Acetic acid (CH3COOH), the most important of the carboxylic acids, is also called ethanoic acid. A dilute solution of acetic acid formed by fermentation and oxidation of natural carbohydrates is called vinegar; acetic acid salt, ester, or acylal is called acetate. Acetic acid is widely used in the manufacturing of pharmaceuticals, rubber, plastics, construction, and paints &coatings are some of the key end-user of acetic acid.
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).
Drivers
High demand for polyvinyl acetate (PVA) and polyvinyl alcohol (PVOH), which are key derivatives of vinyl acetate monomer is augmenting the market growth. Polyvinyl acetate is widely used across various applications such as packaging films, thickeners, and photosensitive coatings. Polyvinyl alcohol is majorly used in paints and paper coatings due to its excellent adhesion properties. Thus, the growing demand for polyvinyl acetate and polyvinyl alcohol is accelerating the market growth of acetic acid.
Market Opportunities
Rapid industrialization and the rise in construction industries are growing the market demand for high-performance plastic due to its durability is again expected to foster 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.
Market Restraints
The raw material price of acetic acid is highly volatile and this factor can hinder the market growth. Methanol is a key raw material used in the production of acetic acid and is produced by natural gas, which is highly susceptible to volatility.
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Key Takeaways
On the basis of application, Vinyl acetate monomer dominated the global acetic acid market in 2022 with around 30% of the market share in terms of revenue, followed by PTA and acetate anhydride.
Market Trends
One of the major market trends is the primary manufacturer's propensity shifting towards raising the manufacturing capacity of acetic acid. For instance, Celanese declared in January 2020 that it was expanding its acetic acid production facility in Clear Lake, Texas. The Celanese increased the capacity of its acetic acid factory from 1.3 million tonnes per year to almost 2 million tonnes per year. In Singapore and Nanjing, China, the development will improve productivity choices inside its worldwide acetic acid network.
Most of the manufacturers are adopting acetic acid in the preparation of food & beverage and this factor can be the latest trend for the 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.
Global Acetic acid Market - Impact of Coronavirus (Covid-19) Pandemic
The global spread of the COVID-19 pandemic has resulted in lockdown measures, and cease in economic activities which has severely impacted the manufacturing sector. In addition to this, an inadequate supply of raw materials will lead to rapid price fluctuation. This factor is expected to hinder the growth of the global acetic acid market till the period of 2021.
Competitive Section
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.
Few Recent Developments
- In January 2021, Celanese has announced that it is 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
