CEH Report

Table of Contents

Abstract

The neopentyl polyhydric alcohols discussed in this report include pentaerythritol, neopentyl glycol, trimethylolpropane (TMP), trimethylolethane (TME) and dimethylolpropionic acid.

Asia (including Japan), Europe and North America are the largest markets for neopentyl polyhydric alcohols, accounting for nearly 91% of world consumption in 2008. World consumption of neopentyl polyhydric alcohols grew at an average annual rate of 3.5% during 2005–2008, down from 6.0% during 2001–2005, the result of weaker demand resulting from a sluggish global economy, especially during 2007–2008. Strong Asian (excluding Japan) demand in all applications boosted overall demand during 2005–2008. World consumption is forecast to grow at an average annual rate of 2.5% during 2008–2013. Continuing significant demand growth in Asia, Central and Eastern Europe, Central and South America, Africa and the Middle East for surface coatings will balance out moderate growth in the Americas and Western Europe. Demand for neopentyl polyhydric alcohols is expected to start recovering in 2009–2010, largely as a result of improved consumption of surface coatings; however, the speed and timing of a recovery are uncertain.

The following pie chart shows world consumption of neopentyl polyhydric alcohols:

Demand for neopentyl polyhydric alcohols in the United States is expected to grow at a moderate rate of 1.3%, partly as a result of overall weaker demand and slightly negative growth for pentaerythritol during 2008–2013. Growth in U.S. demand, excluding pentaerythritol, is forecast at 2.2% annually during 2008–2013. European consumption is forecast to experience moderate growth at an average annual rate of 2.3% during 2008–2013, mainly as a result of healthy Western European consumption growth for neopentyl glycol and rapid growth in Central and Eastern Europe for all neopentyl polyhydric alcohols. Consumption of neopentyl polyhydric alcohols in Japan is expected to contract at an average annual rate of 0.5% during 2008–2013 as a result of continuing weak construction and manufacturing activity. Other Asian consumption (excluding Japan) is expected to grow at 3.2% annually during the same period; China is the main growth factor in this region. Chinese and Indian consumption of all neopentyl polyhydric alcohols is expected to grow rapidly.