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1 MarketsandMarkets Publisher Sample Phone: (US) or or (Int'l) Hours: Monday - Thursday: 5:30am - 6:30pm EST Fridays: 5:30am - 5:30pm EST customerservice@marketresearch.com MarketResearch.com
2 CHELATING AGENT MARKET BY TYPE (AMINOPOLYCARBOXYLATE, PHOSPHATE & PHOSPHONATE, BIODEGRADABLE), APPLICATION (CLEANER, WATER TREATMENT, PULP & PAPER, AGROCHEMICAL, PERSONAL CARE, PHARMACEUTICAL, FOOD & BEVERAGE), & GEOGRAPHY GLOBAL TREND & FORECAST TO 2019 It s all about markets MARKETSANDMARKETS sales@marketsandmarkets.com
3 MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. MarketsandMarkets covers fourteen industry verticals, including aerospace and defence, advanced materials, automotives and transportation, banking and financial services, biotechnology, chemicals, consumer goods, energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2014 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. 1
4 1 EXECUTIVE SUMMARY Chelating agents are high-performance chemical substances whose molecules can form several bonds to a single metal ion. The chemical compound which is composed of a metal ion and a chelating agent is a chelate. These are used in the production of nutritional supplements, detergents & cleaners, fertilizers, consumer goods such as personal care products & cosmetics, food preservatives, and medicines. These are also used as water softeners and heavy metal detoxifiers. The segmentation of the chelating agent market has been done on the basis of type, application, and geography. The types of chelating agents include aminopolycarboxylates, phosphates & phosphonates, biodegradable agents, and others (N-(-Hydroxyethyl) ethylenediaminetetraacetic acid (HEDTA) and zeolites). The market is further segmented on the basis of application such as water treatment, pulp and paper, cleaners, and pharmaceuticals. The chelating agent market, by geography, is segmented into North America, Europe, Asia-Pacific, and the Rest of the World (RoW). The key players in this market are AkzoNobel N.V. (The Netherlands), BASF SE (Germany), The Dow Chemical Company (U.S.), Lanxess AG (Germany), and Archer Daniels Midland Company (U.S.). These companies use strategies such as agreements and expansions & investments to strengthen their position in the market. Growth of pulp & paper and cleaning industries and the high demand for water treatment chemicals are the key drivers of this market. FIGURE 1 CHELATING AGENT MARKET SNAPSHOT (2013 VS. 2019): MARKET FOR BIODEGRADABLE AGENTS IS PROJECTED TO GROW AT THE HIGHEST CAGR CAGR% *Notes: Others include HEDTA and zeolites p- Projected Source: Research Journals, Related Publications, Expert Interviews, and MarketsandMarkets Analysis The global chelating agent market, by type, was dominated by the aminopolycarboxylates segment, with % share in Aminopolycarboxylates such as EDTA have high affinity constant to form metal-edta complexes, which are extensively used to sequester metal ions. Phosphates & phosphonates were the second-largest segment, and were valued at $ million in They are projected to reach $ million by The biodegradable chelating agents segment is projected to grow at the highest CAGR of % owing to the increasing usage of biodegradable products so that ecotoxicological risks could be cut down. 2
5 CAGR % ( ) Chelating Agent Market Global Trend & Forecast To 2019 FIGURE 2 PULP & PAPER APPLICATION COVERS THE MAJOR MARKET, 2019($MILLION) Market Size, ($Million) Note: Bubble Size Indicates Market Size, 2019-p ($Million) Source: Research Journals, Related Publications, Expert Interviews, and MarketsandMarkets Analysis 3
6 2 PREMIUM INSIGHTS 2.1 CHELATING AGENT MARKET GROWTH FIGURE 3 ATTRACTIVE MARKET OPPORTUNITIES IN CHELATING AGENT MARKET ATTRACTIVE MARKET OPPORTUNITIES Chelating agents Market size - $million in 2013, growing at CAGR of % from 2014 to 2019 Market growth is attributed to high demand for water treatment chemicals and the growth of pulp & paper and cleaners industries Development of more biodegradable products offers lucrative opportunities for the market players p- Projected Source: Industry Journals, Company Websites, Company Publications, Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis 4
7 2.2 CHELATING AGENT MARKET, BY TYPE FIGURE 4 BIODEGRADABLE AGENTS GROW AT THE HIGHEST RATE DUE TO ECOTOXICOLOGICAL RISK OF OTHER CHEMICAL AGENTS Market Size ($Million) e 2015-p 2016-p 2017-p 2018-p 2019-p Others Region 1 Biodegradable Region 2 agents Phosphate Region 3 & phosphonates Region Aminopolycarboxylates 4 CAGR% ( - ) e Estimated; p Projected Others- HEDTA and zeolites Source: Industry Journals, Company Websites, Company Publications, Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis 5
8 3 INDUSTRY TRENDS 3.1 INTRODUCTION Chelating agents are a small but growing segment of the chemical industry. The factors affecting the chemical industry such as global economy conditions, cost cutting, divestment of non-performing businesses, mergers and acquisitions, and intense competition also influence the chelating agent market. The chemical industry is highly competitive with the presence of global players such as E. I. DuPont De Nemours and Co. Inc. (U.S.), The Dow Chemical Company (U.S.), and PPG Industries (U.S.). TABLE 1 TOP 20 GLOBAL CHEMICAL COMPANIES (2014) Global Ranking Company Headquarters Global Ranking Company Headquarters Source: American Chemical Society, Press Releases, Chemical Magazines, Company Publications, Industry Journals, and MarketsandMarkets Analysis 6
9 The chemical industry has witnessed substantial growth from the past few years.. A summary of deals from 2009 to 2010 is given in the following figure. The market is estimated to grow in the future with the increasing number of developments and deals initiated by the key industry players. 3.2 SUPPLY CHAIN ANALYSIS Chelating agents are manufactured by chemical companies from ethylenediamine, formaldehyde, and cyanide, using single step or two-step synthesis processes. The chemical companies work simultaneously with research institutes to develop new chelating agents that are eco-friendly. These chelating agents are largely distributed directly to end-user companies present in different application industries. The wholesalers, buyers, and dealers also offer bulk chelating agents to end-user companies. The type and purity grade of chelating agents vary as per the application industries. For example, in the water treatment application, low purity grade chelating agents are required, whereas in F&B, pharmaceutical, agriculture, and personal care applications, high grade chelating agents are required. The demand for eco-friendly biodegradable chelating agents has increased the research initiatives in the industry. The end products that comprise chelating agents are marketed and distributed to the end consumers. 7
10 4 MARKET OVERVIEW 4.1 INTRODUCTION Chelating agents are high-performance chemical substances whose molecules can form several bonds to a single metal ion. These are also known as chelants, chelators, or sequestering agents. The chemical compound which is composed of a metal ion and a chelating agent is a chelate. Many essential biological chemicals and catalysts are chelates. They help transport nutrients to the plants. These are economically important, both as products in themselves, and as agents in the production of other chemicals. In nature, many microbial species produce water-soluble pigments that function as chelating agents. For example, enterobactin is the strongest chelating agent which is produced by E. coli. The major drivers for the market include growth of pulp & paper, high demand of potable water, and increasing use of chelation therapy. General Manager, Leading Chelating Agent Company These are used in the production of nutritional supplements, detergents & cleaners, fertilizers, consumer goods such as personal care products & cosmetics, food preservatives, and medicines. These are also used as water softeners and heavy metal detoxifiers WORKING OF CHELATING AGENTS Chelating agents bond to metal ions and reorganize their core structure and chemical composition. These form a ring-like structure, known as a ligand, which makes the ions more stable and helps them move with greater ease through a range of different environments. One of the most common chelating agents used in almost all the industries is Ethylenediamine (EDA). It can form two bonds. The more bonds there are, the stronger and more stable the chelate is likely to be NATURALLY OCCURRING CHELATES Naturally occurring chelates are necessary for plants and human beings life-sustaining processes. For example, the hemoglobin-iron complex transports oxygen through the blood after chelation whereas the chlorophyll-magnesium complex helps in the photosynthesis in plants CHARACTERISTICS OF A N IDEAL CHELATOR Greater affinity, low toxicity Ability to compete with natural chelators High water solubility Capacity to form non-toxic complexes 8
11 TABLE 2 BENEFITS OF USING CHELATING AGENTS IN DIFFERENT APPLICATIONS Application Typical Symptoms Benefits Agriculture Chelated micronutrients Herbicides and pesticides Plant problems associated with micronutrient deficiencies Poor performance of herbicides and pesticides in hard water Chelating agents supply trace iron which is vital for plant metabolism Excellent water solubility makes metal chelates more readily utilized by plants than the inorganic forms of metals Cleaning Products Household cleaning products Institutional cleaning products Industrial cleaners Poor performance in hard water Poor foaming characteristics Poor rinsability Haze formation or precipitation Poor shelf life Discoloration Rancidity Need to reduce phosphate levels Poor performance of germicides Hard water stains Bathtub ring Dishwater spots Better foaming, detergency, and rinsing in hard water Helps remove metal oxides and salts from fabrics Enhances shelf life by inhibiting rancidity, clouding, and discoloration Improved consumer appeal and product value Improved germicidal action USDA approved for many indirect food uses (for example,, sanitizing solutions) Cosmetic, Toiletry, and Other Personal Care Products Creams and lotions Poor performance in hard water Better lathering in shampoos and soaps, particularly in the presence of hard water Body washes Poor rinsability Improved formulation clarity Shampoos Haze formation or precipitation Improved shelf life and consumer appeal Conditioners Cosmetics Oral hygiene products Deodorants and body sprays Bar and liquid soaps Hair gel Oxidation, rancidity, or off-odors Viscosity shifts Poor shelf life Degradation of texture or appearance Prevents softening, brown spotting, and cracking in bar soaps Improves stability of fragrances, fats, oils, and other water-soluble ingredients Beverages Discoloration Food and Beverage Protects natural flavor, color, texture, and nutritive value of food products 9
12 Dressing, sauces, and mayonnaise Canned vegetables (beans, potatoes, and mushrooms) Canned seafood (clams, crabmeat, and shrimp) Pickled products Surface preparation Rancidity Off-odors/off-flavors Precipitation Loss of clarity Deterioration of texture Crystal formation Shortened shelf life Drag-in and contamination of succeeding plating baths Improves shelf life and consumer appeal Effective at low concentration Metalworking Improved product performance in hard water Metal cleaning Metal finishing and plating Poor rinse solution performance at elevated temperatures Oxidation of cleaned iron or steel during storage Improved rinsability More consistent plating performance Metalworking fluids Streaking after pickling Improved high-temperature performance Rough deposits, reduced efficiency, dulling, and unsuitable metal deposition during plating Rancidity and broken emulsions in metalworking fluids Oil Field Stimulation/Fracturing Scale control in casings and formations Enhanced oil recovery (boiler water treatment) Formation plugging due to iron precipitation during acidizing and fracturing processes Scaling on well casings from brines normally co-produced with oil Scale build-up, precipitation, and plugging in enhanced oil recovery operations Prevents plugging, sealing, and precipitation by deactivating metal ions Effective over a wide temperature and ph range Pharmaceuticals Ocular care products Poor drug performance in the presence of hard water Deactivates metal ions that interfere with drug performance Lotions Reduced drug potency Provides protection for use with hard water Syrups and elixirs Color and flavor shifts Improved cleanliness of processing equipment Polymerization Styrene-butadiene polymerization PVC polymerization Stabilization of polymer systems Poor uniformity in polymerization rates Polymer build-up on reactor walls Coarse, off-grade polymer Stable polymerization rates Reduced polymer build-up in reactors Improved suspending agent performance 10
13 Polymer breakdown and discoloration Heat and light instability in polymer systems Improved polymer molecular weight distribution and particle size distribution Better polymer stability and shelf life Pulp and Paper Peroxide bleaching Hydrosulfite bleaching Kraft peroxide bleaching Poor performance of hydrogen peroxide or hydrosulfite bleaches Problems meeting target brightness levels Excessive bleach usage Process scaling Brightness reversion in finished paper Enhanced effectiveness of sodium sulfite Enhanced effectiveness of hydrogen peroxide and hydrosulfite bleach Higher brightness and/or lower bleaching costs Less need to overbleach to ensure specified brightness level Controls scaling and reduces costly downtime Water-soluble chelating agents are ideal for pulping since water is the processing medium Chelating agents are approved for many indirect food uses (for instance, food wrap paper) Scale Removal and Prevention Boilers Scale deposits Removes existing scale deposits Evaporators Heat exchangers Filter cloths Glass-lined kettles Reduced heat transfer efficiency Reduced flow rates Works in combination with other materials to prevent scale formation Soap and Detergents Bar and solid soaps Poor performance in hard water Built-in water hardness protection Laundry products Poor rinsability Improved detergency Hand dishwashing liquids Commercial dishwashing formulations Haze formation or precipitation Poor shelf life Improved rinsability Solubility of insoluble metal soaps, salts, and oxides Carpet cleaners Discoloration Improved clarity of liquid products Rancidity Poor stability of bleachcontaining systems Reduced rancidity, discoloration, and chalking catalyzed by metal ions Improved stability of peroxygen bleach-containing products Source: Related Industry Publications, Industry Journals, and MarketsandMarkets Analysis Enhanced stability of colorants and perfumes 11
14 4.2 EVOLUTION OF CHELATING AGENTS The evolution of one of the majorly used chelating agents, EDTA, is detailed below: TABLE 3 EVOLUTION OF EDTA Year Description Franz Munz developed EDTA as an alternative to citric acid which was used to prevent stains caused by permanent dyes in the textile industry Frederick Bersworth synthesized EDTA at Clark University in Worcester, MA, and was able to obtain his own U.S. patent in 1945 using a different production technique 1935 EDTA was patented in Germany by Franz Munz 1947 EDTA was approved by the FDA as a safe food additive 1950 Mark Rubin, at Georgetown University, demonstrated that EDTA would chelate plasma calcium 1951 MgEDTA (the same form used in modern day chelation treatments) was used experimentally to chelate calcium, and the released magnesium was found to lower blood pressure 1952 CaEDTA was used to treat lead poisoning 1957 A. J. Boyle demonstrated the reversal of atherosclerosis in man using EDTA 1963 L. E. Meltzer reported on very high risk patients with CAD treated with EDTA Tamburino reported that osteoporosis is reversed by EDTA, which initiates deposition of new bone matrix due to induction of PTH and concomitant increase in osteoblastic/osteoclastic activity in bones Effrain Olszewer, F C Sabbag, and James P. Carter authored the first published double-blind placebo-controlled study detailing the effectiveness of EDTA chelation for PVD Rudolph and McDonagh demonstrated an average % reduction in serum iron level in patients with various chronic degenerative diseases after EDTA chelations M. Rubin et al presented the evidence of EDTA decalcification of coronary arteries documented by ultrafast CT scan at the American Chemical Society Source: Related Industry Publications, Industry Journals, and MarketsandMarkets Analysis 12
15 5 CHELATING AGENT MARKET, BY TYPE TABLE 4 CHELATING AGENT MARKET SIZE, BY TYPE, ($MILLION) Type e 2019-p CAGR% ( ) Aminopolycarboxylates Phosphate & phosphonates Biodegradable agents Others Total e- Estimated; p- Projected Source: Related Journals, Annual Reports, Press Releases, Company Publications, Company Websites, Expert Interviews, and MarketsandMarkets Analysis The chelating agent market size is projected to grow at a CAGR of % from 2014 to 2019 and reach $ million by Usage of aminopolycarboxylates is high in different industries. Aminopolycarboxylate products are preferred over other conventional chelating products because of its high efficacy, low transport, handling, & waste costs, and less plugging incidents. The biodegradable chelating agent market is projected to grow at the highest CAGR of %. There are no health hazards related to biodegradable chelating agents because they are not toxic. These products are not harmful to aquatic life as well. 13
16 6 CHELATING AGENT MARKET, BY APPLICATION TABLE 5 CHELATING AGENT MARKET SIZE, BY APPLICATION, ($MILLION) Application e 2019-p CAGR% ( ) Cleaners Water Treatment Pulp & Papers Agrochemicals Personal Care Pharmaceutical Food & Beverages Others Total e- Estimated; p- Projected Source: Annual Reports, Press Releases, Company Publications, Company Websites, Expert Interviews, and MarketsandMarkets Analysis The chelating agent market size is projected to grow at a CAGR of % from 2014 to 2019 and reach $ million by Due to wider applications of chelating agents in agriculture, the agrochemicals market is expected to grow with the highest CAGR of % for the period under consideration. 14
17 7 CHELATING AGENT MARKET, BY GEOGRAPHY TABLE 6 CHELATING AGENT MARKET SIZE, BY REGION, ($MILLION) Region e 2019-p CAGR% ( ) North America Europe Asia-Pacific RoW Total e- Estimated; p- Projected Source: Company Press Releases, Investor Presentations, Journals, Expert Interviews, and MarketsandMarkets Analysis The market for chelating agents is projected to grow at a CAGR of % from 2014 to reach $ million by The market is supported by the development and growth of the specialty and functional chemicals industry. The market in the Asia-Pacific region was valued at $ million in 2013, and led the global market as a result of rapid industrialization in the region. The North American region is projected to grow at the highest CAGR of % during the review period. Most of the markets in this region are considered to be saturated for industrial chemicals, such as chelating agents. Therefore, the key market players of this region are looking to create new application areas for chelating agents. 15
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