Adipic Acid Market Size, Share, Analysis, Trends, Growth, 2032

Adipic Acid Industry Prospective:

The global adipic acid market size was worth around USD 4.9 billion in 2023 and is predicted to grow to around USD 7.0 billion by 2032 with a compound annual growth rate (CAGR) of roughly 3.9% between 2024 and 2032. 

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Adipic Acid Market: Overview

Adipic acid is a solid organic compound having the chemical formula C₆H₁₀O₄. Among the most crucial commercial compounds are dicarboxylic acids. Adipic acid is a frequent precursor to nylon-6,6 and a required intermediary to make polyurethanes, plasticizers, and coatings. The wide spectrum of sectors using adipic acid—food, packaging, textiles, and automobiles— drives the market.

Furthermore, it is expected that the worldwide trend toward lightweight materials—especially in the automotive sector—will present a profitable opportunity for the market of adipic acid to grow. Rising environmental issues and raw material price instability, however, can impede the business's development.

Key Insights

• As per the analysis shared by our research analyst, the global adipic acid market is estimated to grow annually at a CAGR of around 3.9% over the forecast period (2024-2032).
• In terms of revenue, the global adipic acid market size was valued at around USD 4.9 billion in 2023 and is projected to reach USD 7.0 billion by 2032.
• The increasing automotive sector is expected to drive the adipic acid market over the forecast period.
• Based on the raw material, the cyclohexane segment is expected to hold the largest market share over the forecast period.
• Based on the application, the nylon 6,6 resin segment is expected to dominate the market over the forecast period.
• Based on the end users, the electrical & electronics segment is expected to hold the largest market share over the forecast period.
• Based on region, North America is expected to dominate the market during the forecast period.

Adipic Acid Market: Growth Drivers

The rising automotive sector drives market growth

The expanding automotive sector is expected to support the adipic acid market's growth throughout the projected period. Nylon-6,6, which is widely used to decrease vehicle weight, improve fuel efficiency, and lower emissions—all of which are essential for manufacturers to meet ever-tougher environmental regulations—contains adipic acid. Gears, under-the-hood components, and fuel lines are among the parts manufactured of nylon based on adipic acid, which offers resistance to heat and chemicals.

Additionally, the move to electric vehicles is raising demand for lightweight materials like nylons manufactured from adipic acid to increase battery efficiency and vehicle range. The increasing use of EVs in North America, Europe, and Asia-Pacific is having a favorable effect on the adipic acid industry. For instance, secondary sources show that EV sales in India reached 1.67 million units in FY2024, a 42% year-over-year growth.

Adipic Acid Market: Restraints

Volatility in raw material prices hinders market growth

The adipic acid industry is impacted by fluctuations in the cost of raw materials. The raw material used to make adipic acid is cyclohexane, a derivative of crude oil, which is necessary. Inconsistent cyclohexane prices are caused by fluctuations in crude oil prices, which are influenced by shifts in global demand, supply chain hold-ups, and geopolitical crises.

The cost of producing adipic acid rises in tandem with the price of raw materials. This is especially difficult for producers in markets with narrow profit margins. Adipic acid-based goods, such as nylon-6,6 and polyurethanes, are less competitive with alternative materials due to their high manufacturing costs.

Adipic Acid Market: Opportunities

The rising invention of bio-based adipic acid offers a lucrative opportunity for market growth

The rising invention of bio-based adipic acid is expected to offer a lucrative opportunity for the adipic acid market. For instance, in August 2022, the world's first 100% bio-based adipic acid, a raw material for nylon 66 (polyamide 66), was created by Toray Industries, Inc. using sugars obtained from inedible biomass, the company stated. This accomplishment was made possible by a patented synthesis method that combined the company's chemical purification technology, which uses separation membranes, and microbial fermentation technology. The business has begun to increase its capacity in this field. By roughly 2030, it will test nylon 66 polymerization, create production technology, study the industry, and take action to bring this bio-based adipic acid to market.

Adipic Acid Market: Challenges

Increasing environmental concern poses a major challenge to market expansion

The traditional method of producing adipic acid releases large volumes of the powerful greenhouse gas nitrous oxide (N₂O). Companies are being forced to invest in greener processes by regulatory constraints on emissions, which may result in higher production costs. Thus, the increasing environmental concerns pose a major challenge to the expansion of the adipic acid market.

Adipic Acid Market: Report Scope

Adipic Acid Market: Segmentation

The global adipic acid industry is segmented based on raw material, application, end users, and region.

Based on the raw material, the global adipic acid market is bifurcated into cyclohexane, phenol, cyclohexanol, cyclohexanone, and benzene. The cyclohexane segment is expected to hold the largest market share over the forecast period. This sector is now a significant consumer of cyclohexane and adipic acid due to its rapid industrialization and the growth of the automotive and textile industries.

Based on the application, the global adipic acid industry is segmented into polyurethane, nylon 6,6 fiber, nylon 6,6 resin, adipate esters, and others. The nylon 6,6 resin segment is expected to dominate the market over the forecast period. Lightweight nylon-6,6 parts are being used by automakers in place of metal ones to reduce emissions and increase fuel efficiency.

Additionally, due to its superior insulation and heat resistance, nylon-6,6 is frequently used in electrical components such as circuit breakers, switches, and connections. The demand for adipic acid in the region is being driven by the growing electronics manufacturing base in Asia-Pacific.

Based on the end users, the global adipic acid market is bifurcated into automotive, electrical & electronics, packaging & consumer goods, building & construction, textile, and others. The electrical & electronics segment is expected to hold the largest market share over the forecast period. The need for innovative polymers like nylon-6,6 that can provide excellent performance in compact designs is rising as a result of the trend toward smaller, lighter, and more efficient electronic gadgets. Materials based on adipic acid play a key role in fulfilling these demands.

Adipic Acid Market: Regional Analysis

North America dominates the market over the projected period

North America is expected to dominate the global adipic acid market during the forecast period. The growing use of nylon 6, 6 fiber in the U.S. and Canadian automotive industries is driving the increasing demand in North America. Instead of taking public transit, the majority of North American residents in the United States and Canada commute in their cars.

Furthermore, people's purchasing power has increased in the United States, Canada, and Mexico due to their excellent economic stability. Increased demand for automobiles due to high individual disposable income is fueling the rise in adipic acid consumption in North America.

Adipic Acid Market: Competitive Analysis

The global adipic acid market is dominated by players like:

• Invista
• Ascend Performance Materials
• BASF SE
• Rennovia Inc.
• Radici Group
• Solvay
• Lanxess AG
• Asahi Kasei Corporation
• Rhodia (Solvay Group)
• Sumitomo
• Chemical Co. Ltd.
• Shandong Haili Chemical Industry Co. Ltd.
• China Petroleum & Chemical Corporation (Sinopec)
• Liaoyang Petrochemical Company
• Hualu Hengsheng Chemical Co. Ltd.
• Genomatica Inc.

The global adipic acid market is segmented as follows:

By Raw Material

• Cyclohexane
• Phenol
• Cyclohexanol
• Cyclohexanone
• Benzene

By Application

• Polyurethane
• Nylon 6,6 Fiber
• Nylon 6,6 Resin
• Adipate Esters
• Others

By End Users

• Automotive
• Electrical & Electronics
• Packaging & Consumer Goods
• Building & Construction
• Textile
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa