Acrylonitrile Market Size, Share & Trends Analysis Report By Application (Acrylic Fibers, Adiponitrile, Styrene Acrylonitrile, Acrylonitrile Butadiene Styrene, Acrylamide, Carbon Fiber), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global acrylonitrile market size was valued at USD 11.8 billion in 2019 and is anticipated to register a revenue-based CAGR of 4.3% from 2020 to 2027. The increasing demand for acrylic fibers manufactured from acrylonitrile is expected to drive the market over the forecast period. Acrylonitrile is also one of the primary raw materials in the production of plastics and composites, which is further anticipated to propel its global demand.

Commercially, acrylonitrile is produced by the catalytic oxidation of propylene using ammonia as a catalyst. The chemical is a highly volatile organic liquid with a pungent odor. Being a petrochemical derivative, the market is largely affected by fluctuating oil and gas prices. Acrylonitrile is considered to be extremely toxic for human health and the environment. It is highly reactive with oxidizers, copper, strong acids, and bases, and especially with bromine, thus needs to be stored under controlled atmospheres.

The U.S. is one of the major producers and the largest exporter of acrylonitrile mainly due to the abundant availability of raw material. According to the Trade Map, the U.S. exported 504,271 tons of the product in 2018, which accounted for almost 31% of the global exports. One of the primary reasons for the U.S. to dominate the export market is the fall in the prices of propylene, which eventually reduced the cost of acrylonitrile in the country.

INEOS Nitriles is one of the major producers of acrylonitrile in the U.S. Its manufacturing plant in Green Lake accounts for around 35% of the country’s total production. In February 2019, the plant was shut down due to force majeure and outages. The shutdown has resulted in a tightened supply of acrylonitrile, not only in the U.S. but also globally.

The current demand for acrylonitrile is anticipated to be driven by rising demand for acrylic fibers, especially in the developing countries of Asia Pacific. The growing textile and apparel industry in emerging economies of the region, due to rising urbanization and increasing affordability is anticipated to drive the market for acrylic fiber over the forecast period. Acrylic fibers possess high resistance to laundry bleach, ultraviolet degradation, and microbiological attack, along with an aesthetic appeal. These fibers also weigh less and have a comfortable feel the softness, making them a great choice for clothing.

Acrylic fibers have globally dominated the consumption of acrylonitrile, however, the advent of new low-cost polyester fibers is projected to hinder their demand over the forecast period. Moreover, the shifting preference toward bio-based polymers, especially in the developed countries is projected to have a negative impact on the demand for acrylic fibers, thus negatively affecting the acrylonitrile market.

Acrylonitrile Market Trends

Acrylonitrile is produced by the catalytic oxidation of propylene with the help of ammonia used as a catalyst. Since it is a derivative of petrochemical, the market is majorly affected by the shift in the prices of gas and oil. The majorly used distribution network is direct sales owing to the fast delivery time and no intermediaries. This channel is adopted by many end-use industries in the market especially automotive. Key producers rely on their in-house distribution channels to reach the customer base to attain higher supply efficiency and reduce costs.

The market for acrylonitrile is anticipated to boost the industry growth on the account of the rising demand for acrylic fibers produced via acrylonitrile (ACN). ACN is a crucial raw material to manufacture composites and plastics which in turn, is likely to boost the market growth. It is a volatile organic liquid with an irritating smell. It is reactive with copper, oxidizers, bromine, and strong acids & bases and thus needs to be stored under controlled atmospheres.

There is a significant rise in the textile industry on account of growing disposable income coupled with rapid urbanization which in turn is positively influencing the demand for acrylic fiber across regions. Acrylic fibers are typically synthetic fibers that are formulated from polyacrylonitrile. The polymers of acrylic fibers usually comprise more than 85% of acrylonitrile monomer. The demand for acrylic fiber is growing on the account of different factors such as ultraviolet degradation, possess high resistance to laundry bleach, and microbiological attacks. Therefore, they are highly used in making sweaters, socks, cushions, beddings, carpets, blankets, and sportswear. These fibers are also light in weight and have a comfortable feel softness, making them a great choice for clothing. Furthermore, it finds use in the production of Nitrile rubber, carbon fiber, acrylamide, Acrylonitrile Butadiene Styrene (ABS), and Styrene Acrylonitrile.  

Furthermore, manufacturers are focusing on developing sustainable manufacturing technologies to reduce health and environmental hazards. For instance, in 2019, a Netherland-based company called AnQore launched an acrylonitrile brand named, Econitrile, which manufactures sustainable and eco-friendly acrylonitrile.

The industry is consolidated with a few companies having the majority share in the market such as Sinopec Group, Sumitomo Chemicals, Ascend Performance Materials, and Mitsubishi Chemical Corporation. Companies are investing hefty amounts in research and development activities for process innovations and the production of unique products. Moreover, they are focusing on building long-term relations with their consumer base to ensure a steady demand for acrylonitrile and sustain in the global market space.

The prices of polyester fiber are comparatively low which has become a major substitute for acrylic fiber in the textile industry. Moreover, the product is dangerous for the environment and human health. It is extremely flammable and releases unfavorable fumes of hydrogen cyanide and nitrogen oxides. Exposure to acrylonitrile in excess may lead to the emergence of chronic diseases such as cancer. Thus, negatively impacting the acrylonitrile market across the globe.

Application Insights

Acrylonitrile is used in the production of a wide range of thermoplastics and polymers. Some of these include acrylonitrile butadiene styrene (ABS), acrylic fibers, carbon fiber, nitrile rubber, and others. Nitrile rubber is anticipated to witness significant growth over the forecast period due to its usage in a wide range of end-use industries such as construction, automotive, and consumer goods.

Nitrile rubber is a synthetic rubber compound of acrylonitrile with high resistance to solvents. This makes it suitable for the manufacturing of non-latex gloves, automotive transmission belts, adhesives, and binders. The rising demand for these products has resulted in the strong growth of acrylonitrile for the production of nitrile rubber.

In 2019, acrylonitrile consumption was dominated by the production of acrylonitrile butadiene styrene. ABS is one of the most commonly used thermoplastic polymers and is used in the production of different components in the automotive and construction industries. The global automotive production trends impact the demand for acrylonitrile.

Regional Insights

Asia Pacific led the consumption of acrylonitrile with a revenue share of 61.1% in 2019. India, China, and Korea are the key importers of acrylonitrile across the region. With the growing demand for acrylic fibers from the home furnishing and apparel industry, the local demand was not fulfilled by Chinese manufacturers, thus leading to an increase in import rates. There is a shortage of supply across China on the account of the U.S.-China trade war, thus imports dropped drastically from 152,471 tons in 2014 to 59,898 tons in 2018.

With the rising demand for acrylic fibers from the home furnishing and apparel industry, Chinese producers are not able to meet the domestic demand, leading to high import rates. The other major countries contributing to the consumption of acrylonitrile in the region include Taiwan, India, and Korea. There is a rise in the production of automobiles across the region from 47.8 million units in 2016 to 52.4 million units in 2018, thus, leading to an increase in the demand for the product across the region. The production of electrical and electronic appliances is growing at an exponential rate in China which is anticipated to propel the market growth of acrylonitrile in the coming years.

North America is a substantial market for acrylonitrile due to increasing demand generation from various plastic producers, rubber product formulators, apparel manufacturers, and more. The market is also observed to be driven by increasing demand for carbon fiber in the region. Growing construction and renovation activities in the region, coupled with increasing automobile production and packaging solutions across U.S., and Canada is poised to pave way for high consumption of carbon fiber as a substitute for steel and other heavy materials. These factors are anticipated to reflect heavy demand for acrylonitrile across these aforementioned application markets over the coming years.

In Central & South America, the demand for acrylonitrile is expected to boost at a significant rate. Strong economic growth along with the rising automotive industry in Brazil is likely to trigger the product demand in the region. Moreover, abundant feedstock availability coupled with rapid industrialization in Venezuela is anticipated to fuel demand over the forecast period.

The producers of ABS are heavily focusing on the expansion of the automobile sector which has led to a rise in the number of investments in the industry. In 2012Unigel SA, opened a startup with an annual production capacity of 90,000 tons for manufacturing ABS in Brazil. In 2013, Braskem and Styrolution entered into a joint venture to manufacture ABS in Brazil with a capacity of 100 kilotons per year. Such initiatives are likely to positively impact the market growth of acrylonitrile over the forecast period.

Key Companies & Market Share Insights

The global market is consolidated in nature, with major companies contributing a share of over 40%. Some of the major manufacturers include INEOS, Sinopec Group, Sumitomo Chemicals, and Asahi Kasei. These players have a strong geographical presence with large production plants, high investment capacities, and a well-established supply chain. Acrylonitrile manufacturers are mainly competing on product quality and operation costs.

Some other acrylonitrile manufacturers include Formosa Plastics Corp, Ascend Performance Materials, and Mitsubishi Chemical Corporation. Global manufacturers are focusing on the development of sustainable production technologies to overcome health and environment hazards. Market participants who do not have integration at the raw material supply, also focus on developing long-term contracts to maintain a continuous supply.

Acrylonitrile Market Report Scope

Segments Covered in the Report

This report forecasts 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 acrylonitrile market report on the basis of application and region:

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

  • Acrylic Fiber

  • Adiponitrile

  • Styrene Acrylonitrile

  • Acrylonitrile Butadiene Styrene

  • Acrylamide

  • Carbon Fiber

  • Nitrile Rubber

  • Others

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

  • North America

    • U.S

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • The U.K.

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • Indonesia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • UAE