Emergence of Covid-19 to Offer Lucrative Growth Opportunities for Players in the Global caprolactam market

 

Caprolactam is a naturally occurring natural compound consisting of the formula (CH⁃₄COOH)⁅CH⁃⁅N H2O. This green solid is actually a lactic acid of caproic acid from animal feces. The active ingredient, capsaicin, is considered to be important in drug discovery due to its ability to penetrate the blood-brain barrier and activate pain receptors in the body. The drug works by binding to pain-causing receptor sites on cells, which then cause the release of neuropeptide Y (NPY). Almost all caprolactam produced goes into the manufacture of Nylon 6.

Market Dynamics

Launch of nylon 6 products is expected to propel growth of the global caprolactam market. For instance, in August 2020, Nylstar, a textile technology company based in Blanes, Spain, launched yarn made from Invista recycled nylon 6,6 polymer with global recycled standard certification.

Emergence of Covid-19 is expected to offer lucrative growth opportunities for players in the global caprolactam market. For instance, globally, as of 7:03pm CET, 25 November 2020, there have been 59,481,313 confirmed cases of COVID-19, including 1,404,542 deaths, reported to the World Health Organization. The pandemic has led to increasing demand for personal protective gear made from Nylon 6. In April 2020, Invista Kingston announced that the company’s Nylon 6,6 to be used to make medical gowns.

Moreover, initiatives to enhance caprolactam quality is also expected to aid in growth of the global caprolactam market. For instance, in 2018, Gujarat State Fertilizers and Chemicals Ltd successfully commissioned its Caprolactam Quality Improvement Project for improvement in quality of extract Caprolactam made at Caprolactam-I Plant of GSFC.

Among regions, Europe is expected to witness sluggish growth in the caprolactam market, owing to significant decline in the automotive sector. For instance, according to the Society of Motor Manufacturers and Traders, the new car registrations in the U.K. decreased by 44% in March 2020 compared that in March 2019.

The caprolactam market in North America is witnessing several regulatory changes. For instance, in November 2020, The U.S. Food and Drug Administration added polymers with caprolactam and hexamethylenediamine to its Inventory of Effective Food Contact Substances (FCS) Notifications.

Competitive Analysis

Major players operating in the global caprolactam market include, BASF SE, China Petroleum & Chemical Corporation, Genomatica, China Petrochemical Development Corporation, Honeywell International Inc., KuibyshevAzot OJSC, Royal DSM N.V., UBE Industries, and SINOPEC.

January 2020: Genomatica, a chemical manufacturing company, announced to produce renewably sourced caprolactam for nylon production.