Azelaic acid is an organic compound with molecular formula C9H16O4 saturated dicarboxylic acid and it exits as a powder. The azelaic acid has significant biological activities and is found in daily food products such as, barley, wheat, and rye. Azelaic acid is an inhibitor of enzymes in respiratory chain and as well as for DNA synthesis. Azelaic acid is manufactured from the oleic acid in the presence of ozone which acts as a catalyst during the reaction.
The global azelaic acid market is estimated to surpass US$ 393.35 million in terms of revenue by the end of 2028, exhibiting a CAGR of 6.2% during the forecast period (2021 to 2028).
Increasing demand for polymers across the globe has been augmenting the target market growth. Azelaic acid is a major building block used in the manufacturing of polymers such as polyamides, polyesters, and polyurethane. Azelaic acid is also used in the high-performance copolyesters for use in industrial adhesives, films and fibers, and polymeric plasticizers. Increasing demand for polymers is expected to drive demand for azelaic acid over the forecast period.
Increasing demand for biolubricants is expected to foster the market growth of azelaic acid. Azelaic acid is widely used as a feedstock for lubricants. Azelaic acid is derived from bio-based feedstock and is increasingly used in manufacturing of biolubricants. The demand for azelaic acid is expected to grow with rising demand for biolubricants. Traditionally used lubricants were derived from petroleum-based oil, with poor degradability. Moreover, petroleum-based lubricants lead to environmental hazards by accumulating in water bodies and harm the aquatic life. Therefore, rising awareness regarding eco-friendly lubricant solutions is expected to drive demand for biolubricants in the near future. The growing demand for sustainable alternatives against petroleum-based lubricants is expected to drive growth of the global azelaic acid market over the forecast period. For instance, according to the fact sheet on biolubricants released by the Department of Ecology of Washington, U.S., in April 2011, biolubricants offer better safety than petroleum lubricants as they have higher flashpoints, constant viscosity, and less oil mist and vapor emissions.
Among regions, Asia Pacific held dominant position in the global azelaic acid market in 2020, accounting for 45.7% market share in terms of revenue, followed by North America.
Figure 1. Global Azelaic Acid Market Revenue Share (%), By Region, 2020
Availability of di-carboxylic acids such as sebacic acid is expected to hamper the market growth of azelaic acid over the forecast period. Sebacic acid is normally made from castor oil. The castor oil is treated with caustic soda at high temperature leading to the formation of ricinoleic acid, which is followed by a reaction giving sebacic acid.
Increasing demand for skin care products around the globe is the current azelaic acid market trend. Azelaic acid is effective in treatment of acne vulgaris, which is a common skin disease characterized by blackheads, whiteheads, papules, and pustules on the face, neck, back, and chest. For instance, according to the World Health Organization (WHO), in 2018, skin diseases were among the most common of all human health afflictions and affected around 900 million people in the world.
|Base Year:||2020||Market Size in 2020:||US$ 246.97 Mn|
|Historical Data for:||2017 and 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||6.2%||2028 Value Projection:||US$ 393.35 Mn|
BASF SE, Croda International plc, Emery Oleochemicals, Haihang Industry Co., Ltd, Jiangsu Senxuan Pharmaceutical and Chemical Co., Ltd., Matrica S.p.A., Nantong Hengxing Electronic Materials Co., Ltd., Nantong Jinghua Pharmaceutical Co., Ltd., Wufeng Chicheng Biotech Co., Ltd., and Xi'an Sonwu Biotech Co., Ltd.
|Restraints & Challenges:||
Figure 2. Global Azelaic Acid Market – Opportunity Analysis
On the basis of product type, in 2020, pharma grade segment accounted for 46.3% of the revenue share. Pharma grade azelaic must have high purity, as it is used in pharmaceutical and personal care & cosmetics applications. In pharmaceuticals, it is used in ointments for treatment of acne and rosacea. It is also used as whitening and bleaching active compounds in skin care products. Increasing demand for skin care products is expected to drive demand for azelaic acid over the forecast period.
Figure 3. Global Azelaic Acid Market Revenue Share (%), By Product Type, 2020
Global Azelaic Acid Market - Impact of Coronavirus (COVID-19) Pandemic
The specialty & fine chemicals have applications in various industries including plastics, lubricants, personal care & cosmetics, and pharmaceutical. Except for its application in the pharmaceutical industry, COVID-19 has reduced the demand for specialty & fine chemicals across other industry verticals. COVID-19 pandemic has resulted in unprecedented decline in the sales of automotive and consumer electronics and home appliances. This decline has, in turn, reflected in the revenue of the plastic industry. The pandemic has also hit the production of vegetable oils, which is a key feedstock for production of azelaic acid. This is also expected to impact the production of azelaic acid during the pandemic.
Key players operating in the global azelaic acid market include BASF SE, Croda International plc, Emery Oleochemicals, Haihang Industry Co., Ltd, Jiangsu Senxuan Pharmaceutical And Chemical Co., Ltd., Matrica S.p.A., Nantong Hengxing Electronic Materials Co., Ltd., Nantong Jinghua Pharmaceutical Co., Ltd., Wufeng Chicheng Biotech Co., Ltd., and Xi'an Sonwu Biotech Co., Ltd.
Azelaic acid kills the bacteria which can affect the skin as well as it also reduces production of the keratin which is responsible for the acne bacteria. Azelaic acid works significantly in polymer and related industrial materials. The application of the azelaic acid in the pharmaceutical industry plays an important role for the treatment of the acne.
Growing application of resins and polymers across the globe is driving the target market growth. Polymers & resins are replacing conventional materials such as metals, glass, and wood due to their light weight, superior strength, design flexibility, and lower cost. This has led to their widespread use in end-use industries such as packaging, automotive, building & construction, and electronics.
The demand for polymers is primarily driven by growth of the automotive, packaging, building & construction, electronics, transport rails, and telecommunication industries among others. The plastics industry is the largest consumer of polymers and resins across the globe. The global plastic industry is growing significantly and is constantly contributing to the economic development of countries such as China, India, and many more, across the globe in numerous sectors such as construction, electronics, automotive, healthcare, and others.
Moreover, key players are focusing on various strategies such as business expansions. For instance, in September 2021, Croda International Plc, a multinational company that utilizes smart science to develop high-performance products and technologies, established its Product Validation Centre. This cutting-edge facility is specialized in serving the agrichemical market by results acquired in formulation, microbiological, and seed treatment facilities, and is located in Holambra, Brazil.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.