Solketal Market Trends

Growth Drivers

• Growing Demand for Solketal in Biodiesel Production – Solketal is the most suitable component used in biodiesel as a flash point improver and viscosity after being synthesized through the ketalization. It can hike the number of cetane in gasoline and biodiesel. For instance, in 2022, the total production of biodiesel in India alone was projected to be around 180 million liters while in 2020, around 150 million gallons of biodiesel were produced in the United States.

• Rising Utilization of Solketal in the Cosmetics Industry – Solketal is highly used in cosmetics as a vital solvent to decrease the drying time in cosmetic products. The growth of the global solketal market is projected to be interlinked with the growth of the cosmetic industry. For instance, it was estimated that approximately USD 100 billion is estimated to be exhibited by the global beauty industry by 2025. Furthermore, post-COVID-19, around 20% of women across the globe are estimated to spend money on skincare more than before.

• Increasing Requirements in the Pharmaceutical – Growing distribution owing to higher demand for medicines has accelerated the production of medicines which in turn boosts the demand for solketal. As of 2021, approximately USD 575 billion were spent by Americans alone on medicine while this figure of spending is projected to reach around USD 600 billion by 2025.

• Developing the Paint & Coating Industry to Boost the Demand for Solketal – The global paint and coating industry was valued at approximately USD 150 billion in 2021. Furthermore, more than 1 billion gallons of paint and coating were produced in the United States in 2022 and are estimated to reach around 1.3 billion gallons in 2023.

• Growth in the Chemical Industry – As of 2021, the total worth of the global chemical industry amounted to approximately USD 4 trillion.

Challenges

• Presence of Alternative Additives in the Market - For instance, the availability of acetone in the market can hamper the demand for solketal. Acetone can be used for commercial petrochemical processes in the place of solketal and the manufacturing cost of acetone is affordable as well since it is made from benzene and propylene.
• Requirement of Higher Initial Investment
• Possibility of the Side-Effect on the Body