The global allyl chloride market is entering a sustained growth phase, supported by expanding demand in epoxy resin and epichlorohydrin supply chains, rising pharmaceutical and agrochemical applications, and steady industrialization across Asia-Pacific. According to Kings Research, the market is projected to grow steadily over the forecast period, reflecting strong industrial consumption and technological advancements.
The global allyl chloride market size was valued at USD 3521.6 million in 2023 and is projected to grow from USD 3736.2 million in 2024 to USD 5862.0 million by 2031, exhibiting a CAGR of 6.65% during the forecast period.
Market Growth
Global growth outlook is robust as end-use demand expands and producers scale capacity to serve epoxy, specialty chemicals and water-treatment segments.
- The market has shown consistent year-on-year growth.
- Future expansion is expected to be driven primarily by Asia-Pacific, followed by North America and Europe.
- Various industry research reports also confirm mid- to high-single digit growth expectations over the forecast period.
Why this matters: steady growth creates opportunities for feedstock suppliers, specialty chemical manufacturers and downstream resin/adhesive producers to invest in capacity, logistics and sustainability initiatives.
Key Growth Drivers
The market’s momentum is being driven by a combination of product-specific demand and broader industrial trends.
- Epichlorohydrin & epoxy resins: Epichlorohydrin—produced from allyl chloride—is a key precursor for epoxy resins used in coatings, composites and adhesives.
- Pharmaceutical and agrochemical intermediates: Allyl chloride is an important building block for specialty APIs and crop-protection chemistries.
- Water treatment and specialty chemicals: Applications in water-treatment chemistries and other specialty products provide incremental volume growth and higher-margin opportunities.
- Regional industrialization: Rapid industrial growth in China, India and Southeast Asia is translating into higher domestic consumption and regional exports.
Unlock Key Growth Opportunities: https://www.kingsresearch.com/allyl-chloride-market-1674
List of Key Companies in Allyl Chloride Market:
- OSAKA SODA CO., LTD
- Kashima Chemical Co., LTD.
- Olin Corporation.
- Sumitomo Chemical Co., Ltd.
- Befar Group Co., Ltd
- Gelest Inc.
- vizagchemical.com
- VRIK PHARMA
- INEOS AG
- ALPHA CHEMIKA
- AccuStandard
- Central Drug House
- SIELC Technologies.
- BASF
- Thermo Fisher Scientific Inc.
Market Trends
The allyl chloride market is not only growing — it’s evolving. Several trends are reshaping competition and strategy.
- Feedstock & process optimization: Producers are investing in more efficient chlorination and downstream conversion technologies to reduce costs and emissions.
- Product purity segmentation: Higher-purity grades continue to command larger shares in specialty applications.
- Shift toward regional supply chains: To reduce freight and supply-chain risk, manufacturers are localizing production closer to major end-use clusters in APAC and North America.
- Sustainability & regulatory focus: Environmental and worker-safety regulations are encouraging investments in greener chemistries and tighter emissions controls.
Demand Dynamics
Demand is being driven by both volume growth in staple applications and increased intensity of use in technical specialties.
- Volume drivers: construction coatings, marine and automotive coatings, composites for wind and electronics.
- Value drivers: specialty intermediates for pharma and agrochemicals where higher margins justify secure sourcing.
- Pricing sensitivity: feedstock propylene and chlorine costs, plus energy and logistics, are major influencers of price swings and margins.
Market Dynamics — Opportunities and Challenges
Opportunities
- Expansion of epoxy resin demand for high-performance coatings and composites.
- Growth in APAC, particularly China and India, offering lower-cost production and large domestic markets.
- Niche specialty chemistries (pharma, agro) that favor higher margins and long-term contracts.
Challenges
- Raw-material price volatility (propylene, chlorine) may compress margins.
- Environmental and safety regulations that raise capital intensity for new/expanded plants.
- Competitive pressure from alternative chemistries or process routes for certain downstream products.
Market Segmentation
Kings Research and complementary studies segment the allyl chloride market in several standard ways that inform product positioning and go-to-market strategy.
By product type / manufacturing route
- Chlorination of propylene (dominant production route).
- Other specialty synthesis methods used in smaller volumes.
By grade / purity
- Industrial grade (bulk applications).
- High-purity grade (specialty & pharma).
By application
- Epichlorohydrin & epoxy resin production.
- Pharmaceutical intermediates & specialty chemicals.
- Agrochemical production (pesticide intermediates).
- Water treatment & other industrial chemicals.
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