Global Allyl Chloride Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Allyl Chloride Market Size

• The global allyl chloride market size was valued at USD 4.02 billion in 2024 and is expected to reach USD 6.95 billion by 2032, at a CAGR of 7.1% during the forecast period
• This growth is driven by factors such as rising demand for epichlorohydrin in epoxy resin production, expanding applications in water treatment and specialty chemicals, and increased usage across industries such as construction, automotive, and pharmaceuticals

Allyl Chloride Market Analysis

• Allyl chloride is a key industrial chemical used primarily as an intermediate in the production of epichlorohydrin, which is essential for manufacturing epoxy resins used in coatings, adhesives, and composites across various sectors such as construction, automotive, and electronics
• The allyl chloride market is witnessing steady growth driven by rising demand for epoxy-based products, increasing utilization in water treatment and pharmaceutical applications, expanding end-use industries in emerging economies, and advancements in chemical processing technologies that enhance production efficiency and environmental compliance
• North America is expected to dominate the allyl chloride market due to strong demand from the epichlorohydrin and water treatment chemicals sectors, supported by robust industrial and environmental regulations
• Asia-Pacific is expected to be the fastest growing region in the allyl chloride market during the forecast period due to rapid industrialization, increasing demand for epichlorohydrin, and expansion of end-use sectors such as construction and automotive
• Epichlorohydrin segment is expected to dominate the market with a market share of 35.7% due to its extensive use in the production of epoxy resins, which are in high demand across key industries such as automotive, construction, electronics, and wind energy, driven by increasing infrastructure development and the shift toward lightweight, durable materials

Report Scope and Allyl Chloride Market Segmentation

Allyl Chloride Market Trends

“Growing Utilization of Allyl Chloride Derivatives”

• One prominent trend in the global allyl chloride market is the growing utilization of allyl chloride derivatives
• This trend is driven by the rising demand for downstream products such as epichlorohydrin, allyl amines, and glycidyl ethers, which are widely used in manufacturing epoxy resins, pharmaceuticals, water treatment chemicals, and specialty polymers 
  • For instance, increasing use of epichlorohydrin in epoxy-based coatings and composites is fueling consistent demand for allyl chloride as a key raw material in developed markets such as the U.S., Germany, and Japan 
• In addition, emerging economies such as China and India are witnessing rapid industrial expansion and investment in chemical processing, further accelerating the consumption of allyl chloride derivatives in multiple end-use sectors
• As industries continue to prioritize high-performance materials and advanced formulations, the widespread application of allyl chloride-based derivatives is expected to support sustained market growth through the forecast period

Allyl Chloride Market Dynamics

Driver

“Increasing Demand for Epoxy Resins”

• The rising demand for epoxy resins is a major driver of the allyl chloride market, as allyl chloride is a critical raw material in the production of epichlorohydrin, which in turn is essential for epoxy resin synthesis
• This demand is expanding globally due to the widespread use of epoxy resins in coatings, adhesives, composites, and electrical laminates across construction, automotive, electronics, and aerospace industries
• As industries prioritize lightweight, high-performance, and durable materials, the consumption of epoxy resins continues to rise, especially in emerging economies investing heavily in infrastructure and industrial growth
• In response, chemical manufacturers are scaling up epichlorohydrin production and optimizing allyl chloride supply chains to meet the growing needs of the downstream epoxy value chain
• In addition, innovations in eco-friendly and bio-based epoxy formulations are prompting further demand for high-purity allyl chloride derivatives to support sustainability goals

For instance,

• Companies such as Olin Corporation and Hexion are expanding their epoxy resin production capacity to cater to construction and wind energy sectors, indirectly increasing allyl chloride consumption
• Sumitomo Chemical has enhanced its epichlorohydrin output, focusing on bio-based processes, further boosting demand for allyl chloride as a base material 
• As epoxy resin applications continue to diversify and grow, the allyl chloride market is expected to benefit from steady and robust demand, anchored in both industrial expansion and environmental innovation

Opportunity

“Emerging Applications in Water Treatment”

• The growing focus on water treatment solutions worldwide presents a significant opportunity for the allyl chloride market, as allyl chloride is a key raw material in the production of water treatment chemicals such as epichlorohydrin and its derivatives
• Chemical companies are capitalizing on this trend by developing advanced water treatment solutions that leverage allyl chloride-based products, supporting the increasing demand for clean and safe water in both developed and emerging regions
• This opportunity aligns with the broader trend of water infrastructure development, as municipalities and industrial sectors upgrade their water purification systems to address rising water contamination concerns and growing urbanization

For instance,

• Companies such as Dow Chemicals and BASF are expanding their production of water treatment chemicals, using allyl chloride derivatives to produce efficient and sustainable treatment solutions
• Solvay has introduced eco-friendly water treatment technologies that utilize allyl chloride-based compounds for enhanced water filtration and purification processes 
• As water treatment initiatives continue to expand, especially in emerging markets facing water scarcity and pollution challenges, the allyl chloride market is well-positioned to capitalize on this growth by offering tailored solutions that meet the increasing need for efficient, sustainable, and high-performance water treatment chemicals

Restraint/Challenge

“Competition from Bio-Based Alternatives”

• The increasing availability of bio-based alternatives to conventional chemicals, including bio-based epoxy resins and other derivatives, presents a significant challenge for the allyl chloride market as manufacturers face pressure to adopt more sustainable and environmentally friendly solutions
• The shift toward bio-based products requires extensive research and development, as well as innovations in manufacturing processes to ensure cost-effectiveness and scalability, often leading to higher initial investment costs and more complex production techniques
• Achieving competitive pricing while ensuring the same level of performance and quality as traditional allyl chloride-based solutions can be difficult, especially when bio-based alternatives are promoted as more eco-friendly and compliant with stricter environmental regulations

For instance,

• Companies such as BASF and Dow are investing in developing bio-based epoxy resins, which may reduce the demand for traditional allyl chloride used in epoxy production 
• Without adapting to this growing demand for sustainable alternatives and improving the environmental footprint of conventional allyl chloride production, the market may face increased competition, potentially limiting growth and market share for traditional allyl chloride manufacturers

Allyl Chloride Market Scope

The market is segmented on the basis of application and end user.

In 2025, the epichlorohydrin is projected to dominate the market with a largest share in application segment

The epichlorohydrin segment is expected to dominate the allyl chloride market with the largest share of 35.7% in 2025 due to its extensive use in the production of epoxy resins, which are in high demand across key industries such as automotive, construction, electronics, and wind energy, driven by increasing infrastructure development and the shift toward lightweight, durable materials.

The paints & coatings is expected to account for the largest share during the forecast period in end user segment

In 2025, the paints & coatings segment is expected to dominate the market due to rising construction and infrastructure activities, particularly in emerging economies, along with increasing demand for protective and decorative coatings in the automotive and industrial sectors.

Allyl Chloride Market Regional Analysis

“North America Holds the Largest Share in the Allyl chloride Market”

• North America dominates the allyl chloride market, driven by the strong demand from the epichlorohydrin and water treatment chemicals sectors, supported by robust industrial and environmental regulations
• U.S. holds a significant share due to its advanced chemical manufacturing capabilities, rising adoption of epoxy resins, and presence of major chemical producers and downstream industries
• Regional dominance is further bolstered by technological advancements in chemical processing, stringent environmental norms encouraging sustainable formulations, and consistent investments in chemical R&D
• With continued innovation in resin technologies, increasing demand from the coatings and adhesives industries, and strong regulatory frameworks, North America is expected to maintain its leadership in the global allyl chloride market through 2032

“Asia-Pacific is Projected to Register the Highest CAGR in the Allyl chloride Market”

• Asia-Pacific is expected to witness the highest growth rate in the allyl chloride market, driven by rapid industrialization, increasing demand for epichlorohydrin, and expansion of end-use sectors such as construction and automotive
• China holds a significant share due to its booming chemical industry, growing exports of epoxy resins, and substantial investments in manufacturing infrastructure
• Market growth in the region is further supported by favorable government policies, rising foreign direct investment (FDI), and growing awareness of water purification and specialty chemicals
• With expanding industrial output, rising demand for performance materials, and increasing focus on domestic production, Asia-Pacific is poised to lead global market growth through 2032

Allyl Chloride Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

The Major Market Leaders Operating in the Market Are:

• Solvay (Belgium)
• Befar Group Co. Ltd. (China)
• Gelest, Inc. (U.S.)
• INEOS (U.K.)
• Kashima Chemical Co., LTD (Japan)
• Olin Corporation (U.S.)
• OSAKA SODA (Japan)
• Sumitomo Chemical Co., Ltd (Japan)
• Dow (U.S.)
• DuPont (U.S.)

Latest Developments in Global Allyl Chloride Market

• In March 2023, INOVYN, a leading UK-based chemical company, introduced a sustainable, bio-based variant in the allyl chloride segment. This product is expected to significantly impact the market by addressing growing environmental concerns and meeting the rising demand for eco-friendly chemical solutions, potentially influencing market dynamics and encouraging other players to innovate in the direction of sustainability 

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