Dimer acids also referred to as dimerized fatty acids are produced from unsaturated fatty acids which are obtained from fatty acid feedstock such as rapeseed oil, tallow oil, and tall oil. Dimeric acids mainly entail stearic acids, therefore called as C36 dimer acid. Some of the major application area of dimer acids are inks and coatings and adhesives and other application areas of dimer acids are the production of reactive and non-reactive polyamides for epoxy resins, synthetic lubricants, alkyd resins, fuel additives, corrosion inhibitors, and oil field drilling muds. Moreover, dimer acid is also used across the personal care and cosmetic industry.

The global dimer acid market was estimated to be valued more than US$ 600 million in terms of revenue in 2018 and is predicted to grow at a CAGR of 6.1% during the forecast period (2019 to 2027)

Drivers

Growing end-use industries such as surface coatings, printing inks, adhesives and oilfield chemicals across the developing region are expected to accelerate the market growth of dimer acid. Aforementioned end-use industries are expected to witness steady growth over the forecast timeframe due to growing construction spending across the globe. Moreover, Asia-pacific and Latin America, are expected to experience a rise in oilfield drilling activities over the forecast period. These factors are expected to propel the market growth of dimer acid.

Market Opportunities

Growing demand for oil field drilling muds from the oil &gas industry for drilling operation is expected to augment the market growth of dimer acid. According to the India Brand Equity Foundation, India had 4.5 thousand million barrels of proven oil reserves at the end of 2018 and manufactured 39.5 million tons in 2018 and on Apr 01, 2019, India had a network of 10,419 km of crude pipeline having a capacity of 145.6 million metric tonnes per annum. Therefore, the growing production of crude oil is projected to accelerate the market growth of dimer acid.

Market Restraints

Rising demand for biofuels over the recent past has emerged as an effective alternative to the conventional fossil and petroleum based fuels. Raw materials that are used in the production of dimer acids including tall oil and other vegetable oils are also used for the manufacturing of biofuels. Therefore, rising demand for vegetable oils from the biofuels industry is expected to strain supply of raw materials for manufacturing dimer acid. This factor is expected to hinder the market growth of dimer acid.

Key Takeaways

Among product type, standard segment dominated the global dimer acid market in 2018 with around 55% of market share in terms of revenue, followed by distilled and hydrogenated, respectively.

Market Trends

Expanding chemical industry especially in the Asia Pacific region is another major factor estimated to augment the market growth of dimer acid. According to the Invest India, total production of major chemicals and petrochemicals stood at 27,847 MT during 2018-19, a growth of 4.15% over 2017-18 and the specialty chemicals contribute 22% of total chemicals and petrochemicals market in India. This factor is expected to fuel the market growth of dimer acid.

The increasing launch of reactive polyamides as dimer is widely used to produce polyamide is expected to accelerate the market growth over the forecast period. For instance, in September 2019, Ascend Performance Materials (Houston, TX) announced plans to introduce several new specialty polyamides at K 2019 to meet the rising needs of customers. Vydyne XHT is a new product that has long-chain polyamides and high-temperature polyamides.

Competitive Section

Company Names

Key players active in the global dimer acid market are 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.

Market Taxonomy

By Product Type

  • Standard
  • Distilled
  • Hydrogenated

By Application

  • Reactive Polyamides
  • Non-Reactive Polyamides
  • Oil Field Chemicals
  • Others

By Region

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa

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