Aerosol Propellants Market Size, Share & Trends Analysis Report By Product (Hydrocarbons, DME, Nitrous Oxide and Carbon Dioxide, Others), By End-User (Personal Care, Household, Automotive and Industrial, Food, Paints and Coatings, Medical, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global aerosol propellants market size was valued at USD 9.47 billion in 2022. It is estimated to reach USD 16.55 billion by 2031, growing at a CAGR of 6.4% during the forecast period (2023–2031).

The only thing distinguishing aerosols from other types of packaging is that they are pressurized dosage forms that contain one or more active components (product concentrate and propellant). They release a fine dispersion of the product concentrates in a gaseous medium when they are activated. A propellant is a substance used to pressurize gas to produce energy, which is then used to move fluid. In order to build pressure inside the tin, various propellants might be used. Hydrocarbons, nitrous oxide, dimethyl ether, methyl ethyl ether, carbon dioxide, CFCs, and hydro-fluorocarbons are the most frequently used propellants. They are utilized in various commercial and consumer items, including deodorants/antiperspirants, air fresheners, shaving creams, and automotive, industrial, and technical products.

Highlights

• Hydrocarbons dominate the product segment
• Personal care dominates the end-user segment
• Europe is the highest shareholder in the global market

Market Dynamics

Global Aerosol Propellants Market Drivers:

Increasing Demand for Aerosol Products

Aerosols are mainly used in room fresheners, deodorants, hair sprays, paints, antiperspirants, air sprays, inhalers, shaving gels, insecticides, fabric care, furniture polish, oven cleaners, and leather care. Other applications include automotive, paints and varnishes, industrial, pharmaceutical, veterinary, and food products. Growing consumption of personal care products and household products in various countries is expected to augment demand for aerosol. Aerosol is also used as spray paint in the automobile and construction industry, further expected to drive demand over the forecast period.

New product launches, including Unilever's deodorant aerosols, made using less raw material and low energy in Europe and North America, are expected to stimulate market growth. Moreover, urbanization and infrastructure development in the Middle East are expected to augment the aerosol market over the forecast period. Technological advancements such as stahl monoblock aerosol cans and airless dispensers are expected to fuel market growth. Furthermore, increasing demand for mouthwash, breath freshener, and teeth whitening treatments will boost aerosol demand.

Growing Demand from Key Application Markets

Key product applications include personal care and household products such as hair sprays, deodorants, insecticides, shaving gels, fabric care, air fresheners, furniture polish, oven cleaners, and leather care. Introducing new product formats and gender-specific products is expected to drive the demand for personal care products. In addition, macroeconomic factors such as the rising disposable income of consumers are expected to result in an increased demand for cosmetics and personal care products.

Furthermore, the global beauty and personal care market is anticipated to reach USD 855.4 billion by 2028. This is expected to drive the global aerosol market as aerosol finds a broad application scope in various personal care products, including hairspray, dry shampoo, shine spray, sheen spray, mousse, body spray, shaving cream, temporary hair color spray, deodorant. Food is another segment that is expected to drive aerosol demand significantly over the forecast period. The rising use of aerosols in various food products, including chocolate, whipped cream, ketchup, olive oil, and vinegar, is expected to fuel market expansion over the forecast period.

Global Aerosol Propellants Market Restraint:

Environment Concerns

Aerosol propellants are generally flammable and emit high levels of VOC. Various aerosol propellants include hydrocarbons, DME, CFC, HFC, HCFC, HFA, and compressed gases such as carbon dioxide and nitrogen. CFC and HFC are generally termed as ozone layer depletion and global warming potential substances by the U.S. EPA and Significant New Alternatives Policy (SNAP). Hence, their use in various medical applications has been reduced. Montreal Protocol stated the phase-out of the use of CFC and HFC owing to high emissions, which resulted in ozone layer depletion. Additionally, EPA encouraged users to consider other alternatives that do not have ozone depletion potential. HCFC-141b in aerosol solvents was prohibited as of January 1, 1994, under Section 610(d) of the Clean Air Act, negatively affecting the market growth. Increasing government and environmental regulations regarding ozone layer depletion caused by CFC, HCFC, and HFC are expected to restrain market growth soon.

Global Aerosol Propellants Market Opportunities:

Growing Paints and Coatings Industry in the Asia-Pacific Region

Aerosol propellants find extensive applications in the paints and coatings industry. It becomes a gas, turning the paint into a fine spray, providing appropriate leveling and finish to the surface. Aerosol propellants' applications in various industries, including the automotive, construction, and marine sectors, will propel the demand for aerosol propellants. The growing paints and coatings industry in emerging markets of Asia-Pacific due to the ever-increasing construction sector, mainly in new residential and commercial buildings, is expected to drive demand for aerosol propellants over the forecast period.

In addition, increasing population, growing urbanization, and average disposable income in China, India, Indonesia, and Vietnam are expected to drive demand for paints and coatings. Expanding the housing and construction sector, coupled with support from the Chinese government for commercial construction projects in the country, is expected to increase demand for paints and coatings shortly. Likewise, due to Asia-Pacific's expanding paints and coatings sector, the demand for aerosol propellants is anticipated to generate opportunities for market participants to grow during the projected period.

Regional Analysis

Europe Dominates the Global Market

Based on region, the global aerosol propellants market is bifurcated into North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa.

Europe is the most significant shareholder in the global aerosol propellants market and is anticipated to grow at a CAGR of 6.7% during the forecast period. Europe is one of the regions with the fastest growth rates for deodorants and antiperspirants due to economic growth and rising disposable income. Increasing demand for hair care products on account of the aging population in the region is expected to propel market growth. Furthermore, R&D leading to innovation in shaving cream and gel formulation is expected to influence the market positively. Leading chemical manufacturers such as BASF, Shell, Henkel, and Bostik have established their production base in Europe, which is expected to ensure an uninterrupted supply of aerosol propellants in adhesives, sealants, and lubricants to the region. In addition, growing cosmetics demand in Germany, Italy, France, Spain, and the U.K., owing to increased make-up use by women aged 18-25, is expected to promote aerosol use in personal care applications, thereby increasing demand for aerosol propellants.

The North American aerosol propellants market is expected to grow due to the market presence of FMCG companies such as Proctor & Gamble and Unilever in the U.S. The prime focus of companies toward new product developments in personal care products and household products is expected to promote aerosol propellants market growth over the forecast period. Similarly, the manufacturing industry of the U.S. contributes nearly 11% of the country's GDP, and this projects a positive outlook for the aerosol propellants consumption in the personal care, medical, paints and coatings, food, automotive, and industrial manufacturing industries of the U.S. Canada also has sizable manufacturing industries with a prominence of the automobile industry. However, the country's leadership in terms of oil and natural gas resources promotes its raw material supply ability in the aerosol propellants market. In addition, Mexico is one of the global automotive hubs with the presence of players such as Bavarian Motor Works (BMW), Nissan, Honda Motors, and Mazda and free trade laws that offer comparatively better export options for automobiles. Growing automobile production is also expected to propel automotive paints and coatings demand, promoting aerosol propellants market demand over the forecast period.

Asia-Pacific aerosol propellants market is expected to grow quickly, especially in the personal care application owing to various factors such as rapid economic development, growing GDP, increased standards of living, and growing consumer surplus. In addition, a growing population coupled with rising disposable income in developing countries such as China, India, and Korea will likely boost the industry demand. Moreover, the usage of aerosol propellants is expected to grow in light of high awareness regarding hair spas, hair care treatments, and deep nourishment. Furthermore, the region's rising health awareness and insect-borne diseases are expected to drive the demand for aerosol propellants over the upcoming years. The elderly population has also increased the demand for pharmaceuticals and medical supplies, such as sprays for pain treatment. Hence, the growing aging population is anticipated to generate opportunities for manufacturers of medical aerosol propellants.

The Central and South America aerosol propellants market is anticipated to grow due to rapid urbanization coupled with increasing disease awareness is likely to boost the industry demand. Improving these regions' economic situations is a critical macroeconomic factor resulting in market development. Furthermore, the growing personal care product market in Brazil is expected to impact market demand over the forecast period positively.

The demand for the Middle East and Africa aerosol propellants is increasing due to rising urbanization in a few countries. The UAE and Saudi Arabia are anticipated to increase household application and positively impact the aerosol propellants market over the forecast period. Abundant oil and gas reserves in the Middle East are expected to propel hydrocarbon production in the region, which will meet the growing demand. In addition, many production facilities of DME in the Middle East and Africa are expected to meet the growing demand for aerosol propellants.

Segmental Analysis

The global aerosol propellants market is segmented by product and end-user.

Based on product, the global aerosol propellants market is divided into hydrocarbons, DME, nitrous oxide and carbon dioxide, and others. 

The hydrocarbons segment is responsible for the largest market share and is anticipated to grow at a CAGR of 6.3% over the forecast period. Hydrocarbons, including propane, isobutene, ethane, and butane, are the most commonly used aerosol propellants. They are used either as mixtures or mixed with other gases to achieve the required density, vapor pressure, and degree of flammability. Butane is used as a heating source in buildings, in LPG cylinders, and as a propellant. Furthermore, the ban on CFC usage and the depletion of the ozone layer has led to the development and use of isobutene as an aerosol propellant and refrigerant, fueling its demand. In addition, Isobutane finds usage in applications such as cosmetics, foams, cooling agents, conditioners, cleaning products, and food sprays owing to its compressibility and low toxicity. Hydrocarbons are widely used in pharmaceutical aerosols because of their low toxicity, low cost, and non-reactivity, making them environmentally friendly. Further, they do not contain halogen, which makes them excellent propellant or water-based aerosols.

The DME (Dimethyl ether) segment is expected to rise over the forecast period owing to its advantageous properties of high solvency, chemical stability, low toxicity, and water miscibility, making it useful in several products such as paints and hair sprays. Furthermore, the low prices of DME and its environmental friendliness are anticipated to boost its demand in the coming years. DME is widely used in personal care products such as perfumes and deodorants and home care products such as air fresheners, insect repellants, and fabric care. The market for DME aerosol propellants is likely to grow at a faster pace in European countries on account of the high living standards of citizens.

Based on end-user, the global aerosol propellants market is segmented into personal care, household, automotive and industrial, food, paints and coatings, medical, and others. 

The personal care segment owns the highest market share and is projected to grow at a CAGR of 6.1% during the forecast period. The demand for aerosol propellants in personal care applications is rising owing to different factors such as economic growth, growing middle-class population, and increasing per capita income. Deodorants and antiperspirants are considered among daily-use products. Factors such as healthy ingredients, eye-catching packaging designs, and innovation in packaging drive the demand for personal care products, especially antiperspirants, and deodorants. Furthermore, changing lifestyles and increased focus on personal hygiene will expand the deodorant market over the coming years.

The demand for aerosol propellants in household applications is expected to rise due to the tendency of consumers to spend more money and time creating an ideal environment at home and vehicles using air fresheners, which is likely to drive the aerosol propellant market. The demand for air fresheners has increased significantly due to rapid urbanization, growing infrastructure, and rising automobile demand. Moreover, growing disposable income and the increasing significance of aromatherapy are anticipated to boost the growth of air fresheners.

Recent Developments

• October 2022- Loryma launched Lory Starch Opal, a spray-on adhesive for seeds and other decorative food seasonings. The spray is made from pregelatinized wheat starch, focusing on solubility to ease its ability to be sprayed on.

• December 2022- Honeywell stated that its Baton Rouge, Louisiana, facility had increased its manufacturing capacity of Honeywell Solstice® ze (HFO-1234ze), an energy-efficient and low-global-warming-potential (GWP) alternative to other current technologies. Solstice ze is utilized in applications involving foam insulation, aerosol propellants, refrigeration, and air conditioning.