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C C Normal Paraffin Market to Gain a Stronghold by 2026

C C Normal Paraffin Market

C C Normal Paraffin Market

The need to increase fuel efficiency and capacity is one of the primary concerns of the oil and gas industry. Isomerized gasoline with a high octane number helps oil refineries meet the needs of the gasoline blending sector. C5-C8 normal paraffin is a carbon compound that is produced by oil refineries in the atmospheric distillation unit or ADC and is consumed in order to increase the octane number and capacity of the gasoline. As a result, gasoline blending is the key application of C5-C8 normal paraffin. This product is at present not available readily in the market and producers of C5-C8 normal paraffin are emphasizing on developing their business overseas and collaborating with distributors across the globe. The development of derivative products is another key focus area of manufacturers of C5-C8 normal paraffin.


Growing demand for iso-C5/C6 compounds for gasoline blending is anticipated to drive the market over the course of the forecast period. The surging demand for several chemical intermediates that find applications in chemical, polymer, paints and coatings, and agrochemical industries, among others is expected to augur well for the growth in consumption of C5–C8 normal paraffin.

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A report by Persistence Market Research (PMR) states that the global C5-C8 normal paraffin market will witness a CAGR of 3.2% from 2018 to 2026. The market is expected to touch a valuation of US$ 48,736.6 Mn by the end of 2026 from US$ 36,811.1 Mn recorded in 2017.

Stable Rise in Global Vehicle Parc to Trigger Demand for C5-C8 Normal Paraffin

Automotive sales has been gaining traction post the global slowdown. Based on statistics published by Organisation Internationale des Constructeurs d'Automobiles (OICA), automobile production has been growing at a rate of around 3% annually since 2012. Global automobile production stood at 95 million units in 2016, comprising both passenger and commercial vehicles, growing steadily to 97 million units in 2017. Among the vehicle fleet, gasoline vehicles account for a large share in the global market.

This can be attributed to the fact that gasoline with a high octane number provides better fuel efficiency and high reliability and has an anti-knocking property, which increases the performance of the vehicle with complete combustion of fuel. To comply with fuel specifications, especially the octane number range recommended by the governments of developed and developing countries, the demand for high octane gasoline fuel is expected to increase, which in turn will drive the demand for iso C5/C6 compounds. With a significant number of gasoline fueled vehicles plying the roads, the demand for high octane gasoline is expected to increase, which in turn is expected to drive the C5–C6 normal paraffin market over the forecast period.

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Growing Preference for Eco-friendly Alternatives to Restrict Adoption

In the last couple of years, it has been observed that various end-use industries are focusing on the use of chemical compounds and solvents, which are relatively less toxic, to ensure human and environmental safety. This trend can be attributed to the stringent regulations imposed by the governments of developed regions such as North America and Europe against the manufacturing and use of solvents. Awareness regarding the use of harmful conventional solvents has witnessed a steady increase. The preference for cleaner and greener alternatives is expected to witness steady growth during the forecast period. This changing preference towards environment-friendly alternatives may hamper the growth of the C5-C8 normal paraffin market in the coming years.

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