Octadecanedioic Acid Market: Industry Analysis and Outlook, 2024

Posted by Ryan Shaw on December 3rd, 2019

As per the report by Grand View Research, Inc., the Octadecanedioic Acid (ODDA) Market is poised to rise to a valuation of USD 9.4 million and is estimated to observe a CAGR of 4% throughout the forecast period (2016-2024). Increasing demand for octadecanedioic acid used in the synthesis of polyamide, adhesives, and nylon on account of its high efficiency is estimated to increase the product demand throughout the forthcoming period.

Esters and other chemical compounds derived from octadecanedioic acid (ODDA) are used in high-performance applications comprising lubricants, pharmaceuticals, adhesives, powder coatings, etc. In addition, the growing preference for environment-friendly and supportable products to decrease petrochemical dependency is likely to remain a key driving factor for ODDA market.

Fluctuating prices of petrochemical products, on account of supply-demand disparities, have driven an inclination toward bio-based chemicals. Moreover, strict environmental regulations in the automotive and industrial segment have played a key role in the growth of bio-based products.

High value intermediates and end user products derived with the help of renewable chemicals is anticipated to sustain the octadecanedioic acid demand over the forthcoming period. Growing application opportunity in plastics and personal care is anticipated to improve the product demand throughout the years to come. On the other hand, lack of awareness among end user is likely to hamper the market growth in the years to come.

Press Release: Octadecanedioic Acid Market Worth .4 Million By 2024

The top three emerging trends in the market are rising usage of octadecanedioic acid in powder coating applications are anticipated to boost the demand for the market in the years to come. These powder coatings are free-flowing micronized powder elements that are electrostatically sprayed on conductive surfaces or metals.

Furthermore, this coating has key advantages over other categories of coating techniques since it forms a thin film at a low temperature in the absence of any solvent. Powder coating is formed using octadecanedioic acid since it is lower in cost and is generally biodegradable in nature. Moreover, products made from octadecanedioic acid (ODDA) have superior functional characteristics, such as chemical and water resistance, as compared to the shorter-chain chemical substitutes.

Increasing government norms on the use of environment-friendly products is another key trend boosting the market demand. Increase in a number of government rules and policies that are supporting the use of environmental-friendly materials such as octadecanedioic acid has led to a surge in demand across several application industries.

Rising consumer preference toward personal care products and organic cosmetics is also an emerging trend in the market. The cosmetics application sector is the fastest-growing sector across the globe. Shifting consumer preference toward organic products on account of the extensive range of health benefits, as opposed to chemically manufactured products. The rising demand for natural skin care constituents with anti-aging characteristics is anticipated to boost the demand for octadecanedioic acid.

Asia Pacific held the second largest market share and is anticipated to boost at the highest CAGR in the forecast period. The growth is attributed to the increasing use of polyester polyols in the construction and automotive industry leading the Asia Pacific to gain 3.5% share by the end of 2024. Emerging economies such as China, India, Japan, and South Korea are slated to develop as the significant end-use markets.

Global market share is extremely focused led by large multinational companies and is likely to remain the same over the forecast period. The top key players in the octadecanedioic acid are expected to capitalize more in order to get improved results from research and development.

Leading players operating in the octadecanedioic acid (ODDA) market include Croda International Plc.; Elevance Renewable Sciences Inc.; Cathay Industrial Biotech Ltd.; BASF SE; Nanjing Chemlin Chemical Industrial Co. Ltd; and TCI America.