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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

Adipic Acid  | Coherent Market Insights

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.

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Adipic Acid Market Report Coverage

Report Coverage Details
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
Geographies covered:
  • Region: North America, Latin America, Europe, Asia Pacific, and Middle East & Africa
Segments covered:
  • By Application: Nylon 6, 6 Fiber, Nylon 6, 6 Resin, Polyurethanes, Adipate Esters
  • By End-use Industry: Automotive, Electrical & Electronics, Home Appliances, Textiles, FMCG
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

Growth Drivers:
  • Increasing demand for adipic acid in various end use industries
  • Burgeoning population growth in turn resulting in increasing infrastructure development activities especially in China, India, and Brazil
Restraints & Challenges:
  • 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

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

Adipic Acid  | Coherent Market Insights

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

  • In May 2021, Asahi Kasei had established a group-wide data management platform called “DEEP” (Data Exploration and Exchange Pipeline) to accelerate Digital Transformation (DX) throughout the Asahi Kasei Group, and started its operation in April 2022. DEEP has established to manage and explore data of all businesses of Asahi Kasei, and is expected to make further contribution to the enhancement of management and businesses.
  • In December 2021, Ascend Performance Materials had announced plans to purchase a compounding facility in San Jose Iturbide, Mexico, growing its global footprint and expanding production capacity for high-performance engineered materials. The purchase agreement includes the assets of DM Color Mexicana, a joint venture between Dainichiseika and Mitsubishi Corp.
  • In May 2022, Lanxess and Advent to acquire Engineering Materials business from DSM for a purchase price of around EUR 3.7 billion. Lanxess to transfer High Performance Materials business into joint venture. Lanxess to receive a payment of at least US$ 1.8 billion and a stake of up to 40 percent in the joint venture. Lanxess will use proceeds to reduce debt and plans to buy back shares. New joint venture with pioneering product portfolio and integrated value chain.

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.

Adipic acid is a white, crystalline compound and is primarily used in the production of nylon 6,6. It is also used to produce polyurethanes as a reactant to form plasticizers, lubricant components, and polyester polyols. Feedstocks include benzene, cyclohexane, and ammonia. Synthetic adipic acid is manufactured from petroleum products such as phenol and benzene. Fluctuation in crude oil prices and adverse environmental impact of manufacturing of adipic acid inhibits growth of the adipic acid market. The production of adipic acid involves significant generation of carbon dioxide and also toxic industrial waste. This has led to increasing focus of players in market towards development of bio-based adipic acid, which is more economically viable and involves a relatively clean production process.

Increasing preference of auto manufacturers towards the use of nylon 6, 6 due to the considerable light weight, low cost, and excellent performance, resulting in high fuel efficiency and adherence to regulatory guidelines, is fueling growth of the adipic acid market. Changing food habits and increasing disposable income coupled with growing population is propelling growth of the food & beverages industry and subsequently, increasing demand for nylon 6, 6 fiber in production of packaging products.

Market Dynamics

Asia Pacific is expected to be the fastest growing market during the forecast period. Growing economy of China, Japan, and India is in turn propelling demand for improved residential and commercial complexes to accommodate the rapidly growing population. This has increased demand for synthetic fibers, paints & coatings and electrical wires & cables applications in various infrastructural projects. Europe was the largest market for adipic acids in 2021 and the region is expected to retain its dominance in the market through 2030.

Key end-use industries in the global adipic acid market, such as textile and automotive, have gained significant traction in the recent past, and the trend is expected to continue in the near future, in turn augmenting growth of market. According to the stats provided by Coherent Market Insights, the automotive industry was dominating market for adipic acid in 2021 and the trend is expected to continue in the during the forecast period. 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 its high durability, light weight, and high elasticity and tensile strength. The clothing industry has witnessed rapid growth in the recent past, especially in emerging economies of India and China, due to increasing discretionary income.

Key features of the study:

  • This report provides an in-depth analysis of global adipic acid market, and provides market size (US$ billion & KT) and compound annual growth rate (CAGR %) for the forecast period (2022-2030), considering 2021 as the base year
  • It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global adipic acid market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered as a part of this study 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
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology up gradation, market expansion, and marketing tactics
  • The global adipic acid market report caters to various stakeholders in this industry including investors, suppliers, adipic acid manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global adipic acid market

Detailed Segmentation:

  • Global Adipic acid Market, By Application:
    • Nylon 6, 6 Fiber
    • Nylon 6, 6 Resin
    • Polyurethanes
    • Adipate Esters
  • Global Adipic acid Market, By End-use Industry:
    • Automotive
    • Electrical & Electronics
    • Home Appliances
    • Textiles
    • FMCG
  • Global Adipic acid Market, By Region:
    • North America
      • By Country:
        • U.S
        • Canada
    • Latin America
      • By Country:
        • Brazil
        • Mexico
        • Argentina
        • Rest of Latin America
    • Europe
      • By Country:
        • Germany
        • U.K
        • France
        • Italy
        • Spain
        • Russia
        • Rest of Europe
    • Asia Pacific
      • By Country:
        • China
        • India
        • Japan
        • Australia
        • South Korea
        • ASEAN
        • Rest of Asia Pacific
    • Middle East & Africa
      • By Country/Region:
        • Middle East
        • Africa
  • Company Profiles
    • Asahi Kasei Corporation 
      • Company Overview
      • Product Portfolio
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Ascend Performance Materials
    • BASF SE
    • Invista
    • Lanxess Ag
    • PetroChina Liaoyang Petrochemical
    • Radici Group
    • Rhodia
    • Shandong Haili Chemical Industry Company Ltd.
    • Shandong Hongye Chemical Company, Ltd

“*” marked represents similar segmentation in other categories in the respective section.

Frequently Asked Questions

Global adipic acid market was valued at around US$ 8.1 Billion in 2021.
Growing demand for adipic acid from automotive industry is one of the major factors that is expected to drive growth of the market over the forecast period.
Rapidly expanding construction industry is expected to create demand for adipic acid, which is one of the key trends in the market.
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.
Major players operating in the 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.
The market is estimated to grow at around 4.9% CAGR in the forecast period (2022-2030).

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