Global Diisononyl Phthalate (DINP) Market - 2023-2030

Overview

Global Diisononyl Phthalate (DINP) Market reached US$ 3.15 billion in 2022 and is expected to reach US$ 4.70 billion by 2030, growing with a CAGR of 5.3% during the forecast period 2023-2030.

DINP is used as a plasticizer in the consumer goods industry, which produces toys, shoes and consumer electronics, among other items, in order to give their products the necessary flexibility and durability. Innovative and superior consumer items are in greater demand as disposable incomes grow and customer preferences change. In order to satisfy these expectations and support the market's expansion, DINP is essential.

DINP is widely consumed by the construction sector, which uses it to make PVC materials for roofing, flooring, pipelines and cables, among other uses. The need for DINP as a plasticizer in these materials rises in tandem with the global building activity brought on by urbanization, infrastructure development and housing demand. DINP is essential in the construction industry because it increases the flexibility and durability of PVC products.

Asia-Pacific is among the growing regions in the global diisononyl phthalate (DINP) market covering more than 1/3rd of the market. Building and infrastructural development have increased significantly as a result of the fast industrialization and urbanization of nations like China and India. For the creation of the PVC-based materials utilized in these projects, including pipes, wires and floors, DINP is an essential component. The DINP market is expanding as a result of urban consumers' increasing need for sturdy and flexible plastic items.

Dynamics

Growing the Construction and Building Sector Due to Government Initiatives

Building and construction activities are growing in nations like Singapore, China and India as a result of economic reforms and increased per capita personal wealth. Additionally, di-isononyl phthalate plasticized PVC is widely utilized in construction and building applications, including flooring, wall coverings, roofing membranes and electric wire sheathing. The Australian Trade and Investment Commission asserts that Singapore allocates a minimum of S$2 billion monthly towards public infrastructure.

The International Trade Administration (ITA) estimates that between 2019 and 2023, the Chinese construction sector will expand on average by 5% per year in real terms. Additionally, because of several government efforts like Foreign Direct Investments (FDI), building and construction activities are also increasing.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), the Infrastructure Activities industry received foreign direct investment (FDI) inflows of US$ 14.81 billion, while the Construction Development sector attracted US$ 25.05 billion in FDI from April 2000 to March 2019. As a result, over the projection period, the di-isononyl phthalate market will be driven by the region's increasing development and construction activity as a result of these government initiatives.

Growth in the Consumer Electronics Industry

The global market for Diisononyl Phthalate (DINP) is greatly impacted by the expansion of the consumer electronics industry. As electronics continue to grow smaller and more innovative, DINP is essential as a plasticizer for improving the pliability, durability and insulating qualities of plastic parts used in computers, wearable technology and smartphones.

According to Invest India, by 2025, the consumer electronics and appliances sector in India is expected to grow to become the world's fifth biggest. India is able to create a digital economy that could be valued at US$800 billion to US$1 trillion by 2025, bringing up 18-23% of the entire GDP of the nation. Moreover, the di-isononyl phthalate market is bolstered by the consistent use of plasticized PVC containing di-isononyl phthalate in the manufacturing of consumer electronics throughout the projection period.

For Instance, in 2019, BASF expanded its annual manufacturing capacity for 2-ethylhexanoic Acid (2-EHA) and Isononanoic Acid (INA), two Higher Carboxylic Acids (HCA), from 55,000 metric Tons to 68,000 metric Tons globally. BASF is a global leader in the manufacturing of HCA, because of its expansive and highly adaptable production facilities at its Verbund locations in Kuantan, Malaysia and Ludwigshafen, Germany.

High Cost of Raw Materials

The diisononyl phthalate (DINP) market is severely restricted by the price volatility of raw materials, particularly those sourced from crude oil. Nappha, a petrochemical feedstock that has a correlation with the price of crude oil on a globally scale, is used to make DINP. Natural disasters, changes in supply and demand, geopolitical unrest and changes in the state of the world economy may all cause fluctuations in the price of crude oil.

Furthermore, the cost of energy, especially that of processing and transportation, has a significant impact on the chemical sector. Consequently, variations in energy costs exacerbate the difficulties DINP producers have, so they must use efficient risk management techniques and keep a careful eye on market circumstances in order to adjust to quickly shifting cost dynamics.

Strict Government Regulations

Animal health risks related to DINP are well-documented. In accordance with Regulation (EC) No 1907/2006, Annex XVII-52, DINP limitations are applicable to toys and childcare items that can be put in the mouth. When diisopropyl phthalate is administered in large doses to male rats, alpha 2 globulin accumulates in their kidneys. According to studies, diisononyl phthalate (DINP) can impact the development of unborn children and cause tumors to form in the liver, spleen and kidneys of animals.

In addition, there is a growing change in customer preferences and knowledge towards eco-friendly and non-phthalate alternatives. As customers seek safer and more environmentally friendly options, firms may witness a decline in demand for DINP-based products as public knowledge of the possible health hazards linked with phthalates rises.

Segment Analysis

The global diisononyl phthalate (DINP) market is segmented based on polymer, application, end-user and region.

Increasing Demand for PVC in the Variour of End-Users

PVC segment is among the growing regions in the global diisononyl phthalate (DINP) market covering more than 1/3rd of the market. Polyvinyl chloride or PVC, is growing more and more popular because of is flexible in a variety of industries that use it, including packaging, electronics and automotive. PVC is a highly demanded material in a range of industries due to its many qualities, including flexibility, strength, lifespan, weather resistance and thermal resilience.

Approximately 95% of DINP is utilized in PVC applications, according to the European Council for Plasticizers and Intermediates (ECPI). Flexible PVC applications utilize more than 85% of all plasticizers utilized in Europe, according to European Plasticisers. It impart the necessary flexibility and elasticity to PVC for a wide range of applications. The means that throughout the projected time, polyvinyl chloride (PVC) polymer is expected to rule the di-isononyl phthalate industry.

Geographical Penetration

Rising Demands in the Automotive Industry in Asia-Pacific

Asia-Pacific has been a dominant force in the global diisononyl phthalate (DINP) market and Asia-Pacific is one of the largest automotive industries in the world and it is still expanding. For increased flexibility and durability, DINP is utilized in a variety of automobile components, such as wire coatings, dashboards and upholstery. One major factor influencing DINP use in the area is the need for vehicles.

The Chinese government anticipates that by 2025, automotive manufacturing will reach 35 million units, making China the largest vehicle market in the world, according to the International Trade Administration (ITA). Furthermore, the enormous demand for di-isononyl phthalate was further driven by the growing per capita income of people in the APAC area, which, according to OICA, resulted in a 10.2% rise in light commercial vehicle manufacturing in 2018.

Additionally, the Asia-Pacific di-isononyl phthalate market is expected to be significantly driven all through the forecast period because of the rising demand for di-isononyl phthalate for plasticizing PVC resulting from increased automated production. Diisononyl phthalate finds widespread use in wall coverings and flooring made of PVC. The demand is predicted to be influenced by the growing demand from the building and construction sector in nations like China, India, Indonesia, Vietnam and Thailand.

For Instance, in September 2020, Mitsubishi Corp. and Temasek Holding aimed to construct a smart city 25 km southwest of Jakarta as part of the country's ambitious ambition to create one million dwelling units across Southeast Asia. With the aim of accommodating 40,000 to 60,000 permanent people, the smart city will have residences, retail establishments and healthcare services, indicating a positive market outlook in the region.

COVID-19 Impact Analysis

The global market for Diisononyl Phthalate (DINP) was significantly impacted by the COVID-19 pandemic Early in the pandemic, lockdowns, a reduction in industrial activity and supply chain disruptions led to a brief decline in DINP demand, especially in sectors like consumer products, construction and the automobile industry. DINP usage dropped as a result of several industrial plants closing or operating at lower capacity. In addition, the pandemic's economic uncertainty caused cautious expenditure across a number of industries, which had an effect on the manufacture and consumption of DINP-based products.

Dia-isononyl phthalate imports and exports have been affected by the COVID-19 pandemic outbreak because export restrictions implemented by the governments of the major manufacturing nations have severely disrupted supply. In addition, the building and construction sectors as well as the automobile industry are being severely impacted by the COVID-19 epidemic.

The abrupt halt of vehicle manufacturing has resulted in a significant loss for the automotive industry as a whole. According to the European Automotive Manufacturers Association, the demand for new commercial cars in Germany decreased by double digits in May 2020 or -30.5 percent. Furthermore, there are no longer any building or construction projects underway.

Di-isononyl phthalate materials market growth is being greatly impacted by the sharp decline in PVC material demand brought on by the decline in building and construction as well as automotive operations. In addition, the pandemic's economic uncertainty caused cautious expenditure across a number of industries, which had an effect on the manufacture and consumption of DINP-based products.

Russia-Ukraine War Impact Analysis

Global Diisononyl Phthalate (DINP) market trends may be impacted severely by the ongoing conflict between Russia and Ukraine. The raw materials for the chemical industry, such as DINP plasticizers, are produced in large quantities in Ukraine. There could be shortages and price volatility in the DINP market if there is any supply chain disruption driven by the conflict, such as delays in the moving of raw materials or the delivery of electricity.

Additionally, the trade relates to between Russia, Ukraine and other international markets may be impacted by geopolitical instability and economic sanctions, which could limit the export and import of DINP and associated items. Impact supply availability and pricing in the globally market might result from these issues, which could be unsettling for DINP manufacturers as well as consumers.

Additionally, the war between Russia and Ukraine could have an impact on consumer preferences and regulatory situations. The production, use and regulation of DINP could change as a result of increased focus on health and safety laws as well as worries about the provenance and caliber of chemical products. To lower geopolitical risks, businesses might look into substitute plasticizers and the DINP market would witness changes to manufacturing sites and supply networks.

By Polymer

• Acrylic
• Polyurethane (PU)
• PVC
• Rubber
• Polyethylene (PE)
• Others

By Application

• Flooring & Wall Covering
• Wires & Cables
• Films & Sheets
• Coated Fabrics
• Consumer Goods
• Adhesives & Sealants
• Others

By End-User

• Electrical and Electronics
• Plastic & Rubber
• Building and Construction
  • Residential
  • Commercial
  • Industrial
  • Others
• Textile and Footwear
• Automotive
  • Passenger Vehicles
  • Commercial Vehicles
  • Others
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On June 28, 2023, KLJ Group is a leading player in the chemical/plasticizers sector. The Plasticizers & Phthalic Anhydride Production Facility (BIS certified) in the GIDC Jhagadia Industrial Estate, Bharuch, Gujarat, was put into operation with an investment of Rs. 1,200 crore (US US$145 million).
• On November 15, 2021, Evonik launched new plasticizer products made with isononanol (INA) as the basic ingredient. It will support the Group's international plasticizer business, which is focused on plasticizers used for flexible PVC products including roofing membranes, cables and flooring. The main location of the Group, located in Marl, Germany, is where the new items will be produced.

Competitive Landscape

The major global players in the market include: BASF SE, Exxon Mobil Corporation, Eastman Chemical Company, UPC Group, Perstorp Group, LG Chem, Evonik Industries AG, NAN YA Plastics Corporation, KLJ Group and Mitsubishi Chemical Corporation.

Why Purchase the Report?

• To visualize the global diisononyl phthalate (DINP) market segmentation based on polymer, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of diisononyl phthalate (DINP) market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global diisononyl phthalate (DINP) market report would provide approximately 61 tables, 66 figures and 186 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies