An emerging application of Grignard reagents in the research and development sector for developing suitable and perfect products of Grignard chemicals is expected to open new doors of opportunities to the market. According to the Coherent Market Insights analysis, few research studies have shown that using new metals such as Indium can increase the effectiveness of these products during the process. Reaction with Indium is non-toxic in nature and gives satisfactory results. Also, this reaction does not require any complex solvents such as ether, instead, water can be used for making the new Grignard compound.
Issues associated with the shipping of Grignard chemicals as it required to labeled and stored properly. Grignard chemicals required a labeled and proper place such as a closed container in a warm place, around at 20-28⁰C (68-80⁰F) temperature. Moreover, it should be also stored away from the source of ignition as it may cause magnesium salts to crystalize out of the solution if stored at less than 20⁰C even for a shorter duration. This factor is expected to hamper the market growth.
On the basis of region, NAFTA region dominated the NAFTA and Europe Grignard Reagents market in 2019 with a 53.4% of market share in terms of value.
On the basis of end-user, the pharmaceutical segment dominated the NAFTA and Europe Grignard Reagents market in 2019 with 57.0 % of market share in terms of value, followed by agrochemical and flavor & fragrance respectively.
Growth in the chemical industry due to increasing investment by the regional regulatory bodies is expected to be one of the major trends in the market. According to the Cefic Facts & Figures 2020, Germany and France are the two largest chemical producers in Europe, followed by Italy and the Netherlands. These four countries accounted for 63.3% of EU chemical sales in 2018, valued at €357.7 billion. The share rises to 83.6%, or €472.1 billion, when including Spain, Belgium, and the United Kingdom.
Growing demand for flavor and fragrances from the cosmetic and personal care industry is projected to bolster the growth of the NAFTA and Europe Grignard reagent market. Rising demand for cosmetics products due to the growing sense of fashion and aspire to look good is another major factor is expected to create demand for Grignard reagent for flavor and fragrance. Therefore, the growing demand for cosmetics products in the NAFTA and Europe region will favor the market growth of the Grignard reagent.
Coronavirus Impact on Grignard Reagents Market
According to International Flavors & Fragrances, Inc. (flavors and fragrance company based in U.S.) report for first two months of Q2 2020 its sales declined by 3% compared to corresponding period last year. Demand for fine & fragrances from retail market and food service industry declined by 40% compared to corresponding period last year. This is expected to lower demand for Grignard reagents from flavors & fragrances industry. However, demand from pharmaceutical industry is expected to be remain unaffected during the pandemic. According to Coherent Market Insights, the Grignard reagents market is expected to grow at a slightly lower CAGR between 2020 and 2021.