The adipic acid market is mostly driven by growing demand from the nylon production industry. Adipic acid is a key raw material used in the manufacturing of nylon 6,6 fibers and resins which find wide applications in clothing, automotive parts, electrical components and more. Nylon provides benefits like robustness, durability and resistance to chemicals which has resulted in its increasing use across various end-use industries.
The adipic acid market is estimated to be valued at USD 6.73 Bn in 2025 and is expected to reach USD 9.11 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 4.4% from 2025 to 2032.
Key Takeaways
Key players operating in the adipic acid market are Asahi Kasei Corporation, Ascend Performance Materials, BASF SE, Invista, Lanxess Ag, PetroChina Liaoyang Petrochemical, Radici Group, Rhodia, Shandong Haili Chemical Industry Company Ltd., Shandong Hongye Chemical Company Ltd, DOMO Chemicals, Sumitomo Chemical Co., Ltd., Solvay, Liaoyang Tianhua Chemical Co., Ltd, Meru Chem Pvt. Ltd, EMCO Dyestuff, and JPM Pharma & Chemicals Pvt. Ltd.
The Adipic Acid Market Demand is driven by the growing need from the automotive industry, where it is used in manufacturing nylon tires, airbags, engine components, and other durable parts. Increasing vehicle production globally is further fueling the demand for adipic acid.
Technological advancements are allowing manufacturers to develop bio-based and recyclable adipic acid. Some players are investing in R&D to produce adipic acid from renewable feedstocks like glucose, sucrose and cyclohexane which can reduce dependency on fossil fuels and lower production costs.
Market Trends
Green adipic acid production is gaining traction in the market. Major players are developing bio-based and sustainable processes to produce adipic acid from renewable sources like glucose and sucrose to reduce dependency on fossil fuels.
Recycling of nylon is emerging as an opportunity. Companies are investing in technologies to collect and recycle nylon waste to recover adipic acid and limit environmental footprint. This is expected to boost circular economy and sustainable development in the market.
Market Opportunities
Rising demand for bioplastics and bio-polyamides offer opportunities for adipic acid producers. Adipic acid can be used to produce renewable polyamides and bioplastics with properties at par with conventional plastics.
Growth of the textile industry in Asia Pacific creates lucrative growth potential. Rapidly expanding textile sector in countries like India and China will drive the need for nylon and hence adipic acid demand.
Impact of COVID-19 on Adipic Acid Market
The COVID-19 pandemic has affected the adipic acid market growth globally. The imposition of lockdowns resulted in strict restrictions on transportation and social distancing measures led to shutting down of major end-use industries like automotive and construction. This led to a huge decline in demand for adipic acid initially in 2020. However, with gradual lifting of lockdowns and resumption of industrial activities, the demand is recovering slowly. But uncertainties still remain over another potential wave of infections.
During the lockdowns, the adipic acid production and supply chain was disrupted majorly. This caused shortage of raw materials for manufacturers. There was lack of workforce and problems in logistics as well. The demand from nylon 6,6 fiber and engineering plastics industry declined sharply due to halt in their operations. This impacted the adipic acid market growth negatively. However, with restoration of supply chains and restarting of end-use sectors, the demand is increasing steadily in 2021. The demand may normalize and the market is anticipated to witness strong growth from 2022 onwards.
The key players need to focus on timely delivery, ensuring safety of workers and maintaining flexible supply chains. Adopting digital technologies can help streamline operations. Investments in expanding production capacity of adipic acid especially through sustainable production methods may prove beneficial in the long run. Strong collaboration across the value chain is required to deal with future uncertainties effectively.
Geographical Regions with Adipic Acid Market
North America region accounts for the highest value share in global adipic acid market currently. USA dominates the regional market due to large automotive industry and demand for nylon 6,6 in fibers, engineering plastics and other applications. Rapid infrastructure development and construction activities also support the growth.
Asia Pacific is anticipated to be the fastest growing region during the forecast period. China leads the APAC market due to massive industrial and economic growth. Expanding automotive sector, rapid urbanization and rising living standards are fueling the demand. The presence of major adipic acid producers is another positive factor for the region. India and other Southeast Asian countries are projected to offer significant opportunities in upcoming years.
Fastest Growing Region in Adipic Acid Market
Asia Pacific region is expected to witness the fastest growth in adipic acid market during the forecast timeline of 2024 to 2031. This can be attributed to burgeoning demand from end-use industries and rising production in the region. China dominates the APAC market currently due to large manufacturing base of nylon 6,6 and presence of major adipic acid manufacturers. However, other Southeast Asian countries like India, Indonesia, Thailand and Vietnam are