Acetone Market Size, Share & Trends Analysis Report By Application (MMA, BPA, Solvents), By Distribution Channel, By Grade (Technical, Specialty), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global acetone market size was valued at USD 5.2 billion in 2021 and is anticipated to expand at a compound annual growth rate (CAGR) of 7.7% from 2022 to 2030. The rise in demand for the product is attributed to its increase in consumption in various end-use industries such as pharmaceuticals, personal care & cosmetics, paints & coatings, and various other applications.

One of the most common and significant aliphatic ketones is acetone, sometimes referred to as 2-propanone or dimethyl ketone. It is made by alkylating benzene with propylene to make cumene, which is then subjected to an air oxidation reaction to provide phenol and acetone. Typically, phenol is integrated into acetone facilities. The substance is widely utilized in the production of Methyl Methacrylate (MMA), and Bisphenol-A (BPA), as well as solvents for oils, rubber, resins, lacquers, rubber, cement, fats, and waxes.

The product is utilized in the manufacturing of bisphenol A (BPA). BPA is further used in producing polycarbonate for various automotive industry applications such as manufacturing sunroofs, windows, taillights, and glasses. The rise in demand for polycarbonates is expected to increase BPA production, which is estimated to have a beneficial effect on the demand for the product.

The industrial sector makes extensive use of acetone in various applications like paints & coatings, adhesives, disinfectants, and thinners. Additionally, the product is used as a solvent in pharmaceutical applications to produce hand sanitizers and as an excipient in drugs. It is majorly utilized as a solvent for resins, plastics, lacquers, varnishes, oils, fats, waxes, and rubber cement. The product finds its application as an intermediate polymethyl methacrylate (PMMA) in the industrial sector.

Acetone finds its application in the cosmetics industry as the primary ingredient in nail polish remover; skin cream products contain acetone as a solvent. It is also used for skin pealing treatment to combat acne. An increase in demand for acetone in the above-mentioned products is expected to boost market growth in the coming years.

At the beginning of the Covid-19 pandemic, there was an enormous demand for acetone due to the surge in demand for hand sanitizer using the derivative isopropyl alcohol (IPA) as a key feedstock, which is manufactured by acetone. However, the short-term fall in the sales of cosmetics & personal care, automotive, and paints & coatings industries affected the demand for acetone negatively. Shutting down construction activities in various countries impacted the demand for acetone from the paints and coatings sector.

Application Insights

Solvents application dominated the market with a revenue share of 33.1% in 2021. This is attributed to the rise in demand for acetone as a key ingredient in manufacturing hand sanitizer, and as an excipient in drugs. Active fillers use acetone as a solvent to deliver the correct amount of medication in each dose. Isopropyl alcohol (IPA) which is utilized in manufacturing of hand sanitizer is expected to boost demand for acetone as raw material in producing IPA.

Most bisphenol A (BPA) applications are in the chemical and industrial segment. For several polymer materials, including polyurethanes, polycarbonates, polysulfone, and epoxy, acetone serves as a key ingredient. The production of consumer products including sports equipment, food storage containers, polycarbonate bottles, and other items requiring various polymers is expected to increase demand for the bisphenol-A.

Methyl methacrylate is expected to witness a CAGR of 7.8% during the forecast period owing to its use in the automotive industry for producing various car parts. Acetone is used as key raw material in manufacturing methyl methacrylate which is further used for exterior car coatings, auto glazing, and to manufacture car parts such as headlamps, bullet-proof glass, windows, taillights, and sunroofs which in turn is expected to boost the market.

Distribution Channel Insights

Manufacturers to end-users distribution channel dominated the market with a revenue share of 80.2% in 2021. The higher share was attributed to the rising number of companies providing cost benefits and an uninterrupted supply chain. The COVID-19 pandemic has boosted the direct end-user channel. The shift of consumer preference towards buying products online enabled products to reach directly from manufacturers to end-users.

Manufacturers to end-users is boosting owing to the agreement with manufacturers to ensure uninterrupted cost & supply benefits. Manufacturer to end-users is anticipated to witness stagnant growth due to the rising popularity of online platforms. Change in consumer preference from physical stores to online channels, post-COVID-19 pandemic, is driving demand for the product supply directly from the manufacturer to end-users.

Small-scale buyers prefer third-party distribution channels owing to their change in quantities. However, because of the absence of large-scale consumers, the third-party distribution channel has a lower market penetration than the direct-to-end-user channel. Due to the growing popularity of e-commerce selling platforms, third-party distribution channels are predicted to significantly increase their market penetration.

Grade Insights

Technical grade dominated the market with the highest revenue of97.2% in 2021. This is attributed to rise in the consumption of technical products in the manufacture of MMA and BPA. The low-cost availability of technical-grade products is attributed to its higher market share. Technical grade is majorly used in lacquers, adhesives, and floor polishing along with others.

The rising construction activities are anticipated to boost the product demand owing to its usage in adhesive cement, and concrete admixtures. Rising construction activities post-lockdown due to COVID-19, across the world, is anticipated to fuel demand for the product in the construction sector. This, in turn, is likely to boost demand for technical-grade acetone in the coming years.

Specialty grade segment is expected to witness a CAGR of 8.5% from 2022 to 2030 owing to its characteristics like low benzene and water content. Due to its binding qualities, MMA made from specialty-grade acetone is becoming increasingly popular in the construction sector. It is mostly utilized in floor polishes, lacquers, adhesive cement, and concrete admixtures. Demand for MMA resins is expected to increase during the near future as a result of the recent recovery of the construction industry across major nations, particularly in emerging economies, as a result of the significant government investments in infrastructure and housing development.

Regional Insights

Asia Pacific dominated the market with the highest revenue share of 46.8% in 2021. The higher market share is attributed to the rise in demand for the product by various end-user industries such as pharmaceuticals, personal care & cosmetics, and automotive from the countries like China, India, and Japan. China is the major consumer of acetone and is expected to contribute towards increased product consumption owing to a rise in the pharmaceutical, and electronics sectors within the country.

On the other hand, Europe is expected to expand at a CAGR of 7.8% during the forecast period. Product demand is due to the rise in consumer spending on skincare, lifestyle, and cosmetics products within the region. European cosmetics industry saw significant growth in 2021. Rising awareness about skin and beauty care among the population within the region is expected to boost demand for the product in Europe. Also, a rise in demand for paints & coatings is anticipated to impact demand for the product in the region owing to the rise in construction activities.

Demand for the product in the North America region is mainly driven by the use of the product in solvent manufacturing. The U.S. is a hub for major automotive manufacturers. U.S. auto plants manufactured 6.3 million passenger cars in 2021, which was up by 3.1% as compared to 2020. Future growth in the automobile sector is expected to boost demand for the acetone market. Additionally, the rise in demand for personal care, skin treatment, and beauty products are expected to drive product demand in countries such as Canada, and the U.S.

Key Companies & Market Share Insight

Companies dominate the global market for acetone with their continuous involvement in acquisitions, manufacturing facility expansion, and partnerships. The top players are boosting their production capacities to keep up with the rising demand for acetone from the end-user industries. In addition, companies are focusing on extensive research & development activities, meant for developing advanced technology, used for the manufacture of better quality products. Some of the prominent players in global acetone market include:

• INEOS Phenol GmbH

• Royal Dutch Shell Plc

• The Dow Chemical Company

• Honeywell Research Chemicals

• Prasol Chemicals Pvt., Ltd.

• Mitsui Chemicals Inc.

• CEPSA Quimica, S.A.

• Lynodell Basell Industries Inc.

• Kumho P&B Chemicals

• SABIC

• Thermo Fisher Scientific Inc.

• Arkema

• Solvay

Acetone Market Report Scope

Global Acetone Market Segmentation

This report forecasts revenue growth at global, regional, & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global Acetone Market report based on the application, distribution channel, grade, and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Methyl Methacrylate (MMA)

  • Bisphenol A (BPA)

  • Solvents

  • Others

• Distribution Channel Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Manufacturers to Distributors

  • Manufacturers to End-User

• Grade Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Specialty Grade

  • Technical Grade

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • France

    • Belgium

    • CIS

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Taiwan

  • Latin America

    • Brazil

    • Mexico

  • Middle East

    • Saudi Arabia

  • Africa

    • South Africa