Newly released data from an ESOMAR-certified market research and consulting firm shows that global demand of fumed silica enjoyed YoY growth exceeding 5% in 2021. According to the report, the market is anticipated to add 1.5X value by 2031 as compared to 2021.
Historically, sales of fumed silica surged at a CAGR exceeding 4%, closing in at over US$ 1 Bn in 2020. Prospects dipped amidst the COVID-19 pandemic, as mandatory factory shutdowns occurred to curb the spread of the novel coronavirus. Fortunately, prospects widened since Q4 2020, as lockdowns were lifted and restrictions eased, permitting resumption of manufacturing operations.
Growing demand for fumed silica in the pharmaceutical industry and paints and coatings segment is likely to project the market expansion for fumed silica throughout the forecast period 2021-2031. North America holds around 1/3rd of overall market share in global fumed silica market. Consumption of fumed silica in North America is backed mainly from mature end use market such as personal care, automotive and paints & coatings.
Key Takeaways from Market Study
- By product, hydrophilic fused silica yielded over 60% demand through 2021
- Hydrophobic fumed silica to surge at around 6% to record market value of 1.3 Bn
- Cosmetics and personal care segment to create around US$ 380 Bn opportunities over the long-term forecast period
- Paints and Coatings sector are the fastest-growing segment, expanding at above 5% CAGR
- U.S to contribute almost US$ 3 Bn in revenue by 2031, amid extensive uptake across silicone rubber manufacturing
- China to contribute over 50% demand for fumed silica throughout East Asia
- India to generate highly lucrative expansion opportunities in the future, especially across the construction sector
“Manufacturers are leveraging flourishing opportunities across the healthcare and personal care industries due to their multiple beneficial properties, prompting substantial innovations and product launches,” comments a Senior Research Analyst.
Competitive Landscape
Prominent players are embracing innovative approaches such as ground-breaking marketing tactics, technological advances for cancer screening, mergers, and acquisitions.
In June 2021, key player Evonik Industries AG has signed a purchase agreement to acquire the privately-owned technology-driven company Infinitec Activos, with closing expected by July end.
Infinitec Activos will be integrated into the Care Solutions business line of Evonik’s Nutrition & Care division complementing the active delivery systems acquired in 2017.
In May 2021, Cabot Oil & Gas Corp. plans to merge with Cimarex Energy in an all-stock deal that values the combined company at $17 Bn. The transaction is set to close in the fourth quarter. The combined company will operate under a new name and will be headquartered in Houston.
These insights are based on a report on Fumed Silica Market by Fact.MR.
