ACETIC ACID MARKET ANALYSIS

The global acetic acid market was estimated to be valued at more than US$ 13.34 Billion in terms of revenue in 2022 and is predicted to grow at a CAGR of 9.7% during the forecast period (2023 to 2030).

Global Acetic Acid Market: Growth Drivers

Demand for Vinyl Acetate Monomer is growing to Support Growth

The intermediate vinyl acetate monomer (VAM) is used to create resins and polymers for textiles, films, paints, coatings, and other finished goods. Barrier resins for plastic bottles use VAM. Due to its ability to adhere to a variety of substrates, including wood, paper, metals, and plastic films, it also has uses in adhesive. Demand for vinyl acetate monomer is rising as a result of expansion in the aforementioned industries.

The application of barrier resin in food packaging, petrol tanks, and other technical polymers is the VAM application that is expanding the quickest in the production of ethylene vinyl alcohol (EVOH). Other VAM derivatives, including vinyl chloride-vinyl acetate copolymers, have been used in adhesives and sealants as well. For Instance 2022, Asian Paints has approved the setting up of a manufacturing facility for Vinyl Acetate Ethylene Emulsion (VAE) and Vinyl Acetate Monomer (VAM) in India for a proposed investment of approximately US$ 330 Million over three years.

The usage of vinegar in the food industry has expanded

Rapid population expansion and the adoption of a healthy, sustainable diet have increased food production globally, which has led to an increase in demand for food goods. Fruit production climbed to 883 million tons, up 54% from 2000, while global vegetable output increased to 1,128 million tons, up 65% from the previous year. Acetic acid is mostly used to create vinegar, a prominent ingredient in cuisines and personal care products. Vinegar is a component in marinades, salad dressings, and pickling solutions. It also reduces the risk of salmonella contamination in meat and poultry products. Food preservation is another use for acetic acid and its sodium salts. For instance, in 2023, U.S. - and Italy-based olive oil, vinegar, and pasta company Colavita acquired the O Olive Oil & Vinegar business from Curation Foods.

Figure 1. Global Acetic Acid Market, Revenue Share (%), By Region, 2022

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Global Acetic Acid Market: Restraints

Acetic Acid's Negative Effects Can Slow Market Growth

If not utilized properly and carefully, it might be a dangerous chemical. It must be handled carefully since it is extremely damaging to human skin and eyes. If swallowed or breathed, it can harm internal organs as well. Additionally, customers' growing understanding of the harmful consequences of chemicals may discourage their use, which would hurt the market's expansion. VAM is an established market that will gradually develop or fall and is one of the main uses for acetic acid. A decrease in VAM usage might hinder market expansion by serving as a restraint. For instance, in 2022, the Government of the U.K. stated that acetic acid fumes inhalation may cause coughing and irritation of the eyes, nose, and throat. Corrosive damage can result from exposure to acetic acid solutions that are highly concentrated (>25%). Breathing in strong acetic acid vapors can irritate the eyes, nose, and throat and result in coughing, chest tightness, headaches, fever, and disorientation. Airway damage, a rapid heartbeat, and eye injury can all happen in extreme circumstances.

Global Acetic Acid Market: Market Opportunities

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 automobile production across the developing region is further projected to raise demand for plastic and rubber products which in turn again fosters the market growth over the forecast period.

Global Acetic Acid Market: Market Trends

Shifting inclination of the key manufacturers toward increasing the production capacity of acetic acid is one of the key trends in the market. For instance, in January 2020, Celanese 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 food products. Increasing spending of consumers on 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 2. Global Acetic Acid Market, Revenue Share (%), By Application, in 2022

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Global Acetic Acid Market: Market Segmentation

Regionally, Asia-pacific dominated the global acetic acid market in 2022, reporting 62% market share in terms of revenue, followed by Europe and North America, respectively.

Global Acetic Acid Market: By Application

On the basis of application, Vinyl acetate monomer dominated the global acetic acid market in 2022 with around 30% of market share in terms of revenue, followed by PTA and acetate anhydride.

Global Acetic Acid Market: Impact of COVID-19

The mining industry, which is responsible for the 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 depends on various end-use industries such as construction, transportation, food and beverage, packaging, and others, which have faced hindrances amidst the ongoing pandemic outbreak. This is expected to hamper the growth of the acetic acid market for a short period till the end quarter of 2022.

Global Acetic Acid Market: Recent Developments

January 2023: Kingboard Holdings Limited announced that the company's unit, Hebei Kingboard Energy Development Co., Ltd., plans to submit the "Environmental Impact Report of Hebei Kingboard Energy Development Co., Ltd. Acetic Acid Expansion and Transformation Project" for approval, and the entire content of the environmental impact study is accessible.

June 2022: Hebei Kingboard Energy Development Co., Ltd. announced the beginning of construction of an acetic acid facility with a capacity of 29, 80 tons per year. The CNY 23.20 billion (US$ 3.6 billion) project was based on a 35, 20 tons/year carbon capture and recycling project to establish a high-value-added carbon neutrality demonstration park for innovative chemical materials and realize low-carbon development.

January 2021 – INEOS acquired BP’s global Aromatics & Acetyls business consisting of 15 sites, including 5 in the Americas, 2 in Europe, and 8 in Asia, along with 10 leading joint ventures. This development will support the company in extending its position in global petrochemicals and provide scope for integration and expansion with the existing business.

March 2020 – South Korea’s Lotte and U.K. energy and chemicals group BP had a joint venture to expand the capacity for acetic acid production at the South Korea plant. The investment costs are around US$ 175 million, with an addition in the capacity of 100,000 t/y by May 2019. This venture will allow companies to meet Korea’s growing demand.

Global Acetic Acid Market: Key Companies

Key players 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.

*Definition: 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.