Dodecanedioic Acid Market is Estimated to Witness High Growth Owing to Increasing Usage in Lubricants and Plastics
Dodecanedioic acid is an organic compound that is used as an intermediate product for manufacturing lubricants and plastics. It has properties such as high thermal and chemical stability, making it suitable for various industrial applications. Due to the increasing demand from end-use industries such as lubricants, plastics, coatings and powders, the global dodecanedioic acid market is expected to grow at a significant rate during the forecast period.
The Global dodecanedioic acid market is estimated to be valued at US$ 720.37 Mn in 2024 and is expected to exhibit a CAGR of 8.9% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the dodecanedioic acid market are The Coconut Company (UK) Ltd., Tirumala Food Industries, Enature Organic Products, Ayam Sarl, Nestlé S.A., Renuka Foods PLC, S & P Industries Sdn Bhd, Shriram Coconut Products Limited, Star Heritage Products, and Pulau Sambu Singapore Pte Ltd. The key players are focusing on capacity expansion and new product launches to strengthen their market position.
The key opportunities in the market include rising applications in lubricants, adhesives, coatings and plasticizers owing to dodecanedioic acid's properties such as thermal and chemical stability. Additionally, the increasing R&D activities for developing bio-based dodecanedioic acid will further drive the market growth during the forecast period.
Advancements in fermentation and esterification technologies have enabled large-scale production of dodecanedioic acid from natural resources. The development of more sustainable and cost-effective production processes using microbial fermentation route will boost the supply of dodecanedioic acid.
Market drivers
One of the key drivers for the dodecanedioic acid market is the growing automotive industry globally. Dodecanedioic acid finds major usage in the production of lubricants and engine oils used in automobiles. With the increasing vehicle production and demand for high-performance lubricants, the consumption of dodecanedioic acid is expected to rise substantially over the coming years. The rapid industrialization and infrastructure growth are also contributing to the market growth.
Current challenges in Dodecanedioic Acid industry:
The dodecanedioic acid market is facing challenges due to fluctuating prices of raw materials. Raw materials account for major cost of production in this industry. Prices of raw materials like coconuts, palm oil and palm kernel oil witnessed volatile movement over the past few years due to changing demand-supply dynamics and climate conditions impacting crop production. This poses threat to profit margins of manufacturers.
SWOT Analysis
Strength: Wide range of applications in nylon polymers, plasticizers, lubricants etc. provides opportunities for volume growth.
Weakness: Dependency on limited number of raw material suppliers increases risk of supply disruptions. High research and development costs for product innovation.
Opportunity: Growing demand for bio-based products from end-user industries will drive new product development and market expansion.
Threats: Intense competition from substitutes like sebacic acid poses pricing pressures. Stringent environmental regulations can increase compliance costs.
Geographical regions of concentration:
North America region currently holds leading share of over 35% of global dodecanedioic acid market, due to strong demand from plastic and polymer industries in US and Canada. Europe is another major consuming region with market share of over 25% in 2024, driven by Germany, UK, France and Italy.
Fastest growing region:
Asia Pacific region is projected to expand at fastest CAGR of over 9.5% during forecast period. Countries like China, India, Japan, South Korea and ASEAN nations are expected to fuel high demand growth for dodecanedioic acid due to rapid industrialization and infrastructural development activities in the region.
For more insights, Read- https://www.trendingwebwire.com/dodecanedioic-acid-market-growth-demand-and-overview/
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