The Global Acetic Acid Market was valued at USD 13.41 Billion in 2022 and is projected to reach USD 23.13 Billion by 2030, registering a CAGR of 6.95 % for the forecast period 2023-2030.
Market Definition
Acetic acid, also referred to as ethanoic acid, is an organic liquid that is colorless and has a strong smell. The second most basic carboxylic acid is acetic acid, which has methyl as its functional group. It is employed in the synthesis of numerous chemical compounds as a chemical reagent. Growth in the market is also anticipated to be fueled by the growing use of plant-based feedstock and acetic acid as starting materials for the production of vinyl acetate monomer (VAM). The synthesis of vinyl acetate monomer (VAM), which finds further uses in adhesives and sealants, paints and coatings, textiles, automotive, and construction, begins with acetic acid. One of the main raw materials used in sealant and adhesive applications is VAM. In paint and coating formulations, it serves as an emulsifier and dispersant as well. Throughout the forecast period, the growing need for VAM from these applications is anticipated to propel the growth of the acetic acid market. Because it is inexpensive and environmentally benign, the production of acetic acid from plant-based feedstock, such as biomass, has been increasing in popularity.
Market Size:
- 2022: USD 13.41 Billion
- 2030: USD 23.13 Billion
- CAGR (2023-2030): 6.95%
Acetic Acid Market Dynamics
Drivers Propelling the Demand for Acetic Acid include : Growing demand for Vinyl Acetate Monomer (VAM) fuel market growth
In order to create resins and polymers for coatings, adhesives, films, paints, textiles, and other end products, vinyl acetate monomer, or VAM, is needed as an intermediate. Barrier resins for plastic bottles contain VAM. Because of its adhesive qualities toward a variety of substrates, such as wood, paper, metals, and plastic films, it can also be used in adhesive applications. The need for vinyl acetate monomer is increasing due to growth in the previously mentioned industries. The application of VAM in the production of ethylene vinyl alcohol (EVOH) is the application that is expanding the fastest. EVOH is used as a barrier resin in engineering polymers, food packaging, and gas tanks. Certain other VAM derivatives, like vinyl chloride-vinyl acetate copolymers, are also used in sealants and adhesives. Technological advancements aimed at creating polymers and other goods utilizing VAM as raw materials successfully raise the demand for vinyl acetate monomers in product acetic acid. In countries that are developing, there is a growing demand for infrastructure and consumer goods due to population growth. In these areas, this is fueling the demand for VAM. Because VAM is a biodegradable polymer, producers of environmentally friendly goods find it to be a desirable alternative. Many do-it-yourself tasks, including painting, woodworking, and crafting, call for the use of VAM. With the growing popularity of do-it-yourself projects, VAM is in greater demand. As a result, this factor fueling the growth of acetic acid market.
For instance, in December 2022, according to Celanese Corporation, Celanese Corporation, a global chemical and specialty materials company, today announces further investments to strengthen its commitment to being the world’s foremost emulsion polymers and vinyl acetate producer through facility expansions, new unit builds and key debottlenecking projects in Europe and Asia, announced expansion plans, highlighted below, point to a growing and robust vinyl’s portfolio for the company’s Acetyl Chain and derivatives.
The Preservation of Food Increases the Demand for Glacial Acetic Acid:
The use of glacial acetic acid to control the acidity of food and beverages is growing in popularity. A growing population also indicates a rise in the demand for food and beverages. The primary ingredient in vinegar, glacial acetic acid, is becoming more and more well-liked in households. Furthermore, acetic anhydride is made from glacial acetic acid. Glacial acetic acid is used as a condensing agent in the synthesis of acetic anhydride. Glacial acetic acid is preferred by manufacturers due to its low cost of raw materials. The need for glacial acetic acid is constantly increasing due to its many domestic applications. As a result, the food and beverage industry will witness an upward growth trajectory in the glacial acetic acid market. Strong antimicrobial qualities of glacial acetic acid enable it to efficiently stop the growth of dangerous microorganisms like yeasts, fungi, and bacteria. These microbes give food its off flavors, textures, and discolorations, which contribute to food spoilage. Glacial acetic acid contributes to the preservation of food products' safety and quality by preventing their growth. The acidifying effect of glacial acetic acid lowers the pH of food items. This food's natural color, flavor, and texture are preserved because the growth of spoilage microorganisms is inhibited by the acidic environment. Additionally, food products are given a distinct tangy or sour taste by glacial acetic acid, which also adds complexity and enhances the overall flavor profile of the product. This enhancement of flavor is especially noticeable in foods that have been pickled, dressed, or sauced, due to these benefits, fueling the growth of acetic acid market.
For instance, in July 2023, according to Amerex, acetic acid and its salts are chemical compounds that have been widely used in various industries due to their preservative and antimicrobial properties. However, their use has also been the subject of debate due to their effects on health and the environment, besides the fact that consumer trends point to the use of more natural and clean label alternatives, and less chemical preservatives and additives.
Recent Developments
In April 2023, Jubilant Ingrevia Limited, today announced the commissioning of its new global scale Acetic Anhydride plant, at its manufacturing facility in west India at Bharuch, Gujarat. This plant adds around 60,000 MT of capacity, whereby scaling Jubilant Ingrevia Limited’s overall annual Acetic Anhydride capacity to 210,000 MT.
In September 2023, INEOS has today announced it has reached an agreement with Eastman Chemical Company to purchase the Eastman Texas City site, including the 600kt Acetic Acid plant and all associated third party activities on the site, for circa $500 million. Eastman and INEOS have also entered into a Memorandum of Understanding to explore options for a long-term supply agreement for vinyl acetate monomer.
Restraint : The Adverse Effects of Acetic Acid May Delay Market Growth:
It might be a hazardous chemical if not used properly and safely. It hurts people's skin and eyes, so it needs to be handled carefully. It can also cause harm to internal organs if swallowed or inhaled. Furthermore, the growing awareness among consumers of the negative effects of chemicals may discourage their use, thereby impeding the market's expansion. VAM is one of the main applications for acetic acid and is a mature market that will either steadily expand or contract. Reduced VAM consumption could act as a constraint on market expansion. When acetic acid solutions of 80% or higher come into contact with the skin or eyes, they can be corrosive and cause severe burning of any exposed tissue. Prolonged exposure to this substance's vapors can cause cracked and darkened skin, tooth enamel erosion, chronic bronchitis and other respiratory problems, and other side effects. Because acetic acid poses a risk, it is governed by a number of laws and standards. These rules may restrict the use of acetic acid in specific applications and raise production complexity and costs. Due to its acidic and corrosive properties, consumers may have a negative perception of acetic acid. These misconceptions could restrict acetic acid's market potential and impede its use in consumer goods.
For instance, in June 2022, Australian Government, Department of Climate Change, Energy, the Environment and Water, stated that, Inhalation of acetic acid causes irritation to the nose, throat and lungs. It is a corrosive substance, where inhalation of concentrated vapor may cause serious damage to the linings of these organs and later, breathing difficulties may result. Sensitization may result from repeated exposures. Ingestion of this substance may cause severe corrosion of the mouth and gastrointestinal tract, leading to vomiting, diarrhea, circulatory collapse, kidney failure and death.
Challenges : Fluctuation Cost of Raw Material.
Variations in the price of the raw materials required to produce the acid have been identified by the acetic acid market as a major obstacle. Because of this, businesses that manufacture alumina are experiencing variations in their profit margins, which makes it difficult for them to strategize for expansion. The main raw material used to make acetic acid is methanol, a petrochemical derivative whose price is affected by a number of variables such as energy prices around the world, dynamics of supply and demand, and geopolitical events. The cost of producing acetic acid is directly impacted by rising methanol prices, which raises the price of the final product. As a result, acetic acid may become less marketable and less necessary for some uses. Furthermore, producers of acetic acid may find it challenging to budget for and predict their production costs and profitability due to fluctuating raw material costs. This could impede industry investment and growth.
Opportunities : Growing expansion in textile sector.
Acetic acid, sometimes referred to as ethanolic acid, is widely utilized in the production of vinyl and metal acetates, which are subsequently utilized as chemical reagents for textiles, paints, volatile organic esters, and photographic films. Acetic acid is widely used in the textile industry for textile printing and dying. The textile industry also uses acetic acid. It produces synthetic fabrics, rayon (mostly latex), and fabric dyeing. Their hygroscopic properties allow them to absorb moisture from the environment when creating fabrics. A garment is not entirely turned into an acid by adding acetic acid because it is composed of fabric. Vinyl acetate monomer is used in the textile industry to create synthetic fibers. Additionally, Acetic acid is in high demand in the textile industry due to the growing demand for textiles brought on by factors like population growth, rising disposable incomes, and increasing urbanization. Furthermore, the need for environmentally friendly textile production methods which frequently involve the use of acetic acid is being driven by the growing emphasis on sustainability.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 13.41 Billion |
| Market Forecast in 2030 | USD 23.13 Billion |
| Compound Annual Growth Rate (CAGR) | 6.95 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Application, By End-User and By Region |
| By Application |
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| By End-User |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Acetic Acid Market
The Acetic Acid Market is segmented by application, end-user and region.
By Application
The vinyl acetate monomer segment held the largest market share in 2022
By application is sub segmented into vinyl acetate monomer, acetic anhydride, acetate esters, purified terephthalic acid, ethanol, others. The vinyl acetate monomer accounted for highest market share 37% in global acetic acid market for 2022. because there is an increasing need for VAM in a number of industries, including paints and coatings, paper, adhesives and sealants, and textiles. The main use of VAM is as a monomer in the production of polyvinyl alcohol and polyvinyl acetate, which are then applied in coating processes. Market expansion is greatly impacted by rising demand from a variety of industries, including the automotive, paper & pulp, and construction sectors. The increasing population in developing nations is driving up demand for consumer goods and infrastructure. This is increasing the need for VAM in these areas. VAM is a preferred substitute for other environmentally friendly materials because it is a biodegradable polymer.
On the other hand, the acetic anhydride segment has the significant market share over the forecast period, its widespread use of photographic films and other coated materials is credited with this expansion. Additionally, it is employed in the production of cigarette filters. It is regarded as an essential raw material for the creation of medications like aspirin, which is used to treat headaches. The preservation of wood involves the extensive use of acetic acid.
By End-User
The Food and Beverages segment was the leading segment in 2022
By end-user, which is divided into food and beverages, paints and coating, plastic and polymers, pharmaceuticals, chemicals, others. The food and beverages segment accounted for largest share 35% in global acetic acid market in 2022. The market has been dominated by the food and beverage segment, which is expected to see strong revenue growth going forward. PET bottles, which are used to hold food and beverages, are made using acetic acid. Acetic acid is widely used as a cleaning and disinfectant in food processing facilities. Vinegar, a common culinary ingredient used in sauces and vegetable pickling, is primarily made of acetic acid. The market for acetic acid is expanding due to developments in the food and beverage sector.
Paints and Coating segment is anticipated to register rapid growth in forecast period, Acetic acid finds application in the manufacturing of multiple paints, such as acrylic, latex, and alkyd paints. Additionally, a variety of coatings, including marine, automotive, and industrial coatings, are made with it. The production of polymers, especially polyvinyl acetate (PVA), an essential component of numerous paints and coatings, depends on acetic acid. PVA is a versatile resin for a range of applications because of its valued flexibility, adhesion, and durability.
Regional Analysis
Asia Pacific occupied the largest market share in 2022
Asia Pacific has the largest revenue market share 33.6% in 2022, This increase is explained by the growing need for acetic acid across a number of industries, including textiles, construction, pharmaceuticals, and the automotive sector. The expansion of the pharmaceutical industry in the area explains the rise in demand for the product. The main application of acetic acid is in the creation of pharmaceuticals. The region's overall demand for the product is anticipated to be driven by consumers' growing reliance on prescription tablets. Moreover, over the course of the forecast period, the expanding building and construction industries particularly in China and India are probably going to play a significant role in the region's market. Furthermore, Asia-Pacific is one of the major plastic-producing regions, which offers a plethora of chances for local businesses to thrive.
On the other hand, North America accounted for the significant share over the forecast period, The food and beverage industry's high demand for acetic acid drives the market. The meat industry frequently uses acetic acid to preserve meat. The use of acetic acid in the meat industry has grown significantly, ranking among the region's most significant application markets. The increased use of paints and coatings in the area is another factor contributing to the rise in acetic acid demand. The analysis of the North American acetic acid market includes both the United States and Canada. Ethanol is currently utilized more frequently in a variety of applications due to the expansion of the chemical industry and rising demand from end-use industries like the building and textile sectors.
List of the prominent players in the Acetic Acid Market:
- Eastman Chemical Company
- Celanese Corporation
- LyondellBasell Industries Holding B.V.
- SABIC
- HELM AG
- Airedale Chemical Company Limited
- Indian Oil Corporation Ltd
- Gujrat Narmada Valley Fertilizers & Chemicals Limited
- Pentokey Organy
- Ashok Alco Chem Limited
- DAICEL Corporation
- The Dow Chemical Product
- DubiChem
- INEOS
Segmentation Analysis of the Acetic Acid Market
By Application
- Vinyl Acetate Monomer
- Acetic Anhydride
- Acetate Esters
- Purified Terephthalic Acid
- Ethanol
- Others
- Food and Beverages
- Paints and Coating
- Plastic and Polymers
- Pharmaceuticals
- Chemicals
- Others
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
