Dimeric Fatty Acid Market

Global Dimeric Fatty Acid Market Outlook

The global dimeric fatty acid market is estimated at USD 703 million in 2022 is forecast to surpass USD 974 Billion by 2032, growing at a CAGR of 9.7% from 2022 to 2032.

Attribute	Details
Market size value in 2021A	USD 686 Million
Market value estimated in 2022E	USD 703 Million
Market value forecast in 2032F	USD 974 Million
Global Growth Rate (2022-2032)	CAGR 5.4%
East Asia Market Size in 2022	USD 258 Million
Key Companies Profiled	Anqing Hongyu Chemical Co. Ltd. Aturex Group Croda International Plc. Emery Oleochemicals GmbH Florachem Corp. Jarchem Industries Inc Jiangsu Jinma Oil Technology Development Co. Ltd. Jiangsu Yonglin Oleochemical Co. Ltd. Kraton Corporation Liancheng Baixin Science and Technology Co. Ltd. Oleon NV Shandong Huijin Chemical Co. Ltd.

Number of applications for polyamide resins have been increasing over past half-decade. Similar trend is estimated for usage of adhesives and various fuel oil additives. Use of hot melt adhesives on wood, PVC, metal, surface treated polypropylene, paper and polyethylene escalated its market growth. All the aforementioned applications are considerably driving the market.

Dimeric fatty acids, which are also known as di-carboxylic acids, are non-toxic, bifunctional acids obtained by dimerizing Tall Oil Fatty Acids (TOFA). They are light yellow-transparent liquids, which can help in improving water repellency, hydrolytic stability and pigment wetting properties of polymers, commonly used as a rheology controller, or polymer building block in the synthesis of polyamide hot melt adhesives and polyamide resins.

Over 80-85% of dimeric fatty acid is manufactured using tall oil fatty acids (TOFA), which is obtained as a by-product of the Kraft wood pulping process. However, the production of TOFA has declined steadily over the past few years owing to the palpable shift of manufacturers towards pulping younger pine trees with lower chemical content.

Demand for dimeric fatty acid will remain steady, as the industry matures and witnesses confinements in innovations & developments. A recent Fact.MR report estimates nearly dimeric fatty acid market value worldwide anticipated reach over USD 974 million by 2032-end.

Historical and Forecast Analysis of Dimeric Fatty Acid Market (2017-2032)

According to Fact.MR., historically, from 2017 to 2021, demand for dimeric fatty acid increased at a CAGR of 4.6%, wherein, countries such as China, India, Japan, United States and Thailand held a noteworthy share in the global market.

The global dimeric fatty acid market has evolved significantly in recent years, on the back of increasing investments in new technologies to overcome performance and quality issues associated with the manufacturing of dimeric fatty acid. Leading dimeric fatty acid manufacturers are focusing on testing in-depth new production techniques, thereby targeting the emerging market, to capitalize on the burgeoning demand.

Globally the growing consumption of polyamide resins and increasing applications of fuel oil additives and reactive adhesives are driving the overall market growth of dimeric fatty acid over the past half-decade.

Based on the aforementioned factors, the global dimeric fatty acid market is anticipated to grow at a CAGR of 5.7% over the long-term forecast period (2022-2032).

Below are some of the key developments in the dimeric fatty acid market:

• In 2018, Croda International Plc., a British specialty chemicals company, declared its continuous improvement plan, which includes three important investments in the Latin American region. The company has invested in a new innovation and customer experience center and a specialty polymer plant in the region, which is a part of its five-year improvement plan.
• Oleon NV, a leading player in the dimeric fatty acid market which is headquartered in Belgium, has announced the opening of its new isostearic acid production unit in 2018. The company has invested around USD 23 million in the new production unit, which will produce dimeric fatty acid and isostearic acid.
• In the year 2018, Kraton Corporation, an American manufacturer in the dimeric fatty acid market, announced a global price rise of 10-15% for Tall Oil Rosin (TOR), Tall Oil Fatty Acids (TOFA), and its other derivatives. Later, the company also declared an excused performance, or force majeure, on North America distilled tall oils due to the impacts of Hurricane Michael on its Panama facility. As tall oil is the primary raw material used in the manufacturing of dimer fatty acid, this is likely to induce a significant rise in prices of dimeric fatty acid in the upcoming years.

What are the Prominent Driving Factors of the Dimeric Fatty Acid?

With the growing awareness about negative impacts of industrialization on the environment, a majority of end-users across various industrial sectors are assessing the environmental footprint of their actions.

Dimeric fatty acid is commonly used in the adhesive industry and coatings & ink industry. An increasing number of environmentally aware businesses in these industries are shifting to bio-based raw materials.

The Government of Canada declared in one of its documents that “there is low risk of harm to the environment from fatty acids and its derivatives, which also includes dimeric fatty acids.

Thereby, dimeric fatty acid is considered to have lower environmental footprint and less stringent regulatory framework is easing out its adoption across various industrial verticals.

Country-wise Analysis

What makes China a Prominent Market for Dimeric fatty acid?

Some of the largest producers of dimeric fatty acid, including Jiangsu Yonglin Oleochemical Co., Ltd., Lifan Industry (Group) Co., Ltd, and Shandong Huijin Chemical Co. Ltd, are headquartered in China.

Increasing production of adhesives, coatings, and sealants in the country is triggering dimeric fatty acid market players in China to increase the production. Furthermore, steady growth of the construction industry is boosting adoption of industrial adhesives, which is providing a fillip to the consumption of dimeric fatty acid in the country.

Steadily increasing production and consumption of dimeric fatty acid in China has made it one of the leading markets for dimeric fatty acid. Chinese dimeric fatty acid producers are aiming to capitalize on the export markets for dimeric fatty acid to gain an edge in the upcoming years.

Category-wise Analysis

How Increasing Demand for Polymer-based Adhesives Drive Dimeric Fatty Acid Market?

Polymer-based hot adhesives have been gaining burgeoning demand across various industrial sectors, outperforming solvent-based adhesives. Their solvent-free properties makes them environment-friendly and improves their shelf life.

Dimeric fatty acid is among the primary ingredients in polymer-based hot adhesives, and an increasing number of industrial applications of polymer-based hot adhesives is complementing growth of the dimeric fatty acid market.

With most customers in various industrial verticals becoming aware about the unique benefits of polymer-based hot adhesives over solvent-based adhesives, their demand is expected to surge in the upcoming years, in turn, boosting sales of dimeric fatty acid.

What Makes the Consumption of Dimeric Fatty Acid is Largest in Non-reactive Polyamides Application?

Fact.MR projects a significant rise in consumption of dimeric fatty acid due to increasing adoption of non-reactive polyamide resins in a wide range of industrial sectors. The study finds that non-reactive polyamides accounted for over 42% revenue share in dimeric fatty acid market in 2021, and it will continue to gobble the largest share in global consumption of dimeric fatty acids in the upcoming years.

As dimeric fatty acids are a precursor for non-reactive polyamide resins, the adoption non-reactive polyamides across various industries is likely to boost consumption of dimeric fatty acids. Non-reactive polyamide resins are commonly used in printing inks, coatings, and adhesives, which are likely to remain the important end-user industries for dimeric fatty acid in the upcoming years.

Manufacturers in the dimeric fatty acid market are aiming to target the marine industry to provide non-corrosive coatings manufactured using dimer-based non-reactive polyamide resins.

With the burgeoning growth of water transportation and shipping industry, the adoption of marine coatings is expected to upsurge, thereby creating lucrative opportunities for dimeric fatty acid-based water-resistant coatings.

Though non-reactive polyamides hold the largest revenue share in the dimeric fatty acid market, the Fact.MR study projects promising growth of oilfield chemical segments, which is poised to boost dimeric fatty acid growth in the upcoming years. Recent developments in the construction industry are among the leading factors to provide an impetus to adoption of oilfield chemicals. Anticipating the potential increase in oil exploration projects across the globe, the oilfield chemical industry is expected to witness incremental growth, in turn influencing future application trends in the dimeric fatty acid market.

Competitive landscape

Dimeric fatty acid market competitive landscape shows top manufacturers including Anqing Hongyu Chemical Co. Ltd., Aturex Group, Croda International Plc., Emery Oleochemicals GmbH, Florachem Corp., Jarchem Industries Inc, Jiangsu Jinma Oil Technology Development Co. Ltd., Jiangsu Yonglin Oleochemical Co. Ltd., Kraton Corporation, Liancheng Baixin Science and Technology Co. Ltd., Oleon NV and Shandong Huijin Chemical Co. Ltd.

The study finds that Tier 1 players account for around 32% share in the dimeric fatty acid market and the market remains highly fragmented among local players.

Inorganic growth is likely to remain the key strategy for Tier 1 manufacturers of dimeric fatty acid, as they are shifting their focus on acquiring local, small-scale manufacturers in the dimeric fatty acid market.

Meanwhile, Tier 2 and 3 players are competing on price in regional markets for dimeric fatty acid.

As the dimeric fatty acid market is highly fragmented among small or medium-level market players, they are aiming to expand their businesses in the international markets to envisage incremental growth in the upcoming years.

Dimeric fatty acid Market Key Segments

• By Product Type :

  • Standard
  • Distilled
  • Distilled & Hydrogenated

• By Application :

  • Reactive Polyamides
  • Oil Field Chemicals
  • Others