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

The Adipic Acid Market is Segmented by Raw Material (Cyclohexanol and Cyclohexanone), End Product (Nylon 66 Fibers, Nylon 66 Engineering Resins, Polyurethanes, Adipate Esters, and Other End Products), Application (Plasticizers, Unsaturated Polyester Resins, Wet Paper Resins, Coatings, Synthetic Lubricants, Food Additives, and Other Applications), End-user Industry (Automotive, Electrical and Electronics, Textiles, Food and Beverages, Personal Care, Pharmaceutical, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle East & Africa). The report offers market size and forecasts for adipic acid in volume (kilo tons) for all the above segments.

Market Snapshot

Adipic Acid Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >3 %
Adipic Acid Market Key Players

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Market Overview

The Global Adipic Acid Market is projected to register a CAGR of more than 3% during the forecast period (2021-2026).

Asia-Pacific dominated the market across the globe, with the largest consumption from countries such as China, Japan, etc.es, and disruption in global supply chain networks, the manufacturing and automotive industries were severely hit as most of the production plants and industries were shut down. The decline in automotive sales globally, 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 the 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.

Scope of the Report

Adipic acid is a white, crystalline compound and is primarily used in the production of nylon 6,6. It is also used to produce polyurethanes as a reactant to form plasticizers, lubricant components, and polyester polyols. Feedstocks include benzene, cyclohexane, and ammonia. The adipic acid market is segmented by raw material, end product, application, end-user industry, and region. By raw material, the market is segmented into Cyclohexanol and Cyclohexanone. By end product, the market is segmented into Nylon 66 Fibers, Nylon 66 Engineering Resins, Polyurethanes, Adipate Esters, and Other End Products. By application, the market is segmented into Plasticizers, Unsaturated Polyester Resins, Wet Paper Resins, Coatings, Synthetic Lubricants, Food Additives, and Other Applications. By end-user industry, the market is segmented into Automotive, Electrical and Electronics, Textiles, Food and Beverage, Personal Care, Pharmaceuticals, and Other End-user Industries. The report also covers the market size and forecasts for the adipic acid market in 17 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kilo tons).

By Raw Material
Cyclohexanol
Cyclohexanone
By End Product
Nylon 66 Fibers
Nylon 66 Engineering Resins
Polyurethanes
Adipate Esters
Other End Products
By Application
Plasticizers
Unsaturated Polyester Resins
Wet Paper Resins
Coatings
Synthetic Lubricants
Food Additives
Other Applications
By End-user Industry
Automotive
Electrical and Electronics
Textiles
Food and Beverage
Personal Care
Pharmaceuticals
Other End-user Industries
Geography
Asia-Pacific
China
India
Japan
South Korea
ASEAN Countries
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Rest of North America
Europe
Germany
United Kingdom
Italy
France
Russia
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle East & Africa
Saudi Arabia
South Africa
Rest of Middle East & Africa

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Key Market Trends

Increasing Demand from the Automotive Industry

  • Adipic Acid is mainly used as a monomer in 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, 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's 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 6-8%.
  • 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 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.
Adipic Acid Market Key Trends

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 accounted for more than 42% of the world's 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 Mordor Intelligence, the domestic demand for polyurethane is more than 4,000 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 for 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 and electronics, aerospace and defense, and textile sectors in the country, the demand for adipic acid is expected to increase in the upcoming years.
Adipic Acid Market Growth by Region

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.

Recent Developments

  • In March 2020, DOMO Chemicals announced plans to invest EUR12 million in new state-of-the-art nylon (which includes nylon 66) plant in Zhejiang.
  • In January 2020, BASF closed the acquisition of Solvay’s polyamide (PA 6.6) business. This acquisition would allow BASF to provide better engineering plastics solutions, e.g., for autonomous driving and e-mobility. The transaction also enhances the company’s access to growth markets in Asia, as well as in North and South America. Through the backward integration into the key raw material adiponitrile (ADN), BASF will be present along the entire value chain for polyamide 6.6 and improve its supply reliability.
  • In July 2019, China National Chemical Engineering Group announced plans to build a 1 million-ton capacity nylon 66 factory to satisfy the increasing demand for synthetic polymers used in textiles and plastics.
  • In September 2018, INVISTA unveiled plans of adding 40,000 metric ton of nylon 6,6 polymer capacity at its current 150,000-ton polymer plant at the Shanghai Chemical Industry Park (SCIP).

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Use of Nylon 66 in the Automotive Industry

      2. 4.1.2 Growing Electronics Market in China and Japan

      3. 4.1.3 Rising Use in the Personal Care and Pharmaceutical Industry

    2. 4.2 Restraints

      1. 4.2.1 Stringent Environment Regulations Regarding Production Process

      2. 4.2.2 Impact of the COVID-19 Pandemic

      3. 4.2.3 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Technological Snapshot

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Raw Material

      1. 5.1.1 Cyclohexanol

      2. 5.1.2 Cyclohexanone

    2. 5.2 By End Product

      1. 5.2.1 Nylon 66 Fibers

      2. 5.2.2 Nylon 66 Engineering Resins

      3. 5.2.3 Polyurethanes

      4. 5.2.4 Adipate Esters

      5. 5.2.5 Other End Products

    3. 5.3 By Application

      1. 5.3.1 Plasticizers

      2. 5.3.2 Unsaturated Polyester Resins

      3. 5.3.3 Wet Paper Resins

      4. 5.3.4 Coatings

      5. 5.3.5 Synthetic Lubricants

      6. 5.3.6 Food Additives

      7. 5.3.7 Other Applications

    4. 5.4 By End-user Industry

      1. 5.4.1 Automotive

      2. 5.4.2 Electrical and Electronics

      3. 5.4.3 Textiles

      4. 5.4.4 Food and Beverage

      5. 5.4.5 Personal Care

      6. 5.4.6 Pharmaceuticals

      7. 5.4.7 Other End-user Industries

    5. 5.5 Geography

      1. 5.5.1 Asia-Pacific

        1. 5.5.1.1 China

        2. 5.5.1.2 India

        3. 5.5.1.3 Japan

        4. 5.5.1.4 South Korea

        5. 5.5.1.5 ASEAN Countries

        6. 5.5.1.6 Rest of Asia-Pacific

      2. 5.5.2 North America

        1. 5.5.2.1 United States

        2. 5.5.2.2 Canada

        3. 5.5.2.3 Mexico

        4. 5.5.2.4 Rest of North America

      3. 5.5.3 Europe

        1. 5.5.3.1 Germany

        2. 5.5.3.2 United Kingdom

        3. 5.5.3.3 Italy

        4. 5.5.3.4 France

        5. 5.5.3.5 Russia

        6. 5.5.3.6 Rest of Europe

      4. 5.5.4 South America

        1. 5.5.4.1 Brazil

        2. 5.5.4.2 Argentina

        3. 5.5.4.3 Rest of South America

      5. 5.5.5 Middle East & Africa

        1. 5.5.5.1 Saudi Arabia

        2. 5.5.5.2 South Africa

        3. 5.5.5.3 Rest of Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Asahi Kasei Corporation

      2. 6.4.2 Ascend Performance Materials

      3. 6.4.3 BASF SE

      4. 6.4.4 Domo Chemicals

      5. 6.4.5 HUAFENG GROUP 

      6. 6.4.6 INVISTA

      7. 6.4.7 LANXESS

      8. 6.4.8 Liaoyang Tianhua Chemical Co. Ltd

      9. 6.4.9 Radici Partecipazioni SpA

      10. 6.4.10 Shenma Industrial Co. Ltd

      11. 6.4.11 Sumitomo Chemical Co. Ltd

      12. 6.4.12 Shandong Haili Chemical Co. Ltd

      13. 6.4.13 Shandong Hongye Chemical Group Co. Ltd

      14. 6.4.14 Shandong Hualu-Hengsheng Chemical Co. Ltd

      15. 6.4.15 Tangshan Zhonghao Chemical Co. Ltd

      16. 6.4.16 Tian Li High & New Tech Co. Ltd

      17. 6.4.17 Yangmei Group Taiyuan New Chemical Materials Co.

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Rising Awareness of Bio-based Adipic Acid

    2. 7.2 Other Opportunities and Trends

**Subject to Availability

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Frequently Asked Questions

The Adipic Acid Market market is studied from 2016 - 2026.

The Adipic Acid Market is growing at a CAGR of >3% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Are the major companies operating in Adipic Acid Market.

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