Acetic Acid Market Size, Share & Industry Analysis, By Application (Vinyl Acetate Monomer (VAM), Purified Terephthalic Acid (PTA), Ester Solvents, Acetic Anhydride, and Others), By End-use Industry (Plastics & Polymers, Food & Beverages, Adhesives, Paints, and Coatings, Textile, and Others) and Regional Forecast, 2024-2032

The global acetic acid market size was valued at USD 16.13 billion in 2023 and is projected to grow from USD 17.20 billion in 2024 to USD 29.05 billion by 2032, exhibiting a CAGR of 6.8% during the forecast period. Asia Pacific dominated the acetic acid market with a market share of 56.11% in 2023.

Acetic acid, also known as ethanoic acid, is a colorless organic compound included under carboxylic acids. Development and growing applications in various industries, such as paints & coatings, adhesives and sealants, and textiles, will globally augment market growth. Vinyl Acetate Monomer (VAM) consumption is driven by the growing demand for paints and coatings globally, which fosters the market's growth.

Growing consumption of solvents, such as VAM in the chemical industry application for paints & coatings, adhesives & sealants is driving the market size. Moreover, PTA is used for manufacturing polyester, and the increasing demand for polyester in the textile and packaging industries leads to the high consumption of PTA.

With the rapid spread of the COVID-19 virus, the global healthcare systems have faced challenges in treating many patient pools. This factor has resulted in hospitals adopting proper hygiene regulations to stop the spread of the virus. The temporary closure of factories has caused a decrease in production, leading to a dwindling market scenario. This shutdown has also affected the market growth as end-users have decreased the demand for raw materials.

During the COVID-19 pandemic the potential benefits and availability of ethanoic acid disinfection have appeared to be a promising adjunctive in non-severe COVID-19 cases. This development acts as a market driver for the consumption of this acid. The surge in demand for sanitization to stop COVID-19 spread also led to an increase in product purchases. This chemical is further tested for sanitizing products to support the ongoing health and safety concerns, positively affecting the market growth.

Acetic Acid Market Trends

Increasing Infiltration of Ester Solvents for Coating Industry to Boost Market Development

Ester solvents are being used in the coatings industry due to their excellent properties, such as evaporation rate, leveling properties, blush resistance, solvent activity, solubility for coating resins, and good solvent release. These properties are used for coating formulation products. Coatings are further used in automobiles, infrastructure, and industrial applications.

The coating done through invention has the advantages of being environment-friendly, high-temperature resistance, strong chemical resistance, long service life of the coated film, high mechanical strength, elastic strength, and scrub resistance. Higher consumption of coatings is further leading to market growth.

Acetic Acid Market Growth Factors

Increasing Demand for Vinyl Acetate Monomer to Aid Market Growth

Vinyl Acetate Monomer (VAM) is mainly used as an intermediate in production of resins and polymers for coatings, adhesives, films, paints, textiles, and other end-products. VAM is used in barrier resins for plastic bottles. It also has applications in adhesive due to adhesion properties to different substrates that include wood, paper, metals, and plastic films. Growth in the aforementioned industries is causing a rise in demand for vinyl acetate monomers.

The fastest-growing use of VAM in the manufacturing of Ethylene Vinyl Alcohol (EVOH) is used as a barrier resin in food packaging, gasoline tanks, and other engineering polymers. Additionally, some other VAM derivatives, such as vinyl chloride-vinyl acetate copolymers, have applications in adhesives & sealants. Technological breakthroughs aiming to develop polymers and other products that use VAM as raw materials effectively increase the product demand for vinyl acetate monomers, thus positively supporting the acetic acid market growth.

RESTRAINING FACTORS

Harmful Effects of Acetic Acid to Hinder Market Growth

It can be a hazardous chemical if it is not used safely and appropriately. It is highly corrosive to human skin and eyes and must be handled carefully. It also damages the internal organs if ingested or inhaled. Furthermore, the rising awareness about the hazardous effects of chemicals among consumers can impede its adoption, thus hampering market growth. Additionally, VAM is a mature market and will display gradual growth or decline, and it is also a major application of acetic acid. A decline in VAM consumption may affect market growth, thus acting as a restraining factor.

Acetic Acid Market Segmentation Analysis

By Application Analysis

Vinyl Acetate Monomer (VAM) Segment to Hold the Major Market Share Owing to Increasing Demand from Different End-use Industries

Based on application, the market is segmented into Vinyl Acetate Monomer (VAM), Purified Terephthalic Acid (PTA), ester solvents, acetic anhydride, and others.

The vinyl acetate monomer (VAM) segment held the largest market share due to the growing demand from various applications in industries, such as paints & coatings, paper, adhesives & sealants, and textiles. VAM is primarily used as a monomer to manufacture polyvinyl alcohol and polyvinyl acetate, which is further used in coating applications. Growing demand from industries such as automobile, paper & pulp, and construction significantly affects market growth.

Furthermore, Purified Terephthalic Acid (PTA) segment is also growing at a significant rate. It is used in manufacturing polyester, including Polyethylene Terephthalate (PET) bottles, polyester film, and polyester fiber. This polyester is also used in food & beverage containers, and in textiles. Some other PTA applications also include coatings & other composite materials. The increased demand for food and beverages due to the surging population is leading to the high consumption of bottles and polyester containers.

Ester solvents segment includes acetic acid as an organic solvent for printing inks, paints & varnishes, a constituent of perfumes, and essential oils. The rise in demand for these end-use products is driving the product demand. Moreover, acetic anhydride is primarily used as an acetylating agent in chemical reactions. The chemical is also used in the growing pharmaceutical industry as raw material for acetaminophen and aspirin.

By End-use Industry Analysis

Adhesives, Paints & Coatings Segment to Dominate the Market Due to Rapidly Growing Building and Construction Industry Globally

Based on end-use industry, the market is segmented into plastics & polymers, food & beverages, adhesives, paints, and coatings, textile, and others. Among these segments, the adhesives, paints & coatings segment held the highest share of the market in 2023 owing to its higher demand from the rapidly growing building and construction industry. The plastics & polymers segment also held a considerable market share owing to rising product demand for films, resins, and plastic applications in the plastics and polymers industry.

Food & beverages and textile segments also hold a considerable market share. In food and beverages, the product is used as a sour agent, preservative, flavor, and in manufacturing other additives used in the industry. In the textile industry, it is mainly used as a solubilizing agent and for increasing the stability of dyes. The other end-users include pharmaceuticals & healthcare, cosmetics, research and development, and others.

REGIONAL INSIGHTS

Based on geography, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

The market in Asia Pacific stood at USD 9.05 billion in 2023 and is expected to account for the largest acetic acid market share, which can be attributed to an increase in polymer formulations in the region. This chemical is a key raw material used to produce polymers in industries across Japan, China, and India. China is a major producer, and further increased new investments, which the government leads to support local market growth and improve productivity in China and other projects planned in India and Japan.

The region is observing high construction industry growth due to increased mergers and acquisitions from leading companies such as Celanese Corporation. The aforementioned factors are driving product demand. Additionally, China's excess capacity further helps in the high acetic acid production. According to Chemical Market Associates, Inc. (CMAI), the demand for 400,000 tons per year is in China compared to the global average demand.

The market in North America may show favorable gains by 2032. The growing chemical industry and surging demand from the end-use industries, including the textile and construction industries, are augmenting ethanoic acid consumption in different applications. Growing investments and increasing production facilities from major companiessuch as Celanese and BP Plc have led to market growth. Along with this, a growing consumer lifestyle and disposable income are causing an increase in construction activities and textile industry growth. The U.S. being major in the fashion industry leads to an incline in the textile industry, which supports the chemical consumption rate.

Europe is projected to experience a significant growth rate during the forecast period due to increased demand from end-use sectors and imports. This high demand has caused European manufacturers to raise their prices to around USD 67.8 per ton. The dominant process, methanol carbonylation, which holds around 65% of the global capacity, and acetaldehyde’s oxidation by Germany’s Wacker, is the major product application in the region. These applications are positively affecting the market.

Latin America and the Middle East & Africa are expected to grow substantially during the forecast period. This growth can be attributed to the moderate increase in the industrial sectors, such as construction, textile, and others. Brazil is one of the major countries responsible for the high product consumption in the region. In the Middle East & Africa, the rise in the construction segment is supporting the market’s growth, where this acid has an application in the production of VAM, which is used in adhesives & sealants. Industrialization and the high disposable income of consumers are causing growth in the construction industry.

List of Key Companies in Acetic Acid Market

Joint Ventures and Capacity Expansion are Key Strategic Initiatives Implemented by Companies Driving Market Expansion

Major players operating in the industry are Shanghai Huayi (Group) Company, LyondellBasell Industries, Daicel Corporation, Jiangsu Sopo (Group) Co. Ltd., Airedale Group, and others. Companies are involved in new product launches, capacity expansion, acquisition, joint ventures, and partnerships to gain a competitive edge in the market. For instance, in recent years, Celanese has increased the production capacities of many facilities for acetic acid to improve its presence in the market and support the high demand for this acid.

Jiangsu Sopo (Group) Co. Ltd. is one of the major providers of glacial acetic acid in China, with a capacity of 12,000 kt per annum.

LyondellBasell launched a comprehensive portfolio of value-added chemical technologies that produce a wide range of high-growth chemical products for various end-use industries.

LIST OF KEY COMPANIES PROFILED:

• Mitsubishi Chemical Group Corporation (Japan)


• Shanghai Huayi (Group) Company (China)


• LyondellBasell Industries (Netherlands)


• Daicel Corporation (Japan)


• Jiangsu Sopo (Group) Co. Ltd. (China)


• Airedale Group (U.K.)


• Eastman Chemical Company (U.S.)


• Gujarat Narmada Valley Fertilizers & Chemicals Limited (India)


• Wacker Chemie AG (Germany)


• Celanese Corporation (U.S.)


• INEOS (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• January 2021 – Celanese announced the expansion of its acetic acid production capacity in Clear Lake, Texas. The move is anticipated to enable the company to meet increasing demand from the market, which will also result in a significant rise in product revenues.


• January 2021 – INEOS acquired BP’s global Aromatics & Acetyls business consisting of 15 sites, including 5 in the Americas, 2 in Europe, and 8 in Asia, along with 10 leading joint ventures. This development will support the company in extending its position in global petrochemicals and provide scope for integration and expansion with the existing business.


• March 2020 – South Korea’s Lotte and U.K. energy and chemicals group BP had a joint venture to expand the capacity for acetic acid production at the South Korea plant. The investment costs are around USD 175 billion, with an addition in the capacity of 100,000 t/y till May 2019. This venture will allow companies to meet Korea’s growing demand.


• February 2019- WACKER presented a new product line for the polymeric binders called VINNECO which are based on different renewable raw materials at the European coatings show. These polymeric binders are produced by different processes, bio-based acetic acid and potato starch.

REPORT COVERAGE

The market report provides detailed market analysis and focuses on crucial aspects such as leading companies, sources, applications, and products. Also, the report offers insights into market trends, dynamics and highlights vital industry developments and market outlook. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation