CEH Report

Table of Contents

Abstract

The markets for benzyl chloride are mature in the United States, Western Europe and Japan. Demand in North America is expected to grow at a higher rate over the forecast period, as the region is starting to recover from the economic downturn that severely affected it in late 2008 and 2009. Consumption in the other two regions will grow at average annual rates of less than 1% each from 2009 to 2014. Consumption in India and China is growing the fastest, with expected average growth rates of about 7% per year from 2009 to 2014. Growth in demand is expected to be strong in Central and Eastern Europe and Central and South America, albeit from a small basis.

Benzyl alcohol is the largest application for benzyl chloride, followed by benzyl quaternary ammonium compounds and benzyl cyanide. Future demand for benzyl chloride in the manufacture of phthalates is still unclear, as the impact and the scope of regulatory scrutiny is still difficult to evaluate. Stricter regulations are affecting the use of benzyl chloride in this application in Europe, and other regions could follow.

In 2009, China emerged as the largest market for benzyl chloride (35% of total consumption), followed by Western Europe (34%), North America (14%) and India (11%). Overall, Asia accounted for 48% of global demand. This is the region where growth has been highest during recent years and this trend is expected to continue.

The following pie chart shows world consumption of benzyl chloride:

Benzyl chloride consumption for the production of benzyl alcohol has increased in China, India and Western Europe because of greater use in solvent applications, as a precursor for benzyl esters, and increased exports to the United States, Japan and Other Asia. Despite the continual rise in feedstock costs, benzyl alcohol will be the market driver for benzyl chloride consumption in these regions. Benzyl cyanide (as a precursor for penicillin G) will remain one of the market drivers for demand mainly in China, and to a lesser extent in India. Benzyl quaternary ammonium compounds (benzyl quats) will contribute the most to consumption growth of benzyl chloride in North and South America. Overall, world consumption of benzyl chloride is expected to grow at an average annual rate of about 4% during 2009–2014.