- Organic dispersants increase the efficiency of biocides and pesticides used in agriculture. According to the Food and Agriculture Organization of the United Nations, around 4.2 million tons of pesticides were used worldwide in the year 2019.

Challenges

• Fluctuation in the Prices of Raw Materials –Starting from unexpectedly high energy prices to fluctuations in the prices of raw materials make it is tough for manufacturers to offer a quality product at a low price. As the prices of raw materials fluctuate it becomes a task for manufacturers to offer the product at a reasonable cost, they would also need to keep their margin and it might not be possible for the customer also to spend a high amount of money.
• Stringent Government Regulations Imposed in Some Developed Countries
• Slower Pace of Innovation in Developing Countries