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Dimeric fatty acid Market Inclined to Deliver Positive Growth Results until 2027 | Key Players are Croda International Plc., Kraton Corporation, Oleon NV, Shandong Huijin Chemical Co. Ltd., etc.

02-25-2019 11:15 AM CET | Industry, Real Estate & Construction

Press release from: Fact.MR

Dimeric fatty acid Market Inclined to Deliver Positive Growth

The FactMR report covers all the recent developments in the dimeric fatty acid market. The report features a list of market leaders and new entrants in the dimeric fatty acid market, including Croda International Plc., Kraton Corporation, Oleon NV, Shandong Huijin Chemical Co. Ltd., Liancheng Baixin Science and Technology Co. Ltd., Jiangsu Jinma Oil Technology Development Co., Ltd., Jiangsu Yonglin Oleochemical Co. Ltd., Anqing Hongyu Chemical Co., Ltd., Aturex Group, Florachem Corp., Emery Oleochemicals GmbH, and Jarchem Industries Inc.

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According to the FactMR study, Croda International Plc., Oleon NV, and Kraton Corporation are among the leading players in the dimeric fatty acid market. The study finds that Tier 1 players account for around 27% 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.

Fluctuating Availability of Raw Materials Remains a Key Challenge

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.

Fluctuating supply of TOFA due to the recent transformations in wood pulping procedures is likely to make a significant impact on growth and salient dynamics of the dimeric fatty acid market in the upcoming years. Uncertainties about the availability of raw materials also suggest a potential rise in prices of dimeric fatty acids in the coming future.

In addition, a majority of customers in the end-user industries, such as adhesives, coatings, and printing inks industry, are moving away from dimeric fatty acid-based polyamides due to inadequate supply and increased prices. Thereby, this can make a negative impact on growth of the dimeric fatty acid market.

Read Complete Factors about Global Market Report from Here - https://www.factmr.com/report/2470/dimeric-fatty-acid-market

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 producers in dimeric fatty acid market are aiming to capitalize on the export markets for dimeric fatty acid to gain an edge in the upcoming years.

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.

Low Ecological Risks of Using Dimeric Fatty Acid Facilitate its Adoption across Industries

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.

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About FactMR

FactMR is a fast-growing market research firm that offers the most comprehensive suite of syndicated and customized market research reports. We believe transformative intelligence can educate and inspire businesses to make smarter decisions. We know the limitations of the one-size-fits-all approach; that's why we publish multi-industry global, regional, and country-specific research reports.

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