Acetic Acid Market Size, Share & Trends Analysis Report By Application (Vinyl Acetate Monomer, Purified Terephthalic Acid, Acetate Esters, Ethanol), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global acetic acid market size was valued at USD 8.92 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.2% from 2020 to 2027. Rising demand for the product from Vinyl Acetate Monomer (VAM) producers worldwide is projected to remain a key driving factor for the market growth. VAM consumes a majority of the acetic acid produced worldwide. VAM is traditionally produced by reacting acetic acid with ethylene and oxygen along with a palladium catalyst which is typically conducted in the gas phase. A large portion of vinyl acetate monomer produced is used in paint and coating formulations, wherein VAM is polymerized to form polyvinyl acetate or other polymers which are key ingredients in the paints industry.

The acetic acid in its diluted form often finds its application in the household as a descaling agent, whereas in industrial sector, it is broadly utilized as an important chemical reagent which is used to formulate cellulose acetate. The chemical also finds its application in the food industry as a condiment and acidity regulator. Approximately 1.5 million tons of the acid is recycled each year and the rest is produced from methanol. The substance in its liquid form is hydrophilic which makes the substance apt for a wide array of applications.

British Petroleum Chemicals and Celanese Corporation are the largest producers of the chemical globally. It is commercially produced from bacterial fermentation and synthetic method. However, the biological production method accounts for roughly 10% of the overall production worldwide.

Companies such as Celanese Corporation and other multinationals are inducing new technological procedures to formulate new product lines to capture a broader market base. Methanol carbonylation, acetaldehyde oxidation, ethylene oxidation, oxidative fermentation, and anaerobic fermentation are among the widely practiced production process for acetic acid.

The substance is categorized as hazardous to human health by harmonized classification and labeling of the European Chemicals Agency (ECHA) as it causes severe eye damage, skin burns, and more. However, according to the U.S. Environmental Protection Agency (EPA), the substance is categorized as safe to use as a food additive under permissible limits as cited by the agency in accordance with 184.1 of goods manufacturing practices.

Application Insights

In terms of volume, vinyl acetate monomer application dominated the acetic acid market with a share of 35.5% in 2019. This is attributed to the widespread demand for the product from rapidly growing industrial and cosmetics manufacturing sectors across the globe. VAM is a colorless liquid that possesses a pungent odor which is preferably stored in reconditioned steel drums and is typically transported in tank trucks and bulk vessels. It is advisable that vinyl acetate monomer is stored in dry places away from fire hazard-prone areas.

The major function of VAM is in producing polyvinyl alcohol and polyvinyl acetate, which cumulatively accounts for more than 80% of its utilization on a global level. Polyvinyl alcohol is majorly used in water-soluble packaging, coatings, adhesives, and textile warp sizing among others. Furthermore, polyvinyl acetate is predominantly utilized in textile treatment, adhesives, paints, and paper coatings worldwide.

Purified Terephthalic Acid (PTA) is majorly utilized to formulate polyester coating resins used to produce automotive, appliances, coil coatings, general metal applications, and more. Eastman Corporation is one of the largest producers of PTA worldwide. It is also used for applications such as fiberglass reinforced plastics in unsaturated polyesters. Key attributes of PTA include good stain and chemical resistance, excellent weathering, the ideal temperature range for glass transition, and good flexibility balance among others.

Other applications of the chemical include the formulation of acetate esters, acetic anhydride, and more. The usage of acetate ester is increasing in printing ink applications as well as in adhesives and sealant space, wherein it is majorly used as a solvent. However, acetic anhydride is largely utilized for oil spill cleanup, synthesizing aspirin, acetylation of salicylic acid, wood preservation applications, and more.

Regional Insights

Asia Pacific dominated the market and accounted for 62.0% of the global revenue in 2019. This is attributed to the increasing penetration of polymer formulators in the region. Acetic acid is a key substance used across an array of industries across China, Japan, and India. The region is witnessing high construction activities due to increased mergers and acquisitions. Since the past decade, the region has been home to a number of multinational companies from all business domains and has reflected multiple manufacturing expansion projects.

In the Asia Pacific region, prices for plastics and polymers were stable, despite slight trade tension between China and the U.S. With more growing industries across countries such as China, Japan, and India, the demand for plastics and plastic products increased. PTA demand reflected a significant rise over the past decade which directly reflects the increasing consumption of acetic acid in the region.

The European region reflected significant progress in the food & beverage industry in 2018, with a turnover generation of USD 1,194 billion. It is recognized as the largest manufacturing industry in the European Union employing over 4.57 million people. Increasing requirements for packaged food across countries such as Germany, France, Italy, and the U.K., led to increasing demand for acetic acid in the region significantly. Moreover, the growing food industry also led to high demand for packaging which is anticipated to fuel the demand for acetic acid.

The North American market is driven by increasing demand for ethanol across an array of industries. More than 90% of the substance, in the U.S., is formulated from corn grain to ensure positive energy balance. Further, the U.S. automotive sector reflected inclination towards the use of E85 gas, which is typically a mixture of 15% gasoline and 85% ethanol. This is likely to increase the consumption of acetic acid in ethanol production in the country.

Key Companies & Market Share Insights

The market has the presence of multiple key established players globally which are constantly focusing on enhancing their product offerings in order to cater to broader market space. Celanese Corporation and British Petroleum are the two largest manufacturers of the chemical worldwide. Companies such as Eastman Chemical Company and LyondellBasell are key innovators which are constantly working on enhancing their production process to incur more profitability in a lesser time frame. A high level of market competition ensures competitive product development and quality coupled with competitive pricing and product placement. Some of the prominent players in the acetic acid market include:

• Eastman Chemical Company

• British Petroleum

• LyondellBasell

• Celanese Corporation

• Gujarat Narmada Valley Fertilizers & Chemicals

• Helm AG

• Pentoky Organy

• Dow Chemicals

• Indian Oil Corporation

Acetic Acid Market Report Scope

Segments Covered in the Report

This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global acetic acid market report on the basis of application and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Vinyl Acetate Monomer

  • Acetic Anhydride

  • Acetate Esters

  • Purified Terephthalic Acid

  • Ethanol

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • Belgium

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa