Global Azelaic Acid Market by Type (Polymer Grade, Technical Grade, and Pharmaceutical Grade), By Application (Plastics, Lubricants, Electronics, Pharmaceuticals and Cosmetics, and Other Applications), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global azelaic acid market size is expected to be worth around USD 422.21 million by 2032 from USD 218.29 million in 2022, growing at a CAGR of 7.0% during the forecast period from 2022 to 2032.

Azelaic acid, a naturally occurring acid with anti-inflammatory and antimicrobial properties, is one such example. This acid has been used in treating skin conditions like rosacea and acne due to its comedolytic, keratolytic, and antioxidant effects commonly found in hair care products.

It prevents skin blemishes from recurring, helps fade discolorations and post-acne marks, and removes acne-causing bacteria from ducts.

This acid is derived from wheat, barley, and rye and is available in gel, foam, or cream form. This acid is the precursor to many industrial products, such as lubricants and plasticizers, alkyd resins adhesives, polyamides, urethane-elastomers, lubricants, rye, and barley.

Although it works slowly and gently on the skin, Azelaic Acid can effectively treat skin inflammation. Azelaic acid is an organic compound with the molecular structure C9H16O4 saturated dicarboxylic acid, which is a powder.

This compound has biological activities and can be found in azelaic acid in food products like barley, wheat, and rye; it inhibits enzymes involved in respiratory chain respiration as well as DNA synthesis. Produced from oleic and ozone when exposed to oxygen acting as a catalyst, Azelaic Acid has remarkable biological effects.

Key Takeaways

• Market Growth: The global azelaic acid market is currently undergoing substantial growth, projecting a Compound Annual Growth Rate (CAGR) of 7.0% during the forecast period 2023 to 2032.
• Overview: Azelaic acid is a significant compound with various applications, particularly in skincare. It is recognized for its effectiveness in treating acne and rosacea, making it a valuable component in dermatological formulations.
• Product Type Analysis: In terms of product types, the azelaic acid market is categorized into three segments: Polymer, Pharmaceutical, and Technical. The pharmaceutical-grade segment emerged as the dominant force in the market in 2022, securing a substantial revenue share of 49.6%.
• Applications: Application, the azelaic acid market is divided into Lubricants, Plastics, Pharmaceuticals, and Cosmetics Electronics, Personal Care, and Other Applications. Among these, the plastics segment stood out as the market leader, commanding a substantial 38.6% revenue share in 2022.
• Drivers: The increasing awareness about skincare, rising prevalence of skin disorders, and growing demand for effective dermatological treatments drive market growth. Azelaic acid’s potential for treating various skin conditions acts as a major driver.
• Restraints: Challenges in this market include potential side effects and the need for extensive clinical trials to establish safety and efficacy. Regulatory requirements and competition within the skincare industry can also pose challenges.
• Opportunity: Innovations in azelaic acid formulations, collaboration with dermatologists, and expanding product portfolios present opportunities for market expansion. Meeting the demand for safe and effective skincare solutions is a growth opportunity.
• Trends: Trends in the azelaic acid market include the development of combination products, integration into personalized skincare routines, and advancements in formulation techniques for better efficacy.
• Regional Analysis: In the regional context, North America constituted 38.7% of azelaic acid consumption by revenue. Following closely, Europe accounted for approximately 20% of the revenue share.
• Key Players: The azelaic acid market features a mix of established pharmaceutical companies and skincare product manufacturers. Key players invest in research, product development, and strategic partnerships to meet the evolving needs of the skincare and dermatology sectors.

Market Scope

Product Type Analysis

Based on product type, global azelaic acid is segmented into 3 parts: Polymer, Technical, and Pharmaceutical. Among these segments, the pharma-grade segment dominated the market in 2022 with a significant revenue share of 49.6% because of its high purity and wide use in cosmetics, pharmaceutical, and personal care segments.

In the pharmaceutical sector, it is used in an ointment to treat rosacea and acne. In addition, it can also be found as a bleaching or whitening active compound in skin care products. Over the forecast period, azelaic acids will continue to experience strong demand due to increased skin care product demand.

Application Analysis

Based on application, global azelaic acid is segmented into Plastics, Lubricants, Electronics, Pharmaceuticals and Cosmetics, Personal Care, and Other Applications. Among these applications plastic segment dominated the market with a 38.6% revenue share in the year 2022, expected to register a significant percentage in the forecasted period.

Key Market Segments

By Product Type

• Polymer Grade
• Technical Grade
• Pharmaceutical Grade

By Application

• Plastics
• Lubricants
• Electronics
• Pharmaceuticals and Cosmetics
• Personal Care
• Other Applications

Drivers

The target market has experienced an exponential rise in demand for polymers globally. Azelaic acid, a fundamental building block in polyamides and polyesters, has become increasingly important. Azelaic acid can also be used in high-performance polyesters, which are popular in industrial adhesives, films, and polymeric plasticizers.

Forecasts indicate that azelaic acids will experience increased demand due to increased polymer demand over the forecast period. In addition, azelaic acid is expected to experience growth in the market due to increasing demand for lubricants.

These acids, which come from bio-based feedstocks, have become widely used as sources of lubricants. Biolubricants are becoming more widely used, increasing demand for azelaic acids. Petroleum-based oil was once the go-to lubricant, but it had poor biodegradability. Additionally, petroleum-based lubricants can pose environmental issues by building up and damaging aquatic life. Therefore, bio-lubricants will remain in demand due to increasing awareness of eco-friendly options.

Over the forecast period, the global azelaic acids market size will expand due to rising demand for environmentally friendly alternatives to petroleum-based lubricants. According to the Department of Ecology Washington (USA), lubricants are safer than their petroleum-based counterparts due to higher flashpoints, constant viscosity, and less oil mist or other vapor emissions.

Restraints

The market growth for azelaic acids may be limited due to the availability of di-carboxylic acids such as sebacic. Castor oil is the primary ingredient in sebacic acid, which is heated with caustic soda to form ricinoleic acids and then purified to yield the sebacic acid market. As such, the availability of substitute products is expected to hinder the market growth to a certain extent.

Trends

Used for Treating Acne Vulgaris – A Skin Condition

Azelaic acid is currently a market trend for treating acne vulgaris – a skin condition that causes blackheads, whiteheads, and pustules all over the body. According to the World Health Organization skin diseases were among the most prevalent human health conditions worldwide in 2018, impacting an estimated 900 million people.

Regional Analysis

North America Accounted for 38.7% Of Azelaic Acid

Based on the regional outlook, North America accounted for 38.7% of azelaic acid consumption by revenue. Europe followed closely behind in terms of revenue at approximately 20%. Due to the variety of applications provided by end-use industries, North America and Europe provide ample opportunities for key players in the azelaic acids market, such as those from the U.S.A., Germany, France, and other regions. Over the next decade, there will be numerous mergers and acquisitions among core players in these regions.

Asia Pacific – particularly India and China – offers exciting investment opportunities. India’s economy is expected to experience a substantial compound annual growth rate over this timeframe while China follows behind. Middle East & Africa experience slower market expansion than Latin America.

Key Regions

North America

• The US
• Canada
• Mexico

Eastern Europe

• Russia
• Poland
• The Czech Republic
• Greece
• Rest of Eastern Europe

Western Europe

• Germany
• France
• The UK
• Spain
• Italy
• Portugal
• Ireland
• Austria
• Switzerland
• Benelux
• Nordic
• Rest of Western Europe

APAC

• China
• Japan
• South Korea
• India
• Australia & New Zealand
• Indonesia
• Malaysia
• Philippines
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Colombia
• Chile
• Argentina
• Costa Rica
• Rest of Latin America

Middle East & Africa

• Algeria
• Egypt
• Israel
• Kuwait
• Nigeria
• Saudi Arabia
• South Africa
• Turkey
• United Arab Emirates
• Rest of MEA

Key Players Analysis

Key players operating in the global azelaic acid market include Emery, Oleochemicals, Matrica, Croda Sipo (Sichuan) Co., Ltd., Nantong Hengxing Electronic Materials, Jiangsu Senxuan Pharmaceutical and Chemical Co., Ltd., Matrìca S.p.A., Hubei TuoChu Kangyuan Pharmaceutical Co., Ltd, Croda Sipo, BASF SE, Other Key Players. 

With many local and regional players, the market for azelaic acid is fragmented. As a result, market players are subject to intense competition from top players, particularly those with strong brand recognition and high distribution networks. As a result, companies have gained various expansion strategies, such as partnerships and product launches, to stay on top of the market.

Market Key Players

• Emery Oleochemicals
• Matrica
• Croda Sipo (Sichuan) Co., Ltd.
• antong Hengxing Electronic Materials
• Jiangsu Senxuan Pharmaceutical and Chemical Co., Ltd.
• Matrìca S.p.A.
• Hubei TuoChu Kangyuan Pharmaceutical Co., Ltd
• Croda Sipo
• BASF
• Other Key Players

Recent Developments

• In March 2023, Emery Oleochemicals announced that it is expanding its production capacity for azelaic acid at its plant in Cincinnati, Ohio. This expansion is expected to be completed in 2024 and will double the company’s azelaic acid production capacity.
• In February 2023, Matrica announced that it is partnering with the Italian cosmetics company Collistar to develop a new line of azelaic acid-based skincare products. This new product line is expected to be launched in early 2024.
• In June 2023, Hubei TuoChu Kangyuan Pharmaceutical Co., Ltd. announced that it has received a patent for a new process for producing azelaic acid from renewable feedstocks. This new process is expected to be more environmentally friendly and cost-effective than traditional methods of producing azelaic acid.

Report Scope