by Market Overview:
Acetic acid, also known as ethanoic acid, is a colorless liquid organic compound with the chemical formula CH3COOH. It is a carboxylic acid with a pungent sour taste and vinegar-like smell. It is soluble in water and miscible with common organic solvents. Acetic acid is widely used as a building block for the production of chemical compounds that act as intermediates such as vinyl acetate monomer, terephthalic acid, and cellulose acetate. It is also used in the manufacture of textiles, plastics, pharmaceuticals, and as a preservative and flavoring agent in food & beverages.
Market Dynamics:
The global acetic acid market is primarily driven by the increasing demand from the food & beverages industry. Acetic acid is used as a preservative and food additive in various products like pickles, sauces, and packaged foods. Around 65-70% of global acetic acid production is utilized in the food & beverages applications. Secondly, acetic acid also finds extensive usage in the production of vinyl acetate monomer (VAM), which is further employed to manufacture polyvinyl alcohol and ethylene-vinyl acetate copolymers. VAM accounts for nearly 20% of total acetic acid demand. These polymers possess properties like flexibility, adhesion, and transparency, owing to which they find applications in various end-use industries like paints & coatings, construction, and automotive. Thus, the growing consumption of VAM-based polymers from various downstream industries is also fueling market growth.
The global Acetic Acid Market Growth 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.
Segment Analysis
The acetic acid market is segmented into vinyl acetate monomer (VAM), purified terephthalic acid (PTA), acetate esters, and others. The VAM segment is dominating the market and accounted for over 40% share in 2022. This is because VAM is used in the production of polyvinyl acetate which is used to manufacture adhesives, paints & coatings, textiles, and plastics.
PEST Analysis
Political: Acetic acid being a basic chemical experiences less regulations. However, environmental regulations affecting its production and applications.
Economic: Rising demand from end-use industries like food & beverages, pharmaceuticals, textiles driving the market growth. High economic growth in developing nations boosting market.
Social: Increasing health awareness increasing demand in pharmaceuticals. Growing middle-class population driving packaging market.
Technological: Some manufacturers using genetic engineering technologies for reducing production cost. Membrane technology reducing wastage in production.
Key Takeaways
The global acetic acid market is expected to witness high growth, exhibiting CAGR of 9.7% over the forecast period, due to increasing demand from end-use industries like food & beverages, pharmaceutical, and textiles.
Regionally, Asia Pacific dominated the market and accounted for over 50% market share in 2023. China, India, Japan, and South Korea are the fastest growing markets owing to expanding end-use industries.
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
