The Dimer acid market size is expected to reach US$ 4.21 Bn by 2031, from US$ 2.70 Bn in 2023, exhibiting a CAGR of 5.7% during the forecast period.
Dimer acid is a chemical compound with chemical formula C36H68O4. It is a light yellow, transparent liquid and is widely used to produce hot-melt adhesives and polyamide resins. Dimer acid is also referred to as dimerized fatty acids and is composed of unsaturated fatty acids that are produced from oleic acid, canola oil, and tall oil. Dimer acid is also used in the production of adhesives, surfactants, fuel oil additives, alkyd resins, and lubricants. It is non-toxic in nature and can be used in the production of reactive and non-reactive polyamides for epoxy resins, corrosion inhibitors, polyol esters, personal care products, and oil field drilling muds.
Also, dimer acid is frequently employed in the synthesis of polyamide resins. Therefore, there are two types of polyamide resins: reactive polyamide and non-reactive polyamide. Conversely, non-reactive polyamide finds extensive applications in the manufacturing of hot-melt adhesives and printing inks. In addition, dimer acid is widely utilized as a demulsifier, wetting agent, corrosion and scale inhibitor, and surfactant in oilfield applications.
Dimer Acids Based Market Regional Insights:
Figure 1. Dimer Acids Based Market Share (%), by Region, 2023
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Analyst Viewpoint:
The dimer acid market is expected to see steady growth in the coming years due to increased consumption in the construction and transportation industries. The resin ester segment currently dominates the market, and its demand is driven by growing adhesive and coating applications globally. The Asia Pacific region, led by China, will continue to be the major revenue generator owing to booming construction activities. Other driving factors include the rising fiber industry and a growing preference for dimer acid-based polyamide resins in manufacturing plastic parts for electric vehicles. Stringent environmental regulations around the world regarding volatile organic compounds (VOCs) emissions may negatively impact the solvent-based adhesive demand. Substitution threats from emerging bio-based alternatives can also impede market expansion. However, increasing Research & Development (R&D) towards developing bio-sourcing methods to produce dimer acid is anticipated to create new opportunities in the future. High production costs associated with Chinese manufacturers are encouraging western companies to either set up their own production facilities or seek reliable supply agreements. North America and Europe are relatively mature regions where innovation and the development of specialty products that will fuel future growth.
Dimer Acids Based Market Drivers:
Dimer Acids Based Market Opportunities:
Dimer Acids Based Market Report Coverage
Report Coverage | Details | ||
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Base Year: | 2023 | Market Size in 2023: | US$ 2.70 Bn |
Historical Data for: | 2019 to 2023 | Forecast Period: | 2024 - 2031 |
Forecast Period 2024 to 2031 CAGR: | 5.7% | 2031 Value Projection: | US$ 4.21 Bn |
Geographies covered: |
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Segments covered: |
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Companies covered: |
BASF SE, Croda International Plc., Arizona Chemical Company, LLC, Oleon NV, Shandong Huijin Chemical Co. Ltd., Liancheng Baixin Science and Technology Co. Ltd., Jiangsu Jinma Oil Technology Development Co., Ltd., and Jiangsu Yonglin Oleochemical Co., Ltd. |
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Growth Drivers: |
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Restraints & Challenges: |
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Dimer Acids Based Market Trends:
Increasing R&D investment for new applications: The dimer acid market is witnessing significant changes driven by expanding research and development into new product applications. Dimer acid, a sustainable building block derived from natural fatty acids, is being extensively studied and trialed for its potential in diverse industries. This shift is a result of major chemical companies aggressively pumping resources into application development over the past 3 years.
The effect is already visible on demand patterns. Traditionally used mainly in reactive adhesives and industrial finishes, dimer acid is seeing burgeoning demand from new application segments such as medical devices, pharmaceutical excipients, and additive manufacturing materials. Sectors like 3D printing that rely on advanced biomaterials are actively exploring dimer acid for high-performance resin formulations. For instance, according to Unilever's official sources, the company spent US$ 77.28 million on R&D in 2022.
Shifting of production facilities towards Asia Pacific by key players: The shifting of production facilities of key players towards the Asia Pacific region has significantly impacted the dimer acid market in recent years. Many major manufacturers have set up or expanded their existing production plants across Asian countries like China, India, Indonesia, and Malaysia to capitalize on the strategic advantages offered by these emerging economies. This move allows companies to reduce production costs substantially through lower labor and raw material costs. Setting up plants near growing demand centers in Asia Pacific also helps minimize transportation and logistics expenses of supplying products to fast-expanding end-use industries within the region.
Dimer Acids Based Market Restraints:
Figure 2. Dimer Acids Based Market Share (%), by Application , 2023
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Recent Developments
In 2021, Jarchem Industries Inc. introduced a new series of dimer acid-derived items named Jarchem Dimers. These items serve as high-performance intermediates for various applications like adhesives, coatings, and lubricants.
Jarchem Industries Inc. is the leading manufacturer and supplier of unique specialty chemicals and natural materials. The company specializes in three business units: personal care, food and beverage, and industrial. Founded in 1978, Jarchem Industries Inc. is an ISO 9001:2015 certified manufacturing and marketing company located in the U.S. The company's goal is to provide high-quality products and services to its customers. Jarchem Industries Inc. is committed to the professional production of various kinds of preparation of raw materials, including dimer acid-derived items. The company's products are used in various applications such as adhesives, coatings, and lubricants.
In 2020, Shandong Huijin Chemical Co., Ltd. unveiled a fresh line of dimer acid-derived products under the name Huijin Dimer Acid. These goods are employed as primary materials in the manufacturing of polyamide resins, polyamide hot melt adhesives, and epoxy curing agents.
Shandong Huijin Chemical Co., Ltd. is a chemical manufacturing company based in China. The company was established in 2006 and specializes in the production of dimer acid, polyamide resin, polyamide hot-melt adhesive, and epoxy curing agents.
Shandong Huijin Chemical Co., Ltd. has three subsidiaries, including Shandong Huijin Chemical Co., Ltd. (Hong Kong), Shandong Huijin Chemical Co., Ltd. (Taiwan), and Shandong Huijin Chemical Co., Ltd. (Shanghai). The company is committed to providing high-quality products and services to its customers and is one of the leading manufacturers of dimer acid and related products.
Mergers and Acquisition
Top Companies in the Dimer Acids Based market.
*Definition: Dimer acid, also known as dimerized fatty acid, is a dicarboxylic acid prepared by dimerizing unsaturated fatty acids obtained from tall oil, usually on clay catalyst. It is a light yellow or yellow viscous transparent liquid. Dimer acid has unique high-performance characteristics that enhance chemical properties of polymer polyamides and epoxies. Dimer acid-based products find applications across various industries including paints & coatings, adhesives, oilfield chemicals, and others. The market for dimer acid is expected to grow due to increasing demand from end-use sectors such as paints and coatings, adhesives, and oilfield chemicals. The market is also poised for expansion due to the growing use of dimer acid in specialized products, such as plasticizers and personal care items.
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About Author
Yash Doshi is a Senior Management Consultant. He has 12+ years of experience in conducting research and handling consulting projects across verticals in APAC, EMEA, and the Americas.
He brings strong acumen in helping chemical companies navigate complex challenges and identify growth opportunities. He has deep expertise across the chemicals value chain, including commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals. Yash is a sought-after speaker at industry conferences and contributes to various publications on topics related commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals.
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