Global Phenoxyethanol Preservatives Market: Snapshot

Phenoxyethanol preservatives fall into a category of mono alkyl ethers that are created through the reaction between ethylene oxide reacts and 2-Phenol, or naturally obtained from green tea. Phenoxyethanol preservatives hold valuable antibacterial properties and are aromatic. They are ethylene-based monophenyl glycol ethers. They are largely used in detergents, ointments, cosmetics, and cleaners. Their commercial trade names include Dowanol Eph, ethylene glycol monophenyl ether (EGPhE), rose ether, and phenyl cellosolve.

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The global phenoxyethanol preservatives market is expanding at a considerable pace thanks to healthy demand for it from the manufacturers of cosmetic products, along with the growing trend of using blends based on phenoxyethanol. Phenoxyethanol is also largely used in personal care products up to a maximum concentration of 5% w/w. In the case of cosmetics, however, the market dynamics are heavily region dependent especially due to the regulatory differences in Japan and the E.U. As per the EU/ASEAN Cosmetics Directive, the most concentration permitted for phenoxyethanol preservatives is 1% w/w in Japan and the E.U.

The global phenoxyethanol preservatives market was valued at US$95.8 mn in 2013 and is projected to expand at a steady CAGR of 5.9% within the forecast period from 2014 to 2020. The market’s value is likely to reach US$ 143.2 mn by the end of 2020.

APAC Domination Over Phenoxyethanol Preservatives Likely to Continue
In 2013, Asia Pacific led the global phenoxyethanol preservatives market on the basis of produced volume and demand rate. The region held a share of over 40% share in 2013 based on volume. It is also very likely for Asia Pacific to retain its lead in the global phenoxyethanol preservatives market over the coming years, due to the region’s high demand for phenoxyethanol preservatives in cosmetics and detergents. Asia Pacific is expected to take the center stage in the global phenoxyethanol preservatives market as far as synthetic preservatives production is concerned.

China was the top consumer of phenoxyethanol preservatives market over the recent past. The rate of growth of the phenoxyethanol preservatives market in China has been further spurred by the installation of new production capacities. On the other hand, Europe is expected to witness a very slow rate of growth, as the demand for natural preservatives-based cosmetics is gaining steam in this region, as compared to their synthetic counterparts. The demand for phenoxyethanol preservatives in North America is expected to remain moderate over the coming years, owing to a matured cosmetic industry.

High Potential for Phenoxyethanol Preservatives in Pharmaceuticals

On the basis of volume, the global phenoxyethanol preservatives market was led by phenoxyethanol P5 in 2013. This variant comprises less than 5 ppm free phenol content, thereby gaining a greater volume of preference as a compound used in numerous cosmetic products. The market for phenoxyethanol P5 is anticipated to expand at significant rate in terms of demand over the coming years.

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The global phenoxyethanol preservatives market can be segmented on the basis of applications, into home and personal care, pharmaceuticals, dyes and inks, and others. The segment of pharmaceuticals is projected to lead the global phenoxyethanol preservatives market in terms of growth rate over the coming years. This segment held more than 15% of the global phenoxyethanol preservatives market in terms of volume in 2013. Home and personal care is expected to remain the leading application segment in the market in terms of demand volume for the coming years.

Key players in the phenoxyethanol preservatives market include BASF SE, The Dow Chemical Company, Galaxy Surfactants Ltd., Jiangsu Jiafeng Chemical Co., Ltd., Symrise, Jinan Haohua Industry Co., Ltd., Clariant Corporation, and Haihang Industry Co., Ltd.

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