Hydroquinone Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• During the forecast period, the market is likely to grow because the paint industry will need more and more hydroquinone.
• On the other hand, the toxic and cancer-causing effects of skin creams are likely to slow the market's growth over the next few years.
• Antioxidant applications dominated the market and are expected to grow considerably during the forecast period.
• The Asia-Pacific region dominated the market across the globe, with the largest consumption coming from countries such as China, India, and Japan.

Hydroquinone Market Trends

Increasing Demand from Rubber

• Hydroquinone is used to manufacture antioxidants for the rubber processing industry.
• Rubber plays a key role in various end-user industries, such as aerospace, automotive, electronics, and other manufacturing industries. The continued growth in these industries is, in turn, boosting the demand for rubber.
• For instance, China has the world’s largest electronics production base. Electronic products, such as wires, cables, computing devices, and other personal electronic devices, recorded the highest growth in the electronics segment. The country serves the domestic demand for electronics and exports electronic output to other countries, thus providing a huge market for polyimide films.
• Also, the Ministry of Electronics and IT's 'A call to action for broadening and deepening electronics manufacturing' study says that India plans to make USD 300 billion from electronics manufacturing by 2026.
• Electric cars are becoming more popular in many places around the world, which is likely to increase the need for rubber in the auto industry.
• China is a global leader in the electric car market, with a significant increase in the sales of new electric vehicles. A total of 3.3 million units of electric vehicles (EVs) were sold in China in 2021, representing an increase of 154% compared to the 1.3 million units sold in 2020.
• Overall, the consumption of rubber has been increasing significantly. For instance, in India, from April 2021 to March 2022, the country consumed 1.24 million metric tons of natural rubber, representing an increase of 12% compared to FY 2020-21. Nearly three-quarters of this amount was used for general rubber goods, with the remaining going to the vehicle tire and tube industry.
• Because of this, the demand for rubber is going up, which is expected to increase the demand for hydroquinone in the rubber processing industry over the next few years.

Asia-Pacific Region to Dominate the Market

• The Asia-Pacific region was found to be the major consumer of hydroquinone, supported by the growing consumption of major countries, including China, India, Japan, etc. The demand for hydroquinone in India and China is expected to grow significantly.
• The cosmetics industry is expected to grow in the region, with ongoing innovation in South Korea and Japan. China is expected to be a major consumer of cosmetics in the region.
• Paints and coatings can be used in both commercial and residential settings, like office buildings, warehouses, convenience stores, and shopping malls.
• According to Statistics Korea, construction orders collected by local builders at home and overseas totaled USD 245.9 billion in 2021, up from KRW 31.9 trillion the previous year. So, the construction industry is likely to increase the demand for paints and coatings, which is likely to increase the demand for hydroquinone over the next few years.
• India’s construction sector has been growing rapidly with increased government investment. Under PMAY-G, the goal of 'Housing for All' by 2024 has been set at 2.95 crore houses, out of which 2,62,34,163 households have already been allocated to the states and UTs from 2016-17 until 2021-22.
• As of February 2, 2022, 1,71,34,737 of the 2,17,54,812 homes approved for beneficiaries had been built.thus supporting market growth during the forecast period.
• Also, the Rubber Board says that China used the most natural rubber in the world in 2021, with 5.7 million metric tons, followed by India.

Hydroquinone Market Competitor Analysis

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support