Hydrogenated Dimer Acid Market Trends

Growth Drivers

• Rising Demand and Consumption of Paints and Coatings– Future sales opportunities for the hydrogenated dimer acid market are projected to result from the increasing need for lubricants, paints, and coatings globally. To make paints and coatings resistant to changes in the outside environment, manufacturers frequently use hydrogenated dimer acid during production. It was found that nearly 860 million gallons of paint were consumed in the United States in total in 2020 and more than 350 million gallons of architectural paint were devoured by the DIY (do it yourself) segment in the U.S.
• Growing Construction Sector– Hydrogenated dimer acid has various advantages in producing products such as sealants, resins, and others. Thus, the rapid expansion of the construction industry is anticipated to generate sales for hydrogenated dimer acid in the assessment period. It was noticed that the economy in the USA is greatly influenced by the construction sector, the sector employs more than 745,000 people and produces structures valued at close to USD 1.4 trillion annually.
• Increasing Import-Export of Chemical– It was noted that exports of chemicals from the EU outpaced imports by a sizeable margin from USD 242.03 billion in 2010 to USD 411.05 billion in 2020 and over this time, exports grew by 5% a year on average.

Challenges

• Fluctuation in Raw Material Prices - The constant ups and downs in the prices of raw materials of hydrogenated dimer acid can hamper the growth of the market. It might cause significant losses to the producers by affecting the supply chain and decrement in the export/import volume. Hence, this factor is estimated to be one of the major restraints to the market over the forecast period.
• Crude Oil Supply and Requirement Imbalance
• Less Consumer Awareness