Adipic Acid Market Size Likely to Reach at a CAGR of 3.67% By 2033

As per the current market research conducted by the CMI Team, the global Adipic Acid Market size is expected to record a CAGR of 3.67% from 2024 to 2033. In 2023, the market size is projected to reach a valuation of USD 5.05 Billion. By 2033, the valuation is anticipated to reach USD 6.99 Billion.

Adipic Acid Market: Growth Factors and Dynamics

• Increasing Demand from Automotive Sector: Adipic acid is extensively used in the production of nylon 6,6, which is crucial for manufacturing automotive components such as airbags, hoses, and engine covers. The growth in the automotive industry, particularly in emerging economies, drives the demand for adipic acid.

• Rising Demand for Nylon Fibers: Adipic acid is a key raw material for producing nylon fibers, which are widely used in textiles, carpets, and industrial applications. The growing textile and consumer goods industries, especially in Asia-Pacific and Latin America, fuel the demand for nylon fibers and, consequently, adipic acid.

• Expansion of the Packaging Industry: Adipic acid is utilized in the production of various packaging materials, including films and coatings. The expanding packaging industry, driven by e-commerce growth and increasing consumer demand for packaged goods, boosts the demand for adipic acid.

• Growing Construction Sector: Adipic acid is employed in the production of polyurethane foams and coatings used in construction materials such as insulation panels and coatings. The growth in residential and commercial construction activities worldwide contributes to the demand for adipic acid-based products.

• Advancements in Textile Industry: The textile industry’s shift towards high-performance fibers and fabrics, where adipic acid is crucial for producing nylon 6,6 fibers, drives the market growth. Innovations in textiles, such as functional and smart textiles, further expand the application scope of adipic acid.

• Focus on Lightweight Materials in Automotive: Adipic acid’s role in producing lightweight and durable automotive components aligns with the automotive industry’s focus on reducing vehicle weight to improve fuel efficiency and meet regulatory standards. This trend supports the adoption of adipic acid in automotive applications.

• Increasing Focus on Sustainable Materials: Adipic acid manufacturers are emphasizing sustainability by developing bio-based and eco-friendly production processes. The growing consumer preference for sustainable products and regulatory initiatives promoting environmental conservation drive the market for adipic acid derived from renewable sources.

• Expansion of Industrial Applications: Adipic acid finds applications in various industrial sectors, including electronics, pharmaceuticals, and coatings. The diversification of industrial applications and the continuous innovation in product formulations contribute to the market growth of adipic acid globally.

Adipic Acid Market: Merger and Acquisition

• In March 2022, Ascend Performance Materials agreed to purchase Formulated Polymers Limited’s compounding division, a prominent engineered materials manufacturer in Chennai, India. This move marks Ascend’s debut manufacturing facility in the region, enhancing its presence in global markets focused on electrical and e-mobility applications.

• In May 2022, Lanxess and Advent acquired DSM’s Engineering Materials business for approximately €3.7 billion. As part of the deal, Lanxess will contribute its High-Performance Materials business to the joint venture. Lanxess is set to receive a minimum payment of $1.8 billion and could hold up to a 40 percent stake in the joint venture. The proceeds from the transaction will primarily be used by Lanxess to reduce debt and initiate share buyback programs. The newly formed joint venture will boast a cutting-edge product portfolio and a fully integrated value chain.

Report Scope

Adipic Acid Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the Adipic Acid Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Disruption in International Trade and Businesses: The ongoing COVID-19 pandemic has disrupted international trade and businesses, significantly affecting market dynamics. Governments imposed restrictions on the transit of people and goods, leading to disruptions in supply chains and manufacturing processes, impacting the production and distribution of adipic acid.

• Demand Fluctuations: The pandemic led to disruptions in various industries, including electronics, automotive, aerospace, and healthcare, which are major consumers of adipic acid. Lockdown measures, supply chain disruptions, and reduced consumer spending resulted in a slowdown in manufacturing activities across these sectors. Many ongoing projects were delayed or put on hold due to uncertainties surrounding the pandemic, leading to reduced demand for adipic acid.

• Regulatory Framework and Market Restraints: The regulatory framework surrounding the chemical industry may have been influenced by the pandemic, with potential changes in safety standards and regulations affecting market operations. Economic uncertainties resulting from the pandemic have posed challenges such as high costs, technical limitations, and a lack of skilled workforce, restraining market growth.

• Operational Challenges: Implementing health and safety protocols in manufacturing facilities added operational challenges and increased production costs. Labor shortages and workforce disruptions, including illness-related absences and quarantine measures, affected production capacities and efficiency in the adipic acid market.

• Adaptive Strategies and Focus on Innovation: Companies adopted remote work arrangements, digitalized sales and marketing efforts, and diversified supply chain sources to mitigate the pandemic’s impact. Some firms directed efforts towards innovating adipic acid applications, focusing on sustainability and environmental impact to address changing market demands.

• Technological Advancements: Ongoing advancements in production technologies, such as more efficient and sustainable manufacturing processes, are opening doors to new applications and expanding the market potential for adipic acid.

• Automation Push: The pandemic highlighted the importance of automation in manufacturing to minimize reliance on human labor. This could have led to a slight increase in demand for adipic acid in specific applications, such as automated production processes in sectors that remained operational.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Adipic Acid Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the Adipic Acid Market:

• Invista
• Ascend Performance Materials
• BASF SE
• Rennovia Inc.
• Radici Group
• Solvay
• Lanxess AG
• Asahi Kasei Corporation
• Rhodia (Solvay Group)
• Sumitomo Chemical Co. Ltd.
• Shandong Haili Chemical Industry Co. Ltd.
• China Petroleum & Chemical Corporation (Sinopec)
• Liaoyang Petrochemical Company
• Hualu Hengsheng Chemical Co. Ltd.
• Genomatica Inc.
• Others

The Adipic Acid Market is segmented as follows:

By Application

• Polyurethane
• Nylon 6,6 Fiber
• Nylon 6,6 Resin
• Adipate Esters
• Others

By Raw Material

• Cyclohexane
• Phenol
• Cyclohexanol
• Cyclohexanone
• Benzene

By End Users

• Automotive
• Electrical & Electronics
• Packaging & Consumer Goods
• Building & Construction
• Textile
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America