The global acetic acid market size is projected to reach USD 13.41 billion by 2027, according to a new report by Grand View Research, Inc. The market is projected to expand at a CAGR of 5.2 percent in terms of revenue, from 2020 to 2027. High demand for Vinyl Acetate Monomer (VAM) from various end-use industries such as textiles, adhesives, and coatings and paint industries worldwide is a major factor driving the industry growth.
VAM - Key Driving Factor for Acetic Acid Market Growth
VAM is the largest application market of acetic acid. Growing construction activities globally has resulted in a high requirement for VAM. Vinyl acetate monomer is largely used in manufacturing paints and coatings, wherein the majority of the same goes into construction activities. Considering the recent virus outbreak, multiple healthcare facilities have been built across Asian countries such as China and India, the U.S., and Canada in North America, and across Europe. This exponentially increased construction activities and eventually led to a high requirement for VAM, thereby reflecting the high demand for acetic acid globally.
Another key point of application of the chemical is in formulating Purified Terephthalic Acid (PTA) which is broadly utilized to produce polyester coating resins. These are widely used in an array of end-use industries such as coil coatings, automotive, appliances, and more. Further, the demand for polyester fiber produced from PTA is increasing due to the increasing requirement of the product to produce fabrics for home furnishings and apparel.
Acetic Acid Market Report Highlights
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Vinyl acetate monomer application is expected to witness a CAGR of 4.1 percent, in terms of volume, from 2020 to 2027 due to increasing demand for the product from paints, coatings, and adhesives sector
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Ethanol application is expected to witness a CAGR of 7.8 percent, in terms of volume, from 2020 to 2027 due to the product’s increasing consumption as a solvent from healthcare industries globally for disinfectant product formulations
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Asia Pacific is expected to register the fastest CAGR of 5.0 percent, in terms of volume, from 2020 to 2027 owing to increasing penetration of polymer and resin producers in China, India, Vietnam, and Indonesia to cater paints, textiles, coatings, and films industries
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Celanese Corporation and British Petroleum are the largest manufacturers of acetic acid worldwide and are also recorded as key innovators from a product development standpoint
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The industry is concentrated with multiple international brands with presence across all major economies, thereby restricting new entrants into the ecosystem
Source: Grand View Research