China Carbon Black Market By Process Type (Furnace Black, Gas Black, Lamp Black, Thermal Black), By Application (Tires, Plastics, Toners, Coatings, Textile Fibers, Others), By Region, Competition, Forecast and Opportunities, 2019-2029F
Published Date: December - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Chemicals | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationChina Carbon Black Market By Process Type (Furnace Black, Gas Black, Lamp Black, Thermal Black), By Application (Tires, Plastics, Toners, Coatings, Textile Fibers, Others), By Region, Competition, Forecast and Opportunities, 2019-2029F
| Forecast Period | 2025-2029 |
| Market Size (2023) | USD 4.97 billion |
| Market Size (2029) | USD 6.39 billion |
| CAGR (2024-2029) | 4.25% |
| Fastest Growing Segment | Furnace Black |
| Largest Market | South Central |
Market Overview
China Carbon Black Market has valued at USD 4.97 billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 4.25% through 2029.
Government policies in China have also bolstered the carbon black industry by supporting industrial growth and sustainability initiatives. While challenges like environmental concerns and raw material price volatility persist, efforts are underway to address them through stricter regulations and advancements in production technologies.
Key Market Drivers
Growing Demand of Carbon Black in Plastic Industry
The carbon black market in China, a substantial segment of the global industry, is experiencing robust growth driven by several factors. A key driver is the increasing demand for carbon black within the plastic industry, which is further amplified by its expanding applications across various sectors.
Carbon black's importance in the plastic industry lies in its ability to act as a pigment and reinforce the strength of plastic products. It enhances durability, UV resistance, and color properties, aligning with the evolving needs of the plastic sector. As the plastic industry continues to evolve and expand, the demand for carbon black is anticipated to rise, driving further market growth.
Growing Demand of Carbon Black in Automotive Industry
The carbon black market in China, a significant player on the global stage, is experiencing notable growth driven by several factors. Chief among these is the increasing demand within the automotive industry, which serves as a substantial driver for market expansion.
A primary application of carbon black lies in the automotive sector, particularly in tire manufacturing. Carbon black enhances tire strength and durability, making them resilient to wear and tear. Additionally, it finds usage in various other automotive components like belts, hoses, gaskets, seals, and wiper blades.
Moreover, China's focus on sustainable development and environmental protection drives demand for carbon black. Efforts to reduce emissions and adopt cleaner technologies spur the use of carbon black in eco-friendly applications such as green tires and low rolling resistance compounds.
Key Market Challenges
Volatility in Price of Raw Materials
Raw material markets often experience volatility due to factors like supply disruptions, pent-up demand, and geopolitical events. This volatility impacts industries such as the carbon black market, heavily reliant on raw materials like heavy residual oil. Fluctuations in oil prices directly influence production costs for carbon black manufacturers. During price surges, producers face the dilemma of absorbing extra costs, impacting profitability, or passing them onto customers, risking competitiveness.
Key Market Trends
Growing Shift Toward Water-Based Carbon Black
Water-based carbon black is a type of carbon black dispersion that utilizes water as its primary dispersant, offering a more sustainable and environmentally friendly option compared to traditional oil-based carbon black. By eliminating harmful solvents, water-based carbon black addresses growing concerns about environmental pollution and the adverse effects associated with solvent-based carbon black.
This eco-friendly alternative finds applications across various industries, including coatings, paints, inks, plastics, and more. Its superior performance characteristics make it well-suited for these applications. Water-based carbon black ensures excellent dispersion, leading to uniform color distribution in different formulations. It also maintains stable color strength and exhibits good storage stability, making it suitable for prolonged use.
China, being one of the largest carbon black markets globally, significantly influences industry trends. The country's commitment to sustainable manufacturing and adherence to the Paris Agreement have accelerated the adoption of water-based carbon black. Stringent environmental regulations in China have compelled manufacturers to explore cleaner production methods, aligning with the country's green initiatives. Moreover, rising consumer awareness about sustainability and the demand for greener products have further driven the shift towards water-based carbon black in China.
Segmental Insights
Process Type Insights
In 2023, Based on the category of process type, the furnace black segment emerged as the dominant in the China Carbon Black market, based on the category of process type. Furnace black, a widely utilized coloring agent in masterbatches, has witnessed extensive use across various industries. The increasing production of these masterbatches has led to a notable surge in the consumption of furnace black.
China, renowned for its flourishing tire and plastic goods manufacturing sectors, has been instrumental in propelling the demand for furnace black. The production of furnace black, primarily achieved through the Carbon Black Oil (CBO)/Coal Tar pathway, has demonstrated economic viability despite its relatively higher cost. This is chiefly attributable to the substantial demand and large-scale production activities prevalent in China.
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Regional Insights
South Central emerged as the dominant player in the China Carbon Black Market in 2023, holding the largest market share in terms of value. South Central China, known for its bustling industrial activity, serves as a thriving hub for various sectors, including automotive manufacturing and rubber production. These industries, heavily reliant on carbon black, contribute significantly to the region's dominance in the market. Being a major consumer of carbon black, South Central China showcases a high concentration of these industries, thereby driving the demand for this essential component.
In recent years, China has taken notable steps to combat pollution, implementing stringent environmental regulations. The effects of these regulations are particularly evident in South Central East China, where a remarkable reduction in carbon emissions, specifically black carbon (BC), has been observed. This reduction in BC emissions has also coincided with a decline in carbon monoxide (CO) emissions. These positive outcomes highlight the effectiveness of the region's environmental control measures in mitigating pollution and promoting a cleaner and healthier environment.
Recent Developments
- In July 2022, BASF SE, a leading chemical company, expanded its manufacturing capabilities for automotive refinish coatings at its coatings site in Jiangmen, Guangdong Province in South China. Through its subsidiary BASF Coatings (Guangdong) Co., Ltd. (BCG), the company invested in an expansion project to increase its production capacity to 30 kilotons annually. This strategic move aims to meet the growing demand for automotive refinish coatings in the region, driven by the rising number of vehicles on the road and the need for high-quality repair and maintenance solutions.
Key Market Players
- Jiangxi Black Cat Carbon Black Co. Ltd.
- Shanghai Cabot Chemical Co. Ltd.
- LongXing Chemical Stock Co. Ltd.
- Suzhou Baohua Carbon Black Co. Ltd.
- Shandong Huadong Rubber Materials Co.
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