Allyl Chloride Market to Reach USD XX Billion by 2030 Amid Rising Demand in Polymer and Chemical Manufacturing

The global allyl chloride market is on a strong growth trajectory, with an estimated market value of USD 3.41 billion in 2024, and is projected to grow at a CAGR of 6.7% from 2025 to 2030. This upward momentum is primarily driven by the expanding industrial sectors in emerging economies, where infrastructure development and rapid industrialization are fueling demand for allyl chloride-based products, particularly epoxy resins. In response, leading manufacturers are adopting vertical integration strategies to streamline supply chains and optimize raw material sourcing—enhancing both productivity and cost-efficiency.

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Glycidyl Ether: A Versatile Derivative

Glycidyl ethers, derived from allyl chloride, are vital for producing high-performance epoxy resins and adhesives, offering excellent thermal stability, chemical resistance, and structural durability. These characteristics make them indispensable in the manufacture of coatings, sealants, and composites, further underscoring the diverse applications of allyl chloride derivatives across sectors.

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Market Drivers, Opportunities & Challenges

Key Growth Drivers

• Diverse Industrial Applications: Allyl chloride serves as a critical intermediate in the production of polymers, agrochemicals, and pharmaceuticals. Its high reactivity makes it ideal for forming carbon-carbon bonds—an essential requirement in specialty chemical synthesis.

• Sustainability Focus: With industries moving toward greener practices, allyl chloride’s role in the development of environmentally friendly chemical products is gaining prominence.

Emerging Opportunities

• Eco-Friendly Production: As environmental regulations tighten, there is rising interest in greener production processes. Manufacturers that innovate with low-toxicity or bio-based variants of allyl chloride are likely to gain a competitive advantage.

• Agrochemical Demand: Allyl chloride is used in producing herbicides and pesticides, and increasing agricultural activity in developing economies offers considerable market expansion potential.

Key Restraints

• Regulatory Hurdles: The toxic and persistent nature of allyl chloride raises environmental and health concerns. Governments are enforcing stringent emission limits, waste management protocols, and worker safety standards. While compliance may raise operational costs, these measures also spur innovation in safer production methods.

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Application Insights

Epichlorohydrin Leads Market Share

In 2024, epichlorohydrin accounted for approximately 35.2% of the market share, making it the largest application segment. This dominance stems from its widespread use in epoxy resin production, which is fundamental to coatings, adhesives, and plastics used across industries such as construction, aerospace, automotive, and electronics.

Rising Demand from Water Treatment

The water treatment industry is emerging as a key end-user of allyl chloride derivatives, particularly in developed countries where strict environmental regulations are reshaping the demand landscape. With over 34 billion gallons of wastewater treated daily in the United States alone, the need for effective and eco-friendly chemical solutions is immense. As global environmental standards grow more stringent, treatment facilities are investing in advanced, sustainable technologies, creating strong demand for allyl chloride-based inputs in water purification and disinfection processes.