Ethyl Acetate Market Size, Share & Industry Analysis, By Application (Paints & Coating Formulations, Adhesives and Sealants, Process Solvents, Printing Ink, Intermediates, and Others), By End-Use Industry (Construction, Packaging, Automotive, Pharmaceuticals, Industrial & Dry Cleaning, and Others), and Regional Forecast, 2024-2032

The global ethyl acetate market size was valued at USD 4.41 billion in 2023 and is projected to grow from USD 4.70 billion in 2024 to USD 8.26 billion by 2032 at a CAGR of 7.3% during the 2024-2032 period. Asia Pacific dominated the ethyl acetate market with a market share of 47.39% in 2023.

Ethyl acetate is a colorless liquid commonly used as a solvent in various industries, such as food & beverage, pharmaceutical, and cosmetics. The demand for the material is largely driven by its use as a solvent in the production of coatings, adhesives, and printing inks. In addition, the growing demand for packaged food & beverages is expected to boost the product demand in the food & beverage industry.

The COVID-19 pandemic significantly affected the demand for ethyl acetate. With the global lockdowns and economic slowdown, the demand for this chemical decreased across various industries. The automotive, construction, and textile industries, which are major product consumers of artificial leather, were affected by the pandemic, leading to a decline in demand. However, the pharmaceutical and food industries observed increased product demand due to its use in producing medicines and flavoring agents. Overall, the pandemic resulted in a shift in demand for the product across industries.

Ethyl Acetate Market Trends

Food Industry Opening New Avenues for Business is a Leading Market Trend

Ethyl acetate is widely adopted in the food industry as a solvent and an artificial flavor enhancer in ice-creams, cakes, and confectionary food. Decaffeinating tea and coffee using product solvents are on the rise as consumption of decaffeinated drinks is increasing at healthy rates. The food industry is experiencing high growth in developing countries globally due to rising disposable income and technological advancement. Increasing demand for processed food containing artificial flavors is becoming more popular as the cost of the product significantly reduces, impacting the consumption of these products in emerging countries where the cost factor is more pronounced.

Ethyl Acetate Market Growth Factors

Rising Use of Printing Ink to Support Market Growth

The printing ink industry is thriving, particularly in emerging countries such as India, China, and Indonesia. Changing lifestyles, modern retail, and the exponential growth of the packaging industry have led to the development of the printing ink industry. These positive developments in emerging countries have boosted product consumption from printing ink manufacturing. The domestic printing industry in Asia Pacific is also expanding, which is further expected to increase printing ink consumption. This rising demand can be fulfilled by the availability of local juggernaut production capacities of required solvents, such as ethyl solvents used in manufacturing printing ink. The desired properties make it ideal for manufacturing both flexographic and rotogravure printing inks.

RESTRAINING FACTORS

Rise in Demand for Water-Based Paints & Coatings May Hamper Market Growth

The rising environmental awareness has surged the necessity of environment-centric regulations globally. Lawmakers have started framing and implementing stringent environmental norms to reduce the impact of hazardous chemicals on the environment. As a result, solvent-based paints & coatings are gradually losing their market share to water-based solutions. The volatile nature of the solvent makes it unsafe for users in paint & coating applications. This factor has hampered the ethyl acetate market growth to some extent and may further weaken the product demand owing to the implementation of stricter regulations in the coming years.

Ethyl Acetate Market Segmentation Analysis

By Application Analysis

Paints & Coating Formulations hold Dominance as it is Essential in Coats Production

By application, the market is segregated into paints & coating formulations, adhesives and sealants, process solvents, printing ink, intermediates, and others.

The paint & coating formulations segment holds a dominant share of the market. Moreover, it accounts for more than half of the global consumption of the product. The product demand from the coatings formulations industry has steadily increased in recent years. Ethyl acetate is a common solvent used in the production of coatings due to its high solvency power, low toxicity, and pleasant odor. It is also used in various coatings applications, including automotive, architectural, and industrial coatings.

The adhesives and sealants segment is the second-leading application in the market. Ethyl acetate is a widely used solvent in the production of adhesives and sealants due to its excellent solvent properties, fast evaporation rate, and low cost. It is effective in dissolving a wide range of resins and polymers, including those used in acrylics, vinyls, epoxies, and polyurethanes. Its quick drying time makes it ideal for applications that require fast setting or curing times. Ethyl acetate's low toxicity and pleasant odor make it a safer and more preferable option over other hazardous solvents.

Ethyl acetate is commonly used as a process solvent in various industrial and consumer applications. It is often used in the production of paints, coatings, and adhesives, and in the manufacturing of pharmaceuticals, fragrances, and flavors. It is also used as a solvent for extraction processes, such as in producing essential oils from plants. In addition, it is widely used as a solvent for various chemical reactions in the laboratory. Overall, it is a versatile and effective solvent that is used in a wide range of industries.

By End-Use Industry Analysis

Construction Segment Leads Owing to Growing Consumption from Variety of Building Materials

Based on end-use industry, the market is divided into construction, packaging, automotive, pharmaceuticals, industrial & dry cleaning, and others.

The construction segment is leading the market. Ethyl acetate is an incredibly useful organic solvent that has numerous applications in the construction industry. It is commonly used in the production of adhesives, coatings, and sealants and is particularly effective in dissolving oils, grease, and other contaminants that can accumulate on equipment surfaces. The solvent also helps improve the flow properties of these materials, resulting in a smoother and more even finish. In addition, the product can dissolve and mix the various components of these materials, creating a homogeneous mixture that enhances the viscosity and flow properties of the final product. This makes it easier to apply and improves its overall performance.

In the automotive industry, the product has showcased considerable growth, moreover it is frequently used as a chemical for lacquers, varnishes, and paint removers. It helps dissolve the resins that are used in these products, making them easier to apply and improving their overall quality. Given its effectiveness as a solvent and cleaning agent, the product demand in the architecture, paints, and building materials industry is expected to increase in the coming years.

REGIONAL INSIGHTS

By region, the market is divided into Asia Pacific, Europe, North America, the Middle East & Africa, and Latin America.

Asia Pacific is leading the market and is currently experiencing a surge in product demand, driven largely by the automotive and construction industries. China stands out as the largest contributor to this demand, as the country serves as a manufacturing hub for several industries. This trend is expected further to bolster the market's growth in the region. Furthermore, the growth of the Indian market can be attributed to the rising consumption of paints & coatings, which is, in turn, linked to the growing population and increasing disposable income levels.

North America is also expected to witness significant growth in the coming years. The growth can be attributed to a rise in demand for automotive applications, thereby promoting product use in the region.

The market in Europe is also expected to grow in the coming years. The compound is widely used in various industries, including pharmaceuticals, food & beverage, and cosmetics. The demand in these industries is projected to drive market growth in Europe. The region also has strict regulations on the use of chemicals, which favors the use of low-toxicity and environmentally friendly solvents such as C4H8O2. Moreover, Germany, France, and the U.K. are the major contributors to the ethyl acetate market share in Europe.

Latin America’s growth can be credited to the rising demand in food & beverage and medical industries. The demand for the product is exceptionally high in Brazil, Mexico, and Argentina, which are among the region's largest markets for packaged food products.

The Middle East & Africa is expected to experience substantial growth during the forecast period. The rising construction activities have led to a surge in demand for housing, commercial buildings, and infrastructure, boosting product demand. Therefore, the market in this region is anticipated to grow during the forecast period.

List of Key Companies in Ethyl Acetate Market

Key Players Blending Organic and Inorganic Growth Strategies to Maintain Their Dominance

The competitive landscape depicts a consolidated and competitive market. Global players in the market have heavily invested in developing better technologies to improve product output. Superior operational efficiency achievement and novel technology development are the strategies used by market leaders for their growth. In addition, major players are focusing on acquisition and expansion activities to increase their market share.

LIST OF KEY COMPANIES PROFILED

• INEOS (U.K.)


• Celanese Corporation (U.S)


• Eastman Chemical (U.S)


• Jiangsu Sopo (China)


• Jiangmen Handsome (China)


• Wuxi Baichuan (China)


• Jubilant Life Sciences (India)


• Godavari Biorefineries Ltd. (India)


• Sekab (Sweden)


• KAI CO. LTD. (South Korea)


• IOL Chemicals and Pharmaceuticals (India)

KEY INDUSTRY DEVELOPMENTS

• February 2023 – Celanese Corporation introduced sustainable forms of multiple Acetyl Chain materials, ECO-B, containing mass balance bio-content. These products allow for the change from fossil to renewable materials. The company's commitment to sustainability is reflected in its efforts to provide customers with effective and efficient sustainable solutions.


• October 2022 – IOL Chemicals and Pharmaceuticals received approval from the European Union to supply ethyl acetate, a widely used chemical. The company has produced it since 1996 and exports it to over 40 countries. With the REACH certification, IOL can export products across the European market. The company has appointed REACHLaw to help expand its territory in European nations.


• April 2022 – Godavari Biorefineries Ltd (GBL) inaugurated its manufacturing facility in Sakarwadi. The company also opened a biochemical research lab. The Sakarwadi plant produces bio-based chemicals for a wide range of applications, and the research facility conducts advanced biochemical research. GBL uses ethanol to produce specialty chemicals, such as bio-ethyl acetate, 1, 3 butylene glycol, and MPO. With this facility, the company is expanding its production capacity and producing innovative ethanol-based chemicals.


• March 2022 – Viridis Chemical, LLC announced the successful production of renewable ethyl acetate from its manufacturing plant located in Nebraska. Viridis Chemical's exclusive marketing partner, HELM U.S. Corporation, has already commenced sending samples and distributing material to customers. This announcement is a significant milestone for Viridis Chemical and HELM U.S. Corporation, as it marks their commitment to converting ethanol into renewable ethyl acetate in the chemical industry.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as prominent companies, product types, and leading end-use industries. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation