Adipic Acid Market Overview
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, pharmaceutical and food additives, will further drive the Adipic Acid demand in the forecast period.
Introduction
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 which is reacted with hexamethylene diamine (HMDA) to produce polyamide 66 fibres 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 fibres, polyamide 6,6 engineering plastics & films, plasticizers, polyurethanes, pharmaceuticals, food additives and others.
Global Adipic Acid Demand Supply Analysis, 2016-2032 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Adipic Acid Application Overview
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. Incorporation of Polyamide 66 help in reducing the weight of the cars without hampering the quality of parts, which lowers downs the CO2 emissions and improves the fuel efficiency of vehicles.
Global Adipic Acid Capacity, By Company - 2022 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Adipic Acid Capacity Overview
In 2022, the global Adipic Acid capacity stood at 5153 kilo tons and is anticipated to cross 7700 kilo tons by 2032. Almost all the major capacity addition are expected to occur in China with few debottlenecks in Europe and America. In 2022, China is estimated to have total Adipic Acid capacity of over 3100 kilo tons which have 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 Chongquig Huafeng Chemicals Co. Ltd have planned to add Adipic Acid capacity during in the coming years. New players such Inner Mongolia Junzheng Chemical, Gu Leishi Hua and Hengli Petrochemical have also planned to add Adipic Acid capacity of 300 to 400 kilo 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 kilo 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 total capacity to be more than 700 kilo 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.
Adipic Acid Trade Overview
Countries like China, USA, Germany, France, South Korea, and Brazil are major exporters in 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 kilo tons from 2016 to 2022. In 2022 the country exported highest amount of Adipic Acid, which is 402 kilo tons. Followed by China, Germany, France, and USA are major exporters, exporting more than 100 kilo tons per year. However due to increased energy prices in European markets, the European exports have slightly decreased in 2022 when compared to 2021 data. In Asia, followed by China, South Korea is major exporter with average net exports around 36 kilo tons. Brazil had marginal exports of 12 kilo tons during 2016 to 2022.
Adipic Acid Demand Overview
Asia Pacific holds the largest share in 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 strong supply chain owing to 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.
Global Adipic Acid Demand, By Region - 2022 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
The COVID-19 pandemic had a negative impact on the adipic acid market because of the shutdown of manufacturing units due to the nation-wide lockdown. The demand for nylon products has decreased significantly especially from the automotive industry. However in the recovering market the demand has already reach to pre COVID levels. Owing to the high demand for drugs during the pandemic, the use of adipic acid in the pharmaceutical industry had increased. This has resulted in an increase in the adipic acid demand in pharmaceutical industry.
Adipic Acid Market Dynamic
Adipic Acid Market Driver: Growing Adipic Acid demand from various end use industries
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, switches and 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, polyester resin which are used in a variety of applications like coatings, adhesives and composite materials.
Adipic acid is commonly employed chemical in multiple industry. The strong growth in automotive, electrical & electronics and pharmaceutical end use industry present in developing countries will have positive impact on growth of Adipic Acid market.
Adipic Acid Market Restrains: Fluctuation in the crude oil prices will hinder the market growth.
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 product due mandatory safety protocols. Fluctuation in raw material prices and environmental concerns over their use may increase the cost of final product which acts as restrain over adipic acid market.
Key Market Players in Adipic Acid Market
BASF SE, Ascend (formerly Solutia), INVISTA (wholly owned subsidiary of KOCH), Dushanzi TianLi, China Henan Shenan, Jiangsu Bohui, Liaoyang Petrochemica, Shangdong Haili Chemicals, Asahi Kasei, Sumitomo Chemicals are some of the key manufacturers of Adipic Acid globally.
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