India Adipic Acid Market Growth & Trends
The India adipic acid market size is projected to reach USD 314.4 million by 2025, according to a new report by Grand View Research, Inc., posting a CAGR of 6.2% during the forecast period. Increasing demand from the automobile industry to manufacture lightweight vehicles is the primary factor driving the market in India.
The market is also expected to grow on account of the accelerating rate of footwear production in this country. Adipic acid is essential for the production of aliphatic polyester polyol, which is a key precursor for manufacturing footwear soles. The market size of the footwear industry in India was estimated at USD 6.4 billion in 2016.
Rapid expansion of the nylon 66 market in the country is likely to have a positive impact on the demand for adipic acid. The nylon 6,6 market in India is rising at a CAGR of 5.6% during the forecast period and is poised to reach a size of USD 1.6 billion by 2025. Nylon 6,6 accounts for the leading share in India’s adipic acid’s demand.
The construction industry is likely to be a prominent end user of polyurethane. Growing construction activities to accommodate a rapidly increasing population is fueling the demand for polyurethane, which in turn is working in favor of the market.
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India Adipic Acid Market Report
India Adipic Acid Market Report Highlights
- The India adipic acid market stood at 101.8 kilo tons in 2016 and is projected to progress at a CAGR of 4.4% over the forecast period. Increasing use of PU derived from adipic acid in the footwear industry is likely to boost the market growth
- Majority of the adipic acid consumed in this country is dependent on imports from adipic acid intensive manufacturing nations
- Indian polyurethane production was estimated to be 148.5 kilotons in 2016, where polyester polyols accounted for 9.15% of the raw material share. Polyester polyol production capacity of India was 24.5 kilotons in 2016 and it is estimated to increase at a fast pace during the forecasted period. The demand for polyester polyol declined by about 2% during 2014–2016
- There is a rise in the investments and expansion plans, mainly in the form of joint ventures, coming up for the manufacturing of MDI and TDI, which account for a majority of the market share
- Mitsui Chemicals, BASF, DOW, and Henkel are some of the key players prioritizing their strategies to venture into the India MDI/TDI/Polyurethane manufacturing market.