ACRYLIC ACID MARKET ANALYSIS

Acrylic Acid Market Size and Trends

The global acrylic acid market is estimated to be valued at USD 11.68 Bn in 2024 and is expected to reach USD 14.77 Bn by 2031, growing at a compound annual growth rate (CAGR) of 3.4% from 2024 to 2031.

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Acrylic acid is used as a raw material for various products like superabsorbent polymers, acrylate esters, acrylamide, and others which find applications in industries like construction, packaging, and hygiene among others which is fueling the market growth. The market is expected to witness steady growth on account of rising application of acrylic acid in the production of water absorbent polymers which are majorly used in baby diapers. Adult incontinence products and female hygiene products. With rising global population and consumption, the demand for such end-use products is growing, which will drive the acrylic acid market during the forecast period.

Rising Demand from the Super Absorbent Polymer Industry

The super absorbent polymer industry has been a major contributor to the growth of the global acrylic acid market. Super absorbent polymers, also known as sodium polyacrylate or polyacrylate, are polymers that can absorb and retain large amounts of liquids relative to their own mass. They are primarily used in personal hygiene products like baby diapers, adult incontinence products, and feminine hygiene products. Acrylic acid serves as the primary raw material for the production of super absorbent polymers. The global demand for super absorbent polymers has been increasing steadily owing to the rising aged population who require adult incontinence products and the growing baby population who use more disposable diapers. The high absorbency and moisture wicking properties of super absorbent polymers provide more comfort to consumers, making disposable diapers and other hygiene products more popular. With increasing spending power, consumers in developing countries of Asia Pacific and Latin America are opting for disposable hygiene products instead of traditional cloth diapers and rags. This has propelled the sales of super absorbent polymers, which, in turn, has boosted the demand for acrylic acid from the polymer industry. Most major acrylic acid producers are expanding their production capacities to meet this growing requirement from their biggest end-use sector.

Market Concentration and Competitive Landscape

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The adhesive and sealants industry has emerged as another major driving factor for the global acrylic acid market in recent years. Acrylic acid serves as a primary monomer for the production of various types of adhesives and sealants that are used across various applications. With the growing infrastructure and construction activities, the demand for adhesives and sealants from building & construction industry has increased manifold. Acrylic adhesives offer high strength, flexibility and resistance to heat and water, making them ideal for construction applications. Similarly, increasing automotive production is propelling the demand for acrylic sealants and adhesives that are used in vehicle manufacturing. Other applications such as packaging, footwear and furniture manufacturing also consume significant amounts of acrylic adhesives. Strict environmental regulations regarding the use of solvent-based adhesives have further boosted the popularity of solvent-free and water-based acrylic adhesives. Large players in the adhesive and sealants industry are investing in R&D to develop newer acrylic formulations with enhanced properties.

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Crude oil prices are highly volatile and dependent on geopolitical factors across the world. Acrylic acid is primarily produced from propylene, a petroleum derivative. Over 70% of the costs associated with acrylic acid production are attributed to the raw materials used, primarily propylene. Therefore, fluctuations in crude oil prices have a significant impact on production costs for acrylic acid manufacturers. When crude oil prices rise sharply, it increases input costs substantially for acrylic acid producers, reducing their margins. Higher costs are often passed on to buyers in the form of increased acrylic acid prices. This price rise restricts the demand growth from end-use industries. On the other hand, an unexpected decline in crude oil prices may also restrain growth if it undercuts sales prices to unsustainable levels, limiting investments in capacity additions.  The uncertainty and unpredictability associated with volatile crude oil prices pose challenges for long-term strategic planning and capacity expansion for acrylic acid producers. According to the World Bank pink sheet data from 2021-2022, crude oil prices fluctuated between USD 40-120 per barrel due to demand changes caused by the COVID-19 pandemic, geopolitical conflicts, and production cuts. Such wide swings make it difficult for acrylic acid companies to determine optimal plant utilization rates and capacity expansion plans. High volatility discourages investments aimed at bridging the demand-supply gap in the market. It also restricts R&D spending towards the development of more advanced and sustainable acrylic acid production technologies. Overall, unstable crude oil pricing creates an unfavorable business environment limiting the global acrylic acid market's growth potential.

Opportunities: Demand from the growing superabsorbent polymers sector

Demand from the growing superabsorbent polymers sector acts as a driver. Also, usage of acrylic acid in surface coatings and adhesives sees increased demand from construction and automotive industries. 

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Super absorbent polymers are primarily used in baby diapers and feminine hygiene products such as sanitary napkins with 34.5% share in 2024. The global birth rate has been steadily increasing over the past few decades, driving greater demand for baby diapers. As disposable incomes rise across developing regions, more parents are opting for convenient disposable diapers rather than traditional cloth diapers. Additionally, women's emancipation and rising awareness about hygiene has boosted sales of sanitary napkins worldwide. Super absorbent polymers play a vital role in absorbing and retaining liquids in these single-use products. Their ability to absorb hundreds of times their own weight in fluids makes them perfectly suited for applications that require rapid liquid uptake and retention. Furthermore, ongoing initiatives by governments and NGOs to promote menstrual hygiene in rural areas will augment the consumption of super absorbent polymers used in sanitary protection. Rapid urbanization too is resulting in changed lifestyles that favor the usage of disposable hygiene products. These structural trends in populations and lifestyles will ensure sustained demand growth for super absorbent polymers used in baby and feminine care applications over the foreseeable future.

Insights by Application: In terms of applications, paints and coatings contributes the highest share of the market owing to widespread usage in architectural and industrial coatings

Acrylic acid plays an indispensable role in the production of paints and coatings with 34.3% share in 2024. It is primarily used to manufacture polyacrylates - versatile binders that give paints and coatings excellent adhesion, corrosion protection, gloss, durability, and weatherability. Both architectural and industrial sectors extensively employ paints and coatings for applications such as building exteriors, vehicles, machinery, facilities, etc. The architectural segment in particular has been growing steadily with the ongoing construction of residential and commercial infrastructure worldwide. Meanwhile, recovering industrial activity is also propelling the demand for industrial coatings from sectors like automotive, general manufacturing, oil & gas, aerospace, etc. Acrylic acid feeds into this robust coatings market by offering properties like gloss retention, resistance to abrasion and chemicals, and compatibility with a range of pigments and solvents - making it suitable for diverse end use environments. Water-based acrylic coatings especially are gaining favor due to their low VOC emission and eco-friendly nature. Thus, the widespread applicability and growing consumption of paints and coatings across industries continues to make it the dominant end-suse segment for acrylic acid globally.

Regional Insights

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North America currently dominates the global acrylic acid market and is expected to remain the leading regional market over the forecast period. It is expected to hold 37.5% of the market share in 2024. The region has a strong presence of raw material suppliers and acrylic acid manufacturers. The U.S., in particular, is home to some of the largest companies in the acrylic acid industry such as Dow Chemicals and Arkema. The favorable business environment and easy availability of feedstock have been driving factors for industry players to focus on capacity additions. For example, during 2020-2021, Dow Chemicals increased acrylic acid production capacity at its Texas, U.S. facility. Additionally, the region benefits from robust demand from end-use industries like coatings, sealants, and adhesives where acrylic acid based products find significant usage.

The Asia Pacific region is poised to be the fastest growing market for acrylic acid during this decade. Rapid industrialization and infrastructure development are driving the consumption of downstream products in countries such as China and India. Both nations have emerged as global manufacturing hubs which is increasing the demand for acrylic acid in applications like superabsorbent polymers, paints, and construction chemicals. Local producers are expanding their capacity to cater to the growing needs of domestic industries. For instance, during 2021-2022, Shanghai Huayi Group commissioned a new plant in China to boost acrylic acid production. Further, trade dynamics also favor regional growth as Asian countries are increasingly becoming net importers of acrylic acid to address the supply-demand gap. As living standards rise, end-use sectors like consumer goods would push the demand upwards in the Asia Pacific acrylic acid market.

Market Report Scope

Acrylic Acid Industry News

• In 2023, Inauguration Ceremony Heldfor a New Acrylic Acid Facility in Indonesia
• In May 2023, Nippon Shokubai Indonesia (NSI), a subsidiary of Nippon Shokubai, inaugurated a new acrylic acid (AA) facility in Banten, Indonesia. The plant has a production capacity of 100,000 MT/Y, and Nippon Shokubai says that its total AA production capacity in Indonesia is now 240,000 t/yr.
• In 2023, Lummus Technology, a global provider of process technologies and value-driven energy solutions, announced that it has reached an agreement with Air Liquide Engineering & Construction to acquire rights to license and market ester grade acrylic acid technology, and light and heavy acrylates process technology
• In April 2022, Wanhua Chemical announced plans to build a chemical complex in Penglai, China, by 2024, with a total investment of USD 3.6 Bn 

*Definition: The global acrylic acid market involves the production, distribution, and sales of acrylic acid on a global scale. Acrylic acid is an organic compound produced primarily for use in manufacturing acrylate esters and polymers. Key end uses of acrylic acid include the production of superabsorbent polymers, coatings, adhesives, acrylate esters, etc.

Market Segmentation

• Derivatives Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Methyl Acrylate
  • Butyl Acrylate
  • Ethyl Acrylate
  • 2-Ethylhexyl Acrylate
  • Glacial Acrylic Acid
  • Super Absorbent Polymers
  • Others
• Applications Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Paints and Coatings
  • Adhesives and Sealants
  • Surfactants
  • Sanitary Products
  • Textiles
  • Other Applications
• Regional Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Arkema
  • BASF SE
  • China Petroleum & Chemical Corporation (SINOPEC)
  • Dow
  • Formosa Plastic Corporation
  • LG Chem
  • Merck KGaA
  • Mitsubishi Chemical Corporation
  • NIPPON SHOKUBAI CO. LTD
  • Sasol
  • Shanghai Huayi Acrylic Acid Co. Ltd
  • Satellite Chemical Co. Ltd
  • Wanhua
  • Dhalop Chemicals
  • Emco Dyestuff Pvt 
  • Vizag Chemical
  • Niksan Pharmaceutical
  • Innova Corporate