Global ethyl acetate market is estimated to be valued at USD 6.25 Bn in 2024, exhibiting a CAGR of 6.8% over the forecast period 2024-2031. The market growth is primarily driven by increasing demand for ethyl acetate from paints & coatings industry where ethyl acetate is used as a solvent.
Ethyl acetate finds major application as a solvent for paints, coatings, inks and adhesive formulations due to its low toxicity, fast evaporation rate and good solvency. Growing construction and automotive industries boosts demand for paints and coatings, thus, driving the ethyl acetate market. Furthermore, the packaging industry is expanding rapidly with growth in e-commerce and food & beverage sectors. The growth of packaging industry especially in Asia Pacific boosts significant demand for ethyl acetate.
Increasing demand for paints and coatings is driving growth of global ethyl acetate market
One of the major market drivers for the global ethyl acetate market is increasing demand from the paints and coatings industry. Ethyl acetate is widely used as a solvent in paints, coatings, inks and adhesives due to its favourable properties such as low toxicity, fast evaporation rate and ability to dissolve both polar and non-polar compounds. The global paints and coatings industry has been growing steadily due to increased infrastructure development and construction activities around the world. As the construction industry expands to meet the needs of rapid urbanization, the demand for paints and coatings is also expected to rise significantly. This rise in paint and coating consumption will directly contribute to increasing demand for ethyl acetate over the forecast period.
Rising pharmaceutical production is another key growth driver
Another major driver for the ethyl acetate market is rising production and consumption of pharmaceutical drugs globally. Ethyl acetate is commonly used as an intermediate in the production of certain pharmaceutical active ingredients and also as a solvent in pharmaceutical formulations. It is used in the manufacturing of various drugs including antibiotics, analgesic, anti-inflammatory and anti-depressant medications. With increasing healthcare expenditures and growing elderly population base, the global pharmaceutical industry has been experiencing steady growth in recent years. The rising pharmaceutical production worldwide to meet this expanding demand can boost the consumption of ethyl acetate significantly in the near future.
Stringent environmental regulations can hamper growth of the market
One of the major challenges faced by the ethyl acetate market is the stringent environmental regulations imposed by various governmental bodies regarding VOC emissions. Ethyl acetate is classified as a volatile organic compound (VOC) and its emissions are regulated under air pollution control rules. Many countries and regions have set restrictive limits on industrial VOC emissions to curb air pollution. Complying with these stringent norms requires investments in effective emission control technologies and waste treatment facilities. The additional compliance costs associated with VOC regulations can hamper the widespread adoption of ethyl acetate in certain regions. This barrier posed by environmental legislations could hinder the growth of the global ethyl acetate market over the forecast period.
Rising concerns over occupational hazards limit the market expansion
Another challenge impeding the growth of the ethyl acetate market is rising concerns about potential health hazards it poses to industrial workers who are exposed to it on a regular basis. Ethyl acetate, if inhaled at high concentrations or for prolonged periods, can cause eye, nose and throat irritation along with headaches and dizziness in humans. Long-term exposure may lead to impairment of sense of smell. Adoption of safety guidelines in industrial facilities requires additional costs. Stringent workplace safety regulations by international bodies have been restricting the use of ethyl acetate in workplaces. Growing occupational health awareness is prompting end-use industries to look for alternative solvents with lower toxicity profiles. This acts as a key restraint for the ethyl acetate market.
Growth of flexible packaging industry spurs market opportunities
One of the major opportunities for growth of ethyl acetate market is presented by expanding flexible packaging industry. Ethyl acetate is used as a thinning and cleaning agent in the production of flexible packaging materials such as polyethylene, polypropylene, polyvinyl chloride and polystyrene. The demand for flexible plastic packaging from various end-use sectors like food & beverages, consumer goods, pharmaceuticals is rising due to consumer demand for convenient and lightweight packaging formats. Growing e-commerce industries boosts flexible packaging consumption globally . As the flexible packaging production volumes rise in tandem with the industry expansion, the consumption of ethyl acetate is expected to grow substantially during the forecast timeline.
Increasing demand from emerging economies widens market growth prospects
The rapid pace of industrialization and infrastructure development occurring in developing countries provides huge opportunities for ethyl acetate producers. Emerging nations across Asia Pacific and Middle East regions are witnessing massive investments in new manufacturing plants, buildings, roads and other construction activities, and this will boost demand for architectural coatings, consumer goods and packaged products. This rise in downstream consumption in developing markets will drive the requirement for ethyl acetate. This wide untapped potential offered by developing markets is expected to present lucrative opportunities for long-term growth in the global ethyl acetate industry.
Link - https://www.coherentmarketinsights.com/market-insight/ethyl-acetate-market-2353
Key Developments
- In April 2024, Türkiye launched safeguard investigation on ethyl acetate
- In 2022, Viridis Chemical announced first production of renewable ethyl acetate
- In March 2021, Celanese Corporation announced that its chemical production facility in the U.S. began using recycled carbon dioxide (CO2) as a replacement feedstock for the production of methanol, a necessary raw material in the production of a variety of acetyl products, including acetic acid, vinyl acetate monomer (VAM), ethyl acetate, and other derivatives
- In January 2021, Ineos Group Ltd., a U.K.-based chemicals company, acquired BP plc's Aromatics & Acetyls business for a US$ 5 billion deal. With the acquisition, INEOS aims to strengthen its petrochemical, aromatics, and acetyls product portfolio and gain the reach of the business. BP plc is a U.K.-based company operating in petrochemicals and ethyl acetate.In October 2020, Linde plc, a Germany-based company operating in industrial gases and the production of ethyl acetate, launched Linde EDHOX ethylene technology. Linde EDHOX ethylene technology works on catalytic technology.
Key Players
Celanese, Eastman Chemical, INEOS Group Holdings SA, Solventis Limited, Sasol Ltd., Showa Denko K.K., Jubilant Life Sciences Limited, Wacker Chemie AG, Ashok Alco-Chem Ltd., Nippon Synthetic Chemical Industry Co., Ltd., LCY Chemical Corp., Sipchem, Jiangsu Sopo (Group) Co., Ltd., Shanghai Wujing Chemical Co., Ltd., Daicel Corporation, Rhodia Acetow GmbH, Saudi International Petrochemical Co., Tokuyama Corporation, Carbohim d.o.o., Avantium N.V
