Mercaptan Market Analysis

Global Mercaptan Market Overview

Mercaptan Market Size was valued at USD 2.0 Billion in 2023. The Mercaptan industry is projected to grow from USD 2.11 Billion in 2024 to USD 3.0 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.52% during the forecast period (2024 - 2032). The sale of mercaptan-based insecticides, fungicide intermediates, and animal nutrition knowledge are all being boosted by the expanding agrochemicals market, are the key market drivers enhancing the market growth.

Type: Secondary Research, Primary Research, MRFR Database and Analyst Review

Mercaptan Market Trends

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  Growing agrochemicals industry is driving the market growth.

  
  

Chemical insecticides, fertilisers, and other agricultural products based on chemicals are widely used around the world. In the manufacturing of insecticides and fungicides, mercaptan is utilised as an intermediate in agricultural applications. In modern agriculture, pesticides and fungicides are widely utilised and are an efficient and affordable strategy to increase crop quality and quantity, assuring food security for the world's ever-increasing population. Over the next six years, rising consumer awareness of animal nutrition is anticipated to be a major market growth driver. The mercaptan market is projected to be driven by an increase in chicken consumption worldwide, an increase in consumer population, and untapped growing markets like the Middle East. Other factors boosting market demand include strict rules on fuel sulphur content, new petrochemical projects in the Middle East, Asia, the United States, and the expansion of natural gas consumption. Over the projected period, the mercaptan market is expected to develop due to the rapidly expanding applications of mercaptan for the desulfurization of petrol and diesel as well as its use in gas leakage detection.

Throughout the forecast period, a substantial rate of growth is anticipated for the methyl mercaptan market. Methyl mercaptan demand will soar as a result of rising demand for methionine, insecticides, fungicides, plastics, and animal feed additives. Population growth, industrialization, and the resulting increase in demand for food, meat, and petrochemicals all lead to a rise in the demand for methyl mercaptan and other petrochemicals used in pesticides, fungicides, plastics, and animal feed. Key players are boosting their manufacturing capacities in response to the growing worldwide demand. The most favourable market for methyl mercaptan is in Asia Pacific. To meet domestic and international demand, Asian producers are making significant investments in the manufacturing of methyl mercaptan.

The mercaptan market is being driven by an expansion in the capacity of the world's oil and gas refineries as well as an increase in the consumption of natural gas for residential and commercial purposes. The Canadian government reports that compared to August 2020, oil production in Canada grew by 18% in August 2022. Production from oil sands increased by 21.1 percent year over year while production from conventional oil increased by 6.2 percent. It is hoped that this will lead to mercaptan being used widely, strengthening the industry's leadership. As a result, the market for mercaptan is growing as a result of the oil and gas industry's rapid expansion. The demand for mercaptans is very high in the agrochemical sector. In the synthesis of insecticides and fungicides for use in agriculture, mercaptan is a necessary intermediary. The agrochemical market for mercaptan is driven by the widespread use of pesticides and fungicides in modern agriculture, which are effective and affordable ways to increase product quality and quantity, ensure food security for the world's ever-increasing population, and improve product quality and quantity. The US Department of Agriculture reports that the USDA announces a $250 million investment to assist cutting-edge fertilisers developed in the US, providing US farmers with more market possibilities. The demand for mercaptan is likely to increase due to a rise in demand and government spending in agrochemicals around the world. This is expected to spur market expansion in the agrochemical industry during the forecast period. Thus, driving the Mercaptan market revenue.

Mercaptan Market Segment Insights

Mercaptan Type Insights

The Mercaptan market segmentation, based on type, includes methyl mercaptan, ethyl mercaptan, propyl mercaptan, butyl mercaptan, octyl mercaptan, dodecyl mercaptan, and others. Methyl mercaptan segment accounted for the largest revenue share in 2022. This is as a result of rising end-use industry demand. Animal feed and the oil and gas sectors both employ methyl mercaptan. Additionally, methyl mercaptan, which is used to generate methionine, is the most common type of mercaptan utilised in animal nutrition. Methionine is largely utilised in livestock and poultry feed as a dietary supplement. The market for Mercaptan is therefore anticipated to be driven by an increase in demand for meat, particularly poultry. Major end-use sectors are experiencing an increase in mercaptan demand, which will increase the mercaptan industry's growth prospects in the foreseeable future.

Mercaptan Application Insights

The Mercaptan market segmentation, based on application, includes pesticides, jet fuels and plastics, natural gas, food and nutrition, animal feed, and others. Animal feed segment dominated the Mercaptan market in 2022. One of the main factors propelling the expansion of the mercaptan market is the rising need for animal feed to enhance poultry health and support the production of several agricultural and animal-based goods including eggs, milk, veal, and chicken. The UK's food business expanded by 49.4% between 2009 and 2019, according to the Department for Environment, Food, and Rural Affairs. According to the UK's Department for Environment, Food, and Rural Affairs, the price of poultry meat rose from £2.8 billion in 2019 to £2.8 billion in 2020, a 5.3% increase. The demand for mercaptan is expected to increase due to the increased demand for food and beverages around the world. This is expected to drive market expansion in the food and beverage sector during the forecast period.

Figure 1:  Mercaptan Market, by Application, 2022 & 2032 (USD Billion)

Type: Secondary Research, Primary Research, MRFR Database and Analyst Review

Mercaptan Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Mercaptan Market dominated this market in 2022 (45.80%). The expanding chemical sector in the US is primarily responsible for the expansion of the mercaptan market in North America. Due to their rising use for the synthesis of specialised chemicals and leakage identification, the chemical industries will consume the most mercaptan in North America. Additionally, many multinational corporations have plans to develop new facilities and grow in the area. Further, the U.S. Mercaptan market held the largest market share, and the Canada Mercaptan market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  MERCAPTAN MARKET SHARE BY REGION 2022 (USD Billion)

Type: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Mercaptan market accounted for the healthy market share in 2022. The development of the mercaptan industry and technological improvements are primarily responsible for Europe's progress. Further, the German Mercaptan market held the largest market share, and the U.K Mercaptan market was the fastest growing market in the European region

The Asia Pacific Mercaptan market is expected to register significant growth from 2023 to 2032. Manufacturers can expand in the Asia-Pacific market, which is expected to grow at the greatest CAGR. Increased government spending, increased manufacturing capacity, cooperation among important regional companies, and high demand from end-use sectors are the main causes of this rise. As one of the biggest producers and consumers of agrochemicals, China has contributed to the expansion of the mercaptan market in the area. Moreover, China’s Mercaptan market held the largest market share, and the Indian Mercaptan market was the fastest growing market in the Asia-Pacific region.

Mercaptan Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Mercaptan market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Mercaptan industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Mercaptan industry to benefit clients and increase the market sector. In recent years, the Mercaptan industry has offered some of the most significant advantages to medicine. Major players in the Mercaptan market, including Chevron Phillips Chemical Company LLC., ARKEMA, Huntsman International LLC., Evonik, TORAY FINE CHEMICALS CO., LTD., and Jiande Xingfeng Chemical Co., Ltd., are attempting to increase market demand by investing in research and development operations.

Specialty chemical firm Evonik Industries AG (Evonik), a division of RAG-Stiftung. Surfactants, polymers, resins, additives, among other things, are included in its product line. Agriculture, alternative energy, paints and coatings, paper and printing, metal and oil products, electrical and electronics, food and animal feed, personal care and cosmetics, pharmaceuticals, plastics and rubber, automotive, and construction are just a few of the industries where the company's products are used. Additionally, it provides engineering, logistics, utilities, and process technology services. Major production facilities for Evonik are located in China, Singapore, Belgium, the US, and Germany. In addition to other places, the corporation also operates in North America, Asia-Pacific, Africa, South America, and Europe. Essen, in Nordrhein-Westfalen, Germany, serves as the headquarters for Evonik. Evonik stated in February 2022 that it would construct a new methyl mercaptan factory in Alabama, United States. By investing 150 million euros over three years, the business expects the new factory to be operational by 2024.

The manufacturer of unique organic chemical compounds is Huntsman Corp (Huntsman). A wide variety of chemicals and formulations are available, including amines, maleic anhydride, MDI, formulations for epoxy-based polymers, textile chemicals, and dyes. The business markets its goods to a variety of retail and business clients. The adhesives, aerospace, personal care and hygiene, automotive, construction, durable and non-durable consumer goods, digital inks, electronics, power generation, refining, medical, packaging, coatings and construction, synthetic fibre, textile chemicals, and dyes industries are just a few industries where Huntsman products are used. The business is run through a worldwide network of administrative, R&D, and production facilities located in North America, the Middle East, Europe, and Asia. Huntsman's US headquarters are in Texas. Huntsman International LLC revealed its plans to expand in the Pan-American region in July 2020. Azelis Americas CASE, LLC was chosen by Huntsman International LLC to be its partner in distribution in North America. The arrangement will make it possible for Azelis CASE LLC to take the lead in North American coating, adhesive, sealant, and elastomer distribution.

Key Companies in the Mercaptan market include

• Chevron Phillips Chemical Company LLC.


• ARKEMA


• Huntsman International LLC.


• Evonik


• TORAY FINE CHEMICALS CO., LTD.


• Jiande Xingfeng Chemical Co., Ltd.

Mercaptan Industry Developments

July 2017: At its Kerteh facility in Malaysia, Arkema began its new project to double its methyl mercaptan production capacity. This company made this discovery to assist the rapid expansion of the animal feed, refining, and petrochemical industries in Asia and to solidify its position as a leader in sulphur derivatives with a high level of added value.

Mercaptan Market Segmentation

Mercaptan Type Outlook

• Methyl Mercaptan


• Ethyl Mercaptan


• Propyl Mercaptan


• Butyl Mercaptan


• Octyl Mercaptan


• Dodecyl Mercaptan


• Others

Mercaptan Application Outlook

• Pesticides


• Jet Fuels and Plastics


• Natural Gas


• Food and Nutrition


• Animal Feed


• Others

Mercaptan Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America