Caprolactam Market Outlook - Supply and Demand Analysis 2025-2034

Caprolactam Market

Caprolactam is an organic compound with the chemical formula C₆H₁₁ON, classified as a cyclic amide derived from caproic acid. It appears as a colourless to white crystalline solid with a melting point of approximately 70°C and is soluble in water and organic solvents. The primary method of producing this compound is through the acid-catalysed Beckmann rearrangement of cyclohexanone oxime, which results in caprolactam. As per industry reports, 90% of the total produced caprolactam is used for the manufacturing of synthetic fibres, such as nylon 6. This highlights the market’s role in textile industry as nylon 6 is used in production of textiles.

Beyond synthetic fibres, it is used in the manufacture of brush bristles for cleaning tools and as a textile stiffener to enhance fabric structure. It also finds applications in film coatings for packaging and protective layers, as well as in the production of synthetic leather. Additionally, caprolactam is used in plastics and plasticisers and as cross-linking agents in polyurethane production. Its role in the chemical synthesis of pharmaceuticals, such as lysine, further underscores its demand in diverse applications. Key players like BASF SE and DSM are investing in capacity expansion and sustainable production methods to meet this demand. However, while it is not classified as a carcinogen, caprolactam can be an irritant to the skin, eyes, and respiratory system, which necessitates careful handling.

Global Supply/Demand Outlook

The global caprolactam market stood at a volume of around 7000.00 Kilo Tons in 2024. The market is estimated to grow at a CAGR of 3.00% between 2025-2034 to reach a volume of about 7,440.72 Kilo Tons by 2034.

The increasing adoption of nylon 6 is significantly impacting the demand for caprolactam, as caprolactam is the primary raw material for producing nylon 6. In the textile industry, nylon 6 is favoured for its durability and elasticity, driving demand for caprolactam in clothing and upholstery. Similarly, the automotive sector uses nylon 6 for lightweight components such as engine covers, timing belts, and interior parts like dashboards and seat covers, further boosting caprolactam consumption. As per industry reports of 2024, the automotive industry is expected to produce around 90 million vehicles globally, with a growing emphasis on lightweight materials like nylon 6 to meet stringent fuel efficiency standards and consumer demand for eco-friendly vehicles. This trend will consequently boost the caprolactam market, essential for nylon 6 production.

Additionally, companies in the market have been investing in bio-based caprolactam alternative to cater to the growing demand for eco-friendly products. An example is the recent collaboration between Genomatica and Aquafil. Genomatica developed a process to produce caprolactam from plant-based materials instead of traditional crude oil sources. This innovative approach uses engineered microorganisms to ferment plant sugars, which produces caprolactam in a 100% renewable manner.  This move has mitigated supply chain disruptions and has provided manufacturers with a reliable and sustainable source of caprolactam. The market is also seeing a shift towards using caprolactam in e-commerce packaging, driven by the growing online retail sector. As a result, the caprolactam production capacity utilization rate in 2023 was reported at around 73.70%, reflecting strong operational performance amidst rising demand.

In 2023, the global capacity for caprolactam was approximately 9,500 KT and is projected to remain at this level through 2032. Leading companies such as BASF SE, Sinopec, China Petrochemical Development Corporation, Advansix, and Capro Co. collectively account for approximately 24.2% of the global caprolactam production capacity.

Regional Market Analysis

The Asia Pacific region, particularly China and India dominate production, accounting for over 70% of global caprolactam output due to rapid industrialisation and rising consumer markets. Europe follows with the second highest market value. However, the caprolactam market is currently facing fluctuations in demand due to oversupply, particularly from mainland China, which has shifted from a net importer to a net exporter of nylon 6 chips since 2021. The pandemic led to production cuts and plant closures outside China, including Sumitomo Chemical's exit from the CPL business in Japan, where it produced around 100,000 tonnes annually. Despite a projected recovery in global nylon 6 demand of about 3% per year, high inflation and geopolitical tensions are expected to keep caprolactam operating rates low outside of China, where margins are increasingly pressured by low-priced imports.

Caprolactam Market Analysis by Application

Based on application, the textile yarn segment holds 50% of the overall market share due to the rising need for nylon fabrics in clothing, upholstery, and industrial textiles. Major players like Nylstar and AdvanSix are investing in innovative production techniques to enhance the quality and sustainability of nylon yarns. For instance, Nylstar has introduced a line of eco-friendly nylon yarns made from recycled materials, catering to the growing market for sustainable textiles.

Meanwhile, the industrial yarn segment, accounting for 20% of the market volume, is also growing due to applications in automotive, construction, and engineering sectors. The demand for high-strength nylon 6 fibers used in products like ropes, conveyor belts, and safety harnesses continues to grow. Companies such as DuPont are focusing on developing advanced industrial yarns that offer enhanced durability and resistance to harsh environments. Overall, both segments are positioning caprolactam as a necessary component in meeting the evolving demands of the textile and industrial sectors.

Key Market Players

The top players in the caprolactam market are BASF SE, Sinopec, China Petrochemical Corporation, Advansix, Capro Co., Toray Industries, Inc., Luxi Group, UBE Corporation, Fibrant, Domo Chemicals, and Aquafil S.p.A, among others.

In early March 2023, BASF announced the shutdown of its caprolactam production line at its Ludwigshafen site in Germany. This decision was influenced by soaring energy prices that have adversely affected the competitiveness of chemical manufacturing in Europe. Despite this shutdown, BASF plans to continue meeting 65% of market demands through its caprolactam plant in Antwerp, Belgium, which will serve both captive and merchant markets. 

Moreover, in response to market dynamics, BASF also announced price increases for caprolactam and related products. On May 1, 2024, the company raised prices by USD 0.15 per pound for caprolactam, polyamide 6 (PA6), and copolyamide (PA6,66) in North America to maintain profitability amidst rising production expenses.

Key Questions Answered in the Report:

• What are the high-growth opportunities and markets for caprolactam by application and region?
• What are the major derivatives of caprolactam by region?
• Which segments and regions are projected to grow at a faster pace and why in the caprolactam market?
• What is the nameplate capacity of caprolactam by region from 2018 to 2032?
• How does the plant capacity utilisation of caprolactam vary by region between 2018 and 2034?
• Who are the major players in the caprolactam market by capacity and region?
• What major plant shutdowns and expansions have occurred in the caprolactam market in the last year and the last quarter?
• What major plant shutdowns and expansions are planned in the caprolactam market over the next year and quarters?
• How did export and import dynamics of caprolactam vary by region in terms of value between 2018 and 2023?
• How did export and import dynamics of caprolactam vary by region in terms of volume between 2018 and 2023?
• What impacts have shutdowns, force majeure events, and plant closures had on demand and pricing of caprolactam?
• What are the environmental considerations and regulatory impacts affecting the caprolactam market?
• What technological innovations are having an impact on the production and application of caprolactam?
• What are the key trends and innovations in the caprolactam market?
• What are the challenges and opportunities faced by caprolactam manufacturers?
• What are the potential risks and barriers to entry for new players in the caprolactam market?
• What strategic investments and expansions have major players made in the caprolactam market?
• How are geopolitical factors and international trade policies affecting the global caprolactam market?
• What are the price trends for caprolactam, and how are they expected to change?
• How does the supply chain of caprolactam operate, and what are its key components?