China is an important DAC production and demand country in the world. The DAC industry is highly concentrated.

DAC (acryloyloxyethyltrimethylammonium chloride) is the chloride of acrylic acid ethoxy quaternary ammonium salt. It is one of the commonly used cationic monomers. It can be homopolymerized or copolymerized with other monomers, such as propylene. Amide, methacrylamide, acrylonitrile, methyl acrylate, methyl methacrylate, styrene, acrylic acid or methacrylic acid are copolymerized, thus introducing quaternary ammonium salt groups into the polymer. Its homopolymers and copolymers have controllable cationicity and good water solubility, and can be widely used in water treatment, oil exploration, papermaking, textiles, medicine, biology and other fields.

Globally, the DAC industry in Europe and the United States developed early, with highly competitive DAC manufacturers represented by Arkema. Although my country’s DAC production research lags behind developed countries and regions such as Europe and the United States, after years of development, my country’s DAC production capacity has greatly improved and has become one of the world’s major DAC supply countries. Representative companies include Shanghai Solenis Specialty. Chemical Co., Ltd., Anhui Jucheng Fine Chemical Co., Ltd., Penglai Xinghuo Chemical Co., Ltd., Jiangsu Fumiao Technology Co., Ltd., etc.

From the perspective of demand area, according to the “2022-2026 DAC (Acryloyloxyethyltrimethylammonium Chloride) Industry In-depth Market Research” released by the Industrial Research Center and Investment Strategy Recommendations Report” shows that Asia, represented by China and Southeast Asia, has a huge development scale in the fields of water treatment auxiliaries and oil mining auxiliaries, and is the most important DAC demand region in the world. In 2021 The annual DAC demand in Asia accounts for more than 50% of the global DAC demand.

In China, driven by the development of downstream water treatment and oil exploration and other industries, China’s DAC output has shown an overall upward trend. However, due to the small overall market capacity of DAC, there are not many domestic DAC companies, and the industry concentration is high. In 2021, the total production capacity of four companies, Anhui Jucheng Fine Chemical Co., Ltd., Shanghai Solis Specialty Chemicals Co., Ltd., Penglai Xinghuo Chemical Co., Ltd., and Jiangsu Fumiao Technology Co., Ltd., accounts for nearly 80%.

In addition, from the perspective of development prospects, a series of polymers obtained by homopolymerization or copolymerization using DAC as a cationic monomer have excellent flocculation properties and play an important role in urban industrial and domestic sewage treatment. Against the background of increasingly stringent environmental protection policies, industrial and urban domestic sewage treatment will be the main incremental market for the DAC industry in the next few years.

Industry analysts said that DAC is a niche product, and its demand market development is greatly affected by the downstream industry, and the industry is facing environmental protection and Safety production supervision risks require enterprises to pay attention to environmental protection and safety production management while also focusing on the integrated development of the industrial chain. They can reduce market risks, increase product added value, and ensure profit margins by developing DAC homopolymers or copolymers. In addition, companies can also strengthen the development of DAC flocculants or dispersants suitable for the anti-electric coating and conductive coating industries to expand the application fields of DAC.