April 14, 2024
Acetic Acid Market

Acetic Acid Market to Witness High Growth Owing to Rising Demand from Vinyl Acetate Monomer Production

Acetic acid, also known as ethanoic acid or vinegar acid, is a colourless liquid organic compound with the chemical formula CH3COOH. It is classified as a carboxylic acid, meaning it contains a carboxyl group which is responsible for its acidic properties. Acetic acid possesses a characteristic pungent sour smell and is the main component of vinegar. It finds widespread applications in the production of chemicals, pharmaceuticals, food flavourings, and household products. Acetic acid is primarily utilized as a chemical reagent and solvent in the production of life science chemicals including vinyl acetate monomer (VAM), acetylsalicylic acid, and terephthalic acid.

The Global acetic acid market is estimated to be valued at US$ 16.86 Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the acetic acid market are Biogen, CYTOKINETICS, F. Hoffmann-La Roche Ltd, Genentech, Inc., PTC Therapeutics, Inc., Novartis AG, Ionis Pharmaceuticals, Chugai Pharmaceutical Co., Ltd., NMD PHARMA A/S, and Astellas Pharma Inc. Acetic acid producers are expected to tap opportunities arising from growing demand for environment-friendly vinyl acetate produced from bio-based feedstocks. The global acetic acid market is anticipated to expand significantly over the coming years driven by capacity additions across Asia Pacific and North America.

Key opportunities in the market include growing demand for bio-based acetic acid from end-use industries to meet sustainability targets. Significant investments are being made by market players to expand production capacities of acetic acid using renewable feedstock such as corn and wood. The global acetic acid market is projected to witness healthy growth over the forecast period on account of capacity additions in China and India to cater to the rising domestic demand.

Market drivers

The primary market driver augmenting the demand for acetic acid is its increasing utilization in vinyl acetate monomer (VAM) production. Around 75-80% of global acetic acid production is consumed in the manufacture of VAM, which is further used to synthesize polyvinyl acetate and ethylene-vinyl acetate (EVA) copolymers. VAM serves as an important raw material in various end-use industries including paints & coatings, automotive, textiles, construction, packaging and more. The growth of downstream industries worldwide has been directly boosting the consumption of acetic acid over the years.

PEST Analysis

Political: The Acetic Acid Market Growth is influenced by several regulations and standards set by environment protection agencies to monitor emissions and effluents from manufacturing facilities.

Economic: Growth in the Asia Pacific region presents lucrative opportunities for players in the acetic acid market. Rising incomes and improving standards of living are expected to drive demand from food and beverage applications.

Social: Increasing health consciousness among consumers is expected to boost demand for vinegar and semi-synthetic textiles, propelling the acetic acid market. Further, growing preference for bio-based and eco-friendly products also promotes market growth.

Technological: Manufacturer focus on developing more efficient fermentation and oxidation processes to produce acetic acid from renewable feedstock helps reduce production costs and driving market expansion. New chemical synthesis routes also enhance process optimization.

Geographical Concentration

North America and Europe account for a major share of the global acetic acid market in terms of value. Established end-use industries such as polymer production, textiles, and food and beverages drive steady demand. Stringent environmental regulations regarding chemical production and waste treatment also promote regional market growth.

Fastest Growing Region

The Asia Pacific region is expected to be the fastest growing market for acetic acid during the forecast period. Rapid industrialization, growing population, and rising disposable incomes in countries such as China and India is expected to significantly boost demand from various end-use industries. Additionally, shifting production facilities to the regions by leading players further supports regional market expansion.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it