Dimer Acid Industry

Dimer Acid Market Analysis

The Dimer Acid Market is expected to register a CAGR of less than 5% during the forecast period.

The market was hampered by the COVID-19 pandemic, as lockdowns, social distances, and trade sanctions triggered massive disruptions to global supply chain networks. The construction industry witnessed a decline due to the halt in activities. However, the condition recovered in 2021 is expected to benefit the market during the forecast period.

• Increasing applications for polyamide resins and growing usage of adhesives and fuel oil additives are driving market growth.
• Fluctuating raw material prices and uncertainty in the production of rapeseed oil, cottonseed oil, and soybean oil are expected to hinder market growth.

Dimer Acid Market Trends

Growing Demand for Alkyd Resins and Adhesives

• Dimer Acid is known as dimerized fatty acids and belongs to the dicarboxylic acid group. Dimer acid finds its application in surface coatings, lubricants, and fuel additives.
• Dimer acid is used to manufacture alkyd resins, mainly used for synthetic paintings and coatings and employed in the construction industry due to their properties.
• In 2021, the United States produced 123.9 billion pounds of resins. High-density polyethylene (HDPE) was the most produced resin that year, with an output of 22 billion pounds. Linear low-density polyethylene (LLDPE) accounted for a similar production volume, at 21.7 billion pounds.
• The properties of dimer acid include high molecular weight, difficulty in crystallization and distillation, highly flexible cyclic structure, soluble in hydrocarbons, and easily controlled reactivity.
• Polyamide hot-melt adhesives largely use dimer acid in the manufacturing process. These hot-melt adhesives are used on metal, paper, wood, and many plastics, like PVC, surface-treated polypropylene, and polyethylene, for excellent adhesion purposes, due to their characteristics.
• Synthetic polyamides are commonly used in textiles, the automotive industry, carpets, kitchen utensils, and sportswear due to their high durability and strength. The transportation manufacturing industry is the major consumer, accounting for 35% of polyamide (PA) consumption.
• Hot-melt adhesives have high thermal stability, melting points, and chemical resistance to many compounds. These properties are increasing the demand for these adhesives over other adhesives in the current scenario. In 2021, global polyamide production stood at 5.87 million metric tons.
• According to Statista, by 2027, the market value of adhesives is expected to increase to nearly USD 65 billion, and sealants will amount to just over USD 15 billion.
• Due to the strong demand from end-user industries such as food and beverages, increasing applications for adhesives in the packaging industry are driving the market for dimer acid.

Asia-Pacific to Dominate the Market

• There have been gradual developments in the Asian-Pacific construction sector and the growing production. The demand for adhesives in China, India, and the ASEAN countries from other sectors is increasing the demand for dimer acid used in coatings and hot-melt adhesive production.
• The construction industry uses paints, coatings, and other resins for interior and exterior applications. These applications use dimer acid in production as it provides better durability against environmental changes, such as high temperatures, acid rain, and snow.
• The revenue of the global construction industry is expected to grow steadily over the next few years and reach USD 4.4 trillion by 2030. China is experiencing massive growth in its construction sector. According to the National Bureau of Statistics of China, in 2021, the construction output in China was valued at approximately USD 4.29 trillion.
• China is investing USD 1.43 trillion in major construction projects in the next five years till 2025. In 2022, India contributed about USD 640 billion to the construction industry due to government initiatives in infrastructure development and affordable housing.
• The raw materials used to prepare polyesters include all vegetable oils, fatty acids, and their derivatives. According to the US Department of Agriculture 2021, the consumption volume of vegetable oil in Japan amounted to around 75 thousand metric tons in 2021.
• In 2022, the leading country of sunflowerseed oil consumption was the EU-27, followed by China and India. According to the US Department of Agriculture, in 2021, China's population consumed around 2.6 million metric tons of sunflower seed oil.
• Increasing applications for coatings from various industries and growing demand for polyamide resins for different applications are expected to drive the market for dimer acid through the years to come.

Dimer Acid Industry Overview

The dimer acid market is partially consolidated, with a few major players dominating a significant portion. Some major companies are BASF, Croda International, Oleon NV, Harima Chemicals, and Emery Oleochemicals.

Dimer Acid Market Leaders

Dimer Acid Market News

• February 2023: Croda International Plc acquired a global leader in premium, biotechnology-derived beauty actives, Solus Biotech. The acquisition provides Croda International Plc access to Solus' existing biotech-derived ceramide and phospholipid technologies and its emerging capabilities in natural retinol.
• December 2022: Oleon NV expanded its global footprint by acquiring a blending plant in Conroe, Texas, with an investment of USD 50 million. The company could deliver warehousing and blending services for different markets with this new manufacturing plant.