Acetic acid is a liquid chemical compound that is colorless in nature. Acetic acid is also referred to as ethanoic acid. It is produced by the methanol carbonylation process. Acetic acid is widely used as a key intermediate in the production of chemical products such as Purified Terephthalic Acid (PTA), Vinyl acetate monomer (VAM), and others. Pharmaceutical, rubber, plastics, construction and paints &coatings are some of the key end-user of acetic acid.
The global acetic acid market was estimated to be valued more than US$ 10,551.4 million in terms of revenue in 2019 and is predicted to grow at a CAGR of 9.5% during the forecast period (2020 to 2027).
High demand for polyvinyl acetate (PVA) and polyvinyl alcohol (PVOH) that are key derivatives of vinyl acetate monomer is augmenting the market growth. Polyvinyl acetate is widely used across various applications such as packaging films, thickeners, and photosensitive coatings. Polyvinyl alcohol is majorly used in paints and paper coatings due to their excellent adhesions properties. Thus, the growing demand for polyvinyl acetate and polyvinyl alcohol is accelerating the market growth of acetic acid.
Regionally, Asia-pacific dominated the global acetic acid market in 2019, reporting 62% market share in terms of revenue, followed by Europe and North America, respectively.
Figure 1. Global Acetic Acid Market, Revenue Share (%), By Region, 2019
The volatile price of the raw materials used in the manufacturing of acetic acid is expected to hinder the market growth. Methanol is a key raw material used in the production of acetic acid and is produce by natural gas that is highly susceptible to volatility. Thus variation in the price of natural gas is expected to hinder the market growth.
Acetic Acid Market Report Coverage
Market Size in 2019:
||US$ 10,551.46 Mn
|Historical Data for:
||2017 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
2027 Value Projection:
||US$ 21,734.46 Mn
- North America: U.S., Canada
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, Rest of Asia Pacific
- Rest of World
- By Application: Vinyl acetate monomer PTA, Acetate esters, Acetic anhydride, Other
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.
- Growing production of automobiles around the globe
- Rapid urbanization and growing construction industry
|Restraints & Challenges:
- Volatility in raw material prices
Rapid industrialization and urbanization around the globe is projected to offer lucrative market opportunities over the forecast period. Rise in construction industries coupled with the growing demand for high-performance plastic from the end-user industry due to their durability is again expected to foster the market growth. Moreover, increasing automobiles production across the developing region is further projected to raise demand for plastic and rubber products which in turn again fostering the market growth over the forecast period..
Figure 2. Global Acetic Acid Market – Opportunity Analysis
Shifting inclination of the key manufacturer towards increasing the production capacity of the acetic acid is one of the key trends in the market. For instance, in January 2019, Celanese has announced that it expanding its acetic acid facility in Clear Lake, Texas. The Celanese has expanded its acetic acid facility from 1.3m tones/year to approximately 2m tones /year. The expansion will facilitate productivity options within its global acetic acid network in both Singapore and Nanjing, China.
Increasing consumption of acetic acid across the food &beverage industry is fueling market growth. Acetic acid is used as a condiment and acidity regulator in the food products. Increasing spending of consumers on the food products due to the growing health wellness trend and rising demand for food products is fostering the market growth of acetic acid. Thus, the expansion of the food &beverage industry is augmenting the market growth of acetic acid
Figure 3. Global Acetic Acid Market, Revenue Share (%), By Application, in 2019
On the basis of application, Vinyl acetate monomer dominated the global acetic acid market in 2019 with around 30% of market share in terms of revenue, followed by PTA and acetate anhydride.
Figure 4. Global Acetic Acid Market – Value Chain Analysis
Global Acetic acid Market - Impact of Coronavirus (Covid-19) Pandemic
Mining industry, which is responsible for supply of key raw materials to several end-use industries across the globe, has severe economic repercussions owing to Coronavirus (Covid-19) Pandemic. Also, the demand for acetic acid depend on various end-user industries such as construction, transportation, food and beverage, packaging and others, which have faced hindrance amidst of the ongoing pandemic outbreak. This is expected to hamper the growth of acetic acid market for short period till end quarter of 2020.
Key players are operating in the global 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.
Few Recent Developments
- In January 2019, Celanese has announced that it is expanding its acetic acid facility in Clear Lake, Texas. The Celanese has expanded its acetic acid facility from 1.3m tones/year to approximately 2m tones /year. The expansion will facilitate productivity options within its global acetic acid network in both Singapore and Nanjing, China.