May 13, 2024

Tag: Chemicals Industry

Chemical and material

Acetic acid or ethanoic acid is a colourless liquid organic compound characterized with strong pungent sour taste and vinegar-like odour. It is majorly used as a solvent and extraction agent across various industries. The food and beverage industry remains the leading application area where it is used to preserve and ferment various food items. Vinegar made from acetic acid is a popular food additive used to enhance flavours. It also finds usage as a neutralizing agent in the production of photographic films and latex. The global acetic acid market is estimated to grow multifold owing to sustained demand from its end use sectors. 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 key trends: One of the emerging trends contributing to market growth is increasing adoption of acetic acid as a green solvent. Conventional solvents released are harmful greenhouse gases on disposal which has prompted industry players to look for more eco-friendly alternatives. Acetic acid due to lower toxicity is considered a green solvent by many regulatory bodies. Also, it can be produced through fermentation of biomass feedstock making it a renewable commodity chemicals. This has increased its popularity as safe replacement for petrochemical derived solvents across sectors like pharmaceuticals and semiconductor manufacturing. Further, advancements in fermentation processes have improved yields and lowered production costs of bio-based acetic acid giving competitive edge over synthetic ones. This is positively impacting supply growth and market demand over the forecast period. Porter’s Analysis Threat of new entrants: Low. The acetic acid market requires high capital investments and established distribution channels. Barriers to entry are high due to economies of scale. Bargaining power of buyers: Moderate. Buyers have moderate bargaining power due to the availability of substitutes. However, switching costs are relatively low. Bargaining power of suppliers: High. Raw materials for acetic acid production such as petroleum and natural gas are commoditized. Fluctuations in raw material prices can impact producers. Threat of new substitutes: Low. There are limited substitutes for acetic acid in end-use industries such as vinyl acetate monomer and purified terephthalic acid production. Competitive rivalry: High. The acetic acid market is fragmented with numerous global and regional players. Intense competition keeps pricing pressures and profit margins low. Key Takeaways The global Acetic Acid Market Share is expected to witness high growth over the forecast period. The growing vinyl acetate monomer sector is a major factor driving demand. Regional analysis: Asia Pacific dominates the global acetic acid market and is expected to grow the fastest during the forecast period. Abundant raw material availability and large VAM capacities in China, India, and Southeast Asian countries support market growth in the region. Key players operating in the acetic acid market include 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. Increased R&D investments from these players to develop new applications of acetic acid will further propel the industry forward.

Karan Mukherjeeby Karan Mukherjee

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 …