Adipic acid market is estimated to go through momentous growth globally. This industry is estimated to reach around U7, 538 million till 2020. This acid is produced using petroleum derived products like phenol, benzene and cyclohexane. Adipic acid which is generally used in production of Nylon is also manufactured in Automobile industry. Adipic acid is majorly used for Nylon fibres, Nylon Resin, paints and coatings. Cyclohexane accounts for over 80% of Adipic acid which is produced globally. Due to shift in hydrocarbons market, phenol used a primarily for production of adipic acid is replaced by cyclohexane. Polyutherane is considered to be one of the rapid growing applications in thermal insulation.

The fastest growing market for Adipic acid to be is Polyutherane with expected CAGR of 5.2% from 2015 to 2020. Growing demand for Nylon fibres in automobile industry is the major reason for rise in demand of adipic acid market in recent years. Nations like Russia, China, India and Brazil is expected to counter the positive impact in adipic acid market over next five years. North American market is expected to hit USD over 1.6 billion by 2019 with CAGR of 6.2% from 2015 to 2020.Adipic acid is also used as the gelling aid and flavorant in food industry. With increasing concern regarding environmental protection, Synthetic acid has now been focused towards the production of Bio based Adipic acid. These bio based adipic acid are produced using Glucose, which are environmental friendly. Bio based adipic acid require low capital investment as compared to Synthetic Adipic acid.

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Asia Pacific Market, currently the leading regional market for Adipic acid is projected to be fastest growing market. Growth of electronics market in China is motivating the market growth of Adipic Acid in Asia Pacific. After Asia Pacific, Europe is the largest market for the Adipic acid, Use of Synthetic adipic acid in Europe, is affecting the Adipic acid market in China. Bio based Adipic acid holds around 16% lower utilities cost and around 30% lower manufacturing cost as compared to the Petroleum based adipic acid.

Stringent government regulation in U.S. and Europe coupled with fluctuating raw material prices is expected to be the major factor restraining market growth over the forecast period. Increasing concern regarding environmental impact of synthetic adipic acid has led to shift in focus toward producing bio-based adipic acid. Bio-based adipic acid is procured using glucose is eco-friendly in nature. In addition, synthetic adipic acid is produced from petroleum which required high capital investment whereas bio-based adipic acid required low capital investment. Increasing consumer awareness coupled with government support in form of subsidiaries and tax benefits to promote bio-based product is expected to be the major factor driving the bio-based adipic market over the next six years. Low Utilization cost and manufacturing cost of bio-based product is further expected to influence the major companies to invest in bio-based adipic acid market over the next six years.

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