Acetic Acid Market Overview
The major trend being witnessed in the global acetic acid market is the rising capital expenditure for enhancing the production of the acid. The rising investments by various producers is also aimed at technological upgradation, development of new facilities, strengthening the supply chain of the product. With the rising investments in the aforementioned areas, the demand-supply scenario for the acid is likely to strengthen in the coming years.
Acetic acid is basically an organic compound having the molecular formula CH3COOH, which serves as a precursor for the production of different chemicals used in areas such as textiles manufacturing, inks formulation, and rubbers and plastics manufacturing.
Based on application, the acetic acid market is categorized into vinyl acetate monomer, purified terephthalic acid, acetate esters, and acetic anhydride. The market demand for the acid was the highest for vinyl acetate monomer application in 2017. The monomer serves as a major raw material for the production of water-based adhesives, which in particular is a popular form of adhesive in automotive and construction industries. The acetate esters are another leading category in the market. The demand for acetate esters is majorly driven by their high consumption in coatings industry.
On the basis of end-use industry, the acetic acid market is categorized into plastics and polymers, food and beverages, inks, paints and coatings, and chemicals. Chemicals held a significant share in the market during the historical period. The acid is widely used in the production of variety of chemicals, which are then used in various industries such as construction, textile, rubber, and coatings.
Based on region, the acetic acid market is categorized into Europe, North America, Asia-Pacific, Latin America, and the Middle East and Africa. Among all these regions, Asia-Pacific held a significant share in the market during the historical period. This can be majorly attributed to the rapidly advancing industrial sector in countries such as China and India. Moreover, APAC countries such as China, Japan, India, and Vietnam are the major hubs for the production of different chemicals and textile products, which are the major end-use industries for the acid.
Acetic Acid Market Dynamics
The major driver identified in the acetic acid market is the rapid expansion of textile industry. Globally, the textile industry continues to witness rapid growth, owing to the rising income levels in the developing countries, increased standard of living, and changing fashion trends and customer preferences. One of the major regions witnessing rapid growth in textile industry is the Asia-Pacific region, owing to vast market for textiles in China and India.
In the APAC region, the increased demand for clothes have encouraged textile producers to adopt innovative technologies to enhance production and profit margins. Textile industry use different types of chemicals, which are primarily made up of acetic acid. Hence, the rising production of textiles is expected to boost the acetic acid market in the coming years.
Major restraint identified in the acetic acid market is the fluctuating costs of raw materials used in the production of the acid. Owing to this, the companies engaged in the production of alumina are witnessing alteration in profit margins, which in turn, they are unable to formulate their expansion plans. The unpredictability in expansion plans are likely to restrain the growth of the market.
The acetic acid market is expected to witness significant growth in emerging nations. These countries are witnessing rapid growth in the economy characterized by large scale expansion of chemicals, textile, and coatings manufacturing facilities. The growth in the development of these projects, therefore, offer huge growth prospect in the demand for acetic acid.
Acetic Acid Market Competitive Landscape
The acetic acid market is characterized by the presence of multinational corporations, which have presence in more than one country. Some of the major companies operating in the global market are BP Plc, Celanese Corporation, Shanghai Huayi (Group) Company, Daicel Corporation, Eastman Chemical Company, LyondellBasell Industries N.V., Shandong Hualu-Hengsheng Chemical Co. Ltd., Jiangsu Sopo (Group) Co. Ltd., Yankuang Cathay Coal Chemicals Co. Ltd., and Kingboard Chemical Holdings Ltd.
The study provides the historical as well the forecast market size data for various countries, including the U.S., Canada, France, Germany, the U.K., Italy, Spain, Japan, China, India, Brazil, Saudi Arabia, and South Africa.