Acetone Market Size, Share & Trends Report

Acetone Market Size, Share & Trends Analysis Report By Application (MMA, BPA, Solvents), By Distribution Channel, By Grade (Technical, Specialty), By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: Dec, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-3-68038-857-2
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 110

Report Overview

The global acetone market size was estimated at USD 4.04 billion in 2018 and is projected to register a 5.4% CAGR in terms of revenue over the forecast period. Factors such as increasing application of acetone as a solvent and a high demand in pharmaceutical, cosmetics, and paints and adhesives industries are projected to drive growth.

U.S. acetone market

Acetone is a flammable, colorless, volatile liquid commonly used as an industrial solvent. It is often produced as a byproduct during phenol manufacturing. The other well-known manufacturing methods include the cumene process, Wacker process, and dry distillation. Cumene process is the most widely used method for producing both acetone and phenol. Acetone is further oxidized and treated to manufacture Bisphenol A (BPA), Methyl Methacrylate (MMA), and solvents.

The U.S. acetone market is driven by its demand in paints and coatings, construction, and automotive industries. The rapid growth of these industries, owing to the rising employment and disposable is projected to drive the demand for acetone. The cosmetics and pharmaceutical industries have exhibited growth potential due to rising demand from various demographics and the presence of large corporations. Increasing investments in downstream facilities, such as Norco Ethylene Plant, Louisiana, U.S., the Next Generation Business Mission by Mitsui Chemicals, for the production of plastic resins is expected to open up new growth avenues in the future. This trend is anticipated to result in a significant expansion of industrialization, thus positively impacting the regional chemical industry.

Acetone demand is largely governed by the growth of end-use industries, such as personal care, textiles, electronic, cleansing, pharmaceutical, and petroleum. In cosmetics, it is one of the most common solvents used in nail polish removers and cleansers. Favorable physical properties, such as low boiling point and miscibility in water drive the product consumption, which in turn is projected to drive the global market in the forthcoming years.

The high demand for acetone has forced manufacturers to run production plants at higher rates. This extra production per year led to a price rise in 2017 and this trend is expected to persist over the forecast period. The stagnancy in profit margin is another reason for the growing operational costs. The high cost was also driven by a combination of factors, such as the rising price of propylene along with regulations over domestic supply, especially in Asian countries of China and India.

Acetone is regarded as a hazardous chemical that significantly affects groundwater and human health. Hence solvent manufacturers are looking for bio-degradable substitutes. The popularity of bio-based solvents is anticipated to increase as acetone disposal is not eco-friendly. Some common substitutes used for solvent manufacturing include surfasolve, bio-solv, replacetone, acastrip r, and methyl acetate. In the paints and coatings industry, acetone is expected to be replaced by Methyl-Ethyl-Ketone (MEK), Trichloroethylene (TCE), tetrachlorethylene.

Application Insights

Solvent manufacturing consumed 32.9% of the total acetone demand across the globe in 2018. Acetone based products are used for cleaning chemical stains and have an increasing preference for manufacturing different industrial solvents. The chemical, being miscible with water and other organic compounds, is anticipated to witness an increased demand in the production of solvents.

Personal care is anticipated to lead the demand for solvents over the forecast period as it helps maintain the product consistency in polish removers. It is also used in fragrance formulations, hair care products, and cleansers. Rising usage of acetone in skincare products for oily skin is expected to further fuel the demand. Exponentially rising skincare concerns and anti-aging pursuit are anticipated to positively influence the demand for acetone in the personal care industry.

Demand for Bisphenol A is expected to witness rapid growth over the forecast period, owing to its usage in polycarbonate production. Polycarbonates have a rising demand in different end-use industries, such as electronics, automotive, and construction. The demand is driven by favorable properties of the product, such as ductility, amorphousness, UV light transparency, glare reduction, and high resistance to extreme temperatures.

Grade Insights

The technical grade acetone is majorly used in the production of MMA and BPA. The product grade exhibited higher penetration with a market share of over 90% in 2018, due to its availability at lower costs. MMA manufactured from specialty grade acetone is gaining a high preference in the construction industry due to its binding properties. It is largely used in concrete admixtures, adhesive cement, lacquers, and floor polishes. The recent recovery of the construction industry among major countries, especially in the emerging economies, owing to high government investments on housing development and infrastructure is anticipated to propel the demand for MMA resins in near future.

Specialty grade acetone segment is anticipated to showcase a significant CAGR of 5.9% from 2019 to 2025 due to unique properties of the product, such as low benzene and water content. Acetone has witnessed increasing usage for manufacturing of Over the Counter (OTC) pharmaceuticals. The growing R&D investments coupled with rising demand for generic formulations is expected to benefit market demand over the forecast period.

Distribution Channel Insights

The major sale of acetone takes place through the company’s distribution network, direct supply agreement to industrial users, and third-party distribution channels. The manufacturer to end-user channel is gaining more prominence as it helps companies ensure uninterrupted supply and cost benefits. This segment is therefore anticipated to gain more potential over the forecast period and register a CAGR of 5.4% from 2019 to 2025.

Third-party distribution channels are preferred by small-scale buyers who are more in number owing to their demand for variable quantities. The market penetration of third-party distribution channel is however low, compared to the direct to end-users channel as it does not involve large scale buyers. Third-party distribution channels are anticipated to gain significant market penetration due to the rising popularity of e-commerce selling platforms.

Global acetone market

The manufacturer to distributor is a long process and has a third-party involvement for product supply. This method of distribution is usually undertaken by small scale applicants of acetone. The third-party distribution channels are often costlier due to the involvement of multiple intermediaries and no bulk discounts.

Regional Insights

Asia Pacific held the leading market share of 39.7% in terms of revenue in 2018. International manufacturers have shifted their manufacturing units to the region, due to affordable infrastructure and labor costs. Emerging economies coupled with growing industrialization and rising purchasing power are projected to continue contributing to the demand for chemicals from regional end-use industries.

North America ranks as the second-largest regional segment primarily driven by its application in solvent manufacturing. Canada is the fastest-growing country market with rising demand for solvents. On the other hand, rising consumer spending on technology in the U.S. has led to rising demand for consumer electronics, propelling the demand for Bisphenol A.

Canada is expected to have lucrative opportunities over the forecast period, as several international pharmaceuticals and cosmetic manufacturers have shifted their manufacturing plants to the country. Furthermore, Canada offers a feedstock price advantage compared to other North American locations. This trend is expected to steer manufacturer focus from the U.S. to Canada or off-shore sites, consequently flourishing the industrialization in the country.

Key Companies & Market Share Insights

The market participants majorly focus on scaling up new technologies to manufacture bio-based acetone. Pricing, feedstock supply, and manufacturing technology are some of the major factors influencing market competition. Entering into supply agreements with raw material suppliers and end-users is expected to be the major growth strategy for the key players operating in the market.

LyondellBasell Industries; INEOS Phenol GmbH; The Dow Chemical Company; Royal Dutch Shell Co; Honeywell Chemicals; and Mitsui Chemicals Inc.; are some of the key industry participants. The other manufacturers are SABIC, Kumho P&B Chemicals, and Cepsa Quimica, S.A.

Acetone Market Report Scope 

Report Attribute

Details

Market size value in 2019

USD 4.60 billion

Revenue forecast in 2025

USD 6.31 billion

Growth Rate

CAGR of 5.4% from 2020 to 2025

Base year for estimation

2018

Historical data

2014 - 2017

Forecast period

2020 - 2025

Quantitative units

Revenue in USD billion and CAGR from 2020 to 2025

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Application, Distribution Channel, Grade, Region

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East and Africa

Country scope

U.S., Canada, Germany, France, Belgium, CIS China, India, Japan, South Korea, Taiwan, Brazil, Mexico

Key companies profiled

LyondellBasell Industries; INEOS Phenol GmbH; The Dow Chemical Company; Royal Dutch Shell Co; Honeywell Chemicals; and Mitsui Chemicals Inc.; are some of the key industry participants. The other manufacturers are SABIC, Kumho P&B Chemicals, and Cepsa Quimica, S.A.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country level and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global acetone market report on the basis of application, distribution channel, grade, and region:

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Methyl Methacrylate (MMA)

    • Bisphenol A (BPA)

    • Solvents

    • Others

  • Distribution Channel Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Manufacturer to Distributor

    • Manufacturer to End-User

  • Grade Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Specialty Grade

    • Technical Grade

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • North America

      • The U.S

      • Canada

    • Europe

      • Germany

      • France

      • Belgium

      • CIS

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

      • Taiwan

    • Central & South America

      • Brazil

      • Mexico

    • Middle East

    • Africa

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