Dicyandiamide Market - Forecast(2023 - 2028)

Dicyandiamide Market Overview

Dicyandiamide Market size is estimated to reach US$325 million by 2027 after growing at a CAGR of 6.2% during 2022-2027. Dicyandiamide is a strong alkaline and water-soluble white crystalline compound. Dicyandiamide has its scientific name as cyanoguanidine, which is a guanidine. It is a non-hazardous and non-volatile white crystalline powder with a molecular formula of C2H4N4. It is basically used as a chemical intermediate for the synthesis of acetoguanamine, benzoguanamine, cyanamide-formaldehyde resins and many more. It is used in the manufacturing of explosives, fertilizers, pharmaceuticals etc. It is also used as a curing agent for epoxy resins, flame retardant, a nitrification inhibitor. Dicyandiamide is a member of guanidine and nitrile. Dicyandiamide chemical is a dimer of cyanamide or cyanoguanidine which is majorly used in plastic industry for manufacturing melamine.

COVID-19 Impact

Most countries have been negatively impacted by COVID in the last 18 months. There has been a decrease in the growth of many sectors and industries during lockdown. Same has happened with Dicyandiamide Market. It has seen a decrease in the demand from consumers as people are cutting off the extra expenses. During COVID-19, many diabetic patients needed drugs due to higher risks and therefore the demands were increased in the medical sector but the overall growth of the market decreased. However, when the pandemic is about to over, it will again gain its steady growth. The medical industry boosted but all the other industries were seeing a downfall including paper, textile, rubber, electrical agricultural and many more. According to UNIDO Industrial Analytics Platform, the average decline in the growth rate of Portuguese exports of rubber was approximately 0.15 percentage points. Thus, the aforementioned factors have impacted the growth of Dicyandiamide Market during the pandemic.

Report Coverage

The “Dicyandiamide Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Dicyandiamide industry.

Key Takeaways

• Dicyandiamide is widely used in epoxies as a curing agent and as a flame retardant additive in paper and textile industry which is boosting the market growth.
• Asia Pacific is the leading region accounted the largest share in Dicyandiamide Market with countries like China, India and Japan and major companies like Ningxia Sunnyfield Chemical Co., Ltd, Akash Purochem Private, and Nippon Carbide Industries respectively.
• Dicyandiamide is soluble in water as well as in alcohol which makes it usable in many industries like paper, textile, pharmaceutical, rubber and many more.

Figure: Asia Pacific Dicyandiamide Market Revenue, 2021-2027 (US$ Million)

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Dicyandiamide Market Segment Analysis – By Grade

Reagent grade held the largest share in Dicyandiamide Market in 2021 and is expected to grow with a CAGR of 5.1% during the forecast period. Reagent grade is used in the production of metformin which is used as a drug for type II diabetes. Rising diabetes patients have increased the demand for reagent grade during the forecast period. According to International Diabetes Federation (IDF), in 2021, approximately 537 million adults (20-79 years) are living with diabetes globally. The total number of people living with diabetes is projected to rise to 643 million by 2030 and 783 million by 2045 worldwide. 3 in every 4 adults with diabetes live in low- and middle-income countries. These reagent grade Dicyandiamides are used in laboratories all over the world for experiments and investigative procedures in chemistry, molecular biology, biochemistry and cellular biology. It is also used as a flame retardant additive in paper and textile industry. It is used as a stabilizer compound for PVC flooring. It is used in other applications as well like powder coatings, dielectric coatings, water treatment chemicals, dye fixing and some pharmaceutical applications. Thus, the range of application of reagent grade Dicyandiamide is fuelling the growth of Dicyandiamide Market.

Dicyandiamide Market Segment Analysis – By End-Use Industry

Pharmaceutical sector held the largest share in Dicyandiamide Market in 2021, with a share of over 24%. The main reason behind it is the rising demands for drugs of diabetic patients. It is used as a drug for type II diabetes. According to International Diabetes Federation, type II diabetes accounts for more than 90% of the overall cases of diabetes. As Dicyandiamide is highly reactive and non-hazardous, it is widely used in the manufacturing of metformin drug. In the U.S. pharmaceutical industry, metformim is increasingly used in the synthesis of drugs for treating patients suffering from type II diabetes. According to the Ministry of Chemicals and Fertilizers, the Indian pharmaceutical industry is the world's 3rd largest by volume and 14th largest in terms of value. The total annual turnover of pharmaceuticals was US$ 3786 for the year 2019-2020. Hence, the growth in pharmaceutical sector is furling the growth Dicyandiamide Market.

Dicyandiamide Market Segment Analysis – By Geography

The Asia Pacific is the leading region accounted for the largest share in Dicyandiamide Market in 2021 and held nearly 36% of market share. The fastest growing import markets of dicyandiamide for China between 2019 and 2020 were Germany, Hong Kong, and India. Huge amounts of small and medium sized manufacturers are present in China and Japan which helped to increase its market share. Dicyandiamide is used as an intermediate during the manufacturing of flame retardants, fertilizers, coatings, adhesives and others. It is used in various industries like textile, rubber, pharmaceutical, agriculture, electronics and many more. According to Japan Electronic and Information Technology Industries Association (JEITA), the production of electronics industry was around US$ 68,188.68 million in 2019. Dicyandiamide is the only substitute of dimethylformamide and Dicyandiamide is largely produced in China as it is the biggest polluting industry, thus, Dicyandiamide manufacturing cannot be setup anywhere and everywhere. China and India are experiencing huge demands and development thus; Asia Pacific is expanding at a steady rate. Also, Asia Pacific is one of the key metformin producer and exporter across the globe. Thus, rising demand in this region is expected to drive the market during the forecast period.

Dicyandiamide Market Drivers

Increased use as curing agents

Dicyandiamide is used as a curing agent in countertop adhesives, sealants, concrete fasteners, decorative moulding glues, epoxy adhesives and many more. It is mostly used in epoxy adhesive in which the epoxy resin and curing agent (dicyandiamide) is premixed. Dicyandiamide is designed for use of latent curing agent for epoxy resins with the finest particle size for maximum reactivity. Accelerators are used as curing agents in Dicyandiamide to reduce the curing temperature. Dicyandiamide is used as a curing agent in resins to provide extended pot life formulations which cure at higher temperatures to give highly cross-linked systems. It is a high functionality curing agent which promotes dense epoxy cross-linking. A micronized grade of Dicyandiamide containing 1.5%-1.6% anti-blocking agent inhibits clumping and improves handling. Dicyandiamide has improved solubility over the parent compound and still retain a high curing ability so that they are effective in amounts of about 24%, preferably 2 to 16%, of the epoxy resin precursors. Thus, growing use of Dicyandiamide as curing agent is boosting the market growth.

 Increasing demand in Water Treatment chemicals

High colour concentrations in inflows at water treatment plants are considered emergency situations which must be solved appropriately and immediately. Using the decolouration process of modified Dicyandiamide can help with the process. The removal rates are above 50% in acidic and reactive dye water. It is used as highly efficient flocculent in color treatment and to decrease the chemical oxygen demand (COD). The experimental results have shown that when Dicyandiamide is 8mL and pH is acidic or neutral, the chemical oxygen demand and colour removal rate are the highest and have reached more than 70%. Also, it is best when performed at the room temperature. It is mainly used for colour removal treatment for high-colority wastewater from dyestuffs plants. According to European Investment Bank, in 2020, the bank invested US$12 million for wastewater treatment in Kosovo, which will provide improved and affordable access to water and wastewater services to more than 90,000 people. Thus, surge in demand in water treatment chemicals is fuelling the growth of Dicyandiamide Market.

Dicyandiamide Market Challenges

Potential Health Effects

It is risky if inhaled, swallowed or ingested. It may cause eye irritation, skin irritation and long term exposure may cause eczema. If inhaled, it can cause gastrointestinal irritation with nausea, vomiting and diarrhoea. If swallowed, may form methemoglobin which in sufficient concentration can cause cyanosis which turns skin in bluish colour due to oxygen deficiency. Prolonged or repeated contact can also cause possible eczema. As it is non-combustible, it gives irritating or toxic fumes in a fire. Thus, the health impacts associated with the used of Dicyandiamide may hamper the market growth.

Dicyandiamide Outlook

Dicyandiamide Market top 10 companies include:

1. Ningxia Sunnyfield Chemical Co., Ltd.
2. Gulf Chemical International Corp.
3. Alzchem Group AG
4. Conscientia Industrial Co., Ltd
5. Lori Industry Co., Ltd
6. United Mineral & Chemical Corp.
7. OPQ Chemical Co., Ltd
8. Shizuishan Pengsheng Chemical
9. Jiafeng Chemicals USA Co Ltd
10. PG International 

Recent Developments

• In August 2021, Jiafeng Chemical USA Co LTD introduced a new production line for electronic grade Dicyandiamide to be used as a curing agent in epoxy resins.
• In June 2020, Jiafeng Chemical USA Co LTD planned to improve Dicyandiamide production by building a new production line with advanced equipment’s and technology. With the new Dicyandiamide production line, the company has larger capacity for Dicyandiamide, 40,000 Mts per year.

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