The global Acrylic Acid Market is estimated to be valued at USD 11.68 Billion in 2024, exhibiting a CAGR of 3.4% over the forecast period (2024-2031). The market is expected to grow driven by factors such as rising demand for superabsorbent polymers from various end-use industries and ongoing infrastructure developments worldwide. Furthermore, extensive usage of acrylic acid in water treatment plants is also expected to boost market revenue during the forecast period.
Increasing demand from the superabsorbent polymers industry
Superabsorbent polymers find extensive usage in diapers, adult incontinence products, and feminine hygiene products owing to their ability to absorb and retain large amounts of liquid. Acrylic acid acts as a key raw material in the production of superabsorbent polymers. Rising global birth rates along with growing elderly population that requires adult incontinence products is positively impacting the demand for superabsorbent polymers, which, in turn, is driving the acrylic acid consumption.
Infrastructure development projects in emerging economies
Various infrastructure development projects underway globally especially in developing economies of Asia Pacific and the Middle East & Africa are generating high demand for concrete. Acrylic acid and its derivatives such as acrylates find wide applications in the production of concrete admixtures and sealing compounds.
Increasing demand from Super Absorbent Polymers (SAP) industry acts as a major driver
One of the key drivers for the growth of the global acrylic acid market is the increasing demand from the super absorbent polymers industry. Acrylic acid is a chief raw material used in the production of super absorbent polymers. Super absorbent polymers find wide applications in baby diapers, adult incontinence products, female hygiene products, and other absorbent products. The rising global birth rate and the growing elderly population who require adult diapers are fueling the demand for baby diapers and adult incontinence products. This, in turn, is propelling the consumption of super absorbent polymers and acrylic acid.
Growing Demand from Surface Coatings Industry is Boosting the Market Growth
Acrylic acid also witnesses significant demand from the surface coatings industry. It is used as a key component in the manufacturing of various types of coatings like architectural coatings, automotive OEM coatings, and industrial coatings. The burgeoning construction sector across both developed and developing economies is driving the need for architectural coatings. Meanwhile, the automotive industry is flourishing due to rapid urbanization, rising disposable incomes, and growing vehicle ownership, thereby augmenting the demand for automotive OEM coatings. In addition, the increasing industrialization is propelling the requirement for industrial coatings.
Volatility in Crude Oil Prices Pose a Challenge
One of the major restraints for the acrylic acid market is the volatility in crude oil prices. Crude oil is the primary raw material used in the manufacturing of acrylic acid. Fluctuations in crude oil prices lead to increase in acrylic acid prices, which can hamper the growth of end-use industries such as super absorbent polymers, surface coatings, and others that consume significant amounts of acrylic acid. Uncertainties caused due to geopolitical factors often disrupt the stability of crude oil prices in the international market. This is a crucial factor that negatively influences the acrylic acid market.
Regulations Regarding Toxic Emissions Pose Restrictions
Stringent government regulations concerning environmental protection and human safety also act as a challenge. Acrylic acid manufacturing units have to comply with regulations from agencies like the Environmental Protection Agency (EPA) to control and monitor toxic emissions. Additional expenditures are required to install pollution control equipment in manufacturing facilities to reduce pollutants released into the air and water during production. This regulatory burden increases capital and operational costs for acrylic acid producers.
Growing Demand from Asia Pacific Region Creates Lucrative Prospects
The expanding acrylic acid demand from the fast-growing economies in Asia Pacific creates huge opportunities. Countries like China, India, Indonesia, Thailand, and Vietnam are witnessing rapid urbanization, infrastructure growth, and industrialization. This is driving the consumption of acrylic acid-based products including super absorbent polymers and various types of coatings. Additionally, supportive government policies in Asia Pacific aim to strengthen domestic manufacturing industries. Such developments are favorable for the future expansion of the regional acrylic acid market.
Bio-based acrylic acid production opens new avenues
The development of sustainable technologies for bio-based acrylic acid manufacturing provides promising opportunities. Conventional acrylic acid production relies on propylene derived from non-renewable fossil fuels. However, bio-based methods involving fermentation processes can utilize renewable biomass feedstock like sugar and vegetable oil for generating acrylic acid. This eco-friendly approach addresses environmental issues related to petrochemical-based production. Leading companies are investing in R&D to commercialize innovative bio-based acrylic acid technologies and gain a competitive edge in the growing green chemicals market.
Link - https://www.coherentmarketinsights.com/market-insight/acrylic-acid-market-5412
Key Developments
- 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, a new acrylic acid production facility was inaugurated in Indonesia, marking a significant milestone for the country's chemical industry.
- In 2023, Lummus Technology, a global provider of process technologies and energy solutions, announced that it has reached an agreement with Air Liquide Engineering & Construction to acquire the rights to license and market ester grade acrylic acid technology, as well as light and heavy acrylates process technology.
- In April 2022, Wanhua Chemical, a leading Chinese chemical company, announced plans to build a new chemical complex in Penglai, China, with a total investment of $3.6 billion. The project is expected to be completed by 2024.
Key Players
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, and Innova Corporate
