Global Synthetic & Bio-based Adipic Acid Market was valued at US$ 9.79 Bn in 2022, exhibiting a CAGR of 5.5% in terms of revenue, over the forecast period (2023 to 2030) to reach US$ 15.04 Bn by 2030. Adipic acid is a chemical compound that appears white crystalline organic acid that contains six carbon atoms and two carboxylate groups. It is mainly used as a key raw material for the manufacturing of nylon 6.6. Automotive, medical, food, packaging & consumer goods, construction, electrical & electronics, and furniture are some of the major end-user of adipic acid.
Driver
Growth in the construction industry
Growth in the construction industry is expected to propel the market growth of adipic acid. Growing demand for building products such as insulation materials, exterior panels, and housing electronics is again projected to augment market growth. Adipic acid is widely used to produce engineering polymers such as polyurethanes, these polymers are broadly used in the manufacturing of building components. Hence the growth in the construction industry is expected to foster the market growth of synthetic and bio-based adipic acid.
Market Opportunities
Growth in the textile industry
Growth in the textile industry especially across the Asia Pacific region is projected to offer profitable market opportunities in the near future. The growing demand for sports shoes and apparel due to the increasing number of people participating in sports activities is expected to spur the market growth of adipic acid. Also, growth in the sports industry is another major factor augmenting the demand for nylon which in turn accelerates the market growth of Global Synthetic & Bio-based Adipic Acid Market.
Market Restraints
The increasing price of raw materials
The increasing price of raw materials such as cyclohexane due to the fluctuating price of benzene and crude oil is projected to hamper the market growth. Hence, the rising price of cyclohexane ultimately increases the price of adipic acid which in turn restrict the market growth of the synthetic and bio-based adipic acid.
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Key Takeaways:
On the basis of application the nylon 6, 6 fiber segment dominated the global synthetic and bio-based adipic acid market in 2019, accounting for 58.3% share in terms of volume, followed by the nylon 6, 6 resin and polyurethanes segment respectively.
Market Trends
Mergers and acquisitions by major players for expanding their business
Mergers and acquisitions by major players for expanding their business presence is a key trend in the market and this is expected to propel the market growth. For instance, in January 2020, BASF closed the acquisition of Solvay’s polyamide (PA 6.6) business. This allows BASF to support its customers with even 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.
Rapidly expanding
Rapidly expanding packaging industry due to the growing trend of online shopping around the globe is expected to foster market growth. Polymers such as polyurethane produced from adipic acid are widely used in the production of packaging materials such as rigid packaging. In addition to the growing demand for packaged food due to the changing lifestyle of the consumer is again anticipated to augment the market growth of synthetic and bio-based adipic acid.
