Global Adipic Acid Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the global Adipic Acid Market is expected to record a CAGR of 3.67% from 2024 to 2033. In 2024, 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.

Product of Automobiles in India from 2018-2024 (in Mn Units)

Source: According to IBEF

The production of automobiles in India has shown fluctuating trends from 2018 to 2024, with a peak in 2019 at 30.9 million units and a subsequent decline, reaching 22.7 million units in 2021. However, there was a moderate recovery to 25.9 million units in 2023, followed by a slight dip to a projected 23.4 million units in 2024.

This variability in automobile production is closely tied to the demand for adipic acid, a key component in the manufacturing of nylon, which is extensively used in automotive parts such as tire cords, engine covers, and air intake manifolds. The decline in production during 2020 and 2021 can be attributed to disruptions caused by the COVID-19 pandemic, which led to decreased automotive manufacturing and, consequently, a reduced demand for adipic acid.

The subsequent recovery indicates a resurgence in the automotive sector, positively impacting the adipic acid market. This correlation suggests that the growth of the adipic acid market is intrinsically linked to the performance of the automotive industry, with future market trends likely to mirror the production trends in the automotive sector.

Adipic Acid Market – Significant Growth Factors

The Adipic Acid Market presents significant growth opportunities due to several factors:

• 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 Acquisitions

The Adipic Acid Market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the Adipic Acid Market include:

• 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.

These mergers and acquisitions helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the Adipic Acid Market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Adipic Acid Market – Significant Threats

The Adipic Acid Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Fluctuating Raw Material Prices: Adipic acid production relies heavily on raw materials such as benzene and cyclohexane, whose prices can be volatile. Fluctuations in raw material costs can impact the profitability of adipic acid manufacturers and affect product pricing in the market.

• Environmental Regulations: Stringent environmental regulations aimed at reducing carbon emissions and promoting sustainability could restrict the use of adipic acid, especially if alternative, eco-friendly materials become more cost-effective and widely adopted.

• Competitive Substitutes: The availability of substitutes such as bio-based adipic acid or alternative polymers like polyesters and polyamides poses a threat to the traditional adipic acid market. Innovations in materials science may lead to increased substitution and market share erosion.

• Economic Downturns: Adipic acid demand is closely tied to economic growth and industrial production, particularly in sectors like automotive, textiles, and construction. Economic downturns or recessions can lead to reduced consumer spending and industrial activity, thereby impacting adipic acid demand.

• Technological Advances: Advances in manufacturing processes and technologies, including the development of more efficient catalysts or production methods, could disrupt the adipic acid market. These innovations may lower production costs or improve product performance, creating competitive pressures for traditional adipic acid manufacturers.

Category-Wise Insights:

By Application

• Polyurethane: Adipic acid is a key component in producing polyurethane foams and elastomers, widely used in furniture, bedding, automotive interiors, and insulation materials. The trend towards energy-efficient buildings and lightweight automotive components drives the demand for polyurethane. Innovations in bio-based polyurethane products are also gaining traction, promoting sustainable growth in this segment.

• Nylon 6,6 Fiber: Nylon 6,6 fibers, made from adipic acid, are used in textiles, carpets, and industrial applications like tire cords. The increasing demand for durable and high-performance textiles in the automotive and consumer goods sectors is a significant growth driver. Trends include the development of eco-friendly nylon fibers and advancements in fiber technology to enhance performance characteristics.

• Nylon 6,6 Resin: Adipic acid is essential in manufacturing nylon 6,6 resins, which are used in engineering plastics for automotive, electrical, and electronic applications. The trend towards miniaturization and lightweight materials in electronics and automotive industries boosts the demand for these resins. There is also a growing focus on improving the recyclability and sustainability of nylon 6,6 products.

• Adipate Esters: Adipate esters, derived from adipic acid, are used as plasticizers in PVC, coatings, and lubricants. The demand for flexible and durable plastic products in the construction, automotive, and packaging industries drives this segment. Trends include the development of non-phthalate plasticizers and environmentally friendly formulations to meet regulatory and consumer demands.

• Others: Adipic acid finds applications in the production of food additives, adhesives, and sealants. The versatility of adipic acid in various industrial and consumer products supports steady demand. Trends in this segment include the exploration of new applications and the development of bio-based adipic acid to enhance product sustainability and meet regulatory requirements.

By Raw Material

• Cyclohexane: Cyclohexane is the primary raw material for producing adipic acid through oxidation processes. Its use is prevalent due to its cost-effectiveness and availability. Trends show a growing focus on improving the efficiency and environmental impact of cyclohexane-based production methods, including the development of catalysts that reduce emissions and energy consumption.

• Phenol: Phenol can be converted into cyclohexanol and cyclohexanone, which are intermediates in adipic acid production. The demand for phenol as a raw material is driven by its versatility and efficiency in production processes. Current trends emphasize refining the conversion processes to minimize by-products and enhance overall sustainability.

• Cyclohexanol: Cyclohexanol is an intermediate produced from cyclohexane and used in the synthesis of adipic acid. It is valued for its role in creating high-purity adipic acid. Trends include advancements in the catalytic oxidation of cyclohexanol to improve yield and reduce environmental impact, making the production process more sustainable.

• Cyclohexanone: Cyclohexanone, derived from cyclohexanol, is another key intermediate in adipic acid production. Its use is essential for achieving the desired chemical reactions in the manufacturing process. Innovations in cyclohexanone production focus on increasing efficiency and developing greener production technologies to meet regulatory standards and reduce carbon footprint.

• Benzene: Benzene is a precursor to cyclohexane and cyclohexanol, making it an indirect raw material for adipic acid production. The demand for benzene is influenced by its broad application in various chemical industries. Trends highlight the need for sustainable benzene production processes, including the use of bio-based feedstocks and the reduction of harmful emissions during manufacturing.

By End Users

• Automotive: In the automotive industry, adipic acid is crucial for producing high-performance materials such as nylon 6,6 used in components like airbags, seatbelts, and engine covers. Trends in this sector include the growing demand for lightweight and durable materials to improve fuel efficiency and reduce emissions. Additionally, the shift towards electric vehicles is driving the need for advanced materials with superior thermal and mechanical properties.

• Electrical & Electronics: Adipic acid is used in the production of engineering plastics and nylon 6,6 resins for electrical and electronic components. These materials provide excellent insulation and mechanical strength, essential for connectors, circuit boards, and housings. Trends in this segment focus on miniaturization and enhanced performance of electronic devices, as well as the growing adoption of smart electronics and IoT devices.

• Packaging & Consumer Goods: Adipic acid is employed in producing flexible packaging materials and plasticizers for consumer goods. Its applications include food packaging, personal care products, and household items. Trends in this market highlight the increasing demand for sustainable and recyclable packaging solutions, as well as the development of non-phthalate plasticizers to meet regulatory and consumer safety standards.

• Building & Construction: In the building and construction industry, adipic acid is used in the production of polyurethane foams and coatings. These materials are essential for insulation, sealants, and protective coatings. The growth in this sector is driven by the demand for energy-efficient buildings and sustainable construction materials. Innovations in bio-based polyurethane products and green building practices are key trends shaping this market.

• Textile: Adipic acid plays a significant role in the textile industry, particularly in the production of nylon 6,6 fibers used in apparel, carpets, and industrial fabrics. The demand for durable and high-performance textiles is increasing, driven by the automotive and consumer goods sectors. Trends include the development of eco-friendly and recycled nylon fibers, as well as advancements in fiber technology to enhance functionality and comfort.

• Others: Adipic acid is also used in various other industries, including pharmaceuticals, adhesives, and food additives. Its versatility and chemical properties make it suitable for a wide range of applications. Trends in this segment focus on discovering new uses for adipic acid and developing bio-based production methods to enhance sustainability and meet evolving regulatory requirements.

Report Scope

Adipic Acid Market – Regional Analysis

The Adipic Acid Market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

• North America: North America’s economic outlook remains robust, with steady growth driven by strong consumer spending and industrial activity. The region’s adipic acid market benefits from significant demand in the automotive, construction, and packaging sectors. Growth factors include advancements in automotive manufacturing, particularly with the rise of electric vehicles requiring lightweight materials, and increasing investments in sustainable construction practices. Additionally, North America’s focus on technological innovation and environmental regulations encourages the development of more efficient and eco-friendly production methods for adipic acid.

• Europe: Europe’s economic outlook is stable, with moderate growth supported by strong industrial and technological sectors. The adipic acid market in Europe is driven by stringent environmental regulations and a significant push towards sustainability. The region’s automotive industry, known for its focus on efficiency and innovation, heavily demands adipic acid for high-performance materials. Growth factors include advancements in green technologies, the expansion of the packaging industry focusing on recyclable materials, and ongoing investments in research and development for bio-based adipic acid production.

• Asia-Pacific: Asia-Pacific’s economic outlook is highly positive, with rapid industrialization and urbanization fueling growth. The adipic acid market in this region is driven by robust demand from the automotive, textile, and construction industries. Key growth factors include the expanding automotive sector, particularly in countries like China and India, where increasing vehicle production boosts demand for durable materials. Additionally, the region’s growing middle class and rising consumer spending on textiles and packaged goods further drive the market. Asia-Pacific is also witnessing significant investments in infrastructure projects, enhancing the demand for construction materials containing adipic acid.

• LAMEA (Latin America, Middle East, and Africa): LAMEA’s economic outlook shows promising growth potential, driven by increasing industrialization and infrastructure development. The adipic acid market in this region benefits from growing demand in the automotive, construction, and textile industries. Growth factors include large-scale infrastructure projects in the Middle East and Africa, which require advanced construction materials. In Latin America, the expanding automotive industry and rising consumer spending on textiles and packaged goods drive market growth. Additionally, the region’s focus on developing local manufacturing capabilities and reducing import dependency supports the increasing adoption of adipic acid.

Competitive Landscape – Adipic Acid Market

The Adipic Acid Market is highly competitive, with a large number of manufacturers and retailers operating globally. Some of the key players in the market include:

• 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

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships.

New players entering the Adipic Acid market are adopting a variety of growth strategies to establish their presence and compete effectively with established companies. These strategies are designed to leverage technological advancements, address market demands, and create a competitive edge.

These players often focus on developing advanced products, customization, targeting emerging markets, establishing competitive pricing, adopting customer centric approach, offering eco-friendly solutions, and higher focus on marketing and branding activities.

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