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Adipic Acid Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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  • 120 Pages
  • April 2021
  • Region: Global
  • Mordor Intelligence
  • ID: 4514932
The Global Adipic Acid Market is projected to register a CAGR of more than 3% during the forecast period (2021-2026).

The Adipic acid market is hampered by the COVID-19 pandemic. Due to nationwide lockdowns, strict social distancing measures, and disruption in global supply chain networks, the manufacturing industry and automotive industry were severely hit as most of the production plants and industries were shut down. The decline in automotive sales around the globe from nearly 74 million units in 2019 to 64 million units in 2020 reduced the demand for adipic acid in the market. On the flip side, the pandemic has provided opportunities for the adipic acid market due to rise in demand for personal care and pharmaceutical products.
  • Over the medium term, the major factors driving the growth of the adipic acid market are the growing electronics market in China and Japan and increased use in the personal care and pharmaceutical industry, etc.
  • Stringent environment regulations regarding the production process are expected to hinder the growth of the market studied.
  • Rising awareness of bio-based adipic acid is likely to act as an opportunity in the forecast period.
  • Asia-Pacific dominated the market across the globe with the largest consumption from countries such as China, Japan, etc.

Key Market Trends

Increasing Demand from the Automotive Industry
  • Adipic Acid is mainly used as a monomer for the production of polyamide 6.6 pellets and other polyamides or polymers in Engineering Plastics and as Polyurethane for flexible and semi-rigid foams.
  • Nylon 66, which is manufactured from adipic acid, is used primarily for its superior mechanical, temperature resistant, and lightweight properties in the automotive industry. Also, Polyamide is used in the production of glass-reinforced plastics-based structural parts, air intake manifolds, engine covers, rocker valve covers, airbag containers, and various other interior and exterior automotive parts.
  • The increase in demand for lightweight engineering plastic is likely to drive the adipic acid market growth. Due to current environmental and economic concerns; automobile manufacturers are now incorporating more advanced plastic materials to reduce weight and make the vehicles more fuel-efficient. According to a recent study, every 10% reduction in vehicle weight reduces fuel usage by 6 to 8%.
  • The high absorption properties of plastics also allow the vehicle to meet stricter safety standards, while the use of polyamide such as nylon 6 and nylon 6,6 allows for minimization of the mass of parts used in vehicles as they offer more design freedom compared to metals. Currently, there are about 30,000 parts in a vehicle, out of which 1/3 are made of plastic. In total, about 39 different types of basic plastics and polymers are used to make an automobile.
  • Due to the global economic slowdown after 2018, automobile production has witnessed a declining trend. Vehicle production has witnessed a decline of 5.2% in 2019 and 15.8% in 2020. The trend is expected to continue and negatively affect the market in the coming few years.
  • By 2030, globally, the number of light vehicles is expected to rise to about 1.6 billion, with an estimated 18% of the fleet (290 million cars) being electric. The increasing production and sales of light-duty vehicles are estimated to directly impact engineering plastic consumption, which, in turn, is anticipated to drive the demand for adipic acid over the long term during the forecast period.
  • The above-mentioned factors are expected to contribute to the growth of the adipic acid market in the automotive segment during the forecast period.

China to Dominate the Market in the Asia-Pacific Region
  • China is the world’s largest producer of adipic acid, with almost half of the global production capacity. The country is also one of the major consumers of the market studied. The domestic demand for adipic acid has been propelling the burgeoning local production of nylon 6,6.
  • Also, China is the single-largest plastic manufacturer in the world, which accounts for more than 42% of world consumption of plasticizers in 2019. This dominant position of the country in the plasticizer market catalyzed the market demand for adipic acid in plasticizer applications of the country.
  • Globally, China has the largest defense spending in the world, after the United States. The country is planning to boost its military spending with the aim to further advance its armed forces.
  • Furthermore, Electronic products, such as smartphones, OLED TVs, tablets, etc., have the highest growth in the market in the consumer electronics segment. The demand for electronic products is projected to grow in the near future, thereby driving the adipic acid market.
  • China's polyurethane output and consumption quantity have both experienced a steady increase in recent years. According to the publisher, the domestic demand for polyurethane is more than 4000 kilo metric ton in 2019, a YoY growth of 5.1% from 2018. The healthy growth rates of the polyurethane industry are expected to promote the market demand of adipic acid in polyurethane applications of the country over the forecast period.
  • The textile industry in China is also booming with increasing investments and government support from the 13th Five-year Plan.
  • Hence, with growth in the electrical & electronics, aerospace & defense, and textile sectors in the country, the demand for adipic acid is expected to increase in the upcoming years

Competitive Landscape

The adipic acid market is fragmented. The major companies include Asahi Kasei Corporation, BASF SE, LANXESS, Domo Chemicals, and, Sumitomo Chemical Co., Ltd. among others.

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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Drivers
4.1.1 Increasing Use of Nylon 66 in the Automotive Industry
4.1.2 Growing Electronics Market in China and Japan
4.1.3 Rising Use in Personal Care and Pharmaceutical Industry
4.2 Restraints
4.2.1 Stringent Environment Regulations Regarding Production Process
4.2.2 Impact of COVID-19 Pandemic
4.2.3 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
4.5 Technological Snapshot
5.1 By Raw Material
5.1.1 Cyclohexanol
5.1.2 Cyclohexanone
5.2 By End Product
5.2.1 Nylon 66 Fibers
5.2.2 Nylon 66 Engineering Resins
5.2.3 Polyurethanes
5.2.4 Adipate Esters
5.2.5 Other End Products
5.3 By Application
5.3.1 Plasticizers
5.3.2 Unsaturated Polyester Resins
5.3.3 Wet Paper Resins
5.3.4 Coatings
5.3.5 Synthetic Lubricants
5.3.6 Food Additives
5.3.7 Other Applications
5.4 By End-user Industry
5.4.1 Automotive
5.4.2 Electrical and Electronics
5.4.3 Textiles
5.4.4 Food and Beverages
5.4.5 Personal Care
5.4.6 Pharmaceutical
5.4.7 Other End-user Industries
5.5 Geography
5.5.1 Asia-Pacific China India Japan South Korea ASEAN Countries Rest of Asia-Pacific
5.5.2 North America United States Canada Mexico Rest of North America
5.5.3 Europe Germany United Kingdom Italy France Russia Rest of Europe
5.5.4 South America Brazil Argentina Rest of South America
5.5.5 Middle-East and Africa Saudi Arabia South Africa Rest of Middle-East and Africa
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share Analysis**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Asahi Kasei Corporation
6.4.2 Ascend Performance Materials
6.4.3 BASF SE
6.4.4 Domo Chemicals
6.4.8 Liaoyang Tianhua Chemical Co. Ltd
6.4.9 Radici Partecipazioni SpA
6.4.10 Shenma Industrial Co. Ltd
6.4.11 Sumitomo Chemical Co. Ltd
6.4.12 Shandong Haili Chemical Co. Ltd
6.4.13 Shandong Hongye Chemical Group Co. Ltd
6.4.14 Shandong Hualu-Hengsheng Chemical Co. Ltd
6.4.15 Tangshan Zhonghao Chemical Co. Ltd
6.4.16 Tian Li High & New Tech Co. Ltd
6.4.17 Yangmei Group Taiyuan New Chemical Materials Co.
7.1 Rising Awareness of Bio-based Adipic Acid
7.2 Others

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Asahi Kasei Corporation
  • Ascend Performance Materials
  • Domo Chemicals
  • Liaoyang Tianhua Chemical Co. Ltd
  • Radici Partecipazioni SpA
  • Shenma Industrial Co. Ltd
  • Sumitomo Chemical Co. Ltd
  • Shandong Haili Chemical Co. Ltd
  • Shandong Hongye Chemical Group Co. Ltd
  • Shandong Hualu-Hengsheng Chemical Co. Ltd
  • Tangshan Zhonghao Chemical Co. Ltd
  • Tian Li High & New Tech Co. Ltd
  • Yangmei Group Taiyuan New Chemical Materials Co.