Acetic Acid Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

 The Global Acetic Acid Market size was estimated at 15,924 kilo tons in 2020 and the market is projected to register a CAGR of over 5% during the forecast period (2021-2026). The market was negatively impacted by COVID-19 in 2020. Decling automotive industry along with temporay shutdown of automotive manufacturing units and various construction projects due to the ongoing pandemic scenario, has declined the consumption of adhesives, paints, and coatings, thus creating a negative impact on the demand of acetic acid. 

Work stoppages due to measures imposed by various governmental authorities across the globe in an attempt to slow the spread of the virus and workforce shortages due to illness and preventative quarantines has impacted most of the end-user industries such as textiles, food & beverage, automotive and construction amongst others, thereby affecting the market growth of acetic acid.


- Over the short term, increasing demand of purified terephthalic acid (PTA) from the textile and packaging industry, and growing use of ester solvents in the paints and coatings industry are driving the growth of the acetic acid market.

- Environmental concerns regarding the harmful effects of acetic acid are hindering the market's growth.

- The development of new separation technologies to increase production efficiency of acetic acid is likely to create opportunities for the market in the coming years.
- Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.

Key Market Trends

Increasing Applications in the Adhesives, Paints, and Coatings Industry

- Vinyl acetate monomer (VAM) is used in producing water-based paints, adhesives, waterproofing coatings, and paper and paperboard coatings. The PTA-based polyesters and polyamides are also used in hot melt adhesives. PTA is even used in paints as a carrier.




- Adhesives are used in automobiles for various applications. It is used in assemblies of windshields, brakes, thread lockers, and other interior and exterior applications. Up to Q3 of 2019, about 67.47 million vehicles were produced globally and has reached about 52 million vehicles up to Q3 of 2020, registering a decline rate of about 23%, thus led to a decrease in the demand for adhesives and VAM, which in turn negatively impacted the market growth of acetic acid.

- The increasing construction activities in emerging economies of Asia-Pacific are expected to drive the demand for adhesives, paints, and coating. This factor, in turn, is projected to positively influence the market for end-use products of acetic acid.

- The construction sector has been witnessing robust growth in some of the Middle Eastern countries over the past few years. These countries are receiving huge domestic, as well as foreign investments, for setting up industrial units, hospitals, malls, multiplexes, the hospitality industry, and the IT sector. This factor is also expected to drive the demand for adhesives, paints, and coatings. The increased demand, in turn, is expected to positively influence the market studied.

- But, due to the COVID-19 pandemic scenario, the above mentioned end-user industries have been affected and have witnessed a negative growth rate, thus hindering the acetic acid market demand.

- However, the market for acetic acid is likely to grow globally post-pandemic scenario as the end-user industries are likely to pick up pace during the later stage of the forecast period.

Asia-Pacific Region to Dominate the Market

- Asia-Pacific is the largest consumer of acetic acid in the global market. The Asia-Pacific market is anticipated to be the largest market for the textile industry, owing to the strong industrial base of the region.
- China is a hub for chemical processing, accounting for most of the chemical production, globally. With the growing global demand for various chemicals, the demand for intermediates, such as acetic acid from this sector, is expected to increase significantly during the forecast period.

- Currently, China produces more than half of the coatings from Asia-Pacific and is home to more than 10,000 paint companies, among which local producers occupy more than half of the share in the domestic paints market.

- In India, the growing demand from package printing, newsprint, publishing, and other commercial printing helped the printing ink market in India, to register strong growth in the recent years, and is expected to continue to grow during the forecast period, which in-turn stimulate the regional market demand for the acetic acid.

- China is the largest market for VAM worldwide. In terms of volume, the country accounted for more than 30% of the global consumption. This large share is because of the strong and steady textile and packaging market of China.

- In 2019, Asia-Pacific’s VAM market volume was around 3.6 million tons in 2019 and is expected to reach approximately 5 million tons by 2024 , with a growth rate of over 6.5%, which in-turn will stimulate the demand for the acetic acid market.
- Due to all such factors, the market for acetic acid in the region is expected to have a steady growth during the forecast period.

Competitive Landscape

The acetic acid market is fragmented in nature. Some of the major players in the market include Celanese Corporation, INEOS, Jiangsu SOPO (Group) Co., Ltd., Eastman Chemical Company or its subsidiaries, and LyondellBasell Industries Holdings B.V., among others.

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