Wednesday, 27 May 2020

Rising Demand for Cosmetics & Personal Care Products to Boost ODDA Growth

28 May 2020: Octadecanedioic acid (ODDA) is an alpha, omega-dicarboxylic acid that is octadecane in which both terminal methyl groups have been substituted by carboxy groups. It is conjugate acid of an octadecanedioic acid and octadecanedioate anion. The preference for ecological and organic products as a strategy to decrease dependence on petrochemical derivatives has played a significant role in encouraging octadecanedioic acid growth.

Octadecanedioic Acid Market


Polyester Polyols Sector Holds Largest Market Share in the Market

On the basis of application, the octadecanedioic acid market can be classified into lubricating oils polyester polyols, powder coatings, cosmetics, and others. The polyester polyols sector holds the largest market share and is anticipated to grow at the second highest CAGR in the forthcoming period. Rising preference for powder coatings over the recent years is anticipated to impact the demand for octadecanedioic acid.

Octadecanedioic acid is an intermediary chemical mainly used in the production of engineering polymers, such as powder coatings, polyphenylene oxide, latent curing epoxies, polyphenylene ethers, polycarbonates, polyetherimides, and polyurethanes. Polyester polyols derived from C18 dicarboxylic acid shows excellent optical clarity, solvent resistance, toughness, and hydrolytic stability. These polymers can be used in the food service, medical, and automotive sector among others.

C18 dicarboxylic acid is a key element for the formulation of composites, consequently used in pharmaceuticals and personal care. Cosmetics application sector is anticipated to raise at the highest CAGR in the forecast period. The factor attributed to the growth of cosmetic application sector is a preference to naturally sourced compounds. Rising consciousness of natural skin care constituents with anti-aging characteristics is anticipated to drive the demand for octadecanedioic acid throughout the forecast period. In terms of volume, lubricating oil sector is estimated to account for the second largest share in the market and anticipated to grow at a CAGR of 4.1% in the forecast period. Octadecanedioic acid is used in lubricating oils as a thickener in grease compositions. 

Increasing environmental guidelines in the automotive and industrial segment have played a significant role in the growth of bio-based products. For instance, the European Commission declared an investment of nearly USD 5.04 billion Public Private Partnership (PPP) for accelerating commercialization of bio-based products and advertising bio-based industries. Regulatory framework planned for encouraging the use of organic based products to limit greenhouse gas (GHG) discharges is likely to surge the demand for bio-based intermediates such as octadecanedioic acid.

The manufacturers are in the search for developing procedures for a strong distribution network, and effective production to commercialize the application of the market. The octadecanedioic acid is extremely competitive as units strive to produce acid of an improved and higher quality.

Market Insights:

Octadecanedioic acid is anticipated to grow and develop at a constant rate. Manufacturers are seeking to progress a strong distribution network and efficient production procedures to commercialize octadecanedioic acid application. The industry is extremely competitive as companies try to create high-quality acid. Outstanding product characteristics and renewable content permit manufacturers to charge a premium rate for the product.

Cathay Industrial Biotech Ltd. and Cathay R&D Center Co., Ltd. announced a patent on using candida sake strain for producing long-chain dicarboxylic acids. The procedure can produce dodecanedioic acid, undecanedioic acid, tetradecanedioic acid, brassylic acid, pentadecanedioic acid, octadecanedioic acid, and hexadecanedioic acid.

Hydrogenated metathesized method of natural oil derivative based thickener components used in grease compositions is patented by Elevance Renewable Sciences, Inc. The combination of hydrogenated metathesized of natural oils and their byproducts as a thickener constituent in complex and simple greases results in improved yields and reduced processing times.

Leading players operating in the octadecanedioic acid (ODDA) market include Croda International Plc.; Elevance Renewable Sciences Inc.; Cathay Industrial Biotech Ltd.; BASF SE; Nanjing Chemlin Chemical Industrial Co. Ltd; and TCI America.

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