by The Acrylic Acid Market is estimated to be valued at US$ 12.0 billion in 2021 and is expected to exhibit a CAGR of 4.8% over the forecast period 2022 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Acrylic acid is a key raw material used in the production of superabsorbent polymers, which find wide applications in products such as diapers, adult incontinence products, and feminine hygiene products. These polymers have superior water-absorbing properties, making them suitable for use in various absorbent applications. The growing awareness about personal hygiene and the increasing demand for disposable hygiene products are driving the demand for acrylic acid. Moreover, the rising population and urbanization in emerging economies are further propelling market growth.
Market Key Trends:
One of the key trends observed in the acrylic acid market is the shift towards bio-based acrylic acid. With increasing environmental concerns and regulations, manufacturers are focusing on developing eco-friendly alternatives to conventional acrylic acid. Bio-based acrylic acid is derived from renewable feedstocks such as sugars, vegetable oils, and waste biomass. The adoption of bio-based acrylic acid reduces carbon emissions and offers improved sustainability. This trend is likely to drive market growth in the coming years.
Porter’s Analysis
Threat of New Entrants: The threat of new entrants in the acrylic acid market is relatively low. The market is characterized by high entry barriers such as high capital requirements, stringent government regulations, and the need for extensive research and development capabilities. Additionally, established players have strong brand recognition and customer loyalty, making it difficult for new entrants to gain market share.
Bargaining Power of Buyers: The bargaining power of buyers in the acrylic acid market is moderate. Buyers have the ability to switch suppliers and negotiate for lower prices due to the availability of alternative suppliers. However, the market is dominated by a few key players who have established long-term relationships with their customers. This reduces the bargaining power of buyers to some extent.
Bargaining Power of Suppliers: The bargaining power of suppliers in the acrylic acid market is moderate to high. Acrylic acid is primarily derived from propylene, which is a byproduct of petroleum refining. Therefore, the price and availability of propylene can significantly impact the cost and supply of acrylic acid. Suppliers of propylene have the ability to influence the acrylic acid market through price negotiations and supply constraints.
Threat of New Substitutes: The threat of new substitutes in the acrylic acid market is relatively low. Acrylic acid has a wide range of applications in industries such as paints and coatings, textiles, adhesives, and personal care products. These industries highly value the unique properties of acrylic acid and have limited alternatives that can provide similar performance. Therefore, the threat of new substitutes is minimal.
Competitive Rivalry: The competitive rivalry in the acrylic acid market is high. The market is dominated by a few major players who have a significant market share. These players compete on factors such as product quality, price, and innovation to gain a competitive edge. The industry is also witnessing mergers and acquisitions as companies aim to strengthen their position in the market.
Key Takeaways
The global Acrylic Acid Market Size is expected to witness high growth, exhibiting a compound annual growth rate (CAGR) of 4.8% over the forecast period of 2022 to 2030. This growth can be attributed to increasing demand from various end-use industries such as paints and coatings, textiles, adhesives, and personal care products. For example, the rising construction activities and growing automotive industry are driving the demand for acrylic acid-based paints and coatings.
Regionally, Asia-Pacific is expected to be the fastest-growing and dominating region in the acrylic acid market. This can be attributed to the rapid industrialization and urbanization in countries like China and India. Additionally, the presence of a large population and increasing disposable income are creating a demand for various acrylic acid-based products in the region.
Key players operating in the acrylic acid market include Arkema, BASF SE, China Petroleum & Chemical Corporation (SINOPEC), Dow, Formosa Plastic Corporation, LG Chem, Merck KGaA, Mitsubishi Chemical Corporation, NIPPON SHOKUBAI CO. LTD, Sasol, Shanghai Huayi Acrylic Acid Co. Ltd, Satellite Chemical Co. Ltd, and Wanhua. These players are focusing on product innovation, strategic partnerships, and expansion strategies to strengthen their market presence and cater to the growing demand for acrylic acid-based products across various industries.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
