Market Overview

Adipic Acid Market is projected to achieve a value of USD 4.96 Billion in 2023, with a linear behavior in the market growth it is forecasted to achieve a value of USD 7.87 Billion by 2033 with a CAGR of 3.8% during the forecast period 2024-2033.

Adipic acid, also known as hexanedioic acid, is a white, crystalline solid with the formula (CH2)4(COOH)2. It is a dicarboxylic acid, meaning it has two carboxylic acid groups (COOH) attached to a hydrocarbon chain. Adipic acid is a relatively simple organic compound, but it is very important in the production of a variety of materials, including nylon, polyurethane, and polyester.

Adipic acid is produced industrially by the oxidation of cyclohexane or cyclohexanol. The most common process involves the oxidation of a mixture of cyclohexane and cyclohexanol, known as KA oil, using nitric acid in the presence of a vanadium catalyst. The resulting adipic acid is then purified by crystallization.

Adipic acid is used primarily in the production of nylon, a type of synthetic polymer. Nylon is used in a wide variety of applications, including textiles, carpets, and engineering plastics. Adipic acid is also used in the production of polyurethane and polyester, which are used in a variety of applications, including foams, coatings, and adhesives.

Market Scope

Market Dynamics

The demand for adipic acid is closely tied to the production of nylon 6,6, as it is a key raw material in its synthesis. Therefore, the global demand for nylon, particularly in industries such as textiles and automotive, has a direct impact on the demand for adipic acid. Factors influencing the supply of raw materials for adipic acid production, such as cyclohexane, can also affect market dynamics.

The major end-user industries for adipic acid include the production of nylon fibers, textiles, and plastics. Economic conditions and trends in these industries, as well as innovations in product development, can influence the demand for adipic acid.

Increasing awareness of environmental issues and regulatory initiatives to promote sustainable practices can impact the adipic acid market. Biodegradability and eco-friendly production methods may become more critical factors in the market.

The cost of raw materials, particularly cyclohexane, which is a key precursor for adipic acid, can affect production costs and, consequently, market prices. Fluctuations in oil prices can also influence the cost of raw materials.

Geopolitical events, trade policies, and global economic conditions can influence the international trade of adipic acid and its raw materials, impacting market dynamics.

Innovations in adipic acid production processes, such as the development of more efficient and sustainable methods, can impact market competitiveness and influence industry dynamics.

The adipic acid market production process involves the use of various chemicals, and concerns about environmental impact and sustainability may restrain the market. Efforts to develop and adopt more environmentally friendly production methods may influence the industry.

The production of adipic acid relies on raw materials such as cyclohexane, which can be subject to price volatility. Fluctuations in the prices of these raw materials can impact the overall production cost and profitability of adipic acid manufacturers.

Market Application Analysis

The largest application for adipic acid is the production of nylon 66 fiber, which accounts for approximately 45% of the global adipic acid market. Nylon 66 fiber is a high-performance fiber that is known for its strength, durability, and resistance to abrasion. It is used in a wide range of applications, including clothing, carpets, and automotive components.

Nylon 66 resin is another major application for adipic acid, with a market share of approximately 30%. Nylon 66 resin is a type of engineering plastic that is used in a variety of industrial applications, such as automotive parts, electrical components, and packaging materials.

Polyurethane is a versatile material that is used in a wide range of applications, including foams, coatings, and adhesives. Adipic acid is used in the production of polyurethane foams, which account for approximately 15% of the global adipic acid market. Polyurethane foams are used in a variety of applications, such as furniture padding, insulation, and packaging.

Adipate esters are a group of chemicals that are used in a variety of applications, including plasticizers, lubricant additives, and polyester polyols. Adipate esters account for approximately 5% of the global adipic acid market.

Market End-User Analysis

Around 35% of the global adipic acid consumption is attributed to the automotive industry within adipic acid market. The demand for adipic acid in this sector is driven by the increasing production of automobiles, particularly in Asia-Pacific and developing countries. Adipic acid is used in various automotive applications, including airbags, tire cords, and engine parts.

The E&E industry accounts for approximately 25% of the global adipic acid market. The growing demand for consumer electronics and the advancements in electrical appliances are fueling the consumption of adipic acid in this sector. Adipic acid is used in the production of wire insulation, printed circuit boards, and other electronic components.

The home appliances industry holds a market share of around 15% in the global adipic acid market. The rising demand for household appliances, particularly in developing countries, is driving the consumption of adipic acid in this sector. Adipic acid is used in the production of refrigerators, washing machines, and other home appliances.

The textile and FMCG industries collectively contribute approximately 25% to the global adipic acid market. Adipic acid is used in the production of nylon fibers, which are used in clothing, carpets, and other textile products. It is also used in the production of polyurethane foams, which are used in various FMCG products, such as packaging materials and personal care products.

Market Regional Analysis

Asia Pacific is the largest shareholder in adipic acid market, accounting for approximately 50% of the global market. This is due to the strong growth of the automotive, E&E, and construction industries in the region. China is the largest producer and consumer of adipic acid in Asia Pacific.

Europe is the second largest market for adipic acid, with a market share of approximately 25%. The demand for adipic acid in Europe is driven by the automotive, E&E, and construction industries. Germany is the largest producer and consumer of adipic acid in Europe.

North America is the third largest market for adipic acid, with a market share of approximately 20%. The demand for adipic acid in North America is driven by the automotive, E&E, and construction industries. The United States is the largest producer and consumer of adipic acid in North America.

South America and the Middle East and Africa have relatively small markets for adipic acid. The demand for adipic acid in these regions is expected to grow in the coming years, driven by the growth of the automotive, E&E, and construction industries.

Competitive Analysis

The global adipic acid market is highly consolidated with a few major players dominating the industry. The top five adipic acid producers control over 70% of the global market share. These key players include, Radici Group, Asahi Kasei Corporation, Ascend Performance Materials, Lanxess AG and INVISTA.

Research Report Following Segments:

By Application

·         Nylon 66 Fiber

·         Nylon 66 Resin

·         Polyurethane

·         Adipate Esters

·         Others

By End-Use Industry

·         Automotive

·         Electrical & Electronics

·         Home Appliances

·         Textile

·         FMCG