Adipic acid or hexanedioic acid is an organic compound with molecular formula (CH2)4(COOH)2. Adipic acid is commercially formed by the reaction between cyclohexanone and cyclohexanol. High purity adipic acid is used in the manufacture of polyurethane. It is widely used in home furnishing applications such as bedding foam, furniture, and carpet underlays. It is widely used in cushioning materials to make furniture more comfortable and durable.
The adipic acid market was valued at US$ 8.1 Billion in 2021 in terms of revenue, exhibiting a CAGR of 4.9% during the forecast period (2022 to 2030).
Drivers
Increasing applications of adipic acid in various end-use industries, namely paints & coatings, automobiles, textiles, industrial appliances, consumer goods, electrical & electronics, wires & cables, and food & packaging is expected to boost growth of the adipic acid market during the forecast period (2022-2030).
Burgeoning population growth in turn results in increasing infrastructure development activities, especially in countries such as India, China, and Brazil. This subsequently fuels demand for paints & coatings and wires & cables. Adipic acid is used as a difunctional crosslinking agent in paints and coatings for certain water-based acrylic emulsions. Thus rapidly burgeoning population is expected to boost the demand for adipic acid during forecast period. Changing life style and increasing disposable income is surging demand for convenience food, which in turn is propelling demand for nylon 6,6 resin in food packaging industry, which in turn is expected to boost the demand for adipic acid during forecast period.
Among region, Europe held dominant position in the global adipic acid market in 2021 with a revenue share of 37.80%, due to the high demand for adipic acid in industries such as electrical & electronics, home appliances, textiles, Fast Moving Consumer Goods (FMCG), paints & coatings, and automotive. Furthermore, improved economic conditions, government initiatives, and growing construction activities is driving the growth of the market in this region.
Figure 1. Global Adipic Acid Market Volume Share (%), By Region, 2021
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Market Restraints
Raw material price fluctuation coupled with high production cost of synthetic based adipic acid is expected to be the key challenge for market growth during the forecast period. Generation of harmful Carbon dioxide and toxic waste from adipic acid manufacturing unit, due to the use of petroleum based raw materials, has compelled the industry to shift its focus from synthetic towards bio based adipic acid. For instance, glucose is commonly used to produce bio based adipic acid. Whereas raw materials required to manufacture synthetic based adipic acid are petroleum and its derivatives such as lubricants & friction modifiers, paraffin wax & jellie, which require huge capital investment as compared to bio based adipic acid which in turn is expected to hinder growth of synthetic based adipic acid market. This has slowed the growth of adipic acid market.
Adipic Acid Market Report Coverage
Report Coverage | Details | ||
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Base Year: | 2021 | Market Size in 2021: | US$ 8.1 Bn |
Historical Data for: | 2017-2021 | Estimated Year: | 2022 |
Forecast Period 2022 to 2030 CAGR: | 4.9% | Forecast Period: | 2022-2030 |
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Companies covered: |
Asahi Kasei Corporation, Ascend Performance Materials, BASF SE, Invista, Lanxess Ag, PetroChina Liaoyang Petrochemical, Radici Group, Rhodia, Shandong Haili Chemical Industry Company Ltd., and Shandong Hongye Chemical Company, Ltd |
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Restraints & Challenges: |
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Market Trends
Rapidly expanding global construction industry is also projected to drive the adipic acid demand in building components such as exterior panels, insulation materials, and housing electronics. Growing automotive and packaging industries are also contributing to market growth. Thus, rapidly expanding construction and automotive industries is estimated to drive market for adipic acid. Due to these factors, market for adipic acid is expected to have a lucrative growth during the forecast period.
Figure 2. Global Adipic Acid Market Volume Share (%), By End-use Industry, 2021
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Among end-use industry automotive held the largest value share of 34.10% in the global adipic acid market in 2021. Adipic acid is mainly used in the production of nylon 6,6, which finds a wide range of applications across various industries ranging from automotive to textile. This is mainly attributed to its high durability, light weight, and high elasticity and tensile strength. The automotive industry has witnessed rapid growth in the recent past, especially in emerging economies of India and China, due to increasing discretionary income.
Global Adipic Acid Market - Impact of Coronavirus (COVID-19) Pandemic
Market was negatively impacted by the effect of COVID-19 pandemic. The sectors such as FMCG, construction, automotive, textile and other sectors were also affected due to the covid-19 pandemic, which in turn decreased the demand for the adipic acid market. The covid-19 pandemic had a negative impact on adipic acid market in the first and second quarter of 2020, but ease of restrictions and improving situation led to a little growth in demand of the adipic acid across the globe.
Recent Developments
Competitive Section
Major players operating in the global Adipic Acid market include Asahi Kasei Corporation, Ascend Performance Materials, BASF SE, Invista, Lanxess Ag, PetroChina Liaoyang Petrochemical, Radici Group, Rhodia, Shandong Haili Chemical Industry Company Ltd., and Shandong Hongye Chemical Company, Ltd.
Frequently Asked Questions
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