by Acetic acid is a colorless liquid organic compound with the chemical formula CH3COOH. It is widely used as a building block in the production of other chemical compounds and as a preservative and flavoring in the food and beverage industry. Acetic acid is primarily used in the production of vinyl acetate monomer (VAM), which is further employed to manufacture polyvinyl alcohol and polyvinyl acetate. VAM accounts for nearly 90% of the total acetic acid demand globally. Acetic acid also finds applications in the manufacturing of terephthalic acid, which is used to produce polyester fibers and films. In the food industry, it is widely employed for pickling vegetables and fruits and as a natural preservative.
The global acetic acid market is estimated to be valued at US$ 14.63 Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing Demand from Food and Beverage Industry: The food and beverage industry accounts for a notable share of the global acetic acid market and remains a key driver for market growth. Acetic acid helps in enhancing flavor and is commonly used for pickling and preserving fruits and vegetables. It acts as a natural preservative by inhibiting the growth of microorganisms. With rising disposable income in emerging economies, packaged and processed food consumption is increasing rapidly. This growing demand for processed food and beverages will have a positive impact on acetic acid consumption over the forecast period.
Acetic acid is Expected to be Flourished by Growing Demand from Food and Beverage Industry: Another factor augmenting demand is the rapid growth of the vinyl acetate monomer market. VAM serves as a primary feedstock for the production of polyvinyl acetate and polyvinyl alcohol, which find widespread applications in various end-use industries such as textile, paper, construction, packaging, medical devices, and automotive. Growing use of polyvinyl acetate and polyvinyl alcohol across industries will fuel VAM demand, thereby boosting the consumption of acetic acid.
Segment Analysis
The global acetic acid market is dominantly segmented into synthetic and natural segment. Within synthetic segment, vinyl acetate monomer (VAM) sub-segment dominates accounting for over 70% market share in 2024. VAM is widely used in production of polyvinyl acetate and its copolymers which finds application in paints & coatings, adhesives, textiles and construction industry. This wide application and higher demand from end use industries has made VAM sub-segment the dominating segment in global acetic acid market.
PEST Analysis
Political: Governments across regions are supporting industries using acetic acid through initiatives and policies focused on boosting local manufacturing. Economic: Growth in end use industries such as paints & coatings, pharmaceutical, food & beverages is driving the demand. Social: Increasing population and disposable incomes in developing nations are augmenting market growth. Technological: Developments in fermentation process to produce biobased acetic acid is gaining traction.
Key Takeaways
The global Acetic Acid Market Share is expected to witness high growth at a CAGR of 13% during the forecast period of 2023 to 2030.
Regional analysis
Asia Pacific dominates and is expected to maintain its lead through 2030 attributed to large production bases and rapidly growing end use industries in China and India.
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. Key players are focused on expansions and collaborations to meet the rising demand for acetic acid.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
