Adipic Acid Market Size & Share, By Application (Nylon 6, 6 Fiber, Nylon 6, 6 Resin, Polyurethane, Adipate Esters), Region (North America, Europe, Asia Pacific), And Segment Forecasts, 2023 - 2030

Market Outlook:

Adipic Acid Market size surpassed USD 4.64 billion in 2022 and is poised to reach USD 7.22 billion, growing at over 4.3% CAGR between 2023 and 2030. Adipic acid, a dicarboxylic acid, is primarily used as a raw material in the production of nylon 6,6, which finds extensive usage in various industries such as automotive, consumer goods, textiles, packaging, and electrical appliances. The increasing demand for nylon 6,6, coupled with the growing industrialization and urbanization worldwide, are key factors driving the adipic acid market.

• Base Year Value (2022): USD 4.64 billion
• CAGR (2023-2030): 4.3%
• Forecast Year Value (2030): USD 7.22 Billion
• Historical Data Period: 2018-2021
• Largest Region: North America
• Forecast Period: 2023-2030

Market Dynamics:

Growth Drivers & Opportunities:

1. Growing demand for nylon 6,6: The textile and automotive industries are major drivers for the demand of nylon 6,6, which directly impacts the demand for adipic acid. The increasing population, rising disposable incomes, and changing consumer preferences for high-quality clothing and durable automobiles are supporting the growth of these industries.

2. Increasing adoption in packaging industry: Adipic acid is widely used as a raw material for the production of polyethylene terephthalate (PET) resin, which is extensively utilized in the packaging industry. The rising demand for packaged food and beverages, driven by changing lifestyles and convenience, is propelling the growth of the adipic acid market.

3. Technological advancements: Advancements in manufacturing technologies have led to improved production methods for adipic acid. The development of environmentally-friendly and energy-efficient production processes has not only reduced the overall manufacturing costs but has also minimized the environmental impact, fostering market growth.

 

Industry Restraints & Challenges:

Report Scope

Report Coverage	Details
Segments Covered	Application, Region
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	Ascend Performance Materials, Asahi Kasei, BASF SE, INVISTA, LANXESS, Liaoyang Tianhua Chemical Co., Radici Partecipazioni S.p.A., Solvay, Sumitomo Chemical, DOMO Chemicals

1. Fluctuating raw material prices: Adipic acid production relies heavily on raw materials such as cyclohexane and nitric acid. Fluctuation in the prices of these raw materials can impact the overall cost of adipic acid production, leading to market volatility.

2. Environmental concerns: The adipic acid production process generates significant amounts of greenhouse gases and waste streams. Stringent regulations and growing environmental concerns regarding carbon emissions pose challenges for market growth. However, the industry is actively engaging in research and development activities to develop sustainable production techniques and reduce the carbon footprint.

3. Competition from substitutes: Adipic acid faces competition from alternative dicarboxylic acids such as terephthalic acid and sebacic acid. The availability of substitutes, which offer similar properties, may inhibit the growth of the adipic acid market.

Despite these challenges, the adipic acid market is expected to witness steady growth due to the increasing demand from end-use industries. The market players are focusing on collaborations, strategic partnerships, and technological advancements to gain a competitive edge. Additionally, the expansion of production capacities in emerging economies is further expected to drive market growth.

Regional Forecast:

North America:

The North America adipic acid market is expected to witness substantial growth in the forecast period. This can be attributed to the growing demand for adipic acid in various end-use industries such as automotive, textile, and packaging. Moreover, the presence of key market players and continuous investments in research and development activities to enhance product quality and cost-effectiveness further drive market growth in this region.

Asia Pacific:

The Asia Pacific region is anticipated to dominate the adipic acid market during the forecast period. Rapid industrialization and urbanization, particularly in emerging economies like China and India, are fueling the demand for adipic acid in various applications. Additionally, favorable government initiatives and increasing investments in the automotive and construction sectors are expected to propel market growth in this region.

Europe:

The Europe adipic acid market is projected to experience significant growth owing to the presence of a well-established automotive industry and increasing consumer preference for lightweight vehicles. Adipic acid is widely used in the production of nylon 6,6, which finds extensive utilization in the automotive sector. The region's stringent environment regulations and rising awareness regarding sustainable and eco-friendly products further contribute to market growth.

Segmentation Analysis:

Nylon 6,6

Nylon 6,6 is an important sub-segment of the adipic acid market. It is extensively used across various industries, including automotive, textiles, and consumer goods. Due to its exceptional strength, durability, and resistance to chemicals, nylon 6,6 has gained significant popularity. The growing demand for lightweight vehicles and technological advancements in the automotive sector are major factors driving the adoption of nylon 6,6. Additionally, the expanding textile industry and the increasing demand for high-performance fibers further contribute to the growth of this sub-segment.

Competitive Landscape:

In the competitive landscape of the adipic acid market, several key players are actively contributing to market growth and competition. These include:

1. BASF SE

2. Ascend Performance Materials LLC

3. Lanxess AG

4. Invista

5. Asahi Kasei Chemicals Corporation

These companies focus on strategic collaborations, mergers and acquisitions, and continuous product innovation to strengthen their market position. They also invest in expanding their production capacities and developing advanced manufacturing processes to meet the growing demand for adipic acid globally. Furthermore, these players emphasize sustainable practices, such as adopting eco-friendly manufacturing processes and utilizing renewable raw materials, to align with evolving consumer preferences and stringent environmental regulations.