Acetic Acid Market - Forecasts from 2024 to 2029

Acetic Acid Market - Forecasts from 2024 to 2029

The acetic acid market is valued at US$9.351 billion in 2024 and is projected to grow at a CAGR of 4.17% over the forecast period.

Acetic acid as a base chemical is widely utilized as a raw material in various industries, including plastics, adhesives, shampoos, paints, solvents, and medicines. The major industries using acetic acid are food, textiles, chemicals, pharmaceuticals, plastic, and others. The pharmaceutical industry has grown significantly after the pandemic due to the increased demand for medicine for chronic and infectious diseases. It included the manufacturing of vitamins, antibiotics, hormones, and organic chemicals.

Moreover, the growth of the construction industry contributes to the application of vinyl acetate. Vinyl acetate is polymerized into different polymers and is used as a common component in adhesives and paints.
The number of completed vacant housing units in Spain was 79,935 in 2022 and 80,473 in 2023. These are free housing.
In Great Britain, the value of construction output of new work for public and private sectors has risen by 15.82% from the previous year and reached £132,989 million in 2022. This increased spending suggests the overall market demand for the construction industry in the country.

ACETIC ACID MARKET DRIVERS:

Increasing demand for vinyl acetate monomer

Vinyl acetate monomer (VAM) is utilized in multiple industries for the manufacturing of Polyvinyl acetate (PVAc), Polyvinyl butyral (PVB), Ethylene-vinyl acetate (EVA) resin, Ethylene vinyl alcohol (EVOH) resin, and food starch modifiers. These chemicals are very relevant in the adhesives and paints, laminated glass, packaging, and food industries. The growth of the paint and coating industry due to the growing demand for construction and residential housing is leading to the increased demand for the VAM. VAM is applied in the production of these important raw chemicals.

Further, Vinyl acetate can be homopolymerized into polyvinyl acetate (PVA, PVAc) or co-polymerized with ethylene to form ethylene vinyl acetate (EVA) to form polymers with good adhesion properties. These are utilized in the packaging and paint industries. The consumption of acetic acid would increase as the primary chemical needed for the production process.
Expanding demand from the textile, food, and packaging industry

The expanding demand for textiles is a major factor behind the market's growth, as acetic acid is used to dye fabrics and produce fabrics such as viscose or latex. The textile industry’s growth is due to the changing trend through social media, growing demand for eco-friendly materials in the production process, and rising fashion sensibility.

Furthermore, acetic acid is used in the food industry as a medicine and preservative. It is also applied as food additives, food preservation, antimicrobial agents, acidulants, flavor and taste enhancers, edible packaging materials, artificial food ripening agents, etc. Additionally, acidulants are also used as food coatings. They can either be edible or non-edible to prevent contamination.
Rising use of ester solvents in the paints and coating industry

Ester solvents are used in coatings, such as acetate esters. Ethyl Acetate (EAC) has a fruity fragrance, can be mixed with most organic solvents, and is capable of dissolving vegetable oil, glycerol rosin ester, nitrocellulose, chlorovinyl resin, and polystyrene resin. n-Butyl Acetate (BAC) is a colorless liquid with a fruity fragrance, sparingly soluble in water, and less prone to hydrolysis. These chemicals give the paints an organic smell, increase stability, give glossiness to the surface, and optimize volatility.

The growing construction activities worldwide would lead to the demand for these solvents. One of the primary reasons for the expansion of residential activities is the growing global urbanization. The rate of urbanization in the developing part of the world is rising significantly.

Acetic Acid Market Geographical Outlook
The Asia Pacific region will dominate the acetic acid market during the forecast period.

The market is segmented by geography into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. Major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies, such as ASEAN countries, are from this region.

The domestic apparel & textile industry in India contributes approx. 2.3 % to the country’s GDP, 13% to industrial production, and 12% to exports, according to IBEF (India Brand Equity Foundation). India is estimated to have a 4% share of the global trade in textiles and apparel. India is also the 2nd largest producer of silk in the world. Around 95% of the world’s hand-woven fabric comes from India. It is also the second-largest manufacturer of PPE in the world. According to the estimates, India will achieve $250 Bn textiles production and $100 Bn exports by 2030. These figures suggest the demand for acetic acid in the industry.

The acetic acid market is segmented by industry vertical into textile, chemical, pharmaceutical, plastic, and others.

The textile industry has a major share in the demand due to the growing usage of acetic acid in the manufacturing of dyes. Chemical and pharmaceuticals are showing a significant upsurge due to acetic acid being used as a base chemical in manufacturing many other chemicals in the sector. The pharmaceutical industry is growing due to the rising demand for medicines to cure chronic ailments.

About Report

This research study examines the acetic acid market based on various segments: application, industry vertical, and geography. First, a brief market overview details key driving factors and restraints. Next, Porter's five forces model analyzes the acetic acid market comprehensively. This is followed by industry value chain analysis, which determines which companies are part of the different processes and contributing to various sectors.

The study also presents in-depth information concerning the development, trends, and industry policies and regulations affecting the acetic acid market. Moreover, the research study analyzes the overall regulatory framework of the acetic acid market, offering stakeholders a better understanding of the key factors influencing the overall market environment.

Acetic acid market key developments:

In September 2023, INEOS announced it agreed with Eastman Chemical Company to purchase the Eastman Texas City site. This included the 600kt Acetic Acid plant and all associated third-party activities on the site for circa $500 million. Eastman and INEOS also entered into a Memorandum of Understanding for a long-term supply agreement for vinyl acetate monomer. This strategic acquisition will help drive INEOS for the global ambition of the Acetyls business.
In May 2023, Sekab launched expanded production of bio-based Acetic Acid. The bio-based acetic acid reduces the carbon footprint by up to 50 percent. The product is 100% physically bio-based. Acetic Acid Pure has undergone comprehensive certification by the ISCC+ standards.

Acetic acid market is segmented and analyzed as follows:

By Application

Vinyl Acetate Monomer (VAM)
Purified Terephthalic Acid (PTA)
Acetic Anhydride
Others

By Industry Vertical

Textile
Chemical
Pharmaceutical
Plastic
Others

By Geography

North America
USA
Canada
Mexico
South America
Brazil
Argentina
Rest of South America
Europe
United Kingdom
Germany
France
Italy
Spain
Rest of Europe
Middle East and Africa
Saudi Arabia
UAE
Rest of the Middle East and Africa
Asia Pacific
China
India
Japan
South Korea
Taiwan
Thailand
Indonesia
Rest of Asia-Pacific