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Carbon Black Market to Reach $16.15 Billion in 2022, Says Beroe Inc

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News provided by

Beroe Inc.

29 Jan, 2019, 14:00 GMT

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RALEIGH, North Carolina, January 29, 2019 /PRNewswire/ --

The global market for carbon black is expected to grow at a CAGR of 3.5 - 4 percent until 2022, according to Beroe Inc., a procurement intelligence firm. The market for carbon black is mainly driven by the tire industry in Asia and specialty carbon black industry across the globe.

     (Logo: https://mma.prnewswire.com/media/777512/Beroe_Logo.jpg )

The U.S. carbon black producers profited from the tire plants expansion in regions such as Mexico, which resulted in an increase in the export volume, and a growth of 4 - 5 percent is expected from this sector. Producers in regions such as Russia, China, and Europe are actively seeking export in order to offset the surplus supply prevailing in the regions. Moreover, for the regions such as Russia and China, there is a lack of heavy oil-based feedstock; thus they import carbon black from other regions such as the U.S.

https://www.beroeinc.com/category-intelligence/carbon-black-market

Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com

There are a considerable number of substitutes of carbon black and many companies are on the look-out for commercializing such products. These products are costlier than carbon black; therefore, producers have started investing in large projects to commercialize these products on a great scale. In the long run, the availability of substitutes would be high, which would be a threat to the carbon black industry.

Globally, companies such as Cabot and Aditya Birla are setting up plants in Asia to take advantage of the increase in demand in the region by utilizing the coal-based carbon black feedstock advantage. Furthermore, western producers have low operational cost due to their better process technology, which gives them a 35 percent reduced input cost than the Asian players.

Key Findings:

  • The plastics industry is expected to have high growth rate until 2022, as carbon black products are more economical and physically suitable to use. This would indirectly provide 4 - 5 percent of the growth in the carbon market industry from this sector for the next five years.
  • Specialty carbon black finds wide use as carburizers for such products as tungsten carbide and high purity silicon carbide, and as reducing agents for the production of high purity metals such as solar grade silicon.
  • The production cost of carbon black is lowest in Asia due to the availability of cheap feedstock and low labor rates. Feedstock holds nearly 60 percent share in the cost structure of carbon black production.
  • About 0.91 MMT of carbon black capacity is expected to be added to the global production base by 2022. Other than Russia, all the other capacities are concentrated primarily in the developing regions.
  • Cheaper raw materials, low labor tariffs, and lenient environmental regulations also support the shift in carbon black production to Asia.
  • Precipitated silica is the most widely used substitute replacing nearly 20 percent of carbon black to make a 'green tire'.

The research methodology adopted for the report included:

  • Experts with twenty years of domain experience
  • Interaction with buyers
  • Inputs from supply chain partners

The production of carbon black base has moved to Asia from the developed markets, as Asia remains to reemphasize its position as a global automobile hub. Furthermore, 0.91 MMT of carbon black capacity is expected to be added to the global production base by 2022.

The report also includes:

Market Analysis: 

  • Value Chain Analysis
  • Global Market Outlook -
  • Current Market Size
  • Demand - Supply Trends and Forecast
  • Key End-use Industries
  • Trade Dynamics
  • Regional Market Outlook (North America, Europe, and Asia)
  • Current Market Size
  • Demand - Supply Trends and Forecast
  • Key End-Use
  • Trade Dynamic

Industry Analysis: 

  • Industry Outlook (North America, Europe, and Asia)
  • Drivers and Constraints for the Industry
  • Mergers & Acquisitions
  • Innovations
  • Porter's Five Forces Analysis

Cost & Pricing Analysis: 

  • Cost & Price Analysis (North America, Europe, and Asia)
  • Cost Structure Analysis
  • Cost Drivers for Carbon Black

Supplier Analysis:

  • Key Global and Regional Suppliers
  • Key Supplier's Capability Analysis
  • Capacity
  • Product Portfolio
  • Expansions, If Any
  • Geographical Footprint
  • Supplier Market Share - Global
  • Detailed Supplier Profiling of the Top Five Global Suppliers
  • SWOT Analysis for the Top Five Global Suppliers

Industry Best Practices: 

  • Contract Structures
  • Engagement Models

About Beroe Inc.: 

Beroe's unique business model involves providing market intelligence and analytics to the procurement teams of businesses across the globe. Beroe leverages its deep domain expertise in 300 + categories across 14 industries. It boasts of more than 80 of the Fortune 500 companies as its clients.

To learn more about Beroe Inc, please visit http://www.beroeinc.com

Media Contact:
Debobrata Hembram
debobrata.hembram@beroe-inc.com

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