The market for dimer acid is expected to register a CAGR of more than 5% during the forecast period.
- Increasing applications for polyamide resins and growing usage of adhesives and fuel oil additives are driving the 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.
Key Market Trends
Growing Demand for Alkyd Resins and Adhesives
- Dimer Acid is known as dimerized fatty acids, and it belongs to the group of the dicarboxylic acids. Dimer acid finds its application in surface coatings, lubricants, and fuel additives, among others.
- Dimer acid is being used in the manufacturing of alkyd resins that are majorly used for synthetic paintings and coatings, which are employed in the construction industry due to their properties.
- 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.
- Hot-melt adhesives have high thermal stability, high melting points, and good chemical resistance to many compounds. These properties are increasing the demand for these adhesives over other adhesives in the current scenario.
- Increasing applications for the adhesives inpackaging industry, owing to the strong demand from end-user industries, such as food and beverages, are driving the market for dimer acid.
Asia-Pacific to Dominate the Market
- There have been gradual developments in the construction sector in Asia-Pacific, and the growing production and demand for adhesives in China, India, and the ASEAN countries from other sectors has been increasing the demand for dimer acid used in the production of coatings and hot-melt adhesives.
- 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.
- According to the National Bureau of Statistics of China, the construction industry in China has been growing decently in recent years. Developing countries, like India and Singapore, have also been witnessing positive growth in Asia-Pacific, in terms of construction activities.
- According to the World Bank, in 2020, the expenditure of the construction industry is expected to reach about USD 11.9 trillion, with an increase of about 4.2%.
- 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.
The dimer acid market is partially consolidated in nature, with few major players dominating a significant portion of the market. Some of the major companies are BASF, Croda International, Oleon NV, Harima Chemicals, and Emery Oleochemicals.
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