Glacial Acetic Acid Market Forecast and CAGR
The methanol carbonylation method is the most frequently used process for acetic acid manufacturing, accounting for more than 80 per cent of world acetic acid production with net valuation of US$ 9.9 Bn by 2021. The demand for the product in the assessment period is expected to rise because of the wide range of applications in various industries. It is used as a preservative in food and beverage, pharmaceuticals, paints, coating and other sectors as well. It is also used as a precursor in the manufacturing of synthetic camphor, aniline, propylene and various other industrial chemicals.
Consumption is estimated to be nearly seven metric tons per year, with about 20-25 per cent of that being recycled. Furthermore, the product is used as a primary raw material in the manufacturing of purified terephthalic acid PTA, which is used in the packaging industry. The growing demand for packaging material around the world is expected to fuel the demand for the product under consideration.
The market is expected to register a moderate CAGR as there exists an increase in the production of specialty chemicals that uses acetic acid as an intermediate for their formulation. Owing to these factors, demand for the product is set to behold huge gain over the forecast period.
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This comprehensive report is intended to provide readers with a complete understanding of dynamics in market. The report also provides several decision support framework that can help stakeholders of in the industry to take data driven decision on growth, expansion, acquisition and capacity addition.
What is Driving Demand for Market?
The demand for the product is primarily boosted by its use in various applications such as food and beverages, inks, coatings, medicine formulation. Over the forecast period, the market is expected to grow at a steady pace as it is also used to make propylene terephthalate, aniline, synthetic camphor, and terephthalic acid
It is can be used to make vinyl acetate monomer, which has significant use in the adhesive and sealant industries. Because of the growing demand for adhesives and sealants around the world, the demand for vinyl acetate monomer has increased significantly. Furthermore, vinyl acetate monomer is utilized as an intermediate in the production of a variety of industrial polymers and resin, including adhesives, coatings, paints films, and textiles. This will drive up the sales and launch the market at greater heights.
Key Factors Which Will Drive Sales of Glacial Acetic Acid
Acetic acid has witnessed its applications in various industry such as pharmaceuticals and food and beverages being among the key factors driving the product potential. Manufacturers in the pharmaceutical industry inclined towards investment in expanding the production facilities to have a significant impact on the growth of the acetic acid market. It is used as pH regulators in formulations. Many pharmaceutical medications are not stable at alkaline pH, so to improve product stability over time, hence acetic acid is used to regulate the pH of the liquid formulation.
Furthermore, it has a wide range of application in food and beverage industry as it acts as a flavoring agent and also with the increase in demand of special foods and beverages are likely to drive the sale of the product throughout the assessment period. The addition of glacial acetic acid to meals enhance the flavor of numerous dishes due to its distinct sour taste and strong odor. Pickles, sweet and sour chips, and sourdough bread get the sour flavor in the addition of glacial acetic acid.
As a result, the demand is likely to be drive by all of the aforementioned drivers and will lead to an increase in the sale of the product.
COVID-19 Impact on the Market
The chemical sector has an adverse effect due to the impact of the COVID-19 as there is supply chain disruptions as well as the market uncertainly. Many production facilities have been shut down due to the widespread of the coronavirus hampered the growth. As a result, the demand for product witnessed a dip. However, the products necessity in formulating few healthcare medicines acted as rainy day fund in the hard times.
China and India Market Outlook
With the dominant key players having manufacturing facilities in the region, Asia is anticipated to have more than 35 per cent of worldwide consumption. Because of the presence of rising economies in Asia Pacific such as China and India, the demand of the product is rising rapidly.
China and India together represents a dominant share in the market and is predicted to increase at a relatively higher rate. Because of the lucrative growth in the pharmaceutical and food & beverage sectors, these manufacturers in these emerging countries are likely to expand their production facilities and capacity.
North America Market Outlook
In North America region, Vinyl acetate monomer is the most popular, followed by terephthalic acid, acetic anhydride. As a result, there is a significant demand for the use of vinyl acetate monomer in North America, the market is expected to increase moderately in the near future.
Furthermore, there is a significant demand of textile industry in North America. As glacial acetic acid is used in the textile industry as buffering agent for dyeing cloth, it is expected to bolster the sales. Additionally it is used as condensing agent in the process of manufacturing acetic anhydride.
Owing to the above-mentioned factors, North America is expected to project its market dominance over the forecast period.
Who are the Key Players Present in Market?
Manufacturers, suppliers, and distributors are among the key participants recognized across the globe which includes:
- Celanese Corporation
- LyondellBasell Industries Holdings B.V.
- Eastman Chemical Company
- Lotte BP Chemcals Co. Ltd.
- BASF SE
- Jiangsu Sopo (Group) Co. Ltd.
- Shanghai Wujing and Eurochem
The market is segmented on the basis of end-use industry and region.
Based on the grade, the market is segmented as:
- Food grade
- Industrial grade
- Pharmaceutical grade
Based on the end-use application, it is segmented as:
- Food Additive
- Photographic Chemical
- Paints & Coating
- Pharmaceutical Intermediate
On the basis of region, the market is segmented as
- North America
- US & Canada
- Latin America
- Rest of Latin America
- Rest of Europe
- East Asia
- South Korea
- South Asia
- Rest of South Asia
- Australia and New Zealand
- Middle East and Africa
- GCC Countries
- South Africa
- Rest of Middle East & Africa
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