Europe Zinc Chemicals by USD Mn Value Market

The Europe zinc chemicals market is projected to register healthy growth during the forecast period. The prominent factors driving the growth of the regional market are the widespread use of zinc chemicals in the rubber manufacturing industry and the growing need for zinc-based micronutrients and fertilizers in the agriculture sector. The expected growth in the manufacturing of tires and rubber products required in the automotive (especially electric and lightweight vehicles) is expected to boost the demand for zinc chemicals during the forecast period. Moreover, the growing importance of zinc micronutrients in the agriculture sector is further driving the demand for zinc chemicals. According to the International Zinc Association, around half of the world’s agricultural soils are deficient in zinc, leading to decreased crop production and nutritional value. The high prevalence of zinc-deficient soils in major agricultural zones across the European countries severely limits agricultural productivity. The demand for zinc fertilizers is, therefore, increasing and is further expected to grow during the forecast period. However, the strict guidelines and regulations in the European Union pertaining to the use of zinc oxide in animal feed is anticipated to hamper the growth of the regional and the global zinc oxide market during the review period.

The rubber industry is one of the largest consumers of the zinc chemicals, wherein zinc oxide (ZnO) is largely used in the manufacturing of rubber products and tires. ZnO is widely used as an activator in rubber manufacturing and processing applications. It exhibits excellent vulcanization rate and effectively cures rubber. The primary factor responsible for the significant use of ZnO in the rubber industry is its ability to enhance the important physical properties of rubber, such as thermal stability, impact and chemical resistance, and durability. ZnO particles increase the effectiveness of the sulfur vulcanizing system in rubber processing by over 60%. Additionally, ZnO is effectively used for processing uncured rubber. ZnO also protects rubber products from fungi and UV light, which is expected to further fuel the demand for the product during the forecast period.The rubber industry is the single largest consumer of ZnO, which accounted for more than half of the overall demand for ZnO in 2019. In the rubber industry, the tire segment holds over a two-thirds share of the overall consumption of ZnO, while the remaining share is acquired by automotive hoses, seals, and tubes. Rubber is widely used in the automotive industry to manufacture inner tubes for tires, sidewalls, and tubeless tire liners. It offers the required gas and moisture impermeability, excellent thermal stability, high energy absorption capacity, vibration dampening, and good chemical and aging resistance in various automotive applications. The increasing demand for butyl rubber in tires manufacturing, coupled with the rapid growth of the automotive industry in emerging economies, is likely to drive the growth of the global rubber industry during the forecast period.

The overall production of the tire in Europe has been increasing over the last decade with the increase in the production of motor vehicles in the region. According to the data provided by the European Tyre and Rubber Manufacturers Association, the tire production (by volume) has increased by over 4% between 2014 and 2019. However, there has been a slight decrease in tire production in 2019 on the backdrop of reduced automobile production in Europe as well as globally. Yet, with the growing interest in the electric vehicle segment in the region, the demand for high performance and lightweight tires is expected to increase, which is further expected to favor the demand for zinc oxide in the regional market.

The automotive production in Europe (accounting for around 24% of the global automobile production in 2019) is second next to Asia-Pacific globally. The number of automobiles produced in Europe has been on a continuous rise since 2014 while registering a decline in 2019. With the increasing automobile production, the demand for rubber products has increased in the regional market, thus favoring the demand for zinc chemicals in the market.

The global automobile production has been majorly driven by the fast-growing automobile market in Asia-Pacific, specifically in China,

India, and the emerging Southeast Asian economies. The automobile production and the tire production in these markets have

registered higher growth than the overall global and European markets.

The automobile production across the globe surpassed 96 million units in 2018; it grew by around 8% per year from 2014 to 2018. The

advancements in the automotive industry to fulfill the current demand and future requirements of consumers have led to an increased

focus on the development of innovative and safe materials for automobiles. The demand for zinc chemicals is expected to increase

in the coming years owing to the expanding automotive industry.

Moreover, the global tire industry has registered a CAGR of over 8% in recent years and is expected to continue with the same on the

backdrop of the growing automotive industry. Furthermore, the proposed investments for the capacity expansions in the global tire

industry during the period of 2016–2021 is valued at over 22 billion according to the Carbon Black Data Book, which is expected to

add further value to the global zinc oxide revenue.

Thus, the high demand for zinc chemicals in the rubber industry is expected to drive the growth of the Europe zinc chemicals market during the forecast period.

Europe is the market leader in the personal care and cosmetics industry and one of the leading exporters of personal care and cosmetics products worldwide. The strong demand for quality cosmetic products in the Americas and Asia-Pacific market is expected to provide lucrative opportunities to the personal care products manufacturers in Europe. The European cosmetics and personal care market, valued at USD 92.9 billion at a retail sales price in 2019, is the largest in the world. The largest country-level markets for cosmetics and personal care products within Europe are Germany, France, the UK, Italy, Spain, and Poland.

Zinc chemicals, majorly ZnO, zinc carbonate, zinc chloride, and zinc sulfate, are widely used in the personal care and cosmetic product formulations. ZnO particles are primarily used in the form of nanoparticles. The major factor driving the demand for the ZnO nanoparticles in personal care and cosmetics industries is its UV blocking ability. This has led to the high use of ZnO for manufacturing high-grade sun protection factor (SPF) cosmetics and sunscreen lotions. ZnO nanoparticles act as a transparent UV absorber, which offers long-term, wide-band UV, i.e., long-wave UVA and shortwave UVB protection. In addition, the ZnO nanoparticles exhibit excellent anti-corrosion, anti-fungal, anti-bacterial, and catalytic properties, which makes it an important ingredient in many cosmetic products. It most effectively blocks UV rays within the 340–400 nm band, ensuring protection against the almost entire range of UVA.

ZnO is used as UV filter in cosmetic emollients for sunscreen, skincare, and pharmaceutical formulations. It is also used as an antimicrobial and antibacterial agent in medical and sanitary materials, deodorants, and self-cleaning materials. The application scope for zinc oxide covers a wide range of spectrum in cosmetics, personal care, and pharmaceutical industries, starting from diapers and sanitary pads to face masks. With the rising health awareness among the masses on the backdrop of the advent of complex diseases and infection-based disorders, the demand for zinc oxide in the manufacturing of personal care and hygiene products has increased manifolds. The pharmaceutical industry is also a substantial consumer of ZnO due to its high catalytic efficiency and strong adsorption ability. The product is gaining popularity in the biomedical applications on account of the high stability and inherent photoluminescence properties of ZnO. The European Commission Standing Committee has approved the use of ZnO as a UV filter in beauty products. This is expected to further fuel the demand for ZnO during the assessment period.

Zinc carbonate, likewise, is expected to witness robust demand in the cosmetic industry. It is used in a wide range of products, including makeup, hair and skincare, bath products, and shaving items. The ability of zinc carbonate to boost transparency enables it to be increasingly used to create sunscreen creams. Moreover, it can also be used as an opacifier in shampoo to give the liquid a cloudy appearance, while also helping to moisturize the scalp. Zinc Sulfate, an inorganic salt, functions as an oral care agent, astringent, and antimicrobial agent in personal care products. It is also used as an ophthalmic astringent in OTC drug products intended for use in the eyes. In cosmetics and personal care products, zinc chloride is used to formulate skincare products, hair conditioners, dentifrices, mouthwashes, and bath products. Zinc chloride polishes the teeth, reduces oral odor, or otherwise cleanses or deodorizes the teeth and mouth. It is also applied topically on the oral cavity. Zinc chloride induces a tightening or tingling sensation of the skin and helps to cleanse the skin or prevents odor by destroying or inhibiting the growth of microorganisms.

The global cosmetics market has witnessed significant growth in the past years, registering an increased year-on-year growth since 2014. Moreover, the skincare products market (a major consumer of zinc oxide) has registered almost double the growth of the overall cosmetics market, registering 9% growth in 2018 as compared to 5% growth of the global cosmetics market in the same year. With the increased spending by the individuals on the cosmetic products, the demand for zinc chemicals is expected to increase significantly in the coming years.

Some of the key drivers of the cosmetics market are the rise of the middle and upper-income classes, the emergence of new consumer targets, including seniors and men, the digital revolution (because beauty has vast potential in terms of engaging with people on the Internet), e-commerce (extending the reach of the beauty sector to far greater numbers of consumers all over the world). Moreover, the huge appetite of younger generations for beauty products, especially in the emerging markets of Asia-Pacific, is expected to propel the growth of the personal care and cosmetics market in the near future and hence the demand for zinc chemicals in the formulation of these products.

Zinc oxide is one of the key ingredients used in animal nutrition and feed. It is used as a source of zinc as a trace element for livestock. Trace elements are essential in livestock nutrition as these elements have important effects on the animal organism, linked to the function of enzymes and hormones. Zinc, besides iron, is the most common trace element and plays an active role in the function of more than 300 enzymes and hormones. For instance, zinc deficiency causes poor growth, loss of appetite, and a bad feed conversion rate. It also has an important function in defense enzymes. Pigs require zinc for various metabolic functions. The European Food Safety Authority (EFSA) holds that a total level of 150ppm meets the animals’ physiological needs for zinc. The European Commission has put a legal limit for zinc supplementation (150ppm) for piglets.

Moreover, ZnO-based products to treat post-weaning diarrhea in piglets are classified as veterinary medicinal products (VMPs). A commonly administered dosage is 100mg per kg body weight per day for 14 consecutive days, i.e., 2,500ppm zinc in the feed. In 2017, the European Medicines Agency (EMA) conducted a safety and effectiveness review of various veterinary chemical products containing ZnO, which are orally administered to food-producing species. The Committee for Medicinal Products for Veterinary Use (CVMP), under the agency, found the negative “benefit to risk balance” of the veterinary medicinal products containing zinc oxide. According to CVMP, this is mainly because the benefits of zinc oxide for the prevention of diarrhea in pigs cannot outweigh the risks for the environment due to bioaccumulation and biomagnification of zinc. As a result, CVMP recommended to refuse future marketing authorization and withdraw the existing marketing authorizations for veterinary medicinal products containing ZnO. VMPs can only be sold and traded in the EU if they have received a marketing authorization. Depending on the VMP and its release date, the marketing authorization is either issued by the EMA or national authorities. Veterinary medicines containing zinc oxide fall under the remit of national authorities.

In the same year, the European Commission restricted the use of ZnO as a colorant, especially the sprayable ones, and other cosmetics in concentrations above 25%, with effect from February 2018. This is primarily due to the harmful effects of the product on the lungs of the end users. Moreover, in August 2017, the European Commission published new updates on the regulations concerning three fragrance allergens and zinc oxide. These strict guidelines and regulations in the European Union are anticipated to hamper the growth of the regional and the global zinc oxide market and hence restrict the demand for zinc chemicals in the animal feed sector during the review period.