Sebacic Acid Market by Application, Source and Geography - Forecast and Analysis 2023-2027

Sebacic Acid Market Forecast 2023-2027

The global sebacic acid market size is estimated to grow by USD 102.34 million between 2022 and 2027, exhibiting a CAGR of 3.8%. Castor oil is one of the major raw materials used for the production of sebacic acid. Sebacic acid is a straight-chain, 10-carbon-containing dicarboxylic acid. It is also known as decanedioic acid and exists in the form of a white flake or powdered crystal. This acid can be resolved in ethanol and ether and has low water solubility. Sebacic acid is manufactured by the following processes:

• Electrooxidation of adipic acid
• Oxy-carbonylation of butadiene

Sebacic acid is used in numerous applications such as coolants, the manufacturing of esters and polymers, industrial use (lubricants, plasticizers, hydraulic fluids, cosmetics, and candles), and others. It is also used in the synthesis of polyamide and alkyd resins.

The growth of the market depends on several factors, including growing demand for sebacic acid in the automotive industry, rising demand for light stabilizers, and high demand for sebacic acid in developing nations.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by application (polymer manufacturing, coolants, industrial use, ester manufacturing, and others), source (castor oil and adipic acid), and geography (APAC, North America, Europe, South America, and Middle East and Africa).

By Application

The market share growth by the polymer manufacturing segment will be significant during the forecast period. Nylon 6,10 is produced by the reaction of hexamethylenediamine with sebacic acid, which is polymerized at about 240degreeC. Nylon 6,10 exhibits superior properties, such as high dimensional stability and electrical properties, compared to nylon 6 and 6.6. 

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The polymer manufacturing segment was valued at USD 145.04 million in 2017 and continued to grow until 2021.  Nylon 6,10 is a commercially important polymer that is widely used in engineering plastics applications. Some of the key applications of these polymers include auto parts, instrument boards, control consoles, transducers, engine structures, wheel gears, light-emitting diode (LED) holders, radiators, and LED connectors. Furthermore, because of its lower moisture absorption characteristics and strength, it is widely used in textile applications. It is also susceptible to environmental stress cracking due to the action of salts such as zinc chloride. Hence, these applications are expected to drive the global market growth during the forecast period.

By Source

Based on the source, castor oil holds the largest market share. Castor oil's high ricinoleic acid concentration allows for the production of high-purity derivatives. Its unique hydroxyl group complements the double bond and carboxyl group, making it ideal for chemical reactions. Castor oil's high solubility in alcohols and viscosity across temperatures are advantageous. It is a promising renewable source for production, especially in countries with developed healthcare infrastructure and increased biodiesel production. The shift from conventional to biofuels due to crude oil price volatility will positively impact the demand for castor oil in the global market.

By Regional

APAC Region

APAC is estimated to contribute 50% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In 2022, APAC was the largest consumer in the global market. The region is expected to be the fastest-growing market during the forecast period. APAC has a large consumer base, along with the easy availability of raw materials and low-cost labor. The market in APAC is majorly driven by end-user industries, such as automotive, polymer, and others. The presence of leading automotive manufacturers in countries such as China, India, Japan, and South Korea is expected to boost the demand during the forecast period, as it is used as a coolant in automotive vehicles. It is the primary raw material used in rubber compounding, elastomers, and synthetic fibers that are used in automotive vehicles. It is one of the major substitutes for metal components as well. These materials are used in the structural, powertrain, exterior, and interior parts of an automobile, as well as in electronic and electrical components.

Furthermore, with the rapid economic growth, most countries in APAC have been spending on infrastructural and industrial development, thus boosting the demand for commercial vehicles. The robust economic growth in countries such as China, Japan, South Korea, and India in APAC has made the region the fastest-growing and largest automotive market globally. Rising automotive production across APAC is expected to drive the growth of the global market during the forecast period.

Market Dynamics and Customer Landscape

The Sebacic Acid Market is witnessing robust growth driven by several key factors. Stringent environmental and regulatory laws aimed at reducing carbon monoxide emissions have propelled the demand for bio-based products like sebacic acid. Moreover, the versatility of sebacic acid across various industries such as personal care, healthcare, construction, packaging, pharmaceuticals, automotive, coatings, and adhesives further fuels its market expansion. Recent innovations in the production processes and applications of sebacic acid contribute to its increasing value and volume in the market. Despite supply chain disruptions and public perception challenges, the market continues to thrive, supported by its favorable SWOT analysis and gross profit margins compared to competing technologies. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The market experiences significant growth due to the increasing demand for light stabilizers. Light stabilizers, such as hindered amine light stabilizers (HALS) and UV absorbers, play a crucial role in shielding materials from degradation caused by UV radiation. Sebacic acid, a key ingredient in the production of HALS, contributes to their effectiveness in preventing polymer degradation. HALS functions by scavenging radical intermediates, while UV absorbers absorb harmful UV radiation. With rising concerns about environmental and regulatory compliance, there's a heightened need for effective light stabilizers, driving the demand for sebacic acid. This surge in demand for UV absorbers and HALS fuels the growth of the global sebacic acid market, emphasizing its pivotal role in various industries.

Significant Market Trends

Alternative production processes is a primary trend shaping the market. Sebacic acid is mainly manufactured from castor seed oil. However, it is also manufactured by the electrooxidation of adipic acid and oxy-carbonylation of butadiene. Electrooxidation of adipic acid Adipic acid is partially esterified to form monomethyl adipate. Through electrolysis, the potassium salt of monomethyl adipate is dissolved in methanol and water to form dimethyl sebacate. This sebacate is then hydrolyzed to form sebacic acid. The total production or the overall yield of sebacic acid with this process is 85%. Oxy-carbonylation of butadiene Sebacic acid is also produced from butadiene by using palladium-catalyzed oxidative carbonylation technology. This dicarbonylation method produces dimethyl hex-3-enedioate adipic acid. High carbon monoxide pressure (1,800 PSIG) is used during the process, and chloride is used as a palladium counterion. 

Thus, the increasing use of alternative manufacturing processes will drive the growth of the global market during the forecast period.

Major Market Challenge

The increasing threat from substitutes is a key challenge hindering market growth. Alternatives such as azelaic acid, adipic acid, and corfree M1 can be used as substitutes. Azelaic acid is a saturated dicarboxylic acid produced by Malassezia furfur (Pityrosporum ovale), which is a yeast that resides on normal skin and is also found naturally in wheat, rye, and barley. Azelaic acid is used to manufacture esters that are applicable in lubrication and plasticizers. Similarly, adipic acid is also used to produce polymers such as PVC. Corfree M1 is also used as an alternative in applications such as a coolant in the automotive industry. Thus, the availability and increasing use of these substitutes are expected to harm the growth of the global market during the forecast period.

Technavio's Exclusive Market Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Key Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

LABDHI CHEMICALS- The company offers sebacic acids such as L grade, R grade, S grade, and SP grade.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

Arkema Group, Central Drug House Pvt. Ltd., Chemtech B.V., Hengshui Jinghua Chemical Co. Ltd., HOKOKU Corp., Inolex Inc., Jayant Agro Organics Ltd., LABDHI CHEMICALS, Merck KGaA, Naugra Export, Santa Cruz Biotechnology Inc., Sebacic India Ltd., Silver Fern Chemical Inc., Thermo Fisher Scientific Inc., Tokyo Chemical Industry Co. Ltd., Wilmar International Ltd., Wincom Inc., Corvay GmbH, Shivam Castor Products Pvt. Ltd., and Tianxing Biotechnology Co. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Application Outlook
  • Polymer manufacturing
  • Coolants
  • Industrial use
  • Ester manufacturing
  • Others
• Source Outlook
  • Castor oil
  • Adipic acid
• Geography Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The Sebacic Acid Market is characterized by a diverse range of applications and considerations, reflecting its significance across various industries. As a dibasic acid with versatile coating applications, sebacic acid finds use in environmental and regulatory-compliant bio-based products. However, concerns surrounding health and environmental impacts necessitate a balance between manufacturing cost and sustainability.

The industry demonstrates promising production growth rates, particularly in the LAMEA region, where companies like EDNOL DOZ serve multiple markets. Recent innovations, such as azelaic acid-based plasticizers and bio-polyamides, underscore ongoing advancements in product development. Emery Oleo Chemicals, a key player, caters to PVC and synthetic rubber applications, driving growth in emerging markets.

Sebacic acid's utility extends to personal care, pharmaceuticals, coatings, adhesives, and decorative materials, with applications in textiles and household care. Despite technological advancements and environmental awareness driving demand, challenges persist, including high initial investments and infrastructure limitations. SWOT analysis reveals opportunities in the European and German sebacic acid markets, while collaborations and product positioning remain critical for market success.

Innovations like cooling & brightening eye balms and hyaluronic acid formulations cater to consumer demands for skincare solutions addressing fine lines and wrinkles. Dermatologists recognize sebacic acid's chemical resistance and efficacy in skincare formulations. As investments fuel market expansion, navigating economic crises and labor force dynamics becomes integral to industry resilience and growth.

The Sebacic Acid Market, driven by its dibasic acid nature, serves diverse sectors like construction, packaging, lubricants, and bio-based polymers. It adheres to environmental laws, addressing health concerns while catering to personal care, paints, and coatings industries. With adaptability to varied applications, it faces challenges like supply chain disruptions and public perception. Despite economic crises, the market sustains due to its solidness and adaptability. Notably, in the UK and Europe, it meets specific market demands, exhibiting lower dissolving temperatures for enhanced usability. As innovations like hyaluronic acid eye balm emerge, the market's scope widens, driven by its pivotal role in multiple industries.

Market Scope
Report Coverage	Details
Page number	170
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 3.8%
Market growth 2023-2027	USD 102.34 million
Market structure	Fragmented
YoY growth 2022-2023(%)	3.27
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 50%
Key countries	US, China, Japan, India, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Arkema Group, Central Drug House Pvt. Ltd., Chemtech B.V., Hengshui Jinghua Chemical Co. Ltd., HOKOKU Corp., Inolex Inc., Jayant Agro Organics Ltd., LABDHI CHEMICALS, Merck KGaA, Naugra Export, Santa Cruz Biotechnology Inc., Sebacic India Ltd., Silver Fern Chemical Inc., Thermo Fisher Scientific Inc., Tokyo Chemical Industry Co. Ltd., Wilmar International Ltd., Wincom Inc., Corvay GmbH, Shivam Castor Products Pvt. Ltd., and Tianxing Biotechnology Co. Ltd.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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