April 24, 2024
Acetic Acid Market

The Global Acetic Acid Market is poised to exhibit robust growth driven by increasing adoption of biodegradable products

The global acetic acid market is a multibillion-dollar industry primarily driven by the rising demand for vinyl acetate monomer in various end-use applications like paints and coatings, food additives, plastic and polymer manufacturing. Acetic acid, also known as ethanoic acid or methane carboxylic acid, is an organic compound with the chemical formula CH3COOH. It has a characteristic pungent sour smell and is a colorless liquid. Acetic acid is produced both synthetically and naturally through bacterial fermentation and is a key feedstock used for the production of vinyl acetate monomer, purified terephthalic acid, acetic anhydride, and acetate esters.

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: Key players operating in the acetic acid 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 operating in the acetic acid are focusing on expanding their production capacities and operations through strategic partnerships and mergers and acquisitions to cater to the growing demand. For instance, Celanese Corporation, one of the largest producers, is investing over $50 million to expand its acetic acid plant in Clear Lake, Texas.

Growing demand: The demand for acetic acid is increasing due to its wide range of applications in various end-use industries including food additives, paints, coatings, pharmaceuticals, and textiles. The growing textile industry in Asia Pacific is a major factor driving the regional market.

Global expansion: Major acetic acid producers are focusing on strengthening their global footprint by setting up new production plants in key markets to ensure steady supply and better serve customer needs. In September 2022, Wacker Chemie AG inaugurated a new acetic acid plant in China to leverage the country’s manufacturing and export potential.

Market key trends

One of the key trends gaining traction in the Global Acetic Acid Market Demand is the increasing adoption of bio-based and eco-friendly production methods. Traditionally produced from fossil fuel based feedstocks like natural gas, acetic acid manufacturers are investing in fermentation-based technologies that use renewable resources like corn or biomass as raw materials. This shift towards green chemical production helps lower emissions and bolsters sustainability credentials. However, the technology is still in the development phase and requires further optimization to achieve commercial scale and competitive costs.

Porter’s Analysis

Threat of new entrants: The acetic acid market requires huge capital investments and has economies of scale. This makes it difficult for new players to enter the market.

Bargaining power of buyers: Buyers have moderate bargaining power in the acetic acid market due to availability of substitutes like formic acid.

Bargaining power of suppliers: A few big players dominate the acetic acid supply chain globally. This gives them significant bargaining power over buyers.

Threat of new substitutes: Substitutes like formic acid pose moderate threat as they still need to prove their technical and economic feasibility compared to acetic acid.

Competitive rivalry: The acetic acid market has few global players competing intensely on pricing and product differentiation.

Geographical Regions

North America accounts for the largest share of the global acetic acid market, both in terms of value and volume. Presence of major F&B producers along with growing textile industry drives the demand.

Asia Pacific is the fastest growing regional market for acetic acid driven by expanding end-use industries in China and India. Low cost of production along with high sales volume from textile and food ingredients sector boost the regional market.

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