Global Acetic Acid Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the global Acetic Acid Market is expected to record a CAGR of 6% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 20.76 Billion. By 2032, the valuation is anticipated to reach USD 33.55 Billion.

The acetic acid market refers to the global industry involved in the production, distribution, and consumption of acetic acid, a colourless, pungent-smelling liquid organic compound with the chemical formula CH3COOH.

Acetic acid is a versatile chemical compound that finds applications in various industries, including chemicals, food, pharmaceuticals, textiles, and more. It is one of the most widely produced and used organic acids in the world.

Key aspects of the acetic acid market include:

Production and Manufacturing: Acetic acid is primarily produced through two main processes: methanol carbonylation and oxidation of acetaldehyde. These processes involve various chemical reactions and technologies to convert raw materials into acetic acid.

Applications: Acetic acid has a wide range of applications across industries:

• Chemicals Industry: It serves as a precursor for the production of various chemicals, including vinyl acetate monomer (VAM), acetic anhydride, and other esters used in the production of plastics, adhesives, and paints.

• Food and Beverage Industry: Acetic acid is a main component of vinegar, which is used for flavoring, preservation, and in food preparation.

• Pharmaceuticals: It is used as a chemical reagent and solvent in pharmaceutical manufacturing.

• Textiles: Acetic acid is utilized in dyeing processes and the production of certain synthetic fibers.

Acetic Acid Market – Significant Growth Factors

• Increasing Demand for Vinyl Acetate Monomer (VAM): Vinyl acetate monomer (VAM) is a major derivative of acetic acid and is used in the production of adhesives, paints, coatings, and textiles. As construction and manufacturing industries grow, so does the demand for VAM, which drives the demand for acetic acid.

• Food and Beverage Industry: Acetic acid is a primary component of vinegar, which is widely used in food and beverage applications for flavoring, preservation, and pickling. The popularity of convenience foods, condiments, and ready-to-eat products contributes to the demand for acetic acid.

• Textile Industry: Acetic acid is used in textile dyeing processes and the production of acetate fibers. As the fashion and textile industries expand, the demand for acetic acid for these applications also increases.

• Pharmaceutical and Chemical Industries: Acetic acid is utilized as a chemical reagent and solvent in various pharmaceutical and chemical manufacturing processes. The growth of these industries contributes to the demand for acetic acid.

• Emerging Economies and Industrial Growth: The industrial growth and economic development of emerging economies lead to increased demand for chemicals and materials, including acetic acid, for various applications.

• Expanding Packaging Industry: The packaging industry plays a role in the demand for acetic acid, as it is used in the production of plastic materials, films, and coatings for packaging applications.

• Environmental and Regulatory Factors: The use of acetic acid and its derivatives in eco-friendly and biodegradable products aligns with growing consumer and regulatory preferences for sustainable materials.

• Investments in Research and Development: Ongoing research and development efforts aim to enhance production processes, develop new applications, and improve the overall efficiency of acetic acid production.

• Global Consumer Trends: Changing consumer preferences, such as the demand for organic and natural products, can drive the growth of acetic acid used in organic and natural food products.

Acetic Acid Market – Mergers and Acquisitions

• Ineos and BP Chemicals: In 2018, Ineos acquired the acetic acid business of BP Chemicals, including manufacturing sites in the United States, the United Kingdom, and China. This acquisition further strengthened Ineos’ position in the acetic acid market.

• Celanese and Blackstone Group: In 2017, Celanese Corporation, a major chemical company, formed a joint venture with funds managed by Blackstone Group to create a global acetate tow supplier. The joint venture focused on the production of acetate products, including cellulose acetate flake used in cigarette filters.

• Eastman Chemical Company and Sasol: In 2014, Eastman Chemical Company acquired Sasol’s Texas-based acetyls chemicals business, which included acetic acid production. This acquisition aimed to expand Eastman’s acetyls business and strengthen its position in the market.

• Daicel Corporation and Mitsubishi Rayon Co.: In 2015, Daicel Corporation acquired the cellulose acetate business of Mitsubishi Rayon Co., which included the production of cellulose acetate flakes used in cigarette filters and other applications.

• Wacker Chemie AG and Nippon Oil Corporation: In 2010, Wacker Chemie AG and Nippon Oil Corporation established a joint venture named Nippon Wacker Corporation to produce acetic acid and acetate derivatives in Japan.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Acetic Acid Market – Significant Threats

• Raw Material Availability and Price Volatility: The production of acetic acid involves raw materials such as methanol and acetaldehyde. Fluctuations in the availability and prices of these raw materials can impact the cost of acetic acid production and overall market stability.

• Competitive Pricing: The acetic acid market is competitive, and price fluctuations due to supply-demand imbalances or aggressive pricing strategies can affect the profitability of manufacturers and suppliers.

• Environmental Regulations: Stringent environmental regulations and sustainability concerns can impact the production processes and waste management practices of acetic acid manufacturers. Compliance with these regulations may require costly adjustments and investments.

• Substitute Products: The availability of alternative chemicals or products that serve similar purposes in various industries could pose a threat to the demand for acetic acid. This includes potential shifts in consumer preferences or technological advancements that lead to the use of alternative materials.

• Global Economic Conditions: Economic downturns, recessions, or disruptions in key markets can affect industrial activities, demand for chemicals, and overall consumption, influencing the acetic acid market.

• Geopolitical Factors: Trade disputes, sanctions, and geopolitical tensions can disrupt supply chains, impact trade agreements, and potentially restrict the flow of raw materials or finished products.

• Technological Advancements: Rapid advancements in technology could lead to the development of more efficient or sustainable production methods for acetic acid, which could affect the market dynamics and competition.

• Changing Consumer Preferences: Shifts in consumer preferences towards more sustainable and eco-friendly products could influence the demand for products that use acetic acid, particularly in industries like textiles and packaging.

• Regulatory Changes: Changes in regulations related to chemical production, transportation, labelling, and safety could impact the operations and compliance costs of acetic acid manufacturers.

• Health and Safety Concerns: Accidents, incidents, or safety issues at production facilities could lead to disruptions in supply and potentially impact the reputation of companies operating in the acetic acid market.

Report Scope

Category-Wise Insights

Based on Application:

In 2022, the vinyl acetate monomer application segment emerged as the market leader, capturing a substantial share of 45.5%. This dominance is primarily attributed to the surging need for various applications such as paints & coatings, paper coatings, and printed products. These driving forces are propelling the demand for vinyl acetate monomer.

Notably, acetic acid serves as a pivotal raw material in the synthesis of vinyl acetate monomer, which is subsequently utilized in the production of Polyvinyl acetate. This latter compound finds extensive use in the creation of paints and coatings.

The escalating desire for enhanced consumer lifestyles, coupled with a rising frequency of household renovations and redecorations, is generating a heightened demand for paints and coatings. This growing need in turn significantly impacts the requisition for vinyl acetate monomer, thus forming a direct link between the two.

Acetate esters, derived from acetic acid, play a pivotal role in the production of paints, coatings, and printing inks. The surge in consumer aspirations to enhance the visual appeal of their residences is exerting a significant influence on the worldwide demand for paints and coatings.

Concurrently, the automotive sector’s robust performance, marked by increased vehicle sales, is contributing to the escalated need for paints. As a result, the global requisition for acetate esters is experiencing a direct and substantial impact.

Purified terephthalic acid finds extensive utility in the formulation of polyester coatings, catering to diverse applications such as general metal usage, home appliances, automobiles, and coil coatings.

Notable attributes such as robust chemical and stain resistance, exceptional weather durability, and adept balancing of glass transition, alongside optimal temperature ranges for heightened flexibility, collectively underpin the amplified global demand for purified terephthalic acid.

Acetic Acid Market – Regional Analysis

• Asia-Pacific: The Asia-Pacific region was a significant player in the acetic acid market, both in terms of production and consumption. Countries like China, Japan, South Korea, and India were major contributors to the market. Rapid industrialization, economic growth, and increasing demand for various applications, including textiles, plastics, and food products, fueled the demand for acetic acid.

• North America: North America, including the United States and Canada, had a substantial demand for acetic acid, driven by industries such as chemicals, plastics, textiles, and food. The presence of a well-established industrial base and consumer demand for products using acetic acid contributed to the regional market. 

• Europe: Europe was another key region in the acetic acid market, with countries like Germany, France, and the United Kingdom being major consumers. Stringent environmental regulations, innovation in industries like packaging and textiles, and a focus on sustainability influenced the demand for acetic acid in the region.

• Latin America: Latin America showed potential for growth in the acetic acid market, with countries like Brazil and Mexico contributing to demand. Economic growth, urbanization, and the expansion of various industries played a role in driving the market.

• Middle East and Africa: The Middle East and Africa region also demonstrated growth opportunities for the acetic acid market. Industrial development, infrastructure projects, and diversification of the economy contributed to the demand for chemicals, including acetic acid.

List of the prominent players in the Acetic Acid Market:

• Eastman Chemical Company
• Celanese Corporation
• LyondellBasell Industries Holding B.V.
• SABIC
• HELM AG
• Airedale Chemical Company Limited
• Indian Oil Corporation Ltd
• Gujrat Narmada Valley Fertilizers & Chemicals Limited
• Pentokey Organy
• Ashok Alco Chem Limited
• DAICEL CORPORATION
• The Dow Chemical Product
• DubiChem
• INEOS
• Others

The Acetic Acid Market is segmented as follows:

By Application

• Vinyl Acetate Monomer
• Acetic Anhydride
• Acetate Esters
• Purified Terephthalic Acid
• Ethanol
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America