Allyl Alcohol Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The global allyl alcohol market was valued at USD 1.94 Billion in 2024. The industry is expected to grow at a CAGR of 6.00% during the forecast period of 2025-2034. The derivatives of allyl alcohol are increasingly finding applications in high-performance 3D printing resins. This propels innovation within various sectors like health care, automobiles, and aerospace toward precision and durable prototype development. In turn, all these factors have resulted in the market attaining a valuation of USD 3.47 Billion by 2034.

Allyl Alcohol Market Overview

The global market is driven by its versatility in applications across industries like polymers, coatings, and chemical synthesis. The demand for allyl derivatives like allyl esters that are used in the construction of high-performance materials has emerged as a significant driving force for the allyl alcohol market growth. Emerging trends observed in the global market include the changing role of a focus on catalytic production processes of various types and sourcing of renewable raw materials with a view to cost efficiency and sustainability. Key players are focusing on R&D to expand product portfolios and improve process efficiency while also satisfying the stringent environmental regulations. Geographically, the Asia-Pacific region dominates the industry in terms of large-scale generation, primarily due to a faster-growing industrial base for themselves. The markets in North America and Europe, therefore, are setting pace toward specialty chemical innovations.

Allyl Alcohol Market Growth

The aerospace and defense sectors demand lightweight high-performance materials. This particular niche drives major demand in the allyl alcohol market. The compound is majorly used in the production of specialty polymers, like thermosetting resins, which provide high strength and thermal resistance to critical aircraft components, leaner fuel consumption, and better performance. Furthermore, the transitional shift in the agricultural industry toward sustainable practices leads to an uptick in the use of allyl alcohol as an intermediate in green agrochemicals. The production of safer pesticides and herbicides, in harmony with the stricter environmental considerations, has allowed manufacturers to meet increasing demands for eco-friendly alternatives while providing protection to crops.

Key Trends and Developments

The key trends in the allyl alcohol market include sustainable production methods that support biodiversity, growth in UV-curable coatings, expanded chemical polymer applications, and innovation in catalysts to produce efficiency and long-term sustainability across different sectors.

May 2024

Dairen Chemical Corporation (DCC) joined The LYCRA Company and Qore in the development of renewable LYCRA fibre. DCC will convert QIRA, a bio-based material, into low-impact PTMEG using its allyl alcohol process, reducing the carbon footprint up to 44%.

March 2024

Daicel Corporation and Inabata & Co., Ltd. have established a joint venture company called Novacel Co., Ltd. that will commence operations in July 2024. Novacel will succeed Daicel group's research, development, and sales in resin coloring and compounding.

January 2024

Mitsubishi Chemical Group is working towards commercializing chemically recycled polycarbonate (PC) resin by extracting methyl methacrylate (MMA) from acrylic resin waste. This will scale up its resin recovery initiative and help achieve a processing capacity of 10,000 tonnes of resins per year by 2030.

February 2023

Mitsubishi Chemical Group Corporation decided to enhance the production capacity of polyvinyl alcohol resin, GOHSENX and Nichigo G-Polymer to meet the growing demand for food packaging materials.

Bio-based Production Methods

The shift towards sustainable production processes resulting in bio-based allyl alcohol, is boosting the overall allyl alcohol market trends and dynamics. Companies are looking into renewable feedstocks, such as glycerol from biodiesel, to align with the growing global trend of sustainability while reducing their carbon footprint. For instance, manufacturers in Europe are investing in bio-refineries to address regulatory pressures and the growing demand for green chemicals in polymers and coatings.

Surge in UV-Curable Coatings

Allyl alcohol is finding increasing applications in UV-curable coatings and hence, the compound is gaining traction in the automotive, electronics, and packaging industries. This is another trend influencing demand in the allyl alcohol market. Players like Sartomer have come up with new resin formulations to meet the demand for high-performance coatings that use lesser VOCs.

Expansion in Polymer Applications

The allyl alcohol market is further affected by the rising demand for light, strong materials from industries such as aerospace and automotive sectors, and the increasing usage of allyl alcohol in high-performance thermosetting polymers. Allyl glycidyl ethers, derived from allyl alcohol, enhance impact resistance and chemical stability of composites and adhesives.

Breakthrough in Catalyst Technology

Advancements in catalytic processes result in greater efficiency and selectivity in producing allyl alcohol. A case in point is developments in metal oxide catalysts leading to lower costs and energy consumption during the production process, thereby boosting the allyl alcohol market revenues. Key players in the industries are achieving breakthroughs in developing such technologies for the continuous optimization of the manufacturing process in order to meet global industrial demands.

Allyl Alcohol Market Opportunities

Rapid industrialization and urbanization in Asia-Pacific region create immense opportunities for allyl alcohol market companies to cater to the growing demand in construction, textiles, and specialty chemicals industries. These sectors stimulate heavy demand for coatings, adhesives, and resins that are derived from allyl alcohol derivatives. The market is even fueled by rising investments in infrastructure and manufacturing sectors, especially in China and India. Rising demand for tailored chemical solutions in pharmaceuticals and agrochemicals is also projected to exhibit growth. Such developments can be utilized by distilling high-purity allyl alcohol for special applications in synthesizing active ingredients in precision medicine and crop protection.

Allyl Alcohol Market Trends

An increasing usage of environmentally friendly waterborne coatings has been observed in automotive, construction, and packaging industries. Allyl alcohol plays a major role in the manufacture of water-soluble resins and adhesives. It has increasingly become a critical component in achieving regulatory and sustainability goals. Hence this factor positively impacts the allyl alcohol demand forecast. Moreover, rapid growth of the electronics and semiconductor industries directly results in higher demand for allyl alcohol-based chemicals, such as high-performance polymers and adhesives used for encapsulants, printed circuit boards, and protective coatings. As per industry reports, 4.3 billion individuals or over half (54%) of the world's population, now possess a smartphone. The increasing penetration of smartphones is driving growth of the optical resins segment.

Allyl Alcohol Market Restraints

Elaborate manufacturing procedures, particularly in conventional methods such as hydrolysis of allyl chloride, often lead to expensive production costs. This limits the scope for allyl alcohol market growth.

Despite several efforts to embrace sustainability, the chemical processes involved in producing allyl alcohol ultimately produce emissions and wastes.

Allyl Alcohol Industry Segmentation

The report titled “Allyl Alcohol Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Application

• Allyl Diglycol Carbonate (ADGC)
• Allyl Diglycidyl Ether (AGE)
• Allyl Methacrylate (AMA)
• Allyl Isoamyl Glycolate
• Diallyl Phthalate (DAP)
• Styrene Allyl Alcohol (SAA)
• Others

Market Breakup by Production Process

• Allyl Chloride Hydrolysis
• Propylene Oxide (PO) Isomerisation
• Others

Market Breakup by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle east and Africa

Allyl Alcohol Market Share

Market Insights by Application

The rising usage of allyl alcohol derivatives is expected to garner much interest, considering their wide industrial application, boosting the overall allyl alcohol market value. The Allyl Diglycol Carbonate (ADGC) segment is driven by growing demand for optical quality lenses. An etherized form of allyl alcohol, Allyl Diglycidyl Ether (AGE), has several advantages in polymer usage such as coatings and adhesives. AMAs are fundamental in producing durable plastics and resins whereas Allyl Isoamyl Glycolate finds its use in perfume. Diallyl Phthalate (DAP) in electronic industries is mainly used as a cross-linking agent while Styrene Allyl Alcohol (SAA) modernly is a hydrophobic that improves the waterborne coatings responsiveness to the present trend of eco-friendly demands.

Market Analysis by Production Process

The methodology for allyl alcohol production is changing with the growing ubiquity of such processes. The hydrolysis of allyl chloride remains the leading process for large-scale production because of its economical scalability. Propylene oxide isomerization is slowly gaining traction in the allyl alcohol market, producing pure allyl alcohol and giving far fewer by-products for those industries like pharmaceuticals, where purity holds the greatest importance. Besides, some other methods with renewable feedstocks are also on the rise as sustainability has become a key priority for manufacturers with the escalating trend toward a greener manufacturing process.

Allyl Alcohol Market Regional Analysis

North America Allyl Alcohol Market Opportunities

The North America allyl alcohol market dynamics is shaped by overwhelming fractions in industrial sectors, such as automotive, pharmaceuticals, and coatings. Moreover, interest in sustainable chemistry and bio-based production methods combined with vigorous R&D activities help to fuel market growth. Regulatory support for greener technologies propels demand, especially in coatings and adhesives.

Europe Allyl Alcohol Market Insights

The allyl alcohol demand in Europe is rising. The market is driven by environmental regulations and the push for eco-friendly materials. The automotive and construction industries are major consumers of allyl alcohol-based resins and coatings. Furthermore, the region's strong emphasis on innovation in green chemistry and renewable resources is strengthening market growth, particularly in specialty chemicals.

Asia-Pacific Allyl Alcohol Market Growth

The Asia-Pacific allyl alcohol market growth is boosted by rapid industrialization throughout the region, China and India being major drivers. Demand for this particular compound is bolstered by growing uptake from the automotive, electronics, and construction sectors. Furthermore, there is an increasing focus on low-cost and sustainability-driven manufacturing approaches in the region. This has propelled companies to adopt bio-based feedstocks for enhancing market opportunities.

Latin America Allyl Alcohol Market Outlook

In Latin America, rising demand for high-performance materials is driving the rising demand for allyl alcohol in the agriculture, automotive, and construction industries. Another propelling factor driving the Latin America allyl alcohol market development would be the sustainability and innovation regarding chemicals and materials in the region. The market is also projected to be driven by economic development and growth in infrastructure development leading to further expansion.

Middle East and Africa Allyl Alcohol Market Dynamics

The Middle East and Africa allyl alcohol market currently experiences major demand coming from oil and gas, automotive, and construction sectors across West Asia and Africa. The key drivers for this market are the focus on infrastructure development and growing investments in chemical manufacturing. In addition, sustainability initiatives are pushing towards the use of eco-friendly chemicals, thus leading to the use of allyl alcohol within coatings and adhesives.

Competitive Landscape

Global allyl alcohol market players are directed towards diversification of products, added production efficiencies, and sustainability practices. Further, allyl alcohol companies are aiming to serve mounting demand in the automotive, pharmaceuticals, and coatings industries while making heavy investments in green technologies, bio-based production, and innovation towards compliance with regulatory and environmental guidelines.

LyondellBasell Industries Holdings B.V.

LyondellBasell Industries Holdings B.V. was founded in 2007 because of the merger of Lyondell and Basell and is based in Texas, United States. The company produces petrochemicals, including olefins, polyolefins, intermediates, and specialty chemicals for production of plastic and fuels.

Zouping Mingxing Chemical Co. Ltd.

Zouping Mingxing Chemical Co. Ltd. was founded in 2002 and is based in Shandong, China. The company produces a variety of chemicals, including intermediates and petrochemicals for manufacturing, construction, and energy industries.

Dairen Chemical Corporation

Dairen Chemical Corporation, founded in 1979, is a major allyl alcohol manufacturer that has consistently focused on research and development and an environmentally conscious approach for its manufacturing processes to meet the needs for use in pharmaceuticals, agrochemicals, and plastics.

Tokyo Chemical Industry Co., Ltd.

Established in 1946, Tokyo Chemical Industry Co., Ltd. (TCI) is a prominent global producer of specialty organic chemicals, including allyl alcohol. TCI offers pharmaceutical, cosmetic, and functional materials in addition to organic laboratory chemicals. TCI is able to provide more than 30,000 products in addition to custom synthesis because of its multipurpose plants and more than 70 years of synthesis knowledge.

Other key players in the allyl alcohol market report are Thermo Fisher Scientific Inc., Merck KGaA, and RX Marine International, among others.

Startup Scenario in the Allyl Alcohol Market

An emerging field of innovation in the allyl alcohol market includes startups that adopt sustainable production methods, cultivate renewable feedstocks for bio-based allyl alcohol, and explore new applications in pharmaceuticals, advanced materials, and coatings. Startups invest in efficient catalysts that cut production costs down and develop worthwhile green solutions to meet the demand of this growing market.

Seqens Group

Seqens Group was formed in 2018 through the merger of BASF's Performance Chemicals division and the speciality chemicals business of Lanxess. Its headquarters are in Lyon, France. The company produces intermediate and agrochemicals for pharmaceuticals, personal care, and agricultural industries.

Allyl Alcohol Market Report Snapshots

Allyl Alcohol Companies