The global Adipic Acid Market Size is projected to grow from USD 5.4 Billion in 2022 to USD 8.3 Billion by 2032, registering a CAGR of 4.5% between 2023-2032. The rising demand for Adipic Acid from end-use applications such as Polyamide 66 fiber and resin, plasticizers, polyurethanes, pharmaceuticals, and food additives, will further drive the Adipic Acid demand in the forecast period.
Adipic acid also known as hexanedioic acid is a white crystalline solid and the most commercially available aliphatic dicarboxylic acid. Adipic acid is produced from a mixture of cyclohexanone and cyclohexanol called KA oil. Adipic acid is an important raw material that is reacted with hexamethylene diamine (HMDA) to produce polyamide 66 fibers and engineering plastic resins. More than 40% of adipic acid manufactured is utilized in the production of nylon 66. Adipic acid is used in applications such as polyamide 6,6 fibers, polyamide 6,6 engineering plastics & films, plasticizers, polyurethanes, pharmaceuticals, food additives, and others.
Based on applications, the Adipic Acid market is segmented into Polyamide 66 Fibers, Polyamide 66 Engineering Plastics & Films, Plasticizers, Polyurethanes, Pharmaceuticals & Food Additives. Polyamide 66 hold the largest share in the Adipic Acid market. The growing demand for these fibers in the automotive industry will likely drive the market in the forecast period. PA6 and PA66 are used as an alternative material to replace metal in automotive under-the-hood parts where flexibility, as well as temperature and chemical resistance, are important. The incorporation of Polyamide 66 helps in reducing the weight of the cars without hampering the quality of parts, which lowers downs CO2 emissions and improves the fuel efficiency of vehicles.
In 2022, the global Adipic Acid capacity stood at 5153 thousand tons and is anticipated to cross 7700 thousand tons by 2032. Almost all the major capacity additions are expected to occur in China with few debottlenecks in Europe and America. In 2022, China is estimated to have a total Adipic Acid capacity of over 3100 thousand tons which has grown by almost 50% from 2016.
All the Adipic Acid production facilities in the country are operated by domestic players with Chongqing Huafeng Chemical Co. Ltd, Liaoyang Petrochemical, Dafeng Haili, and Shangdong Haili Chemicals being major Adipic Acid producers. Existing players such as Pingmei Shenma Group and Chongqing Huafeng Chemicals Co. Ltd have planned to add Adipic Acid capacity in the coming years. New players such as Inner Mongolia Junzheng Chemical, Gu Leishi Hua, and Hengli Petrochemical have also planned to add Adipic Acid capacity of 300 to 400 thousand tons each during forecast period of 2025 to 2030.
Followed by Asia Pacific, Western Europe, and North America are major Adipic Acid producers having similar capacity share which translates to a capacity of 760 thousand tons each in 2022. Invista, Ascend, BASF, Lanxess, and Radici Chimica are major Adipic Acid manufacturers in these regions.
As of 2022, BASF was one of the largest producers of Adipic acid with a total capacity to be more than 700 thousand tons. However, in February 2023, BASF announced the capacity reduction of their adipic acid plant at the Ludwigshafen plant in Germany owing to decreased profitability caused by high energy prices.
Countries like China, the USA, Germany, France, South Korea, and Brazil are major exporters in the Adipic Acid market. Whereas countries like Canada, Italy, Spain, Turkey, Japan, India, Taiwan, and ASEAN are major Adipic Acid importers. China is the largest net exporter with average net exports of 334 thousand tons from 2016 to 2022.
In 2022 the country exported the highest amount of Adipic Acid, which is 402 thousand tons. China, Germany, France, and the USA are major exporters, exporting more than 100 thousand tons per year. However, due to increased energy prices in European markets, European exports have slightly decreased in 2022 when compared to 2021 data. In Asia, followed by China, South Korea is a major exporter with average net exports of around 36 thousand tons. Brazil had marginal exports of 12 thousand tons from 2016 to 2022.
The global adipic acid market was 4.4 million tons in 2023 and is expected to grow to 6.3 million tons by 2032, with a CAGR of 4.7% from 2024 to 2032. the Asia Pacific holds the largest share of the Adipic Acid market. The demand in the region is primarily driven by the growing automotive and textile industry. China accounts for more than 50% of the regional market and also has a strong supply chain owing to its large domestic production capacity. The demand for Adipic Acid in China is increasing due to the increasing Automotive industry in the country. Adipic Acid is used as an intermediate for the production of polyamide which is further used in the manufacturing of automotive parts, seatbelts, airbags, etc.
The COVID-19 pandemic had a negative impact on the adipic acid market because of the shutdown of manufacturing units due to the nationwide lockdown. The demand for nylon products has decreased significantly, especially in the automotive industry. However, in the recovering market, the demand has already reached to pre-COVID levels. Owing to the high demand for drugs during the pandemic, the use of adipic acid in the pharmaceutical industry has increased. This has resulted in an increase in the adipic acid demand in the pharmaceutical industry.
Adipic Acid is most commonly used for the production of Polyamide fibers. Nylon is used in the production of various automotive parts including airbag systems, seat belts, and fuel lines. The increasing number of light and electric vehicles directly impacts engineering plastic consumption, which, in turn, is anticipated to drive the demand for adipic acid over the long term during the forecast period.
In the electronics industry, it is used for the production of cable ties, switch connectors, etc.
Adipic Acid is used as a pH adjuster in pharmaceutical formulations. It is also used as a stabilizer for vaccines which helps in improving the shelf life and efficiency.
Adipic Acid is also used to produce other polymers such as polyurethane, and polyester resin which are used in a variety of applications like coatings, adhesives, and composite materials.
Adipic acid is a commonly employed chemical in multiple industries. The strong growth in the automotive, electrical & electronics, and pharmaceutical end-use industries present in developing countries will have a positive impact on the growth of the Adipic Acid market.
Adipic acid is produced from benzene, which is derived from crude oil. Fluctuations in crude oil prices can significantly impact the cost of manufacturing Adipic Acid. The production of cyclohexane and benzene can have a negative impact on the environment which can lead to the rules and regulations being imposed which impact on cost of the product due to mandatory safety protocols. Fluctuations in raw material prices and environmental concerns over their use may increase the cost of the final product which acts as a restraint over the adipic acid market.
Dushanzi TianLi
China Henan Shenan
Jiangsu Bohui
Liaoyang Petrochemical
Shangdong Haili Chemicals
These companies play a significant role in the production and supply of Adipic Acid, which is used in various industries including textiles, automotive, and packaging.
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