Octadecanedioic Acid Market - Forecast(2023 - 2028)

Octadecanedioic Acid Market Overview

The octadecanedioic acid market size is forecast to reach US$11.6 million by 2027 after growing at a CAGR of 4.2% during 2022-2027. Octadecanedioic acid is used in the formulation of the compound in cosmetic products. The demand for cosmetic products is increasing globally which will drive the growth of the market in the forecast period. For instance, according to the November 2020 report by the India Brand Equity Foundation (IBEF), Oriflame Holding AG expanded its color cosmetics segment in India by launching several vibrant color cosmetics. Furthermore, octadecanedioic acid is used extensively as an emulsifier in pharmaceutical medicines that includes tablets, capsules, ointments, gels, creams, and lotions, and the expanding pharmaceutical sector globally will drive the market’s growth in the forecast period. As per the 2020 report by the European Federation of Pharmaceutical Industries and Associations (EFPIA), the production of medicines in the European region amounted to US$ 317,942.75 million in 2019 which was US$ 300,434.09 in 2018. Polyester polyols will drive the market’s growth significantly in the forecast period. Octadecanedioic acid consists of long-chain dicarboxylic acid which is formed with petrochemicals and the fluctuation in the prices of the petrochemicals might hinder the growth of the market in the forecast period.

COVID-19 Impact 

The octadecanedioic acid market was moderately hit during the COVID-19 pandemic. The market went through disturbances such as supply chain disruption owing to lockdown restrictions. The market was hit owing to the loss faced mainly by the cosmetics industry amid the pandemic. As per the 2020 full-year results report by Unilever, the beauty and personal care product usage plunged during the pandemic as people stayed at home. However, the cosmetics market picked up pace in the latter half of 2020 and witnessed robust demand. To avoid raw material shortages and severe service impact, market players implemented necessary measures and continued their high levels of service during the pandemic. As per the data by Croda regarding COVID-19, the company kept its manufacturing sites and laboratories operational. Going forward, the octadecanedioic acid market will witness significant demand due to the growth in the cosmetics and pharmaceutical sector.

Report Coverage

The report: “Octadecanedioic Acid Market Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Octadecanedioic Acid Industry. 

Key Takeaways:

• Biotechnological type is leading the octadecanedioic acid market. The increasing awareness about sustainability and efforts to reduce the dependency on petrochemicals is amplifying its usage in the octadecanedioic acid market Cosmetics will drive the growth of the octadecanedioic acid market in the forecast period. According to the data by Cosmetics Europe, the cosmetics and personal care market in Europe stood at US$ 88.91 billion at retail price in 2020, making it the world’s largest market.
• The Asia-Pacific region is projected to witness the highest demand for octadecanedioic acid in the forecast period owing to increasing demand for cosmetic products. As per the data by the India Brand Equity Foundation, India’s cosmetic and personal care industry is anticipated to reach a market value of US$ 15.17 billion by 2024 compared to US$ 9.98 billion in 2019.

Figure: Asia Pacific Octadecanedioic Acid Market Revenue, 2021-2027 (US$ Billion)

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Octadecanedioic Acid Market - By Type

Biotechnological type dominated the octadecanedioic acid market in 2021 and is growing at a CAGR of 4.4% in the forecast period. The growing demand for biotechnological-based octadecanedioic is attributed to the volatility in prices of petrochemicals products and the rising need for sustainability in the market. Octadecanedioic acid contains dicarboxylic acid, formed with petrochemicals like butadiene and benzene. In the biotechnological type, vegetable oil is utilized as a raw material. Owing to such reasons, the production of octadecanedioic acid through biotechnology is gaining traction among the market players. For instance, UK-based chemicals company Croda which deals with vegetable-based octadecanedioic acid, expanded its presence at Sci-Tech Daresbury to ramp up its biotechnology capacity. This way, the company will be able to amplify its vegetable-based octadecanedioic acid. Such development by market players influences the demand for biotechnological octadecanedioic acid in the forecast period.

Octadecanedioic Acid Market - By Application

Cosmetics dominated the octadecanedioic acid market in 2021 and is growing at a CAGR of 5.2% in the forecast period. Octadecanedioic acid is used as an emulsifier in the formulation of cosmetic products and the booming cosmetics industry globally will drive the growth of the octadecanedioic acid market in the forecast period. For instance, in May 2020, owing to the increasing demand for cosmetics, Japanese-based cosmetic company Shiseido Company Limited launched its global prestige brand SHISEIDO in Sri Lanka. The cosmetics industry witnessed an expansion of the cosmetic portfolio through digital marketing during the pandemic. For instance, in October 2020, Coty Inc., a US-based cosmetics company that ranks third in color cosmetics globally, introduced its direct-to-consumer website for the kylie skin brand in Germany, Australia, the UK, and France. Such a boost in the cosmetics market globally will increase the usage of octadecanedioic acid in emulsifiers for cosmetics, which will drive the market’s growth in the forecast period. Pharmaceuticals will drive the growth of the market significantly in the forecast period owing to the increasing production of pharma medicines such as capsules, tablets, ointments, etc., globally. Polyester polyols application is projected to drive the growth of the octadecanedioic acid market significantly in the forecast period.

Octadecanedioic Acid Market - By Geography

The Asia-Pacific region held the largest market share in the octadecanedioic acid market in 2021 with a market share of up to 32%. The high demand for octadecanedioic acid in this region is attributed to the expanding cosmetics market. Octadecanedioic acid is implemented massively in the formulation of compounds in cosmetics and the rising cosmetic industry in the region will increase the demand for octadecanedioic acid in the forecast period. For instance, according to the February 2021 data by India Brand Equity Foundation, India’s cosmetic and personal care market is projected to reach US$ 15.17 billion by 2024, which was US$ 9.98 billion in 2019. Similarly, according to the record by the Ministry of Economy, Trade and Industry (METI), Japan’s cosmetic and personal care market stood at US$ 35 billion, making it the world’s third-largest market in 2019. Such development in the cosmetics market will amplify the demand for octadecanedioic acid in the forecast period.

Octadecanedioic Acid Market Drivers

Expanding pharmaceutical sector will drive the market’s growth 

Octadecanedioic acid has been a key element in the pharmaceutical sector for many years. The acid is used as a lubricant in oral dosage forms (tablets and capsules) and emulsifying agents in topical formulations (creams, ointments, gels, and lotions) in the pharmaceuticals sector. The pharmaceuticals industry is witnessing rapid development and demand for medicines globally and these factors will drive the growth of the octadecanedioic acid market in the forecast period. For instance, as per the 2020 report by the European Federation of Pharmaceutical Industries and Associations (EFPIA), medicine imports in the European pharmaceutical amounted to US$ 387,325 in 2019 which was US$ 362,199 in the previous year. Similarly, as per the data by the India Brand Equity Foundation, in February 2021, Glenmark Pharmaceuticals Limited introduced SUTIB, a new version of Sunitinib oral capsules to support the kidney cancer treatment process in India. Such growth in pharmaceutical medicines globally drives the growth of the octadecanedioic acid market in the forecast period. 

Booming cosmetic sector will drive the market’s growth

Octadecanedioic acid is utilized extensively in cosmetic products as an emulsifier. The cosmetic market globally is on a progressive track and this growing demand for cosmetic products will drive the growth of the octadecanedioic acid market in the forecast period. For instance, as per the statistics by the Cosmetics, Toiletry and Perfumery Association (CTPA), in 2020, the European region witnessed the highest demand for cosmetics globally where Germany (US$ 16.18 billion) dominated the region followed by France (US$ 13.29 billion) and UK (US$ 11.33 billion). Similarly, according to the September 2021 report by Invest India, Reliance retail will soon launch the selling of cosmetic products online due to the increasing demand for cosmetics in India. Such rising demand in the cosmetics industry globally will drive the growth of the octadecanedioic acid market in the forecast period.

Octadecanedioic Acid Market Challenges

Raw material price fluctuation might slow down the market’s growth

 The octadecanedioic acid is a long chain dicarboxylic acid which is formed with the involvement of petrochemicals such as benzene and butadiene. The prices of petrochemicals globally are fluctuating due to the volatility in the price of petroleum and this might slow down the growth of the octadecanedioic acid market in the forecast period. During the pandemic, the petroleum price was lowered historically. According to the data by ourworldindata.org, crude oil prices in 2017 stood at US$ 54.19 per barrel which surged to US$ 64.21 per barrel in 2019. The oil price again dropped to US$ 41.84 per barrel in 2020. Such lower demand for crude oil resulted in the fluctuation in the price of petrochemicals, and this, in turn, might affect the growth of the octadecanedioic acid market in the forecast period. 

Octadecanedioic Acid Industry Outlook

Investment in R&D activities, acquisitions, product and technology launches are key strategies adopted by players in this market. Octadecanedioic acid top 10 companies include:

1. Cathay Biotech Inc.
2. Croda
3. BASF SE
4. Elevance Renewable Sciences
5. Nanjing Chemlin Chemical Industry
6. TCI America
7. Hunan Huateng Pharmaceutical Co.
8. Xiamen Sinopeg Biotech Co.
9. Others

Acquisitions/Product Launches

• In August 2020, Croda, which deals with octadecanedioic acid, acquired Avanti Polar Lipids, Inc., a market leader in drug delivery systems in pharmaceutical. This acquisition will increase the implementation of octadecanedioic acid in the production of pharmaceutical drugs which, in turn, will contribute to the market’s growth.

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