Octadecanedioic Acid (ODDA) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for Octadecanedioic Acid (ODDA) is expected to grow at a CAGR of over 4% during the forecast period. Major factors driving the market studied are increasing demand of octadecanedioic acid for synthesis of polymers and rising demand from cosmetics segment. On the flipside, high cost of the product and unfavourable conditions arising due to COVID-19 outbreak are the major restraints, which are expected to hinder the growth of market.

Key Highlights

• Growing trend for sustainable and environment friendly products to reduce the dependency on petrochemical products is expected to offer various lucrative opportunities for the growth of market.
• By application, polyester polyols segment is expected to dominate the market owing to the increase in the usage of octadecanedioic acid as an intermediate for manufacturing various types of polymers.
• Asia-Pacific region dominated the octadecanedioic acid market across the globe with the largest consumption from countries such as China and India.

Key Market Trends

Increasing Demand from Polyester Polyols Segment

• Octadecanedioic acid is a long chain dicarboxylic acid that is octadecane in which both terminal methyl groups have been replaced by carboxy groups.
• The growing demand for octadecanedioic acid for manufacturing polymers such as polyurethane, polyphenylene oxide, polyphenylene ethers, epoxy, polyether amides, and polycarbonates is propelling the octadecanedioic acid market.
• Additionally, the polyester polyols derived from octadecanedioic acid have superior properties like excellent solvent resistance, optical clarity, toughness, and hydrolytic stability. Owing to these excellent properties, the demand of octadecanedioic acid is increasing in the polyester polyols segment which is stimulating its market.
• The global polyester polyols market is expected to grow at a CAGR over 6% during the forecast period. This, would increase the demand for octadecanedioic acid as it acts as an intermediate for manufacturing of various engineering polymers and thus, propel the octadecanedioic acid market during the forecast period.
• Owing to all the above-mentioned factors for octadecanedioic acid, its market is expected to grow rapidly over the forecast period.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific region is expected to dominate the market for octadecanedioic acid during the forecast period. In countries like India, Japan, and China, owing to surge in the usage of polyester polyols in automotive sector for making vehicle parts and in construction sector due to increasing infrastructure development projects, urbanization and industrialization, the demand for octadecanedioic acid has been increasing in the region.
• Octadecanedioic acid is used as a basic building block for the formulation of compounds which are used in personal care & cosmetics sector and in pharmaceutical sector for treatment of type-2 diabetes. Owing to these factors, the demand for octadecanedioic acid has been increasing in the region.
• Additionally, increasing usage of octadecanedioic acid as a thickener in grease compositions is further boosting its market. Also, polyamide derived from octadecanedioic acid is used for metal working lubricants. The Asia-Pacific bio-lubricants market is expected to grow at a CAGR of over 3% during the forecast period. These factors are anticipated to stimulate the octadecanedioic acid.
• Furthermore, the growing awareness for sustainable and environment-friendly products coupled with stringent environmental regulations on industrial and automotive sector have boosted the demand for bio-based products. This will further help in boosting the octadecanedioic acid market.
• The Asia-Pacific cosmetics market is expected to grow at a CAGR of over 4% during the forecast period. This is likely to create ample opportunities for octadecanedioic acid market to grow during the forecast period.
• Some of the major companies operating in Asia-Pacific region are - Elevance Renewable Sciences, Inc., TCI Chemicals (India) Pvt. Ltd., and Nanjing Chemlin Chemical Industry Co., Ltd.
• The aforementioned factors, coupled with government support, are contributing to the increasing demand for octadecanedioic acid during the forecast period.

Competitive Landscape

The octadecanedioic acid market is highly consolidated with top players accounting for a major share of the market. Some of the key companies in the market include Elevance Renewable Sciences, Inc., TCI Chemicals (India) Pvt. Ltd., Nanjing Chemlin Chemical Industry Co., Ltd., Hunan HuaTeng Pharmaceutical Co., Ltd., and XIAMEN SINOPEG BIOTECH CO., LTD.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support