Amines Market to Grow $17,363.1 Million by 2018 at CAGR of 7.5%
Girija Dalvi

The amines market is expected to reach USD 17,363.1 million by 2018 at a strong compound annual growth rate of 7.5 per cent for the period 2013-2018 as compared to USD 10,258.0 million in 2012, a recent report - "Amines Market by Type (Ethanolamines, Alkylamines, Fatty Amines, Specialty Amines And Ethylene Amines), by Application (Agricultural Chemicals, Cleaning Products, Gas Treatment, Personal Care Industry, Petroleum, Water Treatment & Others) & Geography - Trends and Forecasts to 2018" - stated.

A number of industries like pesticides, agricultural chemicals, solvents, gas treatment, personal care, detergents and fabric softeners, paper chemicals, pharmaceuticals, rubber processing and textile make substantial use of amines.

A careful overview shows that applications in the petroleum and agricultural chemicals as well as personal care industry account for a large share of the entire demand for amines. The report by MarketsandMarkets states that by 2018, from the perspective of market volume, the amines market is estimated to touch 5,581.6 kilo tonnes at a steady CAGR of 5.2 per cent. The amines market along with its end products has seen a sizable growth globally and would continue to grow in the following years.

The global amines market will grow mainly because of some of the chief demand drivers like existing market expansions and creation of new ones, innovation in the techniques as well as development of novel applications like wood preservation, glyphosate herbicides, detergents, etc. Among all the amines types, ethanolamines have the biggest volume share. Due to the boost in the personal care sector which accounts for almost 17 per cent of the demand, fatty amines may see a quick growth. Another type of amines that is experiencing substantial growth is gas treatment amines; this is because of the numerous applications working on gas globally.

These products have the largest consumption in the Asia-Pacific market at present. Although the market volume in Europe would be low in comparison, the CAGR of the region would most likely be steady between 2013 and 2018. With regards to strategic initiatives, the Asia-Pacific and ROW markets are very active as a result of the mature as well as emerging market demands.

If all the countries in the region are taken into account, India and China would come out as the leaders in the amines market. Cumulatively, by 2018, these two countries are estimated to make up for the largest share in the Asia-Pacific regional volumetric consumption. The accelerated growth in the amines market is also due to the increasing population.

The rising demand for amines in the Asia-Pacific market has spurred BASF, an international chemical company to set up a world-scale specialty amines production plant. Its plant would be built at its wholly-owned site in China's Nanjing Chemical Industry Park and would focus on Polyetheramines (PEA) and Dimethylaminopropylamine (DMAPA) as their main products. The plant is estimated to go on stream in the latter part of 2015. According to Sanjeev Gandhi, President, BASF Intermediates division, "BASF is a leading supplier of DMAPA and PEA globally, and this investment reflects our continued commitment to meeting the growing market demand in Asia Pacific. Our ability to produce these products within the region will strengthen our supply reliability and better serve our customers with shorter lead times."

Dr Guido Voit, Senior VP, BASF Intermediates, Asia-Pacific, is of the opinion that growing consumption of personal care products due to the rising middle class and development taking place in the construction, wind energy and coatings in the Asia-Pacific region has driven this investment.

In India, Alkyl Amines Chemicals Ltd and Balaji Amines Ltd are the leading amines manufacturers. Just recently, Balaji Amines reported an increase in the net profit by 59.47 per cent to reach Rs 9.09 crore when Q4 ended in March 2014. The net profit reported in the previous quarter stood at Rs 5.70 crore. In comparison with the Rs 141.48 crore sales of the previous quarter, there was an increase of 21.22 per cent to Rs 171.50 crore in March 2014.

In FY 2013-14, the net profit reported was Rs 33.53 which was a rise of 7.54 percent for the entire year; in FY 2012-13, the net profit stood at Rs 31.18 crore. Also, the sales increased by 19.21 percent in FY 2013-14 to Rs 610.13 crore which is much higher than the previous year's Rs 511.80 crore.

The report states that China, India, Japan, Russia and Brazil would continue to see good growth prospects in the future.