U.S. Potassium Methylate Market Size, Share & COVID-19 Impact Analysis, By Type (Solution and Powder), By Application (Biodiesel, Personal Care, Agriculture, Pharma & Healthcare, and Others), 2023-2030

The U.S. potassium methylate market size was worth USD 751.5 million in 2022 and is projected to grow at a CAGR of 7.5% during the forecast period.

The rising demand for potassium methylate used in producing biodiesel is expected to drive the growth of the U.S. market. The rising adoption in agriculture, pharma & healthcare, and biodiesel application is further expected to propel the U.S. potassium methylate market growth. The growing chemical sector in the U.S. is expected to drive the market in the country. Recovery of the economy, increase in government spending, growing demand for bio-based products and chemicals, and rising consumer inclination toward green and sustainable solutions are expected to drive the expansion in the U.S. market.

The global lockdown resulted in a halt in the supply chain, which led to a decline in demand. Furthermore, potassium methylate manufacturers faced a shutdown or limited operations during COVID-19.

LATEST TRENDS

Rising Demand from the Agriculture Sector is a Prominent Trend

Potassium methylate is used in the agriculture sector as a fertilizer. The potassium ions in the compound are essential for the development and growth of plants, but they can be harmful if not used properly. Potassium methylate has been proven to improve soil structure by increasing the organic matter content and boosting the microbial activity that helps break down organic materials into available nutrients such as nitrogen (N) or phosphorus (P). Moreover, it helps in improving crop yield and increasing the shelf life of vegetables and fruits. The increasing population and a consequent rise in demand for food are the major factors driving the growth of the fertilizer industry, which, in turn, is driving the U.S. market.

DRIVING FACTORS

Rising Product Demand for Biodiesel Production to Boost Market Growth

The increased demand for potassium methylate in producing biodiesel will drive the growth of the U.S. potassium methylate market. The growing awareness regarding the benefits of biodiesel as a fuel has led to a rise in product demand. According to USDA, in 2021, the combined biodiesel/renewable diesel production in the U.S. totaled about 2.5 billion gallons. Besides, the production of biodiesel in the country was 159 million gallons in December 2020.

Potassium methylate acts as a catalyst in biodiesel production by converting animal fats and vegetable oils into biodiesel. This chemical has advantages over sodium methylate, such as lower viscosity and melting point, which make it easier to use in colder climates to produce biodiesel. Since the compound does not react with water similar to sodium hydroxide or potassium, it can be easily handled with standard plastic equipment. This makes the process more cost-effective and environmentally friendly than conventional catalysts that produce biodiesel fuel from vegetable oils and animal fats.

RESTRAINING FACTORS

Rising Use of Substitutes such as Sodium Methylate to Restrain the Market Growth

The lack of availability of potassium methylate leads to a reduction in the supply of products, which further increases the demand for the substitute products, including sodium methylate. Moreover, the rising demand for sodium methylate as a catalyst in products, such as synthetic detergents and greases, is propelling its deployment. The product consumption is increasing due to the consistent rise in biodiesel production. It is commonly used as a catalyst in producing biodiesel and reacts extremely to oxygen. Hence, it is kept away from air, moisture, and water at high temperatures to avoid decomposition to methanol and sodium hydroxide. It is highly soluble in alcohol, such as methanol and ethanol, and insoluble in toluene and benzene.

SEGMENTATION

By Type Analysis

Based on type, the market is segmented into solution and powder.

The solution segment accounted for a significant U.S. potassium methylate market share in 2022 and is likely to maintain its dominance during the forecast period. The solution-type product is used in various applications such as agriculture, pharma & healthcare, and biodiesel, among others. The rising demand and consumption of biodiesel in the country are driving the solution-type segment growth. Key players such as American Elements offer potassium methylate in the solution form for different applications such as Pharmaceutical Grades, Technical Grades, Semiconductors, Optical, and Electronics Grades.

Powder-type products are used in various applications such as pharma & healthcare, personal care, and plastics.

By Application Analysis

Based on application, the market is segmented into biodiesel, personal care, agriculture, pharma & healthcare, and others.

The biodiesel segment held a larger share in 2022. In 2022, the total volume of biodiesel produced in the U.S. amounted to 1.6 billion gallons. The product’s use in biodiesel production results in an increase of 10% in biodiesel output.

In the personal care segment, potassium methylate is used as an important ingredient in soaps, shampoos, and other cleansing products. It is also used in agriculture as a fertilizer to improve soil structure.

KEY INDUSTRY PLAYERS

Considering the competitive landscape, the market depicts the presence of established and emerging companies. Key players include BASF SE, Evonik, and American Elements, among others. Industry players compete primarily based on the price and application characteristics of the product. Companies are emphasizing product innovation, social marketing, acquisition, and collaborations.

LIST OF KEY COMPANIES PROFILED:

• BASF SE (Germany)


• Evonik (Germany)


• American Elements (U.S.)


• Jigs Chemical (India)


• Sigma-Aldrich, Inc. (U.S.)


• Vizag Chemical International (India)

REPORT COVERAGE

The report thoroughly examines key factors such as leading companies, applications, and products. It also provides market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market growth in recent years and the factors listed above. It examines the market dynamics, opportunities, historical data, and revenue growth estimates at the country level.

Report Scope & Segmentation