Increasing Demand from End-Users Is Augmenting the Growth of the Global Synthetic & Bio-Based Adipic Acid Market

 

Synthetic & Bio-Based Adipic Acid Market

Synthetic & Bio-based Adipic Acid Market, By Application (Nylon 6,6 fiber, Nylon 6,6 resin, Polyurethanes, Adipate esters, Others), and By Region (North America, Europe, Asia Pacific, Latin America, MEA) - Size, Share, Outlook, and Opportunity Analysis, 2020 - 2027.

Market Overview:

Adipic acid is a white crystalline compound with the chemical formula C6H10O4. It is a dicarboxylic acid, meaning it contains two carboxyl groups (COOH) attached to a central carbon chain. Adipic acid is an important industrial chemical primarily used as a raw material in the production of nylon 6,6. Adipic acid is traditionally produced through the oxidation of cyclohexane or cyclohexanol using nitric acid. However, there is an increasing focus on the production of bio-based adipic acid derived from renewable feedstocks, such as plant-based sugars or fatty acids, as a more sustainable alternative to petroleum-based adipic acid.

Competitive Landscape:

Major players operating in the global synthetic & bio-based adipic acid market include Radici, Asahi Kasei, Liaoyang Petrochemical, Shangdong haili (bohui), Ascend performance materials, BASF, Rhodia, and Invista.

Key Market Drivers:

The demand for nylon 6,6, which serves as a key end-use application for adipic acid, is rising across various industries. The automotive sector, textile industry, and packaging sector are major contributors to this growing demand. This is expected to augment the growth of the global synthetic & bio-based adipic acid market.

With increasing environmental concerns and regulations, there is a growing preference for bio-based adipic acid derived from renewable feedstocks. The shift towards sustainable practices and the desire to reduce carbon footprints are driving the demand for bio-based adipic acid. For instance, in March 2022, Corbion and DSM partnered in order to develop bio-based adipic acid.

Continuous advancements in technology have enabled the development of efficient and cost-effective production methods for bio-based adipic acid. Improved fermentation processes and the use of renewable feedstocks have enhanced the commercial viability of bio-based adipic acid. This is estimated to enhance the growth of the global synthetic & bio-based adipic acid market.

Government initiatives promoting the use of bio-based products, along with favorable regulations and incentives, are supporting the growth of the bio-based adipic acid market. These initiatives aim to reduce reliance on fossil fuels and encourage the adoption of sustainable alternatives.

Covid-19 Impact Analysis:

The COVID-19 pandemic led to disruptions in global supply chains, affecting the availability of raw materials and impacting the production of synthetic and bio-based adipic acid. Lockdowns, travel restrictions, and reduced manufacturing activities hampered the overall growth of the global synthetic & bio-based adipic acid market.  The pandemic caused a decline in the demand for nylon 6,6-based products, such as automotive components, textiles, and packaging materials, due to reduced consumer spending and disrupted supply chains. This led to a decrease in the demand for synthetic and bio-based adipic acid during the initial phase of the pandemic.

Key Takeaways:

·         North America is expected to dominate the growth of the global synthetic & bio-based adipic acid market. The region is characterized by a well-established automotive industry, high demand for nylon 6,6, and growing adoption of sustainable practices, supporting market growth. For instance, in May 2020, Ascend Performance Materials launched Acteev, which is a bio-based adipic acid

·         Asia Pacific is estimated to witness high growth in the global synthetic & bio-based adipic acid market, owing to the presence of major textile manufacturing hubs, a growing automotive sector, and increasing investments in bio-based technologies. Countries like China, India, and South Korea are major contributors to the regional market. For instance, in September 2021, Invista increased its production capacity of Nylon 6,6 by opening a new adipic acid plant in China.