Global Adipic Acid Market to Cross 6 Billion Pounds by 2017, According to a New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Adipic Acid market. The global market for Adipic Acid is projected to reach over 6 billion pounds by the year 2017. Growth in the market is chiefly driven by an increase in demand from end-use segments, particularly in emerging markets of Asia-Pacific and Middle East. Development of newer applications of Adipic Acid is poised to increase global production levels.

Adipic Acid: A Global Strategic Business Report

Follow us on LinkedIn – Adipic Acid is used as a raw material in the production of synthetic fibers, nylon, plastics, coatings, low-temperature synthetic lubricants, plasticizers, polyurethane resins, and also adds a tangy flavor to artificial food products. Demand for Adipic Acid from its largest end use segment, nylon 66 fibers, weakened during past few years in the US, Western Europe and Japan. However, production of adipic acid increased considerably in China. The region also witnessed a rapid increase in consumption of adipic acid by polyester polyols that find applications in shoe industry. China is the world’s largest importer of adipic acid. In the recent past, total imports of adipic acid into China also intensified from regions such as Japan, Republic of Korea, Singapore and Ukraine. Rapid industrialization in Asian countries such as India and China is expected to increase the global demand for Adipic Acid. Additionally, nylon production in Asia and the US is projected to increase in the near future, which thereby is poised to fuel growth in the industry. In the present scenario, there are about 23 adipic acid production units worldwide, with majority existing in the developed western countries or developing markets. In 2010, the global Adipic acid production level was recorded at over 2,800 kt, with the United States making up the largest share at over 30% of the global output. It is estimated that more than 50% of the total production capacity is derived from integrated chemical units that utilize adipic acid at the production site itself.

In China, weak demand from polyurethane was considered a major culprit responsible for the massive fall registered in adipic acid prices. Excessive supply of adipic acid in the international markets and reduced demand dented the Chinese markets as well, reducing domestic cost of the product. Plummeting demand for adipic acid from polyurethane (PU) sector has been one of the major factors for overall reduction in demand, leading to PU plants operating at less than half of the total capacity. Exports of adipic acid from China to the US and Europe weakened, as the regions are entangled in their respective financial and economic difficulties. PU manufacturers faced restrictions, as the government tightened monetary policies to curb continuous rise in consumer prices. However, with newer projects looming, demand for adipic acid is forecast to increase in the near future.

Europe stands tall as the largest worldwide market for adipic acid, as stated by the new market research report on Adipic Acid. Asia-Pacific, led by rapid advancements from China is slated to be the fastest growing market for Adipic Acid reflecting a CAGR of about 5.3% through 2017. The growth for adipic acid in the Asian region is stimulated by the ever-increasing consumption of the chemical in China’s urethane industry. Plasticizers are produced in large quantities in China. PVC resin processing consumes approximately 90% of the plasticizers. The remaining 10% is used in the manufacture of cellulose acetate, adhesives, synthetic rubbers, resin processing, and coatings.

Adipic acid is used in the production of nylon, polyurethane resins, plasticizers, and other materials such as polyester resins and foods. The majority portion of adipic acid is consumed by Nylon 6/6, primarily used in the manufacture of carpets and rugs. The US market for nylon 6/6 leads in consumption of adipic acid followed by the Europe. During the recessionary period of 2008-09, lowered demand in various end-use sectors including nylon 6/6, polyurethane resins and plasticizers derailed the market growth resulting in considerable reduction in market revenues. However, the market showed signs of recovery in 2010 and is projected to demonstrate a moderate growth in the ensuing years.

Major players profiled in the report include Asahi Kasei Corporation, BASF SE, Invista, Lanxess AG, PetroChina Company Limited, Liaoyang Petrochemical, Radici Partecipazioni SpA, Rhodia SA, Solutia Inc., Sumitomo Chemical Co. Ltd., and Taiyuan Chemical Industry Group Company Limited.

The research report titled “Adipic Acid: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of the industry, impact of recession on the markets, current market trends, product overview, recent industry activity, and profiles of major/niche global as well as regional market participants. The report provides annual sales estimates and projections for the years 2009 through 2017 for the following geographic markets – US, Canada, Japan, Europe, Asia-Pacific, Middle East, and Latin America. Key end-use segments analyzed include Nylon 6/6, Polyurethane Resins, Plasticizers and Other Applications. The study also provides historic data for an insight into market evolution over the period 2003 through 2008.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/Adipic_Acid_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

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