As per the latest global acetic acid market trend, the total market value was estimated at $9.2 billion in 2017. By 2022, the value of the acetic acid market is predicted to reach $14 billion, growing at a CAGR of around 9 percent. This increase in the total market value is due to the rising demand for acetic acid in Asia which is increasing by approximately 6 percent. With the increasing demand of acetic acid, the business opportunities related to it are also increasing and many new companies are entering the global acetic acid market.
What is Acetic Acid?
Acetic acid is a type of carboxylic acid comprising of two carbons which is produced by the carbonylation process of methanol. It is also known as ethanoic acid. It is a colorless liquid having a pungent odor and is usually used as a chemical reagent. Acetic acid has wide applications related to the manufacturing of various products such as paints, adhesives, and sprays etc. It is also used in the preparation of many food products due to its taste and health benefits.
Growth Opportunities Based On Applications
Due to the increasing demand of acetic acid for the manufacturing of VAM (Vinyl Acetate Monomer) and PTA (Purified Terephthalic Acid), the global market for acetic acid is expected to grow in the next few years. In 2014, the Vinyl acetate monomer (VAM) accounted for the largest application segment of the acetic acid market by volume of around 25 percent.
The rising demand for VAM is predicted to drive the growth of acetic acid market further while PTA is predicted to encounter the fastest growth due to the high demand of PET (polyethylene terephthalate) textiles applications and bottles. Due to is molding properties, aesthetic look, the variety of shapes and sizes, PET bottles are in huge demand.
The demand for polyvinyl acetate, polyvinyl alcohol, and ethyl vinyl acetate has increased in the past years due to its use in the manufacturing of water-based paints and adhesives. Due to this higher demand, the demand for VAM has further escalated from the industries such as automobiles, furniture, and construction. The higher demand for bottles made up of PET is also increasing due to its recyclability and lightweight properties.
Other factors driving the demand for acetic acid is its use in the manufacturing of diketene, camphor, monochloroacetic acid, and photographic chemicals. Acetic acid is also used in the production of grease, coatings, sealants, and polyester, that are mostly used in industries such as textiles, construction, automotive, packaging, and electronics. As these industries are witnessing significant growth, it is expected that the acetic acid market will also expand correspondingly.
Vinegar, which is a food ingredient and contains acetic acid is also in high demand due to the rising awareness of its health benefits. Vinegar has many health benefits such as regulating blood sugar and cholesterol levels, maintaining blood pressure and reducing weight.
Due to the increasing standard of living and disposable income of people, the textile market is expected to witness significant growth leading to higher demand for acetic acid. Based on its strong industrial base for the textiles market, the Asia Pacific region will witness the highest growth in demand. Further factors such as rising GDP and increasing population will further drive the textile industry in Asia, leading to augment the acetic acid industry.
The use of polyester is also increasing for manufacturing purpose of textiles because of breathability, lightweight quality and durability. The acetate esters are going to witness more growth as compared to past years due to its use in low-income cost diluents and solvents in the food and beverage industry.
The rising demand of the above-mentioned chemicals and products is going to augment the acetic acid industry growth in the upcoming years. However, the volatile prices of methanol, one of the main ingredients used for manufacturing of acetic acid, can hamper the growth of the acetic acid market to some extent.
Growth Opportunities Based On Regions
In 2014, China accounted for 40% of the acetic acid production in terms of volume. Due to its massive production, China is expected to continue to dominate the acetic acid market for the upcoming few years.
With the emerging manufacturing hubs of acetic acid in countries such as India, Japan, Vietnam, Thailand, Laos, Cambodia, and Indonesia, the Asia Pacific region is going to witness a huge growth in the acetic acid market in the coming years.
Due to the shifting of manufacturing bases to Asia Pacific countries, North America and Europe will witness below average growth in the global acetic acid market. Countries in the Middle East, Africa, and Latin America are expected to witness average growth in the acetic acid market.
The multiple uses of Acetic Acid have been one of the main reasons behind its increasing demand and this trend is expected to continue further in the future as well. With the rapidly increasing demand in the Asia Pacific, the market is set for a significant expansion.