Choline Chloride Market By Form, By Application: Global Opportunity Analysis and Industry Forecast, 2021-2031

Executive Summary

According to the report, titled, “Choline Chloride Market," the choline chloride market was valued at $494.4 million in 2021, and is estimated to reach $916.9 million by 2031, growing at a CAGR of 6.4% from 2022 to 2031.

Choline chloride is a quaternary ammonium salt with choline cation and chloride anion. Choline chloride liquid is combination of water and salt. The mixture of choline chloride and water is indicated as aquoline. Liquid choline chloride is used to manufacture deep eutectic solvents (DES) through propionate mixture of organic solvents such as urea, ethylene glycol, and glycerol. Liquid choline chloride is generally available in concentration of 70% and 75%. It is used in the animal, cattle and poultry feed supplements. Liquid choline chloride is colorless, odorless, non-corrosive, and non-toxic chemical compound making it viable to be used for production of dietary supplement products. Liquid choline chloride plays vital role during biomass delignification is the key market trend. Basically, lignocellulosic agro-residues are pre-treated with use of hydrochloric acid and sodium hydroxide.

However, bio-degradability and environmental concern regarding disposal of these harsh chemicals have minimized the use of hydrochloric acid and sodium hydroxide for lignocellulosic agro-residues for pre-treatment. Natural deep eutectic solvent-based lignocellulosic (NaDESs) are substitute products used for pre-treatment of lignocellulosic agro-residues. Combination of liquid choline chloride and NaDESs aids the pre-treatment process and owing to high polarity of liquid choline chloride makes it viable and alternative over other harsh chemicals. All these factors collectively drives the demand of the global market.

However, there are several side effects associated with excessive use of human nutritional products containing choline chloride. As per the prescribed value, consumption of choline chloride containing human nutritional products is 3.5 grams per day. Excessive use over prescribed value leads to diarrhea and vomiting sensation. In addition, over usage leads to side effects during pregnancy and lactation period. Other side effects such as Congestive heart failure, Dehydration, Excessive sweating, and Respiratory acidosis has been observed with consumption of large amount of human nutritional products containing choline chloride. All these factors tend to hamper the market growth.

Choline chloride is used as feed additive for improving the growth of chickens. Germany is major producer of animal feed additives in Europe owing to rise in consumption and process meat across European region. This factor has further escalated the demand for healthy meat products thereby augmenting the use of choline chloride in feed additive application. Hydraulic fracturing process is utmost important process for extraction of oil and gas content from low-permeability rocks like tight sandstone. However, this well-simulated technique requires use of clay additives or clay stabilizers for improving extraction and purification process.

Choline chloride along with combination of ethylene glycol and other glycerol compounds forms deep eutectic solvent making it viable to be used for production of clay stabilizer. All these factors have escalated the demand for choline chloride in Europe region. Choline chloride also plays a crucial role in pharmaceutical industry owing to its anti-inflammatory effect. Anti-inflammatory property of choline chloride makes it useful excipient to be used ruing formulation of pharmaceutical products that are used to treat liver disease, high cholesterol, depression, memory loss, Alzheimer’s, and asthma. This factor is anticipated to create remunerative opportunities for the expansion of the choline chloride market in the future.

The choline chloride market is segmented on the basis of form, application, and region. By form, the market is segregated into powder and liquid. The powder segment dominated the global market in terms of revenue in 2021, with over 58% of the total share. Choline chloride powder is a bifunctional chemical composed of quaternary ammonium salt and alcohol. Water solubility of powder choline chloride makes it viable to be used in medical end-use industry. Choline chloride powder is also used for production of animal feed products. There has been significant growth in demand for choline chloride powder owing to its use in animal feed products. Moreover, powder choline chloride is used extensively during production of supplementary diet products owing to its economic benefits. Specifically increasing demand for meats across the Asia-Pacific region is further anticipated to escalate the demand for global market. The growth of market is due the increasing awareness of animal feed supplements which increases overall demand of choline chloride.

By application, the global choline chloride market is segmented into animal feed and oil and gas. The oil and gas application dominated the global market in terms of revenue in 2021, with over 37% of the total share. Choline chloride is extensively used as vitamin substitute or supplement in animal feed additives for poultry, swine feed and fish farming. Increase in disposable income and rise in number of poultry meat consumers are driving the demand for choline chloride market. Poultry animals are vulnerable to contagious diseases and tend to lack with choline content. Choline content in animal feed additives is essential as it promotes faster growth and helps to overcome perosis (slipped tendon) in poultry animals. Moreover, deficiency of choline content in swine leads to spraddle or splayed legs, deprived reproduction & lactation, and fatty infiltration of liver thus affecting the growth. Use of choline chloride containing animal feed additives benefits poultry, swine feed and fish farming.

Region-wise, the choline chloride market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific choline chloride market is projected to grow at the highest CAGR during the forecast period. Choline formerly known as vitamin B4 is considered as important feed additive for poultry animals. In addition, several articles, publication, and research & developments have been conducted for emphasizing the use of choline chloride in feed additive industry. Perosis and liver enlargement in chicks occurs frequently due to choline deficiency. However, several feed additives are used to overcome choline deficiency. Recent studies and demonstration have resulted the high efficiency of choline chloride being used in feed additives has escalated the growth of the global market. Choline chloride is a communal supplement to poultry feed and feed formulation owing to its structural characteristics and economical benefits. All these factors have escalated the adoption of choline chloride during formulation of animal feed additives.

Key players operating in the global choline chloride market include Algry Quimica S.L., Balaji Amines Ltd., Balchem Inc., BASF SE, Eastman Chemical Company, Imperial Group Limited, Jubilant Ingrevia Limited, Kemin Industries, Inc., Liaoning Biochem Co., Ltd., Merck KGaA, Nuproxa Switzerland Ltd., Pestell Nutrition Inc., SDA Product, Spectrum Chemical, and Tokyo Chemical Industry Co. Ltd.

Key Findings of the Study

• The powder form is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 6.6% from 2022 to 2031.
• The animal feed application segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 6.9% from 2022 to 2031.
• Asia-Pacific garnered the highest share of 38% in 2021, in terms of revenue, growing at a CAGR of 7.0%.

COVID-19 Analysis

• The novel coronavirus is an incomparable pandemic that has spread to over 180 countries and caused huge losses of lives and economy around the globe. In addition, around 60% of the manufacturing industries were hardly hit by the pandemic while other industries such as food & beverages and pharmaceuticals are moderately affected due to high demand. This has led the choline chloride market to witness a downfall in demand, attributed to its use in various manufacturing & other end-use sectors.
• Furthermore, the fuel consumption (gasoline) was decreased by 34% in April 2020 as compared to April 2019, owing to restrictions for the transportation of non-essential items. This has reduced the refining capacities of the major refineries; thus, decreasing the consumption of choline chloride used in blending oil & gas industry. In addition, several key companies such as BASF SE, Solvay, and others have registered decreased in sales for their chemical segments amid the COVID-19 Scenario. For instance, Solvay registered a decrease in the net sales by 16.1% in 2020 as compared to 2019, owing to a decrease in the net sales of materials, chemicals, and solutions segments in 2020.
• Choline chloride is a quaternary ammonium salt with choline cation and chloride anion. It is a white and deliquescent crystal. It acts as a lipotropic agent which increase the transport and metabolism of lipids including synthesis of lipoprotein and also act as a nootropic agent, thus making it widely used during formulation of pharmaceutical products. Choline chloride is used in pharmaceutical industry have witnessed a significant increase in demand amid the pandemic. In addition, the increasing awareness for hygiene & sanitization has surged the consumption of choline chloride the chemical industry and food & beverages sectors and is anticipated to grow rapidly post COVID-19 scenario. Furthermore, new emerging geographic scenario, enhanced domestic supply chain and strong public investments in chemical sector is projected to drive the growth of the choline chloride chemicals market. For instance, according to an interim report published by the Australian Chemical Industry Forum (ACIF), the chemical industry is expected to return to pre-COVID-19 levels, driven by strong public investments

Companies Mentioned

• Algry Quimica S.L
• Balaji Amines Ltd.
• Balchem Inc.
• Basf Se
• Eastman Chemical Company
• Imperial Group Limited
• Jubilant Ingrevia Limited
• Kemin Industries Inc.
• Liaoning Biochem Co. Ltd.
• Merck Kgaa
• Nuproxa Switzerland Ltd.
• Pestell Nutrition Inc.
• Sda Product
• Spectrum Chemical
• Tokyo Chemical Industry Co. Ltd.

Methodology

The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.

They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.

They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:

• Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
• Scientific and technical writings for product information and related preemptions
• Regional government and statistical databases for macro analysis
• Authentic news articles and other related releases for market evaluation
• Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast

Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.