by The global Acetic Acid Market is estimated to be valued at US$ 14.63 Bn in 2023 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview
Acetic acid, also known as ethanoic acid, is a colourless liquid organic compound with a pungent vinegar-like smell. It is soluble in water and ethanol, and may occur naturally or through synthetic routes. Acetic acid finds wide applications in the production of chemical intermediates, vinyl acetate monomer, purified terephthalic acid, and acetate esters. It is widely used in pharmaceuticals manufacturing, food processing, production of photographic chemicals and coatings.
Market Dynamics
Acetic acid market is primarily driven by growing demand from the food processing industry. Acetic acid is widely used as a preservative and flavoring agent in the food industry. It inhibits the growth of microorganisms responsible for food spoilage and also enhances the taste of the food. Furthermore, increasing usage of acetic acid in production of vinyl acetate monomer (VAM) is also fueling the market growth. VAM is extensively utilized to manufacture polyvinyl acetate which finds applications as adhesives, paints and coating.
Rising focus towards development of bio-based acetic acid is anticipated to create new opportunities over the forecast period. Traditional production of acetic acid involves catalytic carbonylation of methanol which relies heavily on fossil fuels. However, bio-based production uses renewable raw materials such as biomass, lignocellulose and ethanol which help reduce dependency on petroleum feedstock. This makes bio-based acetic acid more sustainable and environment friendly.
Segment Analysis
The global acetic acid market is primarily segmented into vinyl acetate monomer (VAM), purified terephthalic acid (PTA), acetate esters, acid anhydrides and others. The VAM segment dominates the global acetic acid market owing to high demand from the paints & coating industry where VAM is used to manufacture paints, adhesives, and sealants. It accounted for over 30% share of the overall acetic acid market in 2022.
PEST Analysis
Political: Carbon tax policies being implemented in various nations are expected to hamper the market growth to some extent as acetic acid production involves emission of greenhouse gases.
Economic: Growing paints, coatings, and packaging industries especially in Asia Pacific are projected to drive the demand for acetic acid over the forecast period.
Social: Increasing development of bio-based acetic acid owing to rising environmental concerns may positively influence the industry trends.
Technological: Advancements in fermentation technologies for producing acetic acid from renewable feedstocks like carbohydrates are likely to provide new growth opportunities.
Key Takeaways
The global Acetic Acid Market Share is expected to witness high growth, exhibiting CAGR of 9.7% over the forecast period, due to increasing demand from VAM and PTA industries. The market size for acetic acid is estimated to reach US$ 14.63 Bn in 2023.
Regional analysis
The Asia Pacific region dominated the global market in 2022 and is estimated to exhibit the fastest growth during 2023-2030 owing to presence of booming vinyl acetate monomer and purified terephthalic acid industries in China and India.
Key players
Key players operating in the acetic acid market are Celanese Corporation, British Petroleum, Eastman Chemical Company, Jiangsu Sopo (Group) Co., Ltd., China Petroleum & Chemical Corporation (Sinopec), Lyondell Basell Industries, Saudi Basic Industries Corporation (SABIC), Mitsubishi Chemical Company, PetroChina Co. Ltd., PetroChina Co. Ltd., BASF SE.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
