ETHYL ACETATE MARKET ANALYSIS

Ethyl Acetate Market Size and Trends

Global ethyl acetate market is estimated to be valued at USD 6.25 Bn in 2024 and is expected to reach USD 9.91 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.8% from 2024 to 2031.

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Global ethyl acetate market is expected to witness moderate growth over the forecast period. Ethyl acetate is used as a solvent in industries such as paints and coatings, adhesives and sealants among others. Growth in end-use industries such as construction and automotive is expected to boost demand for ethyl acetate. Increasing preference for eco-friendly solvents over toxic organic compounds is further expected to support the market growth. However, availability of alternative solvents may hinder the market growth. Product innovation and geographical expansion by key players could provide new opportunities for market growth in the near future.

Rising Demand from Paints and Coatings Industry

Global paints and coatings industry has witnessed tremendous growth over the past few years owing to increasing infrastructure development and construction activities worldwide. Rapid urbanization along with growing population has boosted construction of residential and commercial spaces, and this has boosted demand for paints and coatings for both interior and exterior applications. Ethyl acetate is a crucial component that is widely used as a solvent in paints and coatings formulation. It helps in providing the desired texture, viscosity and flow properties to various paints and coating products. The paints and coatings industry consumes over 20% of the total ethyl acetate produced globally each year. With infrastructure spending and real estate development showing no signs of slowing down across major economies, the demand from paints and coatings segment is expected to continue rising at a healthy pace over the coming years. This sustained growth in paints and coatings consumption will translate into increased necessity for ethyl acetate and support the market revenues.

Another key end-use sector augmenting the global ethyl acetate market growth is pharmaceuticals. Ethyl acetate finds wide application as an important excipient and solvent in manufacturing of various pharmaceutical drugs and medicines. It is primarily used as an extraction solvent in pharmaceutical manufacturing processes, owing to its low toxicity. It helps in improving the bioavailability of active pharmaceutical ingredients (APIs). With rising prevalence of chronic diseases and increasing healthcare expenditure worldwide, the pharmaceutical industry has been witnessing sizeable growth over the past few decades. Many nations are dedicating higher budgets to improve access to healthcare while countries like India, China and Brazil are emerging as global pharmaceutical hubs. This expansion of the pharmaceutical industry has positively impacted the consumption of ethyl acetate. Furthermore, short product lifecycles in pharmaceuticals has led to growing demand for new drug formulation development which involves ethyl acetate as a major solvent, thus, driving the market growth, therefore growing pharmaceutical sector is expected to drive the market growth, For instance, according to data by Incest India in 2022, The pharmaceutical industry in India is expected to reach USD 65 Bn by 2024 and to USD 130 Bn by 2030.