Advanced Chemicals To Accelerate Growth In The Brassylic Acid Market
The global Brassylic Acid Market is estimated to be valued at US$ 716.7 Mn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Brassylic acid is a dicarboxylic acid that has several versatile applications. It is produced synthetically by thermal cracking of petrolatum or by oxidation of pentacosane. Brassylic acid is used as a building block in the production of polyamide resins, polyester resins, powder coatings and alkyd resins. These end-use industries employ brassylic acid due to its excellent properties like flexibility, adhesion, corrosion resistance and heat resistance. The growing coatings industry globally is one of the major factors fueling the demand for brassylic acid. Additionally, brassylic acid based polyamide resins find wide applications in engineering plastics due to properties like high tensile strength and dimensional stability.
Market Key Trends:
One of the major trends in the brassylic acid market is the growing demand from advanced chemical applications. Brassylic acid is increasingly finding usage in the production of new generation polyesters such as polybutylene adipate terephthalate (PBAT) and polybutylene sebacate (PBS). PBAT is a biodegradable polyester used as an alternative to petroleum-based plastics. It is finding widespread applications in compostable plastic bags and mulch film. Similarly, PBS is a sustainable and biodegradable polyester employed as a substitute for petrochemical-based plastics in 3D printing filaments, compost bags and food packaging. The polymer has garnered attention due to its biodegradability. The growing emphasis on sustainability and green chemistry is propelling research on novel applications of brassylic acid in advanced biopolymers.
Another key trend is the capacity expansion by brassylic acid producers to cater to rising demand contours. In 2021, Zibo Guangtong Chemical announced plans to triple its brassylic acid production capacity to 60,000 tons per year by 2023. Similarly, Cathay Industrial Biotech is expanding facilities for higher production of renewable chemicals including brassylic acid. The investments are aimed at capitalizing early on the market potential from new-generation green applications of brassylic acid such as bioplastics and bio-lubric
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate in the brassylic acid market due to high capital requirements and technology barrier. However, availability of raw materials and growing demand offer opportunities for new players.
Bargaining power of buyers: The bargaining power of buyers is high due to availability of substitutes. Buyers can easily switch to alternatives if prices are high.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials like pimelic acid are produced by few vendors globally. However, established players sign long term contracts.
Threat of new substitutes: The threat of new substitutes is high as biobased chemicals like adipic acid are used for similar applications. Existing substitutes pose significant threat.
Competitive rivalry: The market is moderately concentrated with global players operating worldwide.
Key Takeaways
The Global Brassylic Acid Market Demand is expected to witness high growth, exhibiting CAGR of 4.8% over the forecast period, due to increasing demand from lubricant, pigment and fragrance industries.
Regional analysis
Asia Pacific dominates the global brassylic acid market and is expected to maintain its lead over the forecast period. China is the largest producer and consumer of brassylic acid globally. India is also emerging as a major market in the region.
Key players
Key players operating in the brassylic acid market are Cathay Industrial Biotech, Palmary Chemical, Unisource Chemicals Pvt. Ltd., Zibo Guangtong Chemical Co., Ltd., Beyo Chemical Co., Ltd, Larodan Ab, Evonik Industries, Nantong Senos Biotechnology Co., Ltd., and Shanghai Kaleys Holding Co., Ltd.
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