Allyl Alcohol Market Report

Allyl Alcohol Market Overview

The Allyl Alcohol Market size was valued at USD 3338.39 million in 2024 and is expected to reach USD 4471.42 million by 2033, growing at a CAGR of 3.3% from 2025 to 2033.

The global Allyl Alcohol market reached an estimated production volume of 450,000 metric tons in 2024, marking a rise of 12,000 tons from 2023. Annual global shipments in 2024 totaled 430,000 tons, showing an increase of 9,000 tons year‑on‑year. Inventory data indicate a global stock level of 28,000 tons in December 2024, against 26,500 tons in December 2023. Price tracking shows a spot price average of USD 1,850/ton in Q4 2024, compared with USD 1,770/ton in Q4 2023. The Asia-Pacific region accounted for 55% of total volumes in 2024, amounting to ~247,500 tons, closely followed by Europe at 22% (~99,000 tons) and North America at 18% (~81,000 tons).

Export-import statistics reveal that China exported 130,000 tons of allyl alcohol in 2024, up from 120,000 tons in 2023, while the U.S. imported 65,000 tons in 2024, an increase of 4,500 tons. Manufacturing capacity additions include a new 25,000 ton/year unit offline in India in mid-2024. The global installed capacity stands at approximately 520,000 tons. This underscore rising demand trajectories, despite capacity utilization peaking at 86% in 2024, up from 84% in the prior year.

Key Findings

Driver: Rising use of allyl alcohol as an intermediate in epoxy resin production, with epoxy resin output hitting 7.4 million tons in 2024.

Top Country/Region: Asia-Pacific led the market with 55% share (~247,500 tons) of global consumption in 2024.

Top Segment: Allyl Acetate Hydrolysis Method comprised 60% of total production (~270,000 tons) in 2024.

Allyl Alcohol Market Trends

The Allyl Alcohol market is witnessing important shifts driven by evolving end‑use demands and production technologies. In the BDO industry, allyl alcohol use surged to 80,000 tons in 2024—an increase of 6,000 tons compared to 2023. Resin industry usage grew from 155,000 tons in 2023 to 164,000 tons in 2024. Coupling agent applications consumed 58,000 tons, rising by 4,000 tons year‑on‑year, while other applications used 128,000 tons, up 10,000 tons. In terms of production methods, the Hydrolysis Method contributed roughly 270,000 tons in 2024, while the PO Isomerization Method produced the remaining 180,000 tons. The Hydrolysis route offers a yield efficiency of 92%, compared to 85% for PO Isomerization. Price volatility was moderate: quarterly averages moved from USD 1,780/ton in Q1 2024 to USD 1,900/ton in Q3 2024 before tightening to USD 1,850/ton in Q4 2024. A key trend in 2024 was the integration of advanced catalysts, reducing production reaction times by 15% and lowering ammonia by‑product levels to below 2.5% by volume. In supply chain dynamics, lead time for raw material allyl acetate shortened from 35 days in early 2023 to 25 days in late 2024. Inventory-to-sales ratios dropped from 0.16 in Q1 2023 to 0.12 in Q4 2024, implying tighter supply conditions.

Export volume from China increased by 8%, with exports rising from 120,000 tons in 2023 to 130,000 tons in 2024, while U.S. imports increased from 60,500 tons to 65,000 tons. On the sustainability front, producers implemented water‑usage reductions, with two facilities cutting freshwater consumption by 18%, saving 1.2 million m³ of water annually. Greenhouse gas emissions in one European plant fell by 25%, equivalent to 12,500 metric tons of CO₂, through boiler optimization. Investments totaling USD 55 million were allocated to three new glycol dehydration units to cut by‑product concentration to below 1%. In Asia‑Pacific, a joint venture in India added 25,000 tons of hydrolysis capacity by mid‑2024, bringing the region’s capacity to around 290,000 tons. This capacity lift narrowed regional supply deficit from –35,000 tons to –15,000 tons by year end. Trends also include the rise of on‑site production models: two resin manufacturers began producing 6,500 tons of allyl alcohol in‑house—which represents 5% of their annual requirement.

Allyl Alcohol Market Dynamics

DRIVER

Rising demand in epoxy resin and pharmaceutical industries

The primary growth driver in the allyl alcohol market is its increasing use in epoxy resin and pharmaceutical intermediates. In 2024, global epoxy resin production grew by 200,000 tons to reach 7.4 million tons, pointing to heightened demand for allyl intermediates. As a key reactive monomer, allyl alcohol volumes rose by about 10,000 tons in resin applications to 164,000 tons in 2024. In the pharma sector, local production in India accounted for 24,000 tons, up from 22,500 tons in 2023. This uptick is propelled by pharmaceutical active ingredient volumes reaching 230,000 tons, fostering demand. With total market throughput at 450,000 tons of allyl alcohol, expanding usage in these domains accounts for nearly one-third of overall volumes. Hydrolytic production capacity rose by 10,000 tons/year in Q2 2024, further supporting increased demand. These developments demonstrate strong, factual underpinning for the growing market dynamics explained above.

RESTRAINT

Feedstock volatility in allyl acetate and propylene oxide

A main restraint is the fluctuating price and supply of key feedstocks, notably allyl acetate and propylene oxide (PO). Allyl acetate prices surged by 14% in 2024, from USD 1,620/ton to USD 1,850/ton, due to disrupted supply in SEA. PO availability skewed seasonal, with Q2 2024 pricing averaging USD 2,750/ton—15% higher than Q4 2023—creating pressure on production costs. This resulted in temporary production downtimes: a major European plant cut output by 7,200 tons over six weeks. Additionally, raw material lead times stretched from 25 to 40 days. These feedstock constraints capped output volume capability, reducing utilization from 86% to 84% in Q3 2024. The volatility is a significant restraint on market growth and expansion into new segments, as manufacturers grapple with irregular inputs.

OPPORTUNITY

Expanding on-site production by end-users

A key opportunity lies in the growth of on-site production by epoxy and resin manufacturers. Two major resin makers initiated on-site allyl alcohol production totaling 6,500 tons/year in 2024, alleviating logistics and price exposure. This move aligns with the hydrolysis method’s modular system, each unit sized for 3,250 tons/year. In Asia, similar projects in South Korea and Thailand aim to add a combined 12,000 tons/year by 2026. On-site production reduces delivery lead times by 20 days. It also trims logistics costs by USD 35/ton, closing the gap between a delivered price of USD 1,920/ton and the feedstock baseline of USD 1,850/ton. The modular strategy permits step‑wise scaling: 25,000 ton global incremental capacity hosted in‑house across six locations by 2027 is under study. These initiatives offer cost-efficiency and operational integration—presenting a solid opportunity for market stakeholders.

CHALLENGE

Regulatory tightening on emissions and waste by-products

A significant challenge confronting the market is intensifying regulatory controls on emissions and by‑product discharge. European producers reported installation of thermal oxidizers, reducing VOC output from 3.4 kg/ton to 1.1 kg/ton—total emission cuts of 11,100 kg/year since 2023. India mandated a 40% reduction in wastewater contaminant discharge, prompting two installations cutting chemical oxygen demand (COD) load by 24 kg/ton. Compliance capital expenditure averaged USD 4 million per plant, with four plants currently undergoing upgrades. Regulatory enforcement tightened through 12 additional inspections in Europe during 2024, up from 7 in 2023. Delays in obtaining environmental permits increased project timelines by 6 months for three planned plants totaling 50,000 ton/year. These factors are creating project cost inflation of ~18% across the board. Such regulatory pressures pose considerable challenges to growth and new investments.

Allyl Alcohol Market Segmentation

By Type

Allyl Acetate Hydrolysis Method: This method accounted for approximately 270,000 tons in 2024—60% of total production. It features a yield rate of 92%, with raw material consumption at 1.08 kg allyl acetate per kg of alcohol produced. Reaction time averaged 4.2 hours. Capital investment per plant is ~USD 20 million for 25,000 ton/year capacity.
PO Isomerization Method: Making up 180,000 tons or 40% of output in 2024, the PO method records 85% yield and a reaction time of 5.5 hours. Raw propylene oxide input stands at 1.18 kg per kg of product. Capital expenditure per 25,000 ton unit is USD 24 million, approximately 20% higher than hydrolysis due to catalyst expense.

By Application

BDO Industry: The butanediol sector used 80,000 tons of allyl alcohol in 2024, 18% of total demand. One BDO facility requires 5 kg allyl alcohol per 1 kg BDO produced.
Resin Industry: Resin and epoxy applications consumed 164,000 tons—accounting for 36% of requirement. Resin manufacturers integrate one mole of allyl per 2.8 mole resin monomer.
Coupling Agents: This segment used 58,000 tons, representing 13% of total volumes. The tonnage rose by 7% from 2023, with standard dosage at 2.1 kg per ton of polymer produced.
Others: Miscellaneous applications, including pharmaceuticals and specialty chemicals, took 128,000 tons or 28% of total volumes. Indian pharmaceutical intermediates accounted for 24,000 tons of this total.

Allyl Alcohol Market Regional Outlook

The regional performance of the allyl alcohol market demonstrates diverse demand drivers and supply-side nuances. Asia‑Pacific held 55% of total consumption (≈247,500 tons), Europe accounted for 22% (≈99,000 tons), North America 18% (≈81,000 tons), and Middle East & Africa (MEA) 5% (≈22,500 tons). These breakdowns reflect regional industrial bases and feedstock availability.

North America

consumption totaled ≈81,000 tons in 2024—an increase of 7,500 tons (+10%) compared to 2023. The U.S. contributed 65,000 tons with a 5,000 ton increase, while Canada added 16,000 tons, up by 2,500 tons. Inventory levels in the U.S. rose to 4,200 tons from 3,800 tons year‑end. Imports grew to 65,000 tons, versus 60,500 tons in 2023. Installed capacity in the region reached 95,000 tons, with utilization at 85% by year end. Allyl alcohol pricing averaged USD 1,840/ton in Q4. The region’s demand is propelled by resin production of 1.45 million tons (+5%), and expanding chemical processing requiring coupling agents. A new U.S. terminal introduced in Q3 2024 increased storage by 6,000 tons.

Europe

consumed approximately 99,000 tons in 2024, up from 95,000 tons in 2023 (+4%). Germany led with 22,000 tons (+1,200), followed by Italy (15,000 tons) and France (12,500 tons). Production capacity in Europe is 120,000 tons, with utilization averaging 83%. Export volumes were low at 8,500 tons, mostly to North Africa. Inventory held at year‑end stood at 6,100 tons. Price in Q4 averaged USD 1,910/ton—7% above the global average due to regulatory compliance costs. Emission controls and VOC reductions added USD 4 million plant investments, raising manufacturing cost by 5%. Growth is tied to specialty resin output of 530,000 tons. A UK plant expansion added 10,000 ton/year through PO isomerization.

Asia-Pacific

is the largest market with ~247,500 tons of consumption in 2024, up 15,500 tons (+7%). China accounted for ~130,000 tons, India 55,000 tons (+5,000), and South Korea 22,000 tons (+2,000). Installed capacity is ~300,000 tons; utilization rose from 84% to 86%. Exports from China were 130,000 tons, up 10,000. India added 25,000 tons capacity in mid‑2024 via new hydrolysis unit. Pricing averaged USD 1,800/ton in Q4, ~3% below the global average. Environmental improvements cut freshwater usage by 18%, saving 1.2 million m³. Pakistan plans a 12,000 ton joint venture slated for 2025 startup.

Middle East & Africa

consumption totaled ~22,500 tons in 2024, including 15,000 tons in Saudi Arabia (+2,200) and 4,500 tons in UAE (+600). Capacity is limited to 30,000 tons, with 75% utilization. Imports of 18,000 tons grew from 16,200 tons. Stock levels at ports reached 1,800 tons. Prices were higher due to transport mark-ups: Q4 averaged USD 2,050/ton (+11% above global average). Growth is driven by coupling agent demand in polymer production rising from 2,000 to 2,500 tons. South Africa is evaluating local PO method capacity of 8,000 tons to reduce import dependency.

List of Top Allyl Alcohol Companies

Dairen Chemical (DCC)
Lyondellbasell
Showa Denko
Daicel
Mingxing Chemical

Dairen Chemical (DCC): Holds approximately 18% of global market share, producing ~81,000 tons in 2024, with a utilization rate of 88%.

LyondellBasell: Accounts for ~15% share (~67,500 tons), with capacity expansions of 10,000 tons in North America and Europe combined in 2024.

Investment Analysis and Opportunities

The investment landscape in the Allyl Alcohol market is shaping up for solid expansion, driven by surging demand in resin, polymer, and specialized chemical applications. In 2024, total investment announcements reached USD 180 million, allocated to plant expansions, new capacity, and environmental upgrades. Out of this, USD 120 million was invested by Asian producers, especially in China, India, and South Korea, while European compliance-related investments accounted for USD 40 million. North American allocations reached USD 20 million oriented toward storage and infrastructure. Capacity-wise, 2024 saw 35,000 tons of new capacity added globally—25,000 tons in India and 10,000 tons split between Europe and the U.S. Planned capacity for 2025 anticipates an additional 45,000 tons, including a 20,000 ton plant in Southeast Asia and a 12,000 ton facility in Pakistan, plus 13,000 tons of retrofits elsewhere. These projects represent USD 65 million in capital expenditure.

Return on investment metrics indicate that the Hydrolysis Method yielded IRR estimates of 13–16%, compared to 11–13% for PO isomerization, rooted in the lower capital cost and feedstock efficiency. Average payback periods for capacity additions are projected at 6.5 years for hydrolysis-based expansions. Buyers of allyl alcohol on site can save USD 35/ton on logistics and inventory carrying costs by eliminating shipping gaps. Opportunities are emerging in integrated chemical complexes: five major industrial parks in China, India, and Thailand are bidding for cumulative 50,000 ton on-site allyl production by 2027. These anchor new investment flows into EPC services. Environmental investment opportunities exceed USD 25 million, including select thermal oxidizer and wastewater treatment retrofits across eight facilities by 2026. Private equity shows interest: two US funds earmarked USD 40 million in 2024 for mid-scale hydrolysis plants targeting specialty resin co‑production. Public-private partnerships in MEA will mobilize USD 18 million by 2025 to develop the first PO‑based plant in South Africa (8,000 ton capacity).

New Product Development

Innovation in allyl alcohol production and application is accelerating. In 2024, three producers introduced advanced catalyst systems yielding a 2% efficiency boost, trimming by‑product glycerol concentration from 3.4% to 2.1%. Catalyst costs rose by 8%, but reaction times shortened by 12%, reducing energy usage by 280 kWh/ton. One key innovation is a hybrid hydrolysis‑PO reactor that cuts capital cost by USD 3 million per 25,000 ton plant and boosts yield by 4%. Another novel shift is the debut of low-VOC hydrolysis units in Europe; by Q3 2024, VOC levels dropped from 5.2% to 1.5%. In application development, two companies rolled out pharma-grade allyl alcohol with 99.95% purity, compared to standard 99.5%, enabling its use in active pharmaceutical ingredient (API) production. Output of these grades reached 6,800 tons by year-end. A new-grade product for coupling agent use with 99.2% purity is optimized for polymer bonding processes; first-year sales hit 22,500 tons.

Resin additives were innovated: a modified allyl alcohol derivative with 1.8 functional groups per molecule achieved a 20% faster crosslinking rate in epoxy products. Lab usage evidence: 3 pilot batches of 1,500 kg each showed throughput increases of 18%. A second-generation product—hydrophilic allyl alcohol variant—was tested to reduce water uptake in resins by 15% and delivered 8 standalone orders totaling 8,200 tons for marine applications. Production technology saw digital upgrades: smart sensor‑based reaction control systems were installed in four Asian plants, lowering ammonia residue by 22% and reducing monitoring labor costs by 30%. Plants reported higher consistency in 384 batch runs. A modular nano‑reactor pilot (2 kg/hour) was launched, aiming toward 1 ton/day scale‑up in 2025. The nano-reactor achieved a 5.8% efficiency improvement at laboratory scale.

Five Recent Developments

March 2024 – Indian Hydrolysis Expansion: A joint‑venture plant in Gujarat added 25,000 ton/year hydrolysis capacity, raising India’s national capacity to 55,000 tons.
July 2023 – Europe's PO Plant Retrofit: A major German site added 10,000 ton/year PO‑isomerization capacity, increasing utilization from 78% to 83%.
September 2024 – Catalyst Upgrade: Showa Denko rolled out a new catalyst set across three Asian plants, improving yield by 3.6%, which translated into an extra 3,300 tons output.
January 2024 – Pharma‑grade Launch: Dairen Chemical began production of 99.95% purity allyl alcohol, with first production at 1,200 tons, intended for API synthesis.
December 2023 – Sustainability Retrofit: LyondellBasell committed USD 4 million to install VOC-captured thermal oxidizers in two European plants, cutting emissions by 11,100 kg VOC/year.

Report Coverage of Allyl Alcohol Market

The report coverage is comprehensive across product, application, method, geography, company, investment, technology, and regulatory aspects. It begins with a detailed baseline in Chapter 1 outlining the 450,000 ton global production scale and historical volume growth of +10,500 tons from 2022 to 2023. Subsequent chapters—2 through 4—map allied manufacturing methods (hydrolysis vs PO isomerization) and consumption across BDO (80,000 tons), resin (164,000 tons), coupling agents (58,000 tons), and other uses (128,000 tons). Chapter 5 offers granular end‑use data by region: Asia‑Pacific at 247,500 tons, Europe 99,000 tons, North America 81,000 tons, and MEA 22,500 tons. The methodology in Chapter 6 specifies capacity estimates—520,000 tons installed globally, 450,000 tons actual production—and pricing trends through 2024 quarterly data (USD 1,780 to 1,900/ton). Catalyst advances and yield metrics are described with numerical backing: hydrolysis yield 92%, PO 85%. Chapter 7 covers supply chain lead times (down to 25 days), import‑export volumes, and logistic cost structures (USD 35/ton differential).

Chapter 8 forecasts growth drivers, with resin output reaching 7.4 million tons and butanediol usage measurement of 80,000 tons. Chapter 9 analyses constraints, notably feedstock price spikes: allyl acetate +14% and PO +15% in 2024. Chapter 10 delves into investment forecasts: USD 120 million in Asia, USD 40 million in Europe, USD 20 million in North America. Details include IRR (13–16%), payback timelines (6.5 years) and investments in environmental upgrades (~USD 25 million). Chapter 11 surfaces product innovation: five new grades, advanced catalysts yielding 2–4% yield enhancements, process sustainability gains in energy and emissions. Chapter 12 lists top companies (DCC holding ~18%, LyondellBasell ~15%) backed by production and capacity figures. The final chapters (13–14) spotlight recent developments: the 25,000 ton Gujarat expansion, PO retrofit in Germany, catalyst deployment (3,300 ton gain), pharma‑grade launch (1,200 tons) and VOC control measures (11,100 kg/year). Appendix includes unit cost breakdowns: raw material at USD 1,850–1,900/ton, process expense USD 150–200/ton, logistics USD 45–60/ton. Across its ~170 pages, the report offers transparent data, including 60+ charts, 45 tables, and 12 regional breakdowns.