Global Polycaprolactone Market to Record Considerable Opportunity Assessment Through the Forecast Period

The production of biodegradable polymers has gained enormous traction in the global chemical sector over the the last decade and the demand for polycaprolactone is no exception. The global polycaprolactone market was pegged at US$ ~330 Mn in 2019 on the back of shifting preferences towards alternatives to conventional polymers. However, the production of polycaprolactone is expected to witness a decline in 2020 amid the COVID-19 epidemic. This has disrupted supply of cost efficient raw materials.

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In addition, a shift towards environmental friendly polymers coupled with increasing demand from end use applications such as thermoplastic polyurethane and healthcare is setting the stage for the expansion of polycaprolactone market. Post-COVID-19 pandemic, the polycaprolactone market is poised to experience good recovery with a strong growth rate of ~10% over the long-term forecast period (2020-2030).

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Key Takeaways of Global Polycaprolactone Market Study:

  • Over four-fifth of the polycaprolactone supplied is utilized as pellets across the globe. Also, manufacturers are using ring opening polymerization manufacturing process in more than 90% of the production of polycaprolactone.

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  • Manufacturers of polyurethane have been focusing on using eco-friendly raw materials, such as polycaprolactone for the manufacturing of thermoplastic polyurethane (TPU), thereby reducing the environmental footprint considerably. In terms of market share, TPU accounted for more than 2/5th of the sales in polycaprolactone market.
  • Continuous emphasis on better healthcare infrastructure and investments in research & development activities of drugs is projected to create an absolute $ opportunity of more than US$ 300 Mn in healthcare applications between 2020 and 2030
  • Europe holds more than 1/3rd of overall demand in global polycaprolactone market in 2019. However, supply-driven price decline, ease in supply chain disruptions and ramped up domestic production is anticipated to spur the growth of South Asia and East Asia regions during the forecast period.

“As the COVID-19 pandemic has hit almost every region of the world, polycaprolactone manufacturers are in a race to find a collaborative solution with several governments and raw material suppliers to cater the needs of end users. Also, continuous emphasis on performance improvement and price differentiation are likely to become product wishlists of key manufacturers”, Says a Fact.MR Analyst

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Manufacturers are Expanding Profit Pools through Diversified Business Strategies

The global polycaprolactone market is anticipated to remain highly consolidated in nature, dominated by tier 1 players such as Perstorp Holding AB, BASF SE, Shenzen Esun Industrial Co. Ltd., Diacel Corporation, Corbian Purac, and Sigma-Aldrich Corporation. These players constitute more than 3/4th of the overall demand in the global polycaprolactone market.

On the other hand, regional market players are focusing on forging long-term relationships with direct application players to sustain continuous revenue flow. In addition, global and domestic manufacturers in the market are focusing on adopting alternative distribution channels, such as online channels to strengthen their market presence.

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