BEIJING – GCiS China Strategic Research estimates that the domestic market of surfactants in China was valued at over $6.1 billion (RMB 38.2 billion) at the end 2014 and $6.4 billion (RMB 40.2 billion) in 2015. The study finds that the overall surfactants market will continue to grow with a five-year CAGR of 5.3 percent over the next few years, although below estimated GDP growth rates. Segmented markets such as anionic and non-ionic surfactants will enjoy a slightly higher CAGR of 5.4 percent, while cationic surfactants will have the lowest CAGR of 4.1 percent over the next five years.

The 500 domestic suppliers in the surfactants market in China hold a slightly greater share than the 30 foreign competitors. This indicates the differences in pricing and product quality between foreign and domestic suppliers. For example, in the cationic segment, the average price from foreign suppliers is 1.7 times the average price from domestic suppliers, which is the largest price difference among all segments. This has been achieved through capacity expansions by domestic suppliers that have mainly taken place in 2014 and 2015. In 2014 and 2015, nine domestic suppliers started operations of newly built ethoxylation plants for production of surfactants, with added capacity of 730,000 tons collectively. Additionally, eight suppliers started or completed construction of sulfonation plants, with total added capacity of over 550,000 tons. Several additional capacity expansions are planned in the near future.