Booming Speciality Chemical Production To Fuel Alpha Olefin Sales

Alpha olefins are olefins or alkenes are with the chemical formula cxh2x. One of the major feedstocks used for producing alpha olefins is ethylene, which is produced by using naphtha and gas-based oil. In recent years, the demand for the compound has increased massively, primarily because of the soaring use of specialty chemicals in various industries. The compound is extensively used as a raw material in the production of several specialty chemicals, such as oilfield chemicals, plasticizers, lubricants, plastomers, and surfactants.

For instance, ethylene alpha-olefin copolymers are also called plastomers and they are made from the polymerization process. Plastomers exhibit the hybrid characteristics of plastics and elastomers and because of these traits, these materials are extensively used in packaging and polymer modification applications.  In addition, they provide good foaming, low-cost benefits in surfactant production, and excellent compatibility with hard water. Because of these factors, the material is being increasingly used in surfactant production, which is supporting the growth of the alpha olefins market. 

According to the estimates of the market research company, P&S Intelligence, the market revenue will surge from $11,704.2 million in 2017 to $15,846.5 million by 2023. Furthermore, the market will exhibit a CAGR of 5.4% from 2018 to 2023. Among the different types of alpha olefins, the demand for 1-hexene was found to be the highest in the past. This was because of its large-scale utilization in the production processes of several products, such as synthetic fatty acids, hexyl mercaptans, and oxo alcohols.  C20-C30 LAOs are extensively used in alkyl aromatics, oilfield chemicals, petroleum additives, and surfactants.

Geographically, the demand for these materials was found to be the highest in North America in 2017. This is credited to the growing consumption of these products in various industries, such as plastics, automotive, and construction, ballooning consumption of plastics, and the surging production capacity of the regional countries.  Moreover, some of the major producers of alpha olefins, such as Royal Dutch Shell PLC and Chevron Phillips Chemical Company LLC, are based  in the U.S., which is also pushing up the demand for the compound in the region. 

Hence, it can be said confidently that owing to the growing requirement for alpha olefins in the production of specialty chemicals and in various industries, their sales will continue booming across the world in the coming years.

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