Acetic Acid Market - Global Industry Analysis

Market Overview

The global acetic acid market accounted for USD 7.41 Billion in 2020 and is expected to reach USD 13.21 Billion by 2028, growing at a CAGR of 8.9% from 2021 to 2028.

Acetic acid is a colourless liquid; it can be also called as ethanoic acid, that also projects to be the antecedent to the production of various chemicals which is being used in textile, rubber and plastic industries. Additionally, it acts as an intermediary for the formulation of various coatings, bridging elements, and greases that are widely used in the packaging, construction, and electronics. The rising demand for the acetic acid in the production of various products such as vinyl acetate monomers (VAM) and purified terephthalic acid are all driving factors to enhance the market size in the forecasted period.

The production of acetic acid has witnessed measurable growth owing to the varying end-use industry of acetic acid, as it can be used in manufacture for the purpose of resins for coatings, adhesives, paints, etc. Therefore, the global acetic acid market is expected to be booming. Owing to the reasons for its dynamic usage of acetic acid has also led to an increase in its demand over time in the global market. Many other factors such as population growth, changing markets and favourable government schemes stimulate the growth for the global acetic acid market.

COVID-19 Impact Analysis

The global acetic acid market was negatively impacted by COVID-19 causing a sharp decline in the automotive industry, also due to the temporary lockdown of automotive manufacturing units and different other construction investment projects due to the increasing spread of the deadly virus scenario. Not to forget the decline in the consumption of coatings, adhesives and paints. Therefore, all the above-mentioned factors have created a negative impact on the demand for acetic acid.

Furthermore, the stoppages of work due to various government measures announced by the authorities across the world in order to break the cycle of the spread of the virus and precautionary measures such as quarantines impacted most of the end-user industries who use the acetic acid, such as textiles, food and beverage, and construction, thereby indirectly affecting the growth prospects of the acetic acid market.

Growth Factors

Certain factors like increasing demand for purified terephthalic acid from the textile and packaging industry,  rising use of ester solvents for the purposes of  paints and coatings, the rising infrastructural investments for the projects across the world, the increasing development of new separation technologies to cause increase in the production efficiency of acetic acid,  the very many application of acetic acid in home furnishing and in the production of textiles such as bed sheets and curtains are all the reasons for the increased demand in the global acetic acid market.

Although, increasing usage of acetic acid can be harmful for certain natural elements like animals, and plants, which can be a huge setback for the global acetic acid market in estimated period. Moreover, the difficulty in pricing policies of raw material can also be a limiting factor for the acetic acid market.

Report Scope:

Application Type Segment Analysis Preview

On the basis of application type, the market can be divided into Vinyl Acetate Monomer, Purified Terephthalic Acid, Acetate Esters, Ethanol. Vinyl Acetate Monomer also known as VAM held the largest segment and is estimated to exhibit a similar trend in the forecasted time period. Being a primary intermediate element used in the manufacture of several polymers for the purpose of paints, coatings, adhesives, textiles, and other end-use products.

With the increasing demand for these applications across the world, it is anticipated to cause an increase in the total contribution to the segment’s growth by the end of the forecast period. Additionally, factors such as rapid urbanization & industrialization mainly in the Asia Pacific region has led to strong increase in the construction industry which will have an underlying impact on the overall acetic acid market demand during the forecasted period.

Regional Analysis Preview

In regional segmentation, the global coronavirus vaccines market is bifurcated into six key regions, namely, Europe, North America, Latin America, Asia Pacific, the Middle East, and Africa. However, it was noted that Asia-Pacific is the largest consumer of acetic acid in the global acetic acid market. The Asia-Pacific market is predicted to be the largest market for the textile industry, citing reasons such as having a strong industrial base. All the more, India will also record significant growth in the global acetic acid market with reasons like increasing investments, growing population index, accumulative government schemes, and substantial growth in the demand from end-use industries. But North America and Europe are also the major markets for the production of acetic acid.

Key Market Players & Competitive Landscape

Some of the key important market players are Celanese Corporation, INEOS, Jiangsu SOPO (Group) Co. Ltd, Eastman Chemical Company or its subsidiaries, and LyondellBasell Industries Holdings BV, among others.

The global Acetic Acid market is segmented as follows:

By Application Type:

• Vinyl Acetate Monomer
• Purified Terephthalic Acid
• Acetate Ester
• Acetate anhydride
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa