Acrylamide market size is estimated to reach US$4.2 billion by 2027, after growing at a CAGR of 3.9%. Acrylamide is a white odorless organic compound which is produced by hydrolysis of acrylonitrile, and the hydrolysis is mainly catalyzed by sulfuric acid and enzymes like nitrile hydratase. The organic compound finds its application in production of polyacrylamide which is used as flocculent in water treatment, as oil recovery agent in refineries, as stabilizer in paper production, and as water repellent in textile sector. The factors like increased in paper consumption, growing demand for textile items, growing demand for oil & gas, and increase in government spending in water treatment are driving the growth of acrylamide industry. However, acrylamide is highly toxic and can cause problems for humans like adverse effect on male reproduction, nerve damage, muscle weakness and coordination, hence the stringent regulation imposed by government to restrict acrylamide usage, can hamper the growth of acrylamide industry.
COVID-19 Impact
COVID-19 negatively impacted many industrial aspects like supply of raw materials, production, transportation of goods, and labor workforce. Hence, necessary measures like lockdown, public movement restrictions, quarantining and trade restrictions imposed by countries all over the world, disrupted the functionality of major end users of acrylamide like textile, paper and oil refineries. For instance, as per the Bureau of Economic Analysis, the value of US textile output decreased by 21.4% while apparel decreased by 14.9% in the second quarter of 2020 compared to last year. Also, as per the 2021 report of the Confederation of European Paper Industries, the production of graphical grades in newsprint and commercial printing declined 19% in 2020. Further, as per, International Energy Agency, in 2020, the decline in oil production in first half of 2020 led to decrease in global oil demand by 90,000 barrels per day compared to 2019. Acrylamide is used as strengthening agent in papers, as water repellents in textile and enhances oil recovery in refineries, hence the decrease in productivity of these sectors will decrease the usage of acrylamide. This, will have negative impact on growth of acrylamide industry.
Report Coverage
The report: “Acrylamide Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segment of the Acrylamide Industry.
By Product – Polyacrylamide, Acrylamide Copolymers, Acrylamide Crystals
By Application – Waste Water Treatment (Municipal, Industrial), Dispersing Agent, Oil Recovery Agent, Stabilizer & Thickener, Water Repellent, and Other
By End User – Food & Beverage (Dairy Products, Health Drinks, Fruits & Vegetables, Others), Refineries (Conversion Oil, Hydro-Skimming Oil, Topping Oil, Deep Conversion Refineries, Others), Textile (Woven, Non-Woven), Paper (Decorated Paper, Laminated Paper, Printing Paper, Others), Cosmetics, Chemicals, and Other
By Geography - North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherland, Spain, Russia, Belgium, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), and Rest of the World (Middle East, Africa)
Key Takeaways
- Asia-Pacific dominates the acrylamide industry, as the region consists of major end users of the acrylamide like textile, paper and food & beverage sector in major economies like India & China, with China being largest textile and paper maker
- Acrylamide is also largely used in cosmetics & personal care products where it is used as a stabilizer, binder, and thickener due to its foaming, anti-static, and lubricating properties.
- As a chemical intermediate, acrylamide is used in the production of organic chemicals, which are further used as a feedstock for medical, pharmaceutical, biochemical, and agriculture applications
Acrylamide Market Segment Analysis – By Product
Polyacrylamide held a significant share in acrylamide market in 2021, with a share of over 45%. Polyacrylamide is a polyolefin which is majorly used as flocculent in water treatment process, and in paper sector it is used to improve the pulp dewatering performance which increases the strength of the paper. The growing scale of investments in water treatment plants and rapid production of paper in major economies on account of growing advancements, will positively impact the demand for polyacrylamide in them. For instance, in 2020, European Bank & European Investment Bank jointly invested US$20 million for construction of new waste water treatment plant in Kosovo. Also, as per the China National Bureau of Statistics, paper production in China increased by 8% in 2020 compared to last year. The increase in investment in water treatment plants and high production scale of paper, will create more demand of polyacrylamide in them. Hence, this will have positive impact on the growth rate of acrylamide industry.
Acrylamide Market Segment Analysis – By End User
Textile sector held a significant share in acrylamide market in 2021, with a share of over 29%. Acrylamide being an organic compound is used as sizing agent and finishing agent for fabric post-treatment and also it is used as flocculent purification of textile printing and dyeing waste water. Rapid urbanization, increase in disposable income and improvement in living standards has led increase in consumption scale of clothing and apparels items, which will positively impact the usage of acrylamide in textile sector. For instance, as per the National Development and Reform Commission domestic retail sales of apparel and knitwear in China stood at 172.4 billion in 2019 and online garment sales expanded with 16.5% yearly growth. Also, as per United Kingdom Fashion and Textile Association, the apparel export of the UK reached US$925.05 million in October 2020 with a rise of 177.09%. Such increase in exports and online sale of clothing and apparel items will increase the production scale of these textile items, resulting in more usage of acrylamide as sizing agent and in water purification of textile waste water. Hence, this will have positive impact on the growth rate of acrylamide industry.
Acrylamide Market Segment Analysis – By Geography
Asia-Pacific held the largest share in acrylamide market in 2021, with a share of over 24%. The rapid industrialization in sectors like paper and textiles in countries like India, Japan, China and the increase in water treatment capacity in major economies like China has driven the demand for acrylamide in these regions. For instance, as per the Ministry of Textiles, total cloth production in India was increased by 9% during April-Jan 2020, and cloth production in the decentralized sector was increased by 9% in 2020. The 2020 report of the National Bureau of Statistics of China stated that country installed 39000 new wastewater treatment facilities in 2020 and has invested US$81.6 billion in its municipal wastewater system, new treatment facilities, sludge mitigation showing a massive increase in investment in water treatment in past five years. Acrylamide being used as flocculent in water treatment, as sizing & finishing agent in textile and strengthening agent in paper sector, hence the growing development in these sectors will lead to more usage of acrylamide in them.
Acrylamide Market Drivers
High Demand from Oil & Gas Industry
Organic compound like acrylamide is used in oil and gas extraction, exploration and enhancement of oil recovery by increasing the viscosity of the injected water and pushes the oil locked in reservoirs towards the pump. The growing demand for oil and gas by major economies, has led to increase in their scale of production. For instance, according to U.S. Energy Information Administration, in 2020, Unites states natural gas production was about 34.4 trillion cubic feet. Also, as per the Organization of Petroleum Exporting Countries, crude oil production in United Arab Emirates was 2,878 barrel per day in November showing increase of 10% from March. The growing production of gas and crude oil on account of increase in global demand will lead to more usage acrylamide in extraction of crude oil and natural gas. This will expand acrylamide usage in refineries sector, thereby having positive impact on growth of acrylamide industry.
High Demand for Clothing and Apparel Items
In textile industry, polyacrylamides are used to size and shrink-proof materials and as water repellents, and also it improves the tackiness, permeability, and de-sizing performance of the fabrics. The increase in the volume of textile manufacturing on account of high demand for textile items like clothing and apparels etc. will have a positive impact on the demand for organic compound like polyacrylamide in the textile sector. For instance, as per the 2021 report of the European Union, the production of non-durable goods like clothing items increased by 2.8% in July. Also, as per Federal Statistics Office of Germany, in March 2021, Germany’s export volume of textiles stood at an all-time high of 130,604 tones showing a massive increase of 71% compared to 2008. Such increase in production and export of clothing and apparel items on account of high demand, will lead to more usage of polyacrylamide in textile sector, thereby providing growth opportunities to acrylamide industry in textile sector.
Acrylamide Market Challenges
Stringent Regulation on Acrylamide Usage
Acrylamide is used in food items that are processed in high temperature like frying, baking, roasting. The excessive use of acrylamide can lead to health problems like muscle weakness, nerve damage and can also cause neurotoxicity in humans. In order to prevent such health problems, certain regulation have been imposed by government organization that would restrict the usage of acrylamide in food items. For instance, in 2021, European Union passed new regulation setting lower benchmark values for acrylamide in food products such as French fries, potato crisps, bread, breakfast cereals, cookies, biscuits, coffee, and baby food, etc. Such restriction can hamper the growth of acrylamide industry in food and beverage sector.
Acrylamide Industry Outlook
The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. In the acrylamide market report, the acrylamide top 10 companies are:
1. DOW Chemical Company
2. Ashland
3. Mitsui Chemical Inc
4. Cytec Industries Incorporated
5. Yongsan Chemicals Inc.
6. Dia-Nitrix Co. Ltd
7. Zhejiang Xinyong Biochemical Co. Ltd
8. Beijing Hengju Chemical Group Corporation
9. SNF Floerger
10. Kemira Oyj
Recent Developments
- In 2021, SNF Floerger acquired the polymer supplier and service business of Fort bend Service Inc. hence the acquisition will be called SNF Polydyne Inc. and will increase the product portfolio of SNF in water soluble polymer
- In 2021, Black rose Inc. launched N- Methylol Acrylamide 48% - as downstream product of Acrylamide liquid which will have major applications are as monomer in manufacturing of latex binders and of cross-linkable emulsion polymers for many industries
- In 2019, Kemira Oyj entered into a joint venture with Yongsan Chemicals called Kemira Yongsan Chemicals Co. Ltd, which will expand Kemira’s chemicals market in Asia-Pacific region
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