India Provides Maximum Thrust For The 1,4-Dioxane Market, Scrutinized In The New Fact.MR Analysis

1,4-Dioxane Market: An Overview

1,4-Dioxane comes under a class of specialty chemicals with limited applications in the pharmaceutical and chemical industries. 1,4-Dioxane is extensively used to manufacture Active Pharmaceutical Ingredients (API), chemical intermediates, polymers, dyes, and adhesives. Its localized utilization in the formerly mentioned application is mainly driven by its properties such as inertness and high stability at greater pH values. In the past half decade, demand for 1,4-dioxane from the pharmaceutical industry has nearly doubled owing to the absence of alternatives for the product.

1,4-dioxane market concentration in pharmaceutical industry is set to provide a long-run thrust to the demand growth in long run forecast period. Key API manufacturers utilizing 1,4-Dioxane are Cadilla Pharmaceuticals, Alembic Pharmaceutics, Sanofi, Pfizer, Merck and bundle of other players positioned across the globe. Apart from its pharmaceutical applications, instances of 1,4-Dioxane utilization to manufacture chemical intermediates and cosmetics could be observed over the past half-decade.

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Declining trends of demand could be observed in the past half over regulatory bodies cognizance over 1,4-dioxane traces in the cosmetics. The chemical has been proved to be a carcinogen by the EPA and FDA. But its utilization in manufacturing pharmaceutical ingredients remain firm, stabilizing the overall market stance over the past-half decade.

Demand Surge from Pharmaceutical Grade 1,4-Dioxane is set to Provide Long-Run Thrust to the Market

Majority of the 1,4-dioxane bulk sales could be tracked under two prominent grades, pharmaceutical and industrial grade. Pharmaceutical grade 1,4-Dioxane captures lions share in the market. Demand could largely be attributed to the enormous API production across the globe. Demand surge of 1,4-Dioxane has driven the prices of the product by 1.5 folds over the historical period. Apart from pharmaceutical grade dominance, industrial grade also has a significant effect in determining the price of the product in the mid-term forecast period.

Price of pharmaceutical-grade 1,4 – Dioxane is expensive compared to the industrial-grade 1,4 – Dioxane. Price fluctuations in the past half-decade have been observed in the pharmaceutical grade 1,4 – dioxane while the industrial-grade price remained stable despite demand declination. All in all, owing to the aforementioned factors, the market is set to grow at a higher single-digit CAGR in the long term forecast period.

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COVID-19 to Contract the 1,4-Dioxane Market

COVID-19 or Novel corona virus has not only put abrupt break over the movement of the people but also undesirably affected the trade of 1,4-dioxane across the regions. COVID-19 has contracted the market growth owing to the decline in demand from chemical industry. Production of 1,4 – Dioxane has declined by near one fourth in the 2nd quarter of FY2020. This has cascaded the effect to the price spike by near 5% over the period of mid-Q2 till the mid-Q3. Price normalization could be observed by the end of FY2022.

1,4-Dioxane Market: Regional Outlook

From a regional perspective, East Asia holds the majority of the market share owing to the positioning of a bundle of manufacturers of 1,4 – Dioxane and pharmaceutical ingredients manufacturers which favors economies of density. Moreover, economies of density provide maximum leverage to the consumers over stable prices and two-part tariffs over a long-run forecast period.

Followed by East Asia, South Asia & Oceania captures near a quarter of the global 1,4-Dioxane market owing to the presence of Bulk API manufacturers in the region. Of all the countries in South Asia & Oceania, India provides maximum thrust for the 1,4-Dioxane market.

1,4-Dioxane Market: Key Players

Global 1,4-Dioxane market is moderately fragmented in nature with presence of manufacturers dispersed across the globe. Majority of the manufacturers of 1,4-Dioxane are positioned in East Asia, especially China. Key players in market are focused towards collaborative approach to channel the product to the chemical and pharmaceutical manufacturers. Key players in global 1,4-Dioxane market are BASF, Taixingpharm, Senxuan Pharm, Tokyo Chemical Industries , Dr. Ehrenstorfer GmbH, Henan CoreyChem, CarboMer and others.

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Segmentation analysis of 1,4-Dioxane Market:

The global 1,4-Dioxane market is bifurcated into four major segments: grade, application, end-use industry and region.

On the basis of grade, 1,4-Dioxane market has been segmented as follows:

  • Industrial grade
  • Pharmaceutical grade
  • Technical grade

On the basis of application, 1,4-Dioxane market has been segmented as follows:

  • Chemical Manufacturing
  • API (Active Pharmaceutical Ingredients)
  • Cosmetics
  • Polymers
  • Dyes
  • Others

On the basis of End-use industry, 1,4-Dioxane market has been segmented as follows:

  • Chemical Industry
  • Personal Care & Cosmetics Industry
  • Pharmaceutical Industry
  • Laboratories
  • Others

On the basis of geographic regions, 1,4-Dioxane market is segmented as

  • North America
  • Europe
  • Latin America
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa

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