Global Adipic Acid Market Grows at a Staggering CAGR of 4.5%

Introduction

Adipic acid, hexanedioic acid, is an organic compound with the formula (CH2)4(COOH)2. It is synthesized by oxidizing a mixture of cyclohexanone and cyclohexanol, commonly referred to as KA oil (ketone-alcohol oil). During the initial stages of the reaction, cyclohexanol transforms into ketone, releasing nitrous acid. Naturally occurring adipic acid is also found in beet juice as a dibasic carboxylic acid. It plays a crucial role in producing plasticizers, lubricant components, and polyester polyols for polyurethane systems. Additionally, its derivatives are widely utilized in the food industry for gelling, acidification, flavoring, leavening, and buffering applications and in manufacturing pesticides, dyes, textile treatment agents, fungicides, and pharmaceuticals.

The global adipic acid market is growing due to rising demand for nylon 6,6, which is extensively used in automotive, textile, and industrial applications. The increasing production of automobiles and the shift toward lightweight materials to enhance fuel efficiency are major driving forces. Adipic acid also has a significant presence in the polyurethane and coatings sectors, further boosting market growth. Stricter environmental regulations and sustainability efforts are fostering research into greener production methods, such as microbial fermentation and renewable feedstocks. Additionally, sustainable production advancements, market expansion in developing economies, and increasing applications in high-performance polymers are fueling growth. Innovations in bio-based alternatives and circular economy practices, such as recycling nylon waste, are expected to contribute to long-term market expansion.

Market Dynamics

Development of Nylon 6,6 in automotive component manufacturing drives market growth

The increasing demand for nylon 6,6 in the automotive industry is a key factor driving the market. The widespread adoption of lightweight materials in vehicle production to enhance fuel efficiency and comply with stringent carbon emission standards has amplified the need for high-performance engineering plastics like nylon 6,6.

• According to the India Brand Equity Foundation (IBEF), the automotive components sector expanded at a CAGR of 8.63% from 2016 to 2024, reaching USD 74.1 billion. 2023–2024, the industry recorded a USD 300 million trade surplus, reflecting a robust market landscape.

Furthermore, environmental agencies like the U.S. Environmental Protection Agency (EPA) and the European Commission have mandated a 30% reduction in CO₂ emissions for new passenger vehicles by 2030. This regulation has prompted automakers to integrate lighter and more durable materials, such as nylon 6,6, into their designs. Additionally, increasing investments in electric vehicles (EVs) and adopting high-performance polyamide composites further reinforce adipic acid’s role in next-generation mobility solutions.

Advancements in bio-based adipic acid production create tremendous opportunities

The rising emphasis on sustainability and circular economy initiatives presents a significant opportunity for bio-based adipic acid production. With renewable feedstocks offering a sustainable alternative to petroleum-derived adipic acid, companies are expanding bio-based manufacturing to align with evolving consumer and regulatory demands. The European Union’s Green Deal has set a 55% reduction target for industrial carbon emissions by 2030, pushing manufacturers toward bio-based and recycled chemical solutions.

• BASF has expanded its bio-based adipic acid capacity by developing a new hexamethylene diamine (HMD) plant in Chalampé, France, with an annual production target of 260,000 metric tons by 2024.

RadiciGroup has launched bio-based adipic acid projects targeting European and North American markets, using sugar-based fermentation processes to reduce CO₂ emissions by 70% compared to traditional methods.

Furthermore, in 2024, Sumitomo Chemical partnered with leading research institutions to develop an enzymatic conversion process for adipic acid, reducing dependency on fossil fuel feedstocks. This transition to bio-based alternatives places adipic acid manufacturers at the forefront of green chemistry innovation, unlocking new revenue opportunities in the sustainable polymer industry.

Regional Insights

The Asia-Pacific region remains the largest market for adipic acid, driven by expanding industrial production in China and India. China continues to dominate adipic acid production and consumption, supported by government initiatives to strengthen domestic chemical manufacturing.

• In 2024, the National Development and Reform Commission (NDRC) introduced a five-year plan to promote bio-based chemical production, incentivizing local manufacturers to adopt sustainable production technologies.

Meanwhile, India’s adipic acid market is expanding due to rapid industrialization, with Reliance Industries investing in new production facilities. The region’s growing demand for textiles, automotive components, and consumer goods continues to drive market expansion, solidifying Asia-Pacific's role as a key growth hub for adipic acid.

Key Highlights

• The global adipic acid market size was valued at USD 5.32 million in 2024 and is projected to grow from USD 5.54 million in 2025 to USD 7.73 million by 2033, exhibiting a CAGR of 4.5% during the forecast period (2025-2033).
• Based on applications, the global adipic acid market is segmented into Polyurethane, Nylon 6,6 Fiber, Nylon 6,6 Resin, Adipate Esters, and others. The Nylon 6,6 Fiber owns the highest market share during the forecast period.
• Based on the end user, the syngas market is segmented into Automotive, Electrical & Electronics, Packaging & Consumer Goods, Building & Construction, and Textile. The Packaging & Consumer Goods segment is the most significant revenue contributor over the forecast period.
• Based on region, the market is analyzed across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. Asia-Pacific is the most significant shareholder in the global adipic acid market.

Competitive Players

1. BASF SE
2. INVISTA
3. PetroChina Company Limited
4. Asahi Kasei Corporation
5. Ascend Performance Materials
6. LANXESS
7. Radici Partecipazioni SpA
8. Solvay S.A
9. Sumitomo Chemical Co., Ltd.
10. BioAmber Inc
11. Shandong Hongye Chemical Company, Ltd.
12. Tangshan Zhonghao Chemical Co., Ltd
13. Tokyo Chemical Industry Co., Ltd
14. Liaoyang Tianhua Chemical Co., Ltd
15. Domo Chemicals.

Recent Developments

• In December 2024, In Pensacola, Florida, Ascend Performance Materials inaugurated a brand-new thermal reduction plant. This will reduce emissions from the site's production of adipic acid by almost 98%. The company's 2030 objective for sustainable chemical production included it.

Segmentation

1. By Applications
   1. Polyurethane
   2. Nylon 6,6 Fiber
   3. Nylon 6,6 Resin
   4. Adipate Esters
   5. Others
2. By End Users
   1. Automotive
   2. Electrical & Electronics
   3. Packaging & Consumer Goods
   4. Building & Construction
   5. Textile
3. By Region
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Rest of the World