Adipic Acid Market

The global Adipic Acid Market is valued at USD 5100 Million in 2023 and is projected to reach a value of USD 7650 Million by 2032 at a CAGR (Compound Annual Growth Rate) of 4.6% between 2024 and 2032. The Adipic Acid market is driven by increasing demand for nylon 6,6 in automotive and textile industries, coupled with growth in the construction sector.

Key Highlights

• Asia Pacific dominated the market in 2023, with 41.2% market share, driven by rapid industrialization, expanding manufacturing capabilities, and increasing demand from the automotive and textile sectors
• The Nylon 6,6 Fiber segment accounted for the largest share, i.e., 53.5% in 2023 due to its extensive use in automotive, textile, and industrial applications along with rising applications in high-performance materials
• Based on End-use, the Automotive segment dominated the market in 2023, with 39.4% of the market share, driven by the increasing demand for lightweight and high-performance materials in vehicle manufacturing
• Companies are exploring bio-based alternatives and developing processes to produce Adipic Acid from renewable resources, reducing reliance on petrochemical feedstocks

Application Overview

Based on Application, the global market is segmented into Nylon 6,6 Fiber, Nylon 6,6 Resin, Polyurethane, Adipate Esters, and Others. In 2023, the Nylon 6,6 Fiber segment dominated the global market with 53.5% of revenue share.

The Nylon 6,6 Fiber application segment’s dominance is attributed to its increasing use as a metal substitute in automotive, electrical, and electronic products. Nylon 6,6 fiber is extensively utilized in engineering components such as gears, nuts, bolts, bearings, powder tool casings, rivets, wheels, and rocker box cover. Its key properties—moisture and mildew resistance, high melting temperature, exceptional durability, & enhanced strength are expected to drive its continued application across various industries in the coming years.

Polyurethane also exhibits stable growth potential, driven by its use in multiple end-use industries. Its lightweight nature and high abrasion resistance make it ideal for durable shoe soles, particularly in sports & trekking footwear. Additionally, polyurethane is utilized in high-quality safety shoes and as an insulating material in the building & construction industry. The expanding range of polyurethane applications is anticipated to boost its global demand in the future.

Regional Overview

Asia Pacific dominated the global market in 2023, with a revenue share of 41.2%. This dominance is attributed to the increasing consumption of polyurethane across key industries such as automotive, construction, & electronics. The region's growth is further propelled by the rising construction expenditures driven by sustainable infrastructure development. According to Oxford Economics, the US, India, and China together account for approximately 58% of global growth in the construction sector, with China contributing about 26.1% in 2020. Additionally, India is projected to experience the highest growth rate of around 9.8% in infrastructure construction from 2020 to 2030.

In Asia Pacific, the expansion of production capacities by several companies has increased the demand for Adipic Acid. Notably, in August 2022, Toray Industries, Inc. in Tokyo unveiled the world’s first 100% bio-based Adipic Acid, produced from sugars derived from non-edible biomass. This achievement was made possible through a combination of the company’s microbial fermentation technology and advanced chemical purification techniques, utilizing separation membranes.

In the China market, prices surged in January 2022 due to high raw material costs and strong demand from both importing countries and the polyamide industry. However, by February and March 2022, prices stabilized as demand remained steady and supply was adequate. In India, prices also rose sharply in January 2022, driven by limited supply from China caused by port congestion. Prices in India stabilized by the end of February, though demand from the textile industry remained strong in March. In May 2022, Adipic Acid prices fell across Asia, influenced by reduced demand from importing countries and a significant drop in downstream consumption, particularly from the Nylon 6,6 sector. This led to increased inventories and a decline in market sentiment.

North America region is driven by increased use of nylon 6,6 fiber in the automotive sector in the US and Canada. The preference for personal vehicles over public transportation in these countries, combined with robust economic stability and higher individual purchasing power in the US, Canada, and Mexico, has boosted the automobile demand.

Key Trends

1. Sustainability and Environmental Regulations: Increasing environmental regulations and a growing emphasis on sustainability are driving the adoption of eco-friendly practices in Adipic Acid production. Companies are investing in technologies and processes that reduce carbon footprints and improve sustainability, such as ISCC+ certifications & nitrous oxide (N₂O) abatement technologies.
2. Growth in End-Use Industries: The demand is rising due to its widespread use in various end-use industries, particularly in the automotive, textile, & consumer goods sectors. The expansion of these industries, especially the automotive industry's push for lightweight and durable materials, is boosting the market demand.
3. Technological Advancements: Innovations in production technologies, including the development of more efficient and sustainable production methods, are influencing the market. Advances such as chemical recycling processes for polyamide 66 (PA66) and improvements in catalyst technologies are enhancing production efficiency and reducing costs.
4. Rising Raw Material Costs: Fluctuations in the prices of raw materials used in Adipic Acid production, such as benzene and cyclohexane, are impacting the market. Companies are adapting to these cost variations by optimizing production processes and seeking alternative raw materials.
5. Increased Focus on Product Differentiation: To remain competitive, companies are focusing on product differentiation by offering specialized grades of Adipic Acid with enhanced properties for specific applications. This trend is driven by the need to meet diverse industry requirements and customer demands.

Market Dynamics

Automotive Industry Drives Demand Through Increased Use of Nylon 6,6

The growing adoption of nylon 6,6 in the automotive industry is a key driver for the demand for Adipic Acid. Nylon 6,6 is increasingly used to replace metals in vehicles, providing a lightweight, durable alternative that enhances fuel efficiency and performance. The COVID-19 pandemic significantly impacted consumer behavior, leading to a surge in automobile purchases as people sought safer commuting options amid reduced public transportation services. This increased demand for vehicles directly boosts the need for nylon 6,6, and subsequently, for Adipic Acid. As automotive manufacturers continue to integrate advanced plastics to improve vehicle efficiency and safety, the consumption of nylon 6,6 is expected to rise, further propelling the market.

Electronics Sector Growth Boosts Need for Nylon 6,6 and Adipic Acid

Nylon 6,6 resin is widely utilized in the electronics industry for producing components like mobile phone connectors, computer motherboards, terminal blocks, power tool housings, and circuit breakers due to its excellent electrical and mechanical properties, including high dielectric strength, flame retardancy, and insulation resistance. As the electronics sector continues to expand with the increasing use of digital devices such as smartphones, computers, and televisions, this growth is expected to drive up the demand for nylon 6,6.

Rising 3D Printing Applications Propel Market Growth

The market is also significantly driven by the rising demand for 3D printing. Adipic Acid's derivatives, such as polyamide (PA), are highly suited for 3D printing due to their exceptional flexibility, durability, and mechanical properties. Unlike other thermoplastics like PLA and ABS, PA offers superior impact resistance and chemical resilience, making it ideal for industrial components. Its ability to absorb moisture also facilitates easy post-processing with spray paints and dyes. With a higher melting point and low friction coefficient, PA can produce abrasion-resistant parts, including functional interlocking gears. As 3D printing technology advances, the use of Adipic Acid in creating high-performance, precision parts are expected to grow.

Infrastructure Development and Rising Disposable Incomes Fuel Market Demand

The growing global population, especially in developing countries like Brazil, China, and India, is driving increased infrastructure development, which in turn boosts the demand for wires, cables, paints, and coatings. Adipic Acid plays a crucial role in this sector as a difunctional crosslinking agent in water-based acrylic emulsions used in paints and coatings. Additionally, rising disposable incomes and evolving lifestyles are propelling the demand for convenience foods, which drives the need for nylon 6,6 resin in food packaging.

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Competitive Landscape

The key players in the Adipic Acid market include major chemical manufacturers such as INVISTA, Lanxess AG, BASF SE, and Solvay, among others. These industry leaders are actively engaged in strategic initiatives to enhance their market position & broaden their geographical reach.

For instance, in January 2022, INVISTA and China Pingmei Shenma Group strengthened the strategic partnership. Marking a new chapter in their long-term collaboration, INVISTA (China) Investment Co., Ltd. and China Pingmei Shenma Group have signed a series of strategic agreements aimed at advancing environmental improvements within the nylon 6,6 value chain and boosting local raw material supply. The two companies reached agreements for a five-year plan covering the purchase and sale of adiponitrile (ADN) and Adipic Acid (AA), alongside the licensing of key technologies, creating multiple opportunities for synergies.

Recent Market Developments

LANXESS Announces Global Price Increase for Adipic Acid

• In February 2024, specialty chemicals company LANXESS announced an immediate global price increase for Adipic Acid by EUR 250 per metric ton. This adjustment is in response to the substantial rise in raw material costs over recent months.

INVISTA Enhances N₂O Abatement at Victoria Facility for Greater Environmental Impact

• In February 2024, INVISTA is advancing two new abatement projects at its Victoria, Texas facility, aiming to boost the site's overall N₂O abatement efficiency to over 98 percent. These projects are expected to contribute an additional reduction of more than 500,000 tons of CO₂e emissions annually. With over twenty years of leadership in nitrous oxide (N₂O) abatement technology, INVISTA has continually refined its capabilities at various Adipic Acid (AA) production facilities since the late 1990s.

INVISTA Licenses N₂O Abatement Technology to Chinese Adipic Acid Facilities

• In September 2023, INVISTA, a leading player in the nylon 6,6 value chain, is licensing its nitrous oxide (N₂O) abatement technology to three Adipic Acid production facilities in China. This initiative will enable companies in the automotive industry to significantly reduce emissions within their material supply chains. By implementing this N₂O abatement technology at the facilities, which produce Adipic Acid (a critical component for nylon 6,6 used in vehicles and automotive parts), emissions reductions of approximately 30 million tons of CO₂ equivalent (CO₂e) per year are anticipated over the coming years.

BASF’s Monomers Division Achieves First ISCC+ Certification in Asia Pacific

• In March 2023, BASF's Monomers division has earned its first ISCC+ certification in the Asia Pacific region, marking a significant step in expanding its portfolio of sustainable products. The certification applies to BASF's manufacturing sites in Onsan and Yeosu, Korea, for Adipic Acid and PA6.6, as well as MDI and TDI respectively.

Asahi Kasei and Microwave Chemical Launch Innovative PA66 Recycling Project Using Microwave Technology

• In April 2023, Asahi Kasei and Microwave Chemical initiated a joint demonstration project to commercialize a chemical recycling process for polyamide 66 (PA66, also known as nylon 66) using microwave technology. This process leverages microwaves to depolymerize PA66 and directly recover its monomers, hexamethylenediamine (HMD) and Adipic Acid (ADA), with high yield and low energy consumption.

The global Adipic Acid market can be categorized as Application, End-use, and Region.