April 14, 2024

Dodecanedioic Acid Market is Estimated to Witness High Growth Owing to Rising Adoption in Nylon Production

The global Dodecanedioic acid market is witnessing an increasing demand owing to its wide range of applications. Dodecanedioic acid is an organic compound that is used as a monomer in the production of nylon especially nylon 12 and other polymer resins. It provides advantages such as better chemical and thermal resistance along with higher strength and durability to materials. The increasing consumption of nylon in end-use industries such as automotive, electrical & electronics, and coatings is fueling the adoption of dodecanedioic acid.

The Global Dodecanedioic Acid Market is estimated to be valued at US$ 720.37 Mn in 2024 and is expected to exhibit a CAGR of 8.9% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in The Dodecanedioic Acid Market are The Coconut Company (UK) Ltd., Tirumala Food Industries, Enature Organic Products, Ayam Sarl, Nestlé S.A., Renuka Foods PLC, S & P Industries Sdn Bhd, Shriram Coconut Products Limited, Star Heritage Products, and Pulau Sambu Singapore Pte Ltd. The key players are focusing on capacity expansion and new product launches to gain a competitive edge in the market.

The market is witnessing significant growth opportunities due to the increasing demand for bio-based and sustainable products. Key players are investing in R&D to develop eco-friendly production processes using renewable feedstock.

Technological advancements in polymer synthesis and catalyst development are helping reduce the production costs of dodecanedioic acid. New techniques such as hydrogenation of renewable oils are providing alternatives to conventional chemical synthesis routes.

Market drivers
The rising consumption of nylon in end-use industries is a key driver for the dodecanedioic acid market. Nylon finds wide applications in automotive, electrical & electronics, coatings, and packaging owing to properties like durability, light weight, and resistance to heat, chemicals, and abrasion. This increasing adoption of nylon-based resins and compounds is supplementing the demand for dodecanedioic acid, which is primarily used in nylon-12 production.

Current challenges in Dodecanedioic Acid Market
The dodecanedioic acid market is facing challenges due to volatility in raw material prices and stringent environment regulations for production. The key raw materials such as cyclododecane and butadiene are petroleum derivatives and their prices fluctuate frequently due to changes in crude oil prices. This affects the cost of production of dodecanedioic acid. Moreover, the production process of dodecanedioic acid involves use of hazardous chemicals and generates toxic wastes that require proper treatment before disposal. The environmental agencies have implemented stringent norms regarding emissions and effluent discharge from manufacturing facilities. This increases compliance cost for market players.

SWOT Analysis
Strength: Wide applications in nylon resins, coating resins, lubricating oil additives etc. leads to stable demand. Weakness: High production cost due to involvement of multi-step synthesis and raw material price volatility. Opportunity: Growth in end-use industries like automotive and construction creates new opportunities. Threats: Significant competition from alternative products and stringent environmental regulations raise compliance challenges.

Geographical regions with high market value
The Asia Pacific region holds the largest share of dodecanedioic acid market in terms of value, with China being the major consumer. This is due to large demand from end-use industries like polymer manufacturing that have established base in the region. North America and Western Europe also account for sizable shares owing to presence of dodecanedioic acid producers and consumption from various application sectors.

Fastest growing region

The market for dodecanedioic acid is expected to witness fastest growth in the Asia Pacific region during the forecast period. This is attributed to expanding manufacturing capacity of end-use industries like automotive, coatings and plastics in countries like China and India. Also, consumption is increasing at a higher pace in Southeast Asian nations due to rapid industrialization and infrastructure development activities.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it