DIMER ACIDS MARKET ANALYSIS

The Dimer acid market size is expected to reach US$ 4.21 Bn by 2031, from US$ 2.70 Bn in 2023, exhibiting a CAGR of 5.7% during the forecast period.

Dimer acid is a chemical compound with chemical formula C36H68O4. It is a light yellow, transparent liquid and is widely used to produce hot-melt adhesives and polyamide resins. Dimer acid is also referred to as dimerized fatty acids and is composed of unsaturated fatty acids that are produced from oleic acid, canola oil, and tall oil. Dimer acid is also used in the production of adhesives, surfactants, fuel oil additives, alkyd resins, and lubricants. It is non-toxic in nature and can be used in the production of reactive and non-reactive polyamides for epoxy resins, corrosion inhibitors, polyol esters, personal care products, and oil field drilling muds.

Also, dimer acid is frequently employed in the synthesis of polyamide resins. Therefore, there are two types of polyamide resins: reactive polyamide and non-reactive polyamide. Conversely, non-reactive polyamide finds extensive applications in the manufacturing of hot-melt adhesives and printing inks. In addition, dimer acid is widely utilized as a demulsifier, wetting agent, corrosion and scale inhibitor, and surfactant in oilfield applications.

Dimer Acids Based Market Regional Insights:

• Asia Pacific held the largest market for dimer acid, accounting for over 35.3% of the market share in 2023, due to the growing production of shale gas and crude oil extraction, along with growing construction spending in this region.
• North America held the second-largest share and accounted for 30% of the market share in 2023. The expansion of the packaging sector in the region is expected to drive the demand for adhesives and paints, consequently increasing the demand for dimer acid.
• Latin America held the third-largest share and accounting for 15% of the market share, due to the increasing demand from the construction industry for surface coatings, sealants, paints, hot melt adhesives, and normal adhesives.

Figure 1. Dimer Acids Based Market Share (%), by Region, 2023

To learn more about this report, Request sample copy

Analyst Viewpoint:

The dimer acid market is expected to see steady growth in the coming years due to increased consumption in the construction and transportation industries. The resin ester segment currently dominates the market, and its demand is driven by growing adhesive and coating applications globally. The Asia Pacific region, led by China, will continue to be the major revenue generator owing to booming construction activities. Other driving factors include the rising fiber industry and a growing preference for dimer acid-based polyamide resins in manufacturing plastic parts for electric vehicles. Stringent environmental regulations around the world regarding volatile organic compounds (VOCs) emissions may negatively impact the solvent-based adhesive demand. Substitution threats from emerging bio-based alternatives can also impede market expansion. However, increasing Research & Development (R&D) towards developing bio-sourcing methods to produce dimer acid is anticipated to create new opportunities in the future. High production costs associated with Chinese manufacturers are encouraging western companies to either set up their own production facilities or seek reliable supply agreements. North America and Europe are relatively mature regions where innovation and the development of specialty products that will fuel future growth.

Dimer Acids  Based Market Drivers:

• Rise in infrastructure development activities: The infrastructure sector across the world has been booming in recent years, with many countries focusing on improving transportation, housing, and energy infrastructure. Dimer acid plays a key role in the production of construction adhesives, paints, and coatings, which see extensive use in infrastructure projects. The future also looks promising for dimer acid, driven by sustained infrastructure expansion. Many countries have outlined massive infrastructure development plans over the next 5-10 years under initiatives like the National Infrastructure Pipeline in India, InfraCo Africa project, and Belt and Road Initiative led by China. These projects involve investments running into hundreds of billions of dollars, covering roads, railways, ports, airports, power plants, and urban development. The implementation of these infrastructure ventures will fuel concrete and construction outputs globally, which is driving the requirements for dimer acid from industries. In addition, rising spending on public housing, renewable energy plants, and telecom towers also boosts the demand prospects of end-use products. For instance, as per data estimates from the Builders Association of India suggest that infrastructure segment in India will require over 250 million liters of protective coatings annually by 2025, driven by the government's 100 smart city project and high-speed railway expansion plan.
• Increasing demand for polyamide resins: The demand for polyamide resins has been rising significantly over the past few years across various industries, such as coatings, adhesives, and engineering plastics. Polyamide resins find wide usage in these applications due to properties like abrasion resistance, toughness, and mechanical strength. Dimer acid is a key raw material that is used in the production of polyamide resins. It acts as a molecular bridge between polymer chains and improves the resin's performance. With the rising consumption of polyamide resins, the demand for dimer acid from resin manufacturers has also increased substantially. For instance, according to statistics from the United Nations Industrial Development Organization (UNIDO), the global production of engineering plastics grew by over 7% annually during 2017-2020, driven by its usage in the automotive, electronics, and construction industries.

Dimer Acids Based Market Opportunities:

• Emerging applications of dimer acid in coatings, printing inks, and lubricants: Emerging applications of dimer acid in various industries present a huge opportunity for the dimer acid market to grow significantly in the coming years. Dimer acids, which are dimerized fatty acids, have been traditionally used in the production of resins for adhesives and coatings. However, more innovative applications are being discovered now that can potentially open up new avenues of growth. Dimer acids are now increasingly finding applications in printing inks due to their unique combination of properties like flexibility, adhesion, and corrosion resistance. Major printing ink manufacturers have started formulating dimer acid resins and additives into their product offerings to cater to the modern printing needs of various end-use sectors like packaging, publications, etc. This has widened the addressable market for dimer acid producers. Similarly, the lubricant industry has also observed the benefits of using dimer acids in greases, owing to characteristics like good thermal stability and low volatility. Leading lubricant brands are shifting toward dimer acid based lubricating formulations, especially for automotive and industrial grease applications.
• Growing demand from developing nations: The growing demand from developing nations could provide a major opportunity for the dimer acid market. Countries such as China, India, Brazil, Indonesia, and others in Asia Pacific and Latin America are experiencing rapid economic and industrial growth. As incomes rise in these emerging economies, demand for consumer and industrial goods is increasing tremendously. This includes various end-use industries of dimer acid, such as adhesives, coatings, oilfield chemicals, and others. Dimer acid based resins and alkyd polymers are important ingredients used in manufacturing various paints, structural adhesives, and other coatings. As construction and infrastructure development activities are expanding in developing markets, it is leading to a higher demand for robust adhesives, paints, and other surface coatings. This applies to both residential and commercial construction segments. Dimer acid plays a critical role in enhancing the strength, durability, and moisture resistance of many coating formulations.

Dimer Acids Based Market Trends:

Increasing R&D investment for new applications: The dimer acid market is witnessing significant changes driven by expanding research and development into new product applications. Dimer acid, a sustainable building block derived from natural fatty acids, is being extensively studied and trialed for its potential in diverse industries. This shift is a result of major chemical companies aggressively pumping resources into application development over the past 3 years.

The effect is already visible on demand patterns. Traditionally used mainly in reactive adhesives and industrial finishes, dimer acid is seeing burgeoning demand from new application segments such as medical devices, pharmaceutical excipients, and additive manufacturing materials. Sectors like 3D printing that rely on advanced biomaterials are actively exploring dimer acid for high-performance resin formulations. For instance, according to Unilever's official sources, the company spent US$ 77.28 million on R&D in 2022.

Shifting of production facilities towards Asia Pacific by key players: The shifting of production facilities of key players towards the Asia Pacific region has significantly impacted the dimer acid market in recent years. Many major manufacturers have set up or expanded their existing production plants across Asian countries like China, India, Indonesia, and Malaysia to capitalize on the strategic advantages offered by these emerging economies. This move allows companies to reduce production costs substantially through lower labor and raw material costs. Setting up plants near growing demand centers in Asia Pacific also helps minimize transportation and logistics expenses of supplying products to fast-expanding end-use industries within the region.

Dimer Acids Based Market Restraints:

• Fluctuations in crude oil prices: The volatility in crude oil prices has emerged as a major challenge for the dimer acid based product market. Dimer acid, which is primarily used in polymer and adhesive industries, is derived from natural fatty acids found in soybean and rapeseed oils. Hence, fluctuations in crude oil prices have a direct impact on the upstream raw material costs for dimer acid production. In the past few years, the crude oil market has witnessed significant unpredictability, with prices fluctuating substantially due to geopolitical tensions, supply disruptions, changing demand patterns, etc. For instance, as per data published by the International Energy Agency in 2022, the average crude oil price increased nearly 50% to US$80 per barrel in 2021 from US$53 in 2020.
• Counter balance: Develop the capability to adjust product formulations based on the availability and cost of various raw materials, enabling the use of alternative inputs when crude oil prices are high.
• Stringent environment regulations: Stringent environment regulations regarding emissions levels and usage of toxic chemicals are posing a major challenge for the growth of dimer acid market. Dimer acid, which is a major component used in resin production, is derived from tall oil fatty acids obtained from pine trees. The refining process to extract and convert tall oil fatty acids into dimer acid emits volatile organic compounds (VOCs), which are harmful air pollutants. Many countries and regions across the globe have been tightening their environmental standards and emission limits on VOCs over the past few years. For example, according to the data from the European Environment Agency's annual emission inventory report published in 2021, the European Union (EU) has reduced its total VOC emissions by over 75% since 1990 levels through various policy measures and regulations. Similarly, the U.S. Environmental Protection Agency (EPA) has also made the emission standards more stringent over time under its Clean Air Act. It has progressively lowered the maximum allowed VOC content in various products.
• Counter balance: Invest in research and development to create more environmentally friendly dimer acid products, such as bio-based or renewable raw material sources.

Figure 2. Dimer Acids Based Market Share (%), by Application , 2023

To learn more about this report, Request sample copy

Recent Developments

In 2021, Jarchem Industries Inc. introduced a new series of dimer acid-derived items named Jarchem Dimers. These items serve as high-performance intermediates for various applications like adhesives, coatings, and lubricants.

Jarchem Industries Inc. is the leading manufacturer and supplier of unique specialty chemicals and natural materials. The company specializes in three business units: personal care, food and beverage, and industrial. Founded in 1978, Jarchem Industries Inc. is an ISO 9001:2015 certified manufacturing and marketing company located in the U.S. The company's goal is to provide high-quality products and services to its customers. Jarchem Industries Inc. is committed to the professional production of various kinds of preparation of raw materials, including dimer acid-derived items. The company's products are used in various applications such as adhesives, coatings, and lubricants.

In 2020, Shandong Huijin Chemical Co., Ltd. unveiled a fresh line of dimer acid-derived products under the name Huijin Dimer Acid. These goods are employed as primary materials in the manufacturing of polyamide resins, polyamide hot melt adhesives, and epoxy curing agents.

Shandong Huijin Chemical Co., Ltd. is a chemical manufacturing company based in China. The company was established in 2006 and specializes in the production of dimer acid, polyamide resin, polyamide hot-melt adhesive, and epoxy curing agents.

Shandong Huijin Chemical Co., Ltd. has three subsidiaries, including Shandong Huijin Chemical Co., Ltd. (Hong Kong), Shandong Huijin Chemical Co., Ltd. (Taiwan), and Shandong Huijin Chemical Co., Ltd. (Shanghai). The company is committed to providing high-quality products and services to its customers and is one of the leading manufacturers of dimer acid and related products.

Mergers and Acquisition

• In February 2023, Croda International Plc acquired a global leader in premium, biotechnology-derived beauty actives, Solus Biotech. The acquisition provides Croda International Plc access to Solus Biotech's existing biotech-derived ceramide and phospholipid technologies and its emerging capabilities in natural retinol.
• Croda International Plc is a U.K.-based specialty chemicals company based in Snaith, U.K. It is listed on the London Stock Exchange. The company was founded in 1925 by George William Crowe and Henry James Dawe. Croda International Plc operates through three segments: consumer care, life sciences, and performance technologies. The company's products include surfactants, emulsifiers, and bio-based phase change materials. Croda International Plc has a significant presence in North America, with manufacturing sites, innovation centers, and sales hubs in the region. The company is committed to sustainability and has joined the World Business Council for Sustainable Development.

Top Companies in the Dimer Acids Based market.

• BASF SE
• Croda International Plc.,
• Arizona Chemical Company
• LLC Dimer
• Oleon NV
• Shandong Huijin Chemical Co. Ltd.,
• Liancheng Baixin Science and Technology Co. Ltd.,
• Jiangsu Jinma Oil Technology Development Co., Ltd.
• Jiangsu Yonglin Oleochemical Co., Ltd.

*Definition: Dimer acid, also known as dimerized fatty acid, is a dicarboxylic acid prepared by dimerizing unsaturated fatty acids obtained from tall oil, usually on clay catalyst. It is a light yellow or yellow viscous transparent liquid. Dimer acid has unique high-performance characteristics that enhance chemical properties of polymer polyamides and epoxies. Dimer acid-based products find applications across various industries including paints & coatings, adhesives, oilfield chemicals, and others. The market for dimer acid is expected to grow due to increasing demand from end-use sectors such as paints and coatings, adhesives, and oilfield chemicals.  The market is also poised for expansion due to the growing use of dimer acid in specialized products, such as plasticizers and personal care items.