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

Market Overview

The acetic acid market size was estimated at 15,924 kiloton 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. The declining automotive industry, along with the temporary shutdown of automotive manufacturing units and various construction projects due to the ongoing pandemic scenario, declined the consumption of adhesives, paints, and coatings, thus, creating a negative impact on the demand for acetic acid. Work stoppages due to measures imposed by various government authorities across the world in an attempt to slow the spread of the virus and workforce shortages due to illness and preventative quarantines impacted most of the end-user industries, such as textiles, food and beverage, automotive, and construction, thereby affecting the market growth of the acetic acid market.

• Over the short term, increasing demand for 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 the production efficiency of acetic acid is likely to create opportunities for the market in the coming years.
• The Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.

Scope of the Report

Acetic acid is a monocarboxylic acid containing two carbons. It is a clear, colorless liquid with a strong, pungent odor like vinegar. Acetic acid can be derived from carbonylation of methanol, oxidation of acetaldehyde and ethylene, and biological method like bacterial fermentation. The acetic acid market is segmented by derivative, end-user industry, and geography. By derivative, the market is segmented into vinyl acetate monomer, purified terephthalic acid, ethyl acetate, acetic anhydride, and other derivatives. By end-user industry, the market is segmented into plastics and polymers, food and beverage, adhesives, paints and coatings, textile, medical, and other end-user industries. The report also covers the market size and forecasts for the acetic acid market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kiloton).

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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 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 and 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.
• However, 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 the pace during the later stage of the forecast period.

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