China to be the Frontrunner in Dimeric Fatty Acid Production and Consumption Through 2027

A recent study published by Fact.MR opines that the dimeric fatty acid market will witness 5.4% value y-o-y over 2018 to surpass US$ 608 million by the end of 2019. The study remains bullish on the potential rise in demand for dimeric fatty acid, as a majority of environmentally-conscious customers from wide-ranging industries are shifting away from solvent-based raw materials to their bio-based variants.

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Industrial Growth in Asia Pacific Region will Bolster Applications of Dimeric Fatty Acids

According to the Fact.MR study, the Asia Pacific region excluding Japan (APEJ) is the largest and fastest-growing market for dimeric fatty acid, generating over one third of the global revenues. The study predicts that emerging economies, especially China, will create more lucrative opportunities for dimeric fatty acid market players, as the trends of urbanization and industrialization are on their greatest peak in developing countries in the region.

Though the dimeric fatty acid market is capital intensive, small- and medium-scale businesses have entered the Chinese dimeric fatty acid market. The emergence of new entrants in the dimeric fatty acid market in China is mainly attributed to the plethora of opportunities that the end-user industries have generated for stakeholders.

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The Chinese government has developed a favorable regulatory environment to boost production of biodiesel in the country, which is contributing greatly to growth of the dimeric fatty acid market in China. Furthermore, the adhesive industry and coatings industry is gaining momentum to create more industrial opportunities for dimeric fatty acid market players in the country.

strategic focus of key dimeric fatty acid manufacturersIndia is another lucrative market for dimeric fatty acid, as the construction industry has been witnessing burgeoning growth in the country, since the past few years. According to the National Investment Promotion and Facilitation Agency, India, the Indian construction industry is expected to witness booming growth to surpass US$ 738 billion by the year 2023. Impressive growth prospects of the Indian construction industry is influencing dimeric fatty acid market players to shift their focus towards investing in the country, as dimer-based adhesives, sealants, and coating are commonly used in construction operations.

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Non-reactive Polyamides Hold the Largest Share in Global Consumption of Dimeric Fatty Acid

The 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 2018, 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.

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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.

The Fact.MR study provides actionable insights based on a thorough research on growth of the dimeric fatty acid market between the period 2018 and 2027. The study projects that the dimeric fatty acid market will envisage a healthy 5.6% value CAGR during 2019-2027.

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