The adipic acid market has seen steady growth in recent years attributed to rising demand from nylon 6,6 production. As one of the most common synthetic materials, nylon is used across diverse industries due to its durability, elasticity and versatility. Approximately 75% of global adipic acid production is dedicated for nylon 6,6 manufacturing. Nylon 6,6 fibers are extensively used in automobile and clothing industries for airbags, carpets, jackets and gloves due to their lightweight, flexible and abrasion resistant properties.
Rising automotive production and increasing per capita consumption of nylon products are the major factors driving growth of the adipic acid industry. However, hazardous emissions from conventional Cumene-based production processes pose significant environmental concerns.
Key Takeaways
Key players operating in the adipic acid market include Asahi Kasei Corporation, Ascend Performance Materials, BASF SE, Invista, Lanxess Ag, PetroChina Liaoyang Petrochemical, Radici Group, Rhodia Shandong Haili Chemical Industry Company Ltd. and Shandong Hongye Chemical Company Ltd. Asahi Kasei and BASF are among the leading manufacturers with a global presence across major markets.
Growing demand for nylon 6,6 fibers from diverse industries such as automotive, textiles, carpets and chemicals has spurred growth of the adipic acid market. The superior properties of nylon including high tensile strength, elasticity and abrasion resistance support its use across various industrial applications.
Rising global automobile production along with increasing penetration of nylon carpets and clothing in developing regions is fueling the expansion of the adipic acid industry. Asia Pacific currently represents the largest and fastest growing regional market attributed to rapid industrialization in China and India.
Market key trends
One of the key Adipic Acid Market Growth gaining traction in is the increasing focus on developing bio-based and sustainable production methods. Traditionally, adipic acid is produced from petrochemical cyclohexane oxidized with nitric acid. However, this cumene-based process presents challenges owing to toxic emissions. Major players are exploring alternative bio-based routes using renewable resources such as glucose, glutamic acid and levulinic acid which can significantly reduce environmental footprint of adipic acid manufacturing. Government regulations towards curbing hazardous emissions are further promoting adoption of eco-friendly methods in the adipic acid industry.
Porter's Analysis
Threat of new entrants: New entrants face high initial capital requirements to build adipic acid manufacturing plants.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of substitute raw materials.
Threat of new substitutes: Substitutes like aramid fibers and nylon resins pose potential threats.
Competitive rivalry: Intense competition exists among the existing players.
Geographical Regions
North America accounts for the largest share of the global adipic acid market, in terms of value. This is mainly attributed to the increasing demand from end-use industries such as automotive, construction, and textiles. The Asia Pacific region is expected to be the fastest growing market during the forecast period, with China, India, and Japan being the major contributors to the growth. Factors such as rapid industrialization, growing population, and rising standards of living are expected to drive the demand for adipic acid in the region.
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