The Dodecanedioic Acid Market is driven bygrowing plastics industry

Author : naufan cmi | Published On : 19 Mar 2024

The dodecanedioic acid market has seen substantial growth in recent years due to rising demand across end-use industries such as plastics, coatings, lubricants, and adhesives. Dodecanedioic acid is an organic compound belonging to the class of alkanedioic acids. It is a white solid that is soluble in common organic solvents and slightly soluble in water. It has wide applications in the manufacturing of polyamide resins and polyesters which are extensively used in plastic products, films, and fibers industries. The growing plastic industry worldwide and increased consumption of lightweight and durable plastic materials is expected to drive market growth over the forecast period. Additionally, dodecanedioic acid-based polyamides find their usage in engineering plastics, electrical components, automotive parts, and household goods.

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 from 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 engaged in production capacity expansion and new product development activities in order to cater to the growing market demand.

The growing demand for plastics from various end-use industries such as automotive, packaging, and construction is driving the demand for dodecanedioic acid. Plastics formed using dodecanedioic acid provide properties such as toughness, flexibility, and heat resistance.

The dodecanedioic acid market is witnessing increasing growth in Asia Pacific and North America regions due to the expansion of plastics industry. Additionally, the rising urban population coupled with increasing disposable income in developing countries is augmenting market revenues.

Market drivers

The growing plastics industry is a key factor driving the dodecanedioic acid market growth. Plastics formed using dodecanedioic acid are used in a variety of end-use applications across industries. The lightweight, durability and mechanical properties of dodecanedioic acid-based plastics have increased their popularity in end-use sectors. The booming global automotive production and increasing consumption of packaged food and beverages have augmented the demand for plastics over the years, thereby positively impacting the sales of dodecanedioic acid.

The current geopolitical situation is impacting the growth of the Dodecanedioic Acid Market. Rising tensions and conflicts between major economies like the US, China and Russia have disrupted global supply chains and trade dynamics. Many DDA producing nations have faced constraints in exporting their products to key markets due to geo-political and trade issues. This has hampered the growth prospects of the Dodecanedioic Acid market. Additionally, the ongoing war between Russia and Ukraine has inflated prices of crude oil and natural gas. Since DDA is petroleum-based, high energy costs have increased its production costs substantially. Producers are passing on some of these cost increases to consumers by raising DDA prices. Further escalation of geopolitical conflicts in the future may exacerbate supply disruptions and input cost rises for the Dodecanedioic Acid market. To ensure sustained growth, producers must diversify their supplier networks, look for alternative feedstock and focus on improving production efficiencies to minimize the effects of geopolitical risks on costs and supply security.

The Asia Pacific region currently holds the largest share of the global Dodecanedioic Acid market in terms of value. China dominates DDA production and accounts for over 60% of global capacity. Other major Asian producers include South Korea and Japan. Ease of raw material availability, large economies of scale and low-cost manufacturing have helped APAC establish its pole position. Europe is the second largest market for Dodecanedioic Acid globally due to extensive usage of DDA-based chemicals in construction, coatings and polymer manufacturing sectors in the region. On the other hand, North America is identified as the fastest growing regional market and will exhibit strong growth over the forecast period supported by increased demand from industries such as paints & coatings and aerospace.

The production of Dodecanedioic Acid is concentrated majorly in Asia and Europe currently. However, North America is emerging as the fastest growing regional market for DDA. Rising geopolitical risks are impacting global supply chains and increasing input costs but producers can mitigate effects through diversification and efficiency improvements.

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