The global stearate market due to the presence of several players is highly fragmented in nature. The players in the market are coming up with new technologies. One of the major thing on which the players in the market are banking upon is the rise in investment on research and development as this helps in creating product differentiation thus helping the organization to formulate the brand. The players in the market in order to stretch their delivery chain are going into a strategy partnership with regional as well as local players. The vendors are focusing on new product launches. Some of the major players in the market are Baerlocher GmbH, Petere Greven GmbH &Co. KG, Dover Chemical Corporation, and Hallstart Company.
The global stearate market is likely to expand at a healthy CAGR of 5.0% during the assessed period 2014 – 2020. The global market was recently valued at US$3.55bn and is predicted to be valued at US$4.99bn by the end of 2020. The global metallic stearate market is majorly driven by the end user segment. Rubber and plastic processing industry in end user is holding the leading share in the market. On the basis of geography, the global stearate market is spread across various regions, but Asia Pacific held the leading share and is likely to continue so in years to come. Asia Pacific held a whopping 45% of the total shares in past.
Rise in Rubber and Plastic Processing Industry to Fuel the Market
The major driver which is triggering the rise in demand for stearate is its applications in rubber and plastic processing industry. Metallic Stearate is known to help stabilization and gelling of molded products. Stearate is known to act as acid scavenger during the processing and compounding of plastics. Stearate also known to finds its usage in other industries like personal care, textile, construction, and pharmaceutical. Use of various stearate in various industries have created a lucrative opportunity for new players to enter, this is likely to bolster the growth of the market. Most used plastics such as polyvinyl and polyethylene chloride has usage of stearates. Stearate also known to be in high demand in the construction industry owing to the rise in damage caused by water seepage. The seepage are known to weaken the structural component thus raising threat. Stearates when in contact with water turns into gel which is able to block water in the building.
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Erratic Raw Material Prices Deters the Growth of the Market
However, fluctuating price of raw materials which are used for manufacturing stearate is likely to pull down the growth of the market. Rise in awareness accompanied with environmental concerns has led government to implement rules and regulation curbing the use of stearate. Stearic acid is one of the key component in producing stearate. Stearic acid is manly obtained by animal fats, surge in price of animal and plants fat has made a direct impact on the price structure of stearate market. Apart from these, strict rules in order to prevent using stearates such as lead stearate and zinc stearate is predicted to deter the growth of the metallic stearate market.