Carbon Black Market has valued at USD 4.97 billion in 2022 and is anticipated to
project robust growth in the forecast period with a CAGR of 4.25% through 2028.
One of the primary drivers of China's significant role in the carbon black
market is its position as the largest consumer and producer of tires in the
Asia-Pacific region. With a vast automotive industry and a growing demand for
vehicles, China's tire production has been soaring in recent years. This surge
in tire manufacturing not only fuels the country's economic growth but also
translates into robust demand for carbon black, a crucial component used to
enhance the strength and longevity of tires.
addition to its extensive use in tire manufacturing, carbon black finds
applications across various sectors like transportation, industrial, building,
and construction. Its versatile properties make it a sought-after additive in
coatings, plastics, inks, and other materials, improving their durability and
performance. As these industries continue to expand in China, driven by the
country's rapid urbanization and industrialization, the demand for carbon black
is expected to soar even further.
government policies have played a significant role in supporting the growth of
the carbon black industry. Initiatives promoting industrial growth and
sustainability have created a favorable environment for manufacturers and
investors in this sector. However, challenges persist, including environmental
concerns associated with carbon black production and the volatility of raw
material prices. Efforts are being made to address these issues through
stricter regulations and advancements in production technologies.
conclusion, China's carbon black market is a rapidly growing sector, driven by
the country's dominance in tire production, expanding applications of carbon
black, and supportive government policies. Despite the challenges, the market's
growth trajectory remains positive, signaling promising opportunities for
players in the industry. As innovation continues and new applications for
carbon black are discovered, China is poised to further strengthen its position
in the global carbon black market.
Key Market Drivers
Demand of Carbon Black in Plastic Industry
carbon black market, a significant component of the global industry, is
witnessing robust growth, driven by various factors. One key driver is the
escalating demand for carbon black in the plastic industry, which has been
further fueled by the increasing applications of carbon black across multiple
particular, the automotive and construction sectors have significantly
contributed to the growth of the carbon black market in China. The automotive
industry relies on carbon black to enhance the performance and durability of
tires, while the construction industry utilizes it for the production of
high-quality concrete and asphalt. Additionally, the packaging industry's
overall growth has increased the demand for carbon black in plastic end-use
applications, including containers, films, and pipes.
plastic industry, being one of the world's largest, requires vast quantities of
carbon black for the production of various goods. This high demand, coupled
with the booming packaging sectors in the country, has significantly
contributed to the growth of China's carbon black market. Moreover, China's
industrial expansion and the rising adoption of carbon black in various sectors
have further propelled the market's growth.
black's extensive usage in the plastic industry is driven by its ability to act
as a pigment and reinforce the strength of plastic products. It contributes to
the durability, UV resistance, and color properties of plastic goods. As the
plastic industry continues to expand and innovate, the demand for carbon black
is expected to rise further, propelling the market to new heights.
conclusion, the growing demand for carbon black in the plastic industry is
driving the growth of China's carbon black market. With the automotive,
construction, and packaging sectors playing a significant role, and China's
industrial expansion in full swing, the market is poised to reach new levels of
Demand of Carbon Black in Automotive Industry
carbon black market, a significant player in the global industry, is
experiencing remarkable growth, propelled by various factors. Among these, the
rising demand for carbon black in the automotive industry emerges as a
key application of carbon black is in the automotive sector, where it's
primarily used in tire manufacturing. Carbon black enhances the strength and
longevity of tires, making them resistant to wear and tear. Furthermore, it is
also used in other automotive components such as belts, hoses, gaskets, seals,
and wiper blades.
demand for carbon black in the automotive industry is particularly high in
China, given that the country is the largest automobile market globally. This
massive production scale necessitates a high demand for tires and other rubber
components, thereby driving the consumption of carbon black. Furthermore, the
country's push towards electric vehicles also increases the demand for carbon
black, as these vehicles typically require larger and heavier tires due to
their battery weight.
addition to the automotive industry, carbon black finds applications in various
other sectors, including plastics, inks, paints, and coatings. The versatility
and unique properties of carbon black make it a sought-after material in these
industries, further contributing to the growth of China's carbon black market.
China's commitment to sustainable development and environmental protection
plays a crucial role in driving the demand for carbon black. As the country
strives to reduce emissions and promote cleaner technologies, the use of carbon
black in eco-friendly applications, such as green tires and low rolling
resistance compounds, gains traction.
conclusion, the growing demand for carbon black in the automotive industry,
coupled with its diverse applications across different sectors, is driving the
growth of China's carbon black market. As the automotive industry continues to
expand and innovate, and as China remains at the forefront of global
manufacturing and sustainability efforts, the demand for carbon black is
expected to rise further, propelling the market to new heights.
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in Price of Raw Materials
materials frequently experience market volatility, often resulting from supply
disruptions, pent-up demand, or significant peaks and troughs caused by various
factors such as geopolitical events, natural disasters, or changes in
volatility can have a profound impact on several industries, including the
carbon black market, which heavily relies on the availability and pricing of
its main raw material, heavy residual oil. Fluctuations in the price of this
commodity directly affect the cost of production for carbon black
manufacturers. When prices surge, producers may face the challenge of either
absorbing additional costs, which can impact their profitability, or passing
them onto customers, potentially affecting their competitive edge in the
conclusion, while the demand for carbon black in industries like automotive
continues to drive the growth of China's carbon black market, the inherent
volatility in the price of raw materials poses a significant challenge to its
sustainability. To navigate this volatile landscape, Chinese manufacturers need
to develop robust strategies that include effective risk management and
the challenges, the market holds considerable potential, offering promising
opportunities for those who can effectively manage the risks associated with
raw material price volatility while ensuring long-term growth and
Key Market Trends
Shift Toward Water-Based Carbon Black
carbon black is a form of carbon black dispersion that utilizes water as the
primary dispersant, resulting in a more sustainable and environmentally
friendly alternative to traditional oil-based carbon black. By eliminating the
use of harmful solvents, water-based carbon black addresses the growing
concerns over environmental pollution and the negative effects associated with
solvent-based carbon black.
eco-friendly alternative finds applications in a wide range of industries,
including coatings, paints, inks, plastics, and more. Its superior performance
characteristics make it an ideal choice for these applications. Water-based
carbon black offers excellent dispersion, ensuring uniform color distribution
in various formulations. It also provides stable color strength and exhibits
good storage stability, making it suitable for long-term use.
shift towards water-based carbon black is driven by two primary factors.
Firstly, there is a global emphasis on sustainable manufacturing practices,
where industries strive to reduce their environmental impact. Secondly, there
is a growing demand for high-performance, eco-friendly products from
environmentally conscious consumers. As a result, industries worldwide are
actively seeking greener alternatives and are increasingly adopting water-based
as one of the world's largest carbon black markets, plays a crucial role in
shaping industry trends. The country's commitment to sustainable manufacturing
and its adherence to the Paris Agreement have accelerated the adoption of
water-based carbon black. China's stringent environmental regulations have
compelled manufacturers to explore cleaner production methods, aligning with
the country's green initiatives. Furthermore, the rising consumer awareness
about sustainability and the demand for greener products have further propelled
the shift towards water-based carbon black in China.
ahead, the future of the water-based carbon black market appears promising. As
industries continue to prioritize sustainability and eco-friendly practices,
the demand for this alternative is expected to surge. China, with its robust
manufacturing sector and strong focus on green practices, is well-positioned to
lead this trend. The country's manufacturers are investing heavily in research
and development to enhance the quality of water-based carbon black and expand
its applications, ensuring a sustainable and greener future.
on the category of process type, the furnace black segment emerged as the
dominant player in the Chinese market for Carbon Black in 2022. Furnace black,
a popular coloring agent in masterbatches, is widely used in various
industries. The increasing production of these masterbatches has resulted in a
significant surge in the consumption of furnace black.
known for its thriving tire and plastic goods manufacturing industries, has
played a pivotal role in driving the demand for furnace black. The production
of furnace black, predominantly through the Carbon Black Oil (CBO)/Coal Tar
pathway, has proven to be economically viable despite its higher cost. This is
primarily due to the immense demand and large-scale production in China.
tires segment is projected to experience rapid growth during the forecast period.
The production of new vehicles is on the rise, which is leading to a
significant increase in demand for tires. As a result, the demand for carbon
black, a key ingredient in tire manufacturing, has also seen a substantial
automotive sector's growth in emerging economies like China has played a
crucial role in driving the demand for carbon black. With the increasing number
of vehicles hitting the roads, the tire application segment has emerged as the
largest consumer of carbon black. This can be attributed to the growing demand
for tires in various sectors, including passenger cars, commercial vehicles,
and off-road vehicles.
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Central emerged as the dominant player in the China Carbon Black Market in
2022, holding the largest market share in terms of value. South Central China,
known for its bustling industrial activity, serves as a thriving hub for
various sectors, including automotive manufacturing and rubber production.
These industries, heavily reliant on carbon black, contribute significantly to
the region's dominance in the market. Being a major consumer of carbon black,
South Central China showcases a high concentration of these industries, thereby
driving the demand for this essential component.
recent years, China has taken notable steps to combat pollution, implementing
stringent environmental regulations. The effects of these regulations are
particularly evident in South Central East China, where a remarkable reduction
in carbon emissions, specifically black carbon (BC), has been observed. This
reduction in BC emissions has also coincided with a decline in carbon monoxide
(CO) emissions. These positive outcomes highlight the effectiveness of the
region's environmental control measures in mitigating pollution and promoting a
cleaner and healthier environment.
July 2022, BASF SE, a leading chemical company, expanded its manufacturing
capabilities for automotive refinish coatings at its coatings site in Jiangmen,
Guangdong Province in South China. Through its subsidiary BASF Coatings
(Guangdong) Co., Ltd. (BCG), the company invested in an expansion project to
increase its production capacity to 30 kilotons annually. This strategic move
aims to meet the growing demand for automotive refinish coatings in the region,
driven by the rising number of vehicles on the road and the need for
high-quality repair and maintenance solutions.
as per the officially released guiding outline for the "14th
Five-Year" Development Plan for the Rubber Industry by China Rubber
Industry Association (CRIA), China is expected to significantly boost its tire
production by 2025. The plan projects an annual production of 704 million
tires, encompassing various types such as 527 million passenger radial tires,
148 million truck/bus radial tires, 29 million bias truck tires, 20 thousand
extra-large industrial tires, 12 million agricultural tires, and 54 thousand
aircraft tires. This ambitious target reflects China's commitment to further
developing its rubber industry and catering to the increasing demands of
domestic and global markets.
Key Market Players
- Jiangxi Black Cat Carbon Black Co. Ltd.
- Shanghai Cabot Chemical Co. Ltd.
- LongXing Chemical Stock Co. Ltd.
- Suzhou Baohua Carbon Black Co. Ltd.
- Shandong Huadong Rubber Materials Co.
- Furnace Black
- Gas Black
- Lamp Black
- Thermal Black
- Textile Fibers
- North & North-East
- South Central
this report, the China Carbon Black Market has been segmented into the
following categories, in addition to the industry trends which have also been
- China Carbon Black Market, By Process Type:
o Furnace Black
o Gas Black
o Lamp Black
o Thermal Black
- China Carbon Black Market, By Application:
o Textile Fibers
- China Carbon Black Market, By
o North & North-East
o South Central
analysis of the major companies present in the China Carbon Black Market.
Carbon Black Market report with the given market data, TechSci Research offers
customizations according to a company's specific needs. The following
customization options are available for the report:
- Detailed analysis and profiling of
additional market players (up to five).
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