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

The global potassium methylate market size was valued at USD 5.45 billion in 2022 and is projected to grow from USD 5.78 billion in 2023 to USD 9.65 billion by 2030, exhibiting a CAGR of 7.6% during the forecast period.

Potassium methylate/potassium methoxide is a white amorphous powder with no odor at standard pressure and temperature. It has a 1.7 g/cm³ density, which is higher than water. It provides high activity and is available at a low cost. It can be classified as a flammable solid, but it is neither an explosive nor an oxidizer. Furthermore, it is used as an alkaline catalyst in fine and heavy-tonnage organic synthesis in transesterification reactions. It also finds its application in biodiesel production, personal care, agriculture, and pharma & healthcare.

The increased demand for potassium methoxide in biodiesel production will drive the market growth. The growing awareness of the benefits of biodiesel as a fuel has led to a surge in its demand. It is used as a catalyst in biodiesel production to convert animal fats and vegetable oils into biodiesel.

COVID-19 IMPACT

Decline in Production of Biodiesel amid COVID-19 Outbreak Affected the Market

Many countries enforced a lockdown, and transportation was halted since the spread of COVID-19, due to which biodiesel production was falling, further impacting glycerin production. Moreover, the global lockdown resulted in a stoppage in the supply chain, which led to a decline in demand. Furthermore, the manufacturers faced a shutdown or limited operations during COVID-19 with limited operations.

According to the Malaysian Palm Oil Council (MPOC), the demand for potassium methylate has been high after the pandemic. Growth of the product was associated with increased demand for personal care such as disinfectants, sanitizers, and cleaning products. Moreover, the Malaysian Palm Oil Council (MPOC) reported that the global market is expected to face an upward trend as consumers are moving toward online shopping, leading to increased demand for the product.

LATEST TRENDS

Rising Demand from the Agriculture Sector to Foster Market Development

Potassium methylate is used in agriculture as a fertilizer. The potassium ions in the compound are essential for the growth and development of plants, but they can be harmful if not used properly. It has been proven to improve soil structure by increasing organic matter content and boosting microbial activity that helps break down organic materials into available nutrients such as nitrogen (N), phosphorus (P), or nitrogen (N).

Potassium-based fertilizer is widely used in agriculture to improve crop yields and quality. They are also used in horticulture and floriculture to enhance the growth of plants and flowers. Furthermore, it is used as a potassium source to manufacture potassium hydroxide in various industries, including soap, detergents, and chemicals. Moreover, it helps improve crop yield and increases the shelf life of fruits and vegetables. The increasing population and the consequent rise in demand for food are the major factors driving the growth of the fertilizer industry, which, in turn, is driving the potassium methylate market growth.

DRIVING FACTORS

Increased Demand in Biodiesel Production Aids in Driving the Market

Potassium methylate has advantages over sodium methylate, such as its lower viscosity and melting point, making it easier to use in colder climates to produce biodiesel. Since it does not react with water, such as potassium or sodium hydroxide, it can be easily handled with standard plastic equipment. This makes the process more environment-friendly and cost-effective than conventional catalysts that produce biodiesel fuel from animal fats and vegetable oils.

As biodiesel is more environment-friendly and produces 85% less greenhouse gases than diesel or crude oil, biodiesel is considered a potential replacement for diesel, prepared from cooking oil (vegetable oil) or animal fats. Further, increasing consumption of fuels is another factor strengthening growth in the target market. It is utilized as a fuel additive. The high fuel consumption in vehicles is expanding the demand for biodiesel and is likely to drive the market. Moreover, the compound is also registering a widespread application in chemical processes such as esterification and condensation.

Furthermore, according to BDI-BioEnergy International GmbH, potassium-based catalyst offers a decisive advantage over its sodium counterpart, as it can process and recover free fatty acids. Therefore, the product demand from biodiesel producers is increasing during the forecast period.

RESTRAINING FACTORS

Lack of Availability of Potassium Methylate is Likely to Constraint the Market

The lack of availability of the product leads to a decrease in the supply of the product, which further raises the demand for substitute products, including sodium methylate. Sodium methylate is a reliable and efficient catalyst that offers a sustainable solution for the use and production of biodiesel, meets the engine manufacturers' requirements for high-quality fuels, and lowers emissions. Sodium methylate is more common, whereas potassium methylate produces biodiesel from special fats and oils.

Moreover, an increasing demand for sodium methylate as a catalyst in products, such as greases and synthetic detergents, is boosting its use. In addition, the usage of sodium methylate is rising owing to the consistent increase in biodiesel production. It is commonly used as a catalyst in biodiesel production and reacts significantly to oxygen. Therefore, it is kept away from air, moisture, and water at high temperatures (above 126 °C) to avoid decomposition to sodium hydroxide and methanol. It is highly soluble in alcohol, such as ethanol and methanol, and insoluble in benzene and toluene. Hence, this is anticipated to restrict the market growth.

SEGMENTATION

By Type Analysis

Solution Segment to Hold Largest Share Due to Strong Demand from Key Industries 

The market is segmented by type into solution and powder. Potassium methylate is used in biodiesel and personal care applications in its solution in methanol with a weight content of 30-33%. The resulting aqueous solution is fundamental and has a corrosive effect. The transportation and storage of the product are done as a solution of 25% to 35% potassium methylate in methanol or ethanol.

Powder is present as grains or other small particles produced by disintegrating, grinding, pulverizing, or crushing. In the market, powder products are used in pharmaceutical and agriculture applications to produce pharma & healthcare and fertilizers products such as vitamins and medicines.

By Application Analysis

Biodiesel Segment to Lead the Market Due to Increasing Demand for Renewable Sources

In terms of application, the market is segmented into biodiesel, personal care, agriculture, pharma & healthcare, and others. The product is used as a catalyst to produce biodiesel from vegetable oils and animal fats. The use of potassium methoxide in the production of biodiesel results in 10% increase in biodiesel output. Factors, such as energy security, environmental concerns, fuel diversity, peak oil, sustainability, and considerable interest in renewable sources globally, are likely to drive the biodiesel segment.

Potassium methylate is used in agriculture as a fertilizer to improve soil structure. It increases the organic matter content of soil and boosts its microbial activity. It helps in the improvement of the yield of crops. It also helps in increasing the shelf life of vegetables and fruits.

It is used as a raw material in the pharmaceutical industry to produce various drugs and medicines. It is also used as a binder in tablet formulation. The growing pharmaceutical industry, especially in developing countries, is anticipated to boost the demand for the product in the region during the forecast period.

REGIONAL INSIGHTS

The market size in Europe stood at USD 2.15 billion in 2022. Europe is expected to hold the largest potassium methylate market share due to growing awareness among consumers regarding climate change, pollution, and other environmental issues. Increasing emphasis on the efficient use of bio-based resources, including biodiesel, is a major factor driving regional growth.

Germany is a major contributor to the growth of the market in Europe. The market growth in the country is owed to innovations and advancements in the biodiesel industry. Owing to the high spending capacity of consumers, the region witnessed propelling demand for premium consumer products. Moreover, the feasible economic status of consumers in the region, along with the innovations in the personal care industry, such as the use of organic ingredients, is boosting the market growth.

Meanwhile, the North America market is expected to witness growth due to rising agriculture and personal care industries. The growing market for the chemical sector in the U.S. is expected to drive the market in the region. Recovery of the economy, increase in government spending, growing demand for bio-based products and chemicals coupled with consumer inclination toward green and sustainable solutions are expected to drive the market in Asia Pacific.        

The Middle East & Africa is anticipated to witness significant growth due to increasing consumption of the product in agriculture applications. The growth is also attributed to increasing commercialization amongst urban areas and rising biodiesel production, thereby driving the market growth. In Latin America, the solution segment is expected to drive a considerable growth rate during the forecast period due to the increased demand for biodiesel production. This is expected to drive the development of the market. The growing awareness of the benefits of biodiesel as a fuel has led to a surge in its demand. Rising demand for sustainable personal care and pharmaceutical products will boost the country's market. In addition, the growing population and changing lifestyle choices are expected to drive the market in Brazil.

KEY INDUSTRY PLAYERS

Key Market Players are Aiming for Market Share with Acquisitions and Capacity Expansions

The global market is consolidated, with the top two players accounting for more than 50% of the market share. Large companies include BASF SE and Evonik. To obtain a competitive edge in the market, the players continuously invest across emerging and developed economies regarding new product launches, strategic acquisitions, production capacity addition, collaboration with distributors, and others. However, securing the more extensive production capacity to reach the maximum number of consumers and cater to diversified applications is the primary key strategy most of the players in this industry adopt. Players, such as BASF SE, Evonik, and Sintez OKA Group of Companies, are significantly investing in strengthening their capabilities and market position.

LIST OF KEY COMPANIES PROFILED:

• BASF SE (Germany)


• Evonik (Germany)


• Sintez OKA Group of Companies (Russia)


• Gelsenchem Chemical Products GmbH (Germany)


• Shandong Seesuns New Materials Technology Co., Ltd (China)


• American Elements (U.S.)


• Vizag Chemical International (India)


• Jigs Chemical (India)

REPORT COVERAGE

This research report provides both qualitative & quantitative insights into the global market. Quantitative insights include market sizing in terms of value (USD billion) across each segment, sub-segment, and regions profiled in the scope of the study. Also, it provides market analysis and growth rates of segments, sub-segments, and key counties across each region. Qualitative insight covers the elaborative analysis of key market drivers, restraints, growth opportunities, and industry trends related to the market. The competitive landscape section covers detailed company profiling of the key players operating in the market.

Report Scope & Segmentation