Acetic Acid Market: Global Size, Share, Trends, Growth and Forecast 2022-2032

Acetic Acid Market Insights

Acetic acid, also referred to as ethanoic acid is an organic acid that's a colorless liquid with a pungent odor and is soluble in water, ethanol, and ether. It's widely utilized in various industries, including food, pharmaceutical, and chemical, among others. within the food industry, acetic acid is employed as a preservative, flavoring agent, and acidifier in various food products like pickles, sauces, and dressings. It's also utilized in the assembly of vinegar, which is formed by fermenting alcoholic beverages with acetic acid bacteria. Within the pharmaceutical industry, acetic acid is employed in the production of varied drugs and medicines.

The acid is also used as a solvent and a pH adjuster in pharmaceutical formulations. In the industry, acetic acid is employed within the production of varied chemicals like vinyl acetate monomer (VAM), purified terephthalic acid (PTA), and anhydride, among others. VAM is employed to supply PVA (PVA) and polyvinyl alcohol (PVOH) resins, which are utilized in the manufacturing of adhesives, coatings, and films.

Acetic acid is additionally utilized in various other applications, including within the production of the film, as a laboratory reagent, and as a cleaning agent. However, thanks to its corrosive nature, acetic acid should be handled with care and caution.

Acetic Acid Market

The acetic acid market is a large and growing industry that's primarily driven by its widespread use within the production of varied chemicals, plastics, and artificial fibers. The worldwide acetic acid market size was valued at $10.1 billion in 2021 and is predicted to grow at a compound annual rate of growth (CAGR) of roughly 5.8% from 2022 to 2032. The market size is projected to succeed in $18.7 billion by 2032.

The increasing demand for acetic acid in various end-use industries, like textile, automotive, packaging, and food, is predicted to drive the expansion of the market. Geographically, Asia-Pacific is predicted to be the most important and fastest-growing marketplace for acetic acid during the forecast period. China is the largest producer and consumer of acetic acid in the world, and its increasing demand for various end-use products is predicted to drive the demand for acetic acid within the country.

Some of the key players operating within the global acetic acid market include Celanese Corporation, Eastman Chemical Company, BP plc, LyondellBasell Industries N.V., and Jiangsu Sopo (Group) Co., Ltd. These companies specialize in expanding their production capacities and investing in research and development activities to develop new products and technologies to satisfy the growing demand for acetic acid.

Acetic Acid Market Key Drivers

The acetic acid market is driven by various factors that have contributed to its growth in recent years. Some of the key drivers of the acetic acid market are:

• Growing demand for polyester fibers and PET resins: The increasing demand for polyester fibers and PET resins within the textile, automotive, and packaging industries is one of the main drivers of the acetic acid market. acetic acid is employed within the production of purified terephthalic acid (PTA), which is a key ingredient in the production of polyester fibers and PET resins.
• Increasing demand for vinyl acetate monomer (VAM): VAM is a key intermediate utilized in the assembly of varied resins, like PVA (PVA) and polyvinyl alcohol (PVOH), which are widely utilized in the manufacturing of adhesives, coatings, and films. The growing demand for these products within the construction, automotive, and packaging industries is predicted to drive the demand for acetic acid within the coming years.
• Rising demand for processed food and beverages: Acetic acid is employed as a preservative, flavoring agent, and acidifier in various food products like pickles, sauces, and dressings. The increasing demand for processed food and beverages is predicted to drive the demand for acetic acid within the food industry.
• Rapid industrialization and urbanization in emerging economies: Rapid industrialization and urbanization in emerging economies like China, India, and Brazil are expected to drive the demand for acetic acid in various end-use industries. These economies have an outsized consumer base for various end-use products, and therefore the growing demand for these products is predicted to drive the demand for acetic acid within the region.
• Environmental regulations and sustainability: The increasing specialization in environmental regulations and sustainability has led to the event of the latest and innovative technologies for the assembly of acetic acid. The adoption of those technologies is predicted to drive the expansion of the market within the coming years.
• Increasing use as a feedstock in biofuel production: The growing demand for biofuels, which are derived from renewable sources, is driving the utilization of acetic acid as a feedstock in biofuel production.
• Increasing use within the production of adhesives and solvents: Acetic acid is widely utilized in the assembly of adhesives and solvents, which is driving the market's growth. Growing construction and infrastructure development: The increasing construction and infrastructure development activities also are driving the demand for acetic acid, because it is employed within the production of paints, coatings, and adhesives.

Acetic Acid Market Key Trends and Developments

The acetic acid market has witnessed several key trends and developments in recent years. Some of the notable ones include:

• Increasing demand for bio-based acetic acid: With the growing specialization in sustainability and environmental regulations, there has been a rising demand for bio-based acetic acid. Bio-based acetic acid is produced from renewable feedstocks like corn, sugarcane, and cassava, and features a lower carbon footprint than traditional acetic acid.
• The growing popularity of acetic acid within the cosmetic industry: Acetic acid is being increasingly utilized in the cosmetic industry thanks to its anti-bacterial and anti-inflammatory properties. it's utilized in various skincare and haircare products like toners, shampoos, and conditioners.
• Increasing adoption of advanced technologies for acetic acid production: There has been a growing adoption of advanced technologies for the assembly of acetic acid, like the methanol carbonylation process and therefore the ethylene oxidation process. These technologies are more efficient and environmentally friendly than traditional processes.
• Rising demand for high-purity acetic acid: There has been a growing demand for high-purity acetic acid in various end-use industries like electronics and pharmaceuticals. High-purity acetic acid is employed as a solvent and reagent in these industries, and its high purity is important for the standard of the ultimate product.
• Increasing investments within the Asia-Pacific region: The Asia-Pacific region is the largest and fastest-growing marketplace for acetic acid, and several other companies are investing within the region to expand their production capacities. The region features a large consumer base for various end-use products, and therefore the growing demand for these products is predicted to drive the demand for acetic acid within the region.

Acetic Acid Market Segmentation

The acetic acid market can be segmented based on the following factors:

• By type: Synthetic, Bio-based
• By application: Vinyl Acetate Monomer (VAM), Purified Terephthalic Acid (PTA), Acetic Anhydride, Ethyl Acetate, Butyl Acetate, And Others Such As Chloroacetic Acid, Cellulose Acetate, Photographic Chemicals
• By end-use Industry: Textiles, Food & Beverages, Chemicals, Pharmaceuticals, Packaging, Paints & Coatings, Personal Care
• By region: North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
• By raw material: Methanol, Ethylene
• By purity grade: Technical grade, Analytical grade, USP/BP/EP grade
• By distribution channel: Direct, Indirect
• By production process: Methanol Carbonylation Process, Acetaldehyde Oxidation Process, And Ethylene Oxidation Process
• By form:  Liquid, Solid

Acetic Acid Market Regional Synopsis

The North American region is expected to witness steady growth in the acetic acid market attributed to the increasing demand for VAM, PTA, and other acetic acid derivatives in various end-use industries such as textiles, automotive, and pharmaceuticals. The market size was valued at $1.9 billion in 2020, and the CAGR is projected to be around 4.2% from 2021 to 2028. The market size in Europe was valued at $1.7 billion in 2020, and the CAGR is projected to be around 3.9% from 2021 to 2028 attributed to the increasing demand for VAM and PTA in the automotive, packaging, and textile industries with a focus on sustainability and environmental regulations driving the demand for bio-based acetic acid.

The Asia-Pacific region is the largest and fastest-growing market for acetic acid. The market size in Asia-Pacific was valued at $5.1 billion in 2020, and the CAGR is projected to be around 7.0% from 2021 to 2028 due to the rapid industrialization, urbanization, and increasing consumer demand for end-use products such as textiles, packaging, and automotive products.

The Latin American region is expected to witness moderate growth in the acetic acid market at a CAGR projected to be around 3.5% from 2021 to 2028. The market size was valued at $0.6 billion in 2020 due to the increasing demand for acetic acid derivatives in various end-use industries such as textiles, food and beverages, and pharmaceuticals.

The Middle East & Africa region is expected to witness moderate growth in the acetic acid market during the forecast period of 2021-2028 at a CAGR of 4.0%. The market growth is attributed to the increasing demand for acetic acid derivatives in various end-use industries such as textiles, food and beverages, and pharmaceuticals, and the market size was valued at $0.4 billion in 2020.

Acetic Acid Market in Japan

The acetic acid market in Japan is one of the main markets within the Asia-Pacific region. The market size and rate of growth in Japan are influenced by various factors like increasing demand from end-use industries, government regulations, and therefore the adoption of the latest production technologies which was valued at $0.8 billion in 2020. The compound annual rate of growth (CAGR) of the acetic acid market in Japan is projected to be around 4.5% during the forecast period from 2021 to 2028.

The key factors driving the acetic acid market in Japan include the increasing demand for acetic acid derivatives from end-use industries, technological advancements in production processes, and government initiatives promoting the adoption of bio-based acetic acid. a number of the key players operating within the acetic acid market in Japan include Celanese Corporation, Showa Denko KK, Mitsubishi Chemical Corporation, and Daicel Corporation.

Acetic Acid Market Key Challenges

The acetic acid market faces several key challenges that could potentially impact market growth and profitability. Some of the key challenges include:

• Environmental regulations: The assembly and usage of acetic acid are subject to stringent environmental regulations thanks to its toxicity and harmful effects on the environment. Compliance with these regulations can significantly increase the assembly cost, which may impact the profitability of the industry.
• The volatility of feedstock prices: The costs of feedstocks utilized in the assembly of acetic acid like methanol and acetic acid itself are often volatile, which may impact the value of production and affect the profitability of the industry.
• Intense competition: The acetic acid market is very competitive, with several key players competing for market share. extreme competition may result in pricing pressure and impact the profitability of the industry.
• Limited availability of gas and petroleum: The limited availability of gas and crude oil, which are used as feedstock within the production of acetic acid, can negatively impact the market.
• High production costs: The assembly of acetic acid is energy-intensive and requires significant capital investment, which may increase production costs and negatively impact the market.
• Technological advancements: The acetic acid market is consistently evolving, with new technologies and production processes being developed to enhance efficiency and reduce production costs. Companies that are slow to adopt new technologies may find it challenging to stay competitive within the market.
• High competition from substitute products: The marketplace for acetic acid is very competitive, and there are several substitute products available, like acid and carboxylic acid, which may negatively impact the market.
• Dependence on end-use industries: The demand for acetic acid is heavily hooked into the demand from end-use industries like textiles, automobiles, and electronics. Any slowdown in these industries can impact the demand for acetic acid and affect the profitability of the industry.

Acetic Acid Market Global Key Players

The global acetic acid market is highly competitive, with several key players operating in the market. Some of the major players in the market include:

• Celanese Corporation: Celanese Corporation is a global chemical and specialty materials company that produces and markets acetic acid and its derivatives including VAM, anhydride, and cellulose ester.
• Eastman Chemical Company: A global specialty materials company that produces and markets a variety of chemicals, including acetic acid and its derivatives such as VAM, PTA, and anhydride.
• BP plc: BP plc offers a variety of acetic acid products, including VAM and PTA.
• Jiangsu Sopo (Group) Co. Ltd.: Jiangsu Sopo (Group) Co. Ltd. is a Chinese chemical company that produces and markets acetic acid products, including VAM, anhydride, and glacial acetic acid.
• LyondellBasell Industries Holdings B.V.: LyondellBasell Industries Holdings B.V. is a global chemical company that produces and markets a good range of acetic acid products, including VAM and PTA.