In March 2026, Liaocheng University publicly disclosed a patent for “Catalytic Synthesis of Azelaic Acid Using Cr₂O₃‑Loaded Porous Materials.” The technology is currently undergoing small‑scale pilot testing in Shandong, laying the technical groundwork for subsequent large‑scale industrial production. Azelaic acid is a saturated dicarboxylic acid that appears as white flaky crystals at room temperature and possesses key characteristics such as amorphous structure, high flexibility, and excellent hydrolytic stability, making it a versatile intermediate in coatings, pharmaceuticals, plastics, and other industries. In the coatings sector, its overall performance surpasses that of adipic and sebacic acids; however, due to its relatively high cost and unstable supply, it has long been undervalued by the industry. With recent breakthroughs in domestic manufacturing processes and the gradual ramp-up of production capacity, azelaic acid is now poised for large‑scale industrial application.

I. Applications

1. In the coatings industry, azelaic acid is primarily used in anti-corrosion and powder coatings. Polyester polyols derived from azelaic acid exhibit a high decomposition temperature, low acid value, and superior viscosity, making them well suited to meet the stringent requirements of high-end coatings. Azelaic acid‑based polyester coatings can withstand 2,000 hours without blistering.

2. Powder coatings, with their non-crystalline structure, can lower the glass transition temperature of the system, enabling thick-film coating without cracking while reducing the curing temperature by 10–20°C, thus aligning with the industry trends toward energy efficiency and customization.

3. In the pharmaceutical and personal care sectors, azelaic acid is a well-established core ingredient for treating acne and rosacea, with approximately 65% of global demand driven by dermatological applications.

4. It can also be used to synthesize plasticizers, lubricants, and polyamide resins, and its applications have been extended to areas such as electronic materials and capacitor electrolytes.

II. Production Process

1. At present, the production of azelaic acid is predominantly based on chemical synthesis. The ozonolysis of oleic acid is the most mature method, using oleic acid derived from vegetable oils as the feedstock. Ozonolysis cleaves the double bond in oleic acid to yield azelaic acid and the byproduct nonanoic acid; this process offers high purity but suffers from significant environmental pollution and high energy consumption.

2. Significant breakthroughs have been achieved in biosynthetic methods. Using microbial fermentation with normal alkanes as substrates, the tropical yeast Candida tropicalis is employed to oxidize and produce azelaic acid, offering advantages such as renewable feedstocks, reduced environmental impact, and high product purity. Heda Xipu Chemical, in collaboration with Chongqing University, has developed a process that increases the efficient conversion rate of oleic acid from 80% to 96%, while reducing energy consumption by 30%, and has established China’s only 3,000‑ton‑per‑year azelaic acid production facility.

III. Major Manufacturers and Production Capacity Landscape

In 2024, global azelaic acid production totaled approximately 15,000 tons, with an average global market price of about USD 9,852 per ton. In 2025, worldwide sales of industrial-grade azelaic acid are projected at 9,521 tons, at an average selling price of USD 10.8 per kilogram. Meanwhile, global sales of ultrafine‑powder azelaic acid are expected to reach 12,000 tons, with an average price of USD 10,953 per ton.

Major companies include Emery Oleochemicals (U.S.), Matrica SpA (Italy), BASF (Germany), and others. In the domestic market, Heda Xipu Chemical (Sichuan) is the largest producer of azelaic acid in China, having built the country’s first large-scale azelaic acid production facility. It holds the top domestic market share and ranks third globally. Other domestic players include Wufeng Chicheng Bio, Zhejiang Boju New Materials, Nantong Hengxing Electronic Materials, and Jiangsu Senxuan Pharmaceutical, among others.

IV. Product Profitability and Market Supply and Demand

The industry-average gross margin varies significantly across product grades: industrial-grade products typically command a gross margin of around 15%–20%, while cosmetic-grade products boast margins of approximately 20%–30%. Cosmetic- and pharmaceutical-grade products generally achieve gross margins of 15%–20%, with certain micronized formulations—particularly when supported by strong brand loyalty—capable of exceeding 20%.

By application, plastics represent the largest market segment. Current growth drivers include demand from the cosmeceutical and dermatology sectors, the development of sustainable materials, and industrial lubricants.

V. Industry Trends

Approximately 52% of azelaic acid demand is shifting toward bio-based production methods, and 55% of new investments are being directed toward the microbial fermentation–based production of bio‑derived azelaic acid.

Upstream demand in the pharmaceutical and electronics sectors is upgrading, driving growth in the market for high-purity azelaic acid. Supramolecular modification technology has addressed longstanding challenges—such as poor water solubility and significant irritation—thereby enabling a major technological leap in the production of domestic supramolecular azelaic acid raw materials.

Azelaic acid has seen rapid growth in emerging applications—such as post‑cosmetic‑procedure recovery and oily‑skin care—due to its “sensitive‑skin‑friendly” profile, driving a significant shift in the market from “problem‑skin treatment” to “everyday skin‑type management.”

Although azelaic acid commands a higher price, its overall performance surpasses that of adipic acid across the board, giving it an irreplaceable technological edge in anti-corrosion and powder coatings. With domestic bio‑based production capacity rapidly expanding, import dependence declining, and downstream demand in sectors such as pharmaceuticals and electronics growing in tandem, azelaic acid is poised at a pivotal juncture in its industry’s development.

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