Linear Alkyl Benzene (LAB) Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, Application, Application, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030

Format: Online | Last Updated: Nov 2020

 
[Online Quarterly Update]Global Linear Alkyl Benzene (LAB) market has witnessed remarkable growth in the past and is estimated to grow at a CAGR of 4% during the forecast period. LAB is an organic compound mostly used as an intermediate in the production of surfactant linear alkylbenzene sulphonate (LAS), also known as linear alkylbenzene sulphonic acid (LABSA) which is the key ingredient for producing biodegradable detergents. About 90% of LAB consumed globally is used for the production of laundry detergents, light-duty dishwashing liquids, industrial cleaners, household cleaners and other applications. Being directly linked to the FMCG industry, the global LAB market is expected to move in tandem with the population growth and growing consumer sophistication. As of FY19, the laundry detergents industry sector dominates the global LAB market and is expected to remain the growing sector backed by drivers like increased urbanization and growing rates of washing machine ownership across the households. In the past few years, there has been a remarkable shift in the consumer preference from the more 'traditional' bar-soaps to more sophisticated hand-washing detergents which is an important indicator of the consumer revolution. These factors are likely to propel the global Linear Alkyl Benzene (LAB) market growth in the forecast period.  
 
With rising concerns over cleanliness and personal hygiene, government led campaigns such as Swachh Bharat Mission in growing economies like India to promote wellness, well-being and welfare (WWW) of the citizens would stimulate the growth of the LAB market in the forecast period. Moreover, UNICEF’s urge for countries to reach Sustainable Development Goal (SDG) 6, which targets universal and equitable water, sanitation and hygiene for all by 2030 would further support the market growth in the forecast period. In additions, other factors like changes in lifestyles,  population size and growth, increasing incomes and machine ownership rates; washing frequency and growing awareness about upcoming detergent brands due to steadily increasing media penetration would significantly impact the volumes of detergents consumed and consequently the demand for Linear Alkyl Benzene in the forecast period.
 
UOP technology stands the most widely used method for production of LAB and employs hydrogenated kerosene or normal paraffins as the key feedstock. Being the most economical technology available today, more than 70% of the world’s LAB is produced using UOP technologies. Nearly all LAB produced is sulfonated to produce LAS/LABSA which is the most cost-effective surfactant available for use in detergent formulations. 
 
Major petroleum and petrochemical companies across the world have integrated with the major LAB producers to supply kerosene and benzene for production of linear alkyl benzene. 
 
The global market for LAB will continue to grow in the upcoming years as the demand for laundry detergents is continuously grow, particularly in the Asia-Pacific region. As of 2019, Asia-Pacific dominated the global LAB market, with the largest consumption from the countries, such as China, India and Japan. Increased urbanization and government initiatives to promote better health and hygiene practices are likely to drive increased demand for laundry detergent. Moreover, increased investments across the detergents and other cleaning chemicals sector looking at the rising penetration across the rural sectors would further boost the LAB demand in the forecast period.  
 
With the outbreak of COVID-19, there has been a strong boost in the demand for industrial and household cleaners as the pandemic shifted consumer preference strongly towards healthcare and hygiene related products. Major detergent manufacturers across the globe such as Procter & Gamble, Hindustan Unilever (HUL) and many others have reported strong quarterly earnings due to robust demand from manufacturers of detergents and household cleaners. As people consumed large volumes to ward off the coronavirus, majority of LAB and LABSA manufacturers remained largely operational despite lockdowns, as the governments listed health and hygiene products under the category of essential items. Reliance Industries continued operating its 1,20,000 tonnes-linear alkyl benzene unit at Koyali refinery during the lockdown. It is anticipated that spurt in the global demand as several economies ramp up their manufacturing units to cater to the exponential rise in consumer demand would further accelerate the market growth in the forecast period
 
Years Considered for this Report:
 
Historical Years: 2015 – 2019
Base Year: 2020
Estimated Year: 2021
Forecast Period: 2022 – 2030
 
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Objective of the Study: 
 
•The primary objective of the study was to evaluate and forecast Linear Alkyl Benzene capacity, production, demand, inventory, and demand–supply gap globally. 
•To categorize Linear Alkyl Benzene demand based on type, end use, region and distribution channel. 
•To identify major customers of Linear Alkyl Benzene globally.
•To evaluate and forecast Linear Alkyl Benzene pricing globally.
•To identify and profile major companies operating globally Linear Alkyl Benzene market.
•To identify major news, deals and expansion plans globally Linear Alkyl Benzene market.
  
Some of the major players operating global Linear Alkyl Benzene market are CEPSA Quimica S.A., Deten Quimica, Fushun Petrochemical Company, Chevron Phillips Chemicals, Honeywell, Arabian Petrochemical Company, Huntsman Corporation, Reliance Industries Limited, Jingtung Petrochemical Corp., Indian Oil Corporation Ltd etc. Increasing investments and merger and acquisitions across the surfactants sector would further augment the growth of the LAB market in the foreseeable future. Indorama Ventures has recently closed a USD 2 billion acquisition of Huntsman's chemical intermediate and surfactants businesses, to widen its US footprint into higher margin integrated oxides and derivatives and specialty chemicals segments. 
 
LAB is a crude oil derivative and hence its price is directly linked to the fluctuations in crude oil and petrochemicals such as benzene. Volatility in the prices of benzene has remained a major challenge for LAB manufacturers since a long time. Linear Alkyl Benzene prices remained under pressure in the first half of the year weighed over by an unprecedented fall in crude oil during Q1FY20 and Q2FY21. Linear Alkyl Benzene CFR India prices were assessed around USD 1200 per MT on bulk contract basis in Q1FY20 down by about 5 per cent compared to its prices in Q4FY19. 
 
To extract data for Global Linear Alkyl Benzene market, primary research surveys were conducted with Linear Alkyl Benzene manufacturers, suppliers, distributors, wholesalers and end users. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various end user segments and projected a positive outlook for Global Linear Alkyl Benzene market over the coming years. 
 
ChemAnalyst calculated Linear Alkyl Benzene demand globally by analyzing the historical data and demand forecast which was carried out considering imported styrene prices, a monomer used for production of Linear Alkyl Benzene. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst. 
 
Key Target Audience

•Linear Alkyl Benzene manufacturers and other stakeholders
•Organizations, forums and alliances related to Linear Alkyl Benzene distribution
•Government bodies such as regulating authorities and policy makers
•Market research organizations and consulting companies
 
The study is useful in providing answers to several critical questions that are important for industry stakeholders, such as Linear Alkyl Benzene manufacturers, distributors and policymakers. The report also provides useful insights about which market segments should be targeted over the coming years to strategize investments and capitalize on growth opportunities.
 
Report Scope: 
 
In this report, the Global Linear Alkyl Benzene market has been segmented into following categories, in addition to the industry trends which have also been detailed below
 
Market, by Application
Surfactants, Non-Surfactants
Market, by End Use
Laundry Detergents, Light-duty Dishwashing Liquids, Industrial Cleaners, Household Cleaners, and Others
Market, by Distribution Channel
Direct/Institutional Sales, Retail Sales, Other Channel Sales
Market, by Region
North America, APAC, Europe, MEA, South America
 
Market, by Region
 
North America
United States, Mexico, Canada
APAC
China, India, Japan, South Korea, Singapore, Indonesia, Thailand
Europe
Germany, Russia, France, United Kingdom, Spain, Italy
MEA
Saudi Arabia, UAE, South Africa
South America
Brazil, Argentina, Chile
 
Competitive Landscape
 
ChemAnalyst offers detailed analysis of major players including basic company details, Segmental/product information, financial matrices, growth strategies, expansion plans, collaborations, SWOT analysis etc.to give a comprehensive and meaningful insights on the respective product market.
Available Customizations:
With the given market data, ChemAnalyst offers customizations according to a company’s specific needs.
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