Caprolactam Market Analysis By Demand [Capacity Utilization, Production, Net Exports, Demand Growth Rate], By Types, By Applications & Forecast Analysis, 2034
Caprolactam Market Overview
The global Caprolactam market was valued at USD 18 billion in 2024 and is projected to reach USD 27 billion by 2034, growing at a CAGR of 3.8% from 2025 to 2034. Caprolactam is an important intermediate for the production of polyamide 6 fibers and Engineering Plastics. Around 70% of Caprolactam is used to make polyamide fibers and the remaining is used for making polyamide 6 resin for injection molded parts and extruded films.
Caprolactam Demand Supply Analysis (kilo tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Caprolactam Capacity Overview
In 2024, the global Caprolactam capacity stood at ~10,000 thousand tons with Asia Pacific accounting for more than 70% of the global Caprolactam capacity. Europe (Western Europe and Central Eastern Europe) accounted for around 20% while North America accounted for less than 10% of the global Caprolactam capacity. The caprolactam industry has been flat globally except in China. China has added substantial caprolactam capacity between 2012 and 2022. An average of 400 thousand tons of caprolactam capacity has been added per year since 2015 and 2023, and further capacity additions are projected in the mid-term forecast. Pingmei Shenma, Luxi Chemical Co., Risun (Hebei Cangzhou Xuyang Chemical), Zhejiang Baling Hengyi Caprolactam Co., Ltd. have added and are further planning of adding an additional 2 million tons of caprolactam capacity by 2026-2027. The country’s average capacity utilization rates have been hovering around 68% between 2018 and 2023, with further huge capacity additions the country’s industry which was in a state of oversupply, will further worsen. However, the country which until 2021 was a net importer of caprolactam importing around 200 thousand tons between 2018 and 2021, will change its status of being a net exporter of the nylon precursor.
Caprolactam Capacity, By Region - 2024 (kilo tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
These huge capacity additions in China have led to a lot of restructuring of the caprolactam industry. BASF reduced its Ludwigshafen, Germany caprolactam capacity by 100 thousand tons between 2016 and 2018; Fibrant closed its 204 thousand tons caprolactam capacity in the US in 2016, Sumitomo shut its 95 thousand tons liquid-phase caprolactam production line back in late 2015 and exited the polyamide precursor market by ceasing operations at its 85 thousand tons capacity in Ehime, Niihama in October 2023. Ube recently announced to cease of operations at its Ube City caprolactam capacity in Japan.
Caprolactam Demand Overview
The global Caprolactam demand was estimated to be over 7000 thousand tons in year 2024 which has grown at aggregate rate of 3% between 2018 and 2024. Utilization rates were around 77% in last five years. Utilization rates declined from 80% to 72% between years 2018 to 2024 due to major capacity additions in China causing global Caprolactam demand-supply imbalance and restructuring in America & European Market.
Caprolactam Demand Analysis by Application - 2034 (kilo tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
The demand for Caprolactam is directly linked to the consumption of polyamide 6 resin and fiber. China is the largest market for PA 6 and therefore it is also a major consumer of Caprolactam. Caprolactam imports in China peaked in the year 2012 which was around 700 thousand tons and then imports declined on the back of a rise in new Caprolactam capacity in China. Still, China imported around 220 thousand tons of caprolactam which was mainly imported from the European market last year.
Major realignment can be seen in the European and US markets, with BASF reducing its Caprolactam capacity at its Ludwigshafen, Germany site by 100 KT (Sept 2016) and Fibrant (DSM -CVC capital JV) plans to scale down its Caprolactam capacity at its Augusta, US. China's focus on self-sufficiency has forced major Caprolactam and polyamide producers to realign with the market conditions. The effect of the reduction in Caprolactam supply was seen in spot price of Caprolactam in the months of November-December last year. Most of the Caprolactam manufacturers are in China, USA, Mexico, Brazil, Italy, Belgium, Netherlands, Germany, Russia, Belarus, Bulgaria, Czech Republic, Romania, Japan, India, South Korea, Thailand and Taiwan.
In 2024, Asia Pacific was estimated to be the largest market for Caprolactam accounting for over 70% of the global demand. The region is projected to witness strong demand in the forecast period owing to the major Polyamide capacity additions. Caprolactam is used as an intermediate for the production of polyamide 6 fibers and Engineering Plastics. Western Europe is the second major consumer of caprolactam accounting for over 10% of the global market while North America accounts for less than 10% of the global caprolactam consumption.
In 2024, India caprolactam demand stood at 150 thousand tons and it is further projected to grow at a CAGR of 2.5% to reach 211 thousand tons from 2023-2032. India is a net importer of Caprolactam with an annual average import size of 50 thousand tons in last six years. Gujarat State Fertilizers & Chemicals Limited (GSFC) and Fertilisers and Chemicals Travancore (FACT) are the caprolactam producers in India, together producing around 120 thousand tons of caprolactam.
Key Players in the Caprolactam Market
These companies are key players in the caprolactam market, contributing to the production and supply of this essential chemical compound. BASF is a leading caprolactam manufacturer in the world producing around 635 thousand tons as of 2022.
Recent Development in Caprolactam Market
In early 2023, BASF decided to shut its 70 thousand tons caprolactam plant in Germany owing to high energy cost, resulting in an adjustment in capacity, which will then stand at 565 thousand tons.
In October 2025, Dutch chemicals producer Fibrant BV, part of China’s Highsun Group, announced its plans to permanently close its caprolactam plant in Geleen, the Netherlands. owing to high production costs and intensifying competition from Asian producers. Fibrant has been one of Europe’s significant caprolactam producers, operating a plant in Geleen with a capacity of around 135 kilo tons using the phenol route.
