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

The market is segmented by Application (Methyl Methacrylate, Bisphenol A, Solvents, Methyl Isobutyl Ketone, and Other Applications), End-user Industry (Cosmetics and Personal Care, Electronics, Automotive, Pharmaceutical, Paints, Coatings and Adhesives, Textile Industry, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers market size and forecasts for Acetone in volume (kilo tons) for all the above segments.

Market Snapshot

Acetone Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >3 %
Acetone Market Major Players

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Market Overview

The Global Acetone Market is projected to register a CAGR of over 3% during the forecast period (2021-2026).

The acetone market is negatively impacted by COVID-19. The major end-user industries of acetone such as automotive, paints and coatings, cosmetics, and personal care are hindered by the global pandemic situation. The COVID-19 affected the sales of paints and coatings as the construction activities were halted due to lockdown regulations. India’s second-largest paint company, Berger Paints, reported approximately a 6.5% fall in its consolidated net profit to INR 1,032 million (USD 13.76 million) for the fourth quarter ended March 31. The automotive industry also faced a decline in production and sales due to the pandemic situation, thus affecting the acetone market. According to OICA, the global production of vehicles in 2020 was around 77 million, a significant decrease compared to the production in 2019, which was around 92 million, thus affecting the market demand for acetone.

  • In the medium term, the major factors driving the acetone market are growing usage in the production of personal care and household products, the growing electronics industry in Asia-Pacific, and​ increasing demand for polycarbonate products.​
  • On the flip side, increasing production of methyl methacrylate from non-acetone raw materials​ and increasing regulations by the European Commission on BPA is likely to hinder the market’s growth.
  • The Asia-Pacific region has dominated the market and is expected to dominate during the forecast period, owing to increasing consumption from countries such as China and India.

Scope of the Report

Acetone, also known as dimethyl ketone or propanone, is a highly volatile, colorless, and flammable liquid with the chemical formula (CH3)2CO. It is the smallest and simplest ketone that is regularly used for cleaning in households, commercial operations, and laboratories. The market is segmented into application, end-user industry, and geography. By application, the market is segmented into methyl methacrylate, bisphenol A, solvents, methyl isobutyl ketone, and other applications. By end-user industry, the market is segmented into cosmetics and personal care, electronics, automotive, pharmaceutical, paints, coatings and adhesives, textile industry, and other end-user industries. The report also covers the market size and forecasts for the Acetone Market in 16 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kilo tons).

Application
Methyl Methacrylate (MMA)
Bisphenol A (BPA)
Solvents
Methyl Isobutyl Ketone
Other Applications
End-user Industry
Cosmetics and Personal Care
Electronics
Automotive
Pharmaceutical
Paints, Coatings, and Adhesives
Textile Industry
Other End-user Industries
Geography
Asia-Pacific
China
India
Japan
South Korea
ASEAN Countries
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Methyl Methacrylate (MMA) Application to Witness Higher Potential Growth

  • Methyl methacrylate (MMA) is a colorless liquid, soluble in most of the organic solvents except in water, and is the second-largest market for acetone. MMA is widely used for various medical, dental, and joint replacement procedures and for other industrial applications.​
  • Moreover, MMA is majorly used to make polymethyl methacrylate (PMMA) resin, which is further used to produce PMMA plastics. PMMA plastic is considered an economical substitute for polycarbonate. ​
  • MMA may also witness further usage in various other applications in the form of beads or pellets. The polymer form of MMA can be molded into a wide range of end-use products, such as rear lights, lenses for glasses, and instrument consoles for vehicles and appliances.​
  • In the automotive industry, MMA is used in auto-glazing and for exterior car coating, as it is weather-resistant and protects from scratches. It is used in adhesives, coatings, and nail products.​
  • MMA also stands to be an important chemical in the production of paints, coatings, and adhesives. These find application in the production of some of the floor coatings, traffic markings, and pedestrian walking markings. ​
  • With increasing expenditure in the infrastructure construction sector, especially on the development and renovation projects related to highways, the derived demand for MMA is expected to be created in the market.​
  • Moreover, with the increasing commercial construction in countries, like China, South Korea, India, Qatar, Malaysia, and other countries, the demand for MMA-based floor coatings is also expected to increase.​
  • According to the National Bureau of Statistics of China, in 2020, the market value of the construction industry increased. The value was estimated at around USD 1,049.19 billion compared to 2019, which was valued at USD 968.06 billion.
  • This wide range of usage in many end-user applications has driven the MMA market. The major consuming countries in the methyl methacrylate market are the United States, China, Japan, Germany, and Singapore.​
  • Hence, the rising demand from various industries in different countries is expected to increase the demand for acetone for MMA applications.​
Acetone Market Trends

China to Dominate the Asia-Pacific Region

  • In the Asia-Pacific region, China is the largest economy in terms of GDP. The country witnessed about 6.1% growth in its GDP during 2019, even after the trade disturbance caused due to its trade war with the United States. The economic growth rate of China in 2020 was initially expected to be moderate as compared to the previous year. However, due to the onset of COVID-19 in 2020, the economic growth of China is estimated to contract to 1.90% and is expected to witness recovery at a rate of 8.20% in 2021.
  • Although China is the first country affected by the COVID-19 and its related lockdown, it is the first country that has come out of the lockdowns and is starting its long journey toward normalcy. However, as a major chunk of the Chinese economy is linked to foreign exports where demand is still low, it may negatively affect the Chinese industry in the near future. ​
  • China stands to be the largest manufacturer as well as consumer of paints, coatings, and adhesives in the world. Therefore, the growing commercial construction activities and the increasing spending on infrastructure activities in the country are expected to increase the demand for MMA-based coatings in the country.​
  • The Chinese construction industry is still strong, but growth is slowing, as is economic growth. While growth may not be occurring as quickly as in previous years, the country is still very strong economically. The construction industry in China is expected to grow by more than 4% during the forecast period, thus driving the demand for paints and coatings and consequently boosting the acetone market.​
  • The non-residential infrastructure is expected to grow considerably in the country over the years to come. The aging population in the country is creating demand for the construction of healthcare facilities and new hospitals. The structural changes have also been noticed in the Chinese economy over the past few years as the service sector is taking a larger and larger share in the total GDP has given rise to the construction of huge commercial and office spaces. Besides, China is likely to witness the construction of 7,000 more shopping centers, which were estimated to be opened by 2025.​
  • As per the statistics of May 2019, China had around 235 airports. Some of the airport construction projects, which are either in the development or planning stage, include Beijing Capital International Airport, Chengdu Shuangliu International Airport, Chongqing Jiangbei International Airport, and Guangzhou Baiyun International Airport. Besides, the government’s long-term targets are the construction of around 450 airports for the country by 2035.​
  • COVID-19 has even downsized the demand for automobiles in China, and this trend is expected to continue even after the pandemic for the forecast period. These factors are expected to slow down the demand for polycarbonate and automotive MMA-based paints, coatings, and adhesives for application in the industry.​
  • However, the expected rise in sales of electric cars is likely to help the automotive market to avoid another slump, as the Government of China is now more compassionate regarding the EV industry, which is likely to drive the demand for polycarbonate automotive components and MMA coating and adhesives used in vehicles.​
  • Furthermore, China has the world’s largest electronics production base. Electronic products, such as smartphones, OLED TVs, tablets, wires, and cables, recorded the highest growth in the electronics segment. The country not only serves the domestic demand for electronics but also exports electronic output to other countries. With the increase in the disposable incomes of the Chinese middle-class population and the rising demand for electronic products in the countries importing electronic products from China, the production of electronics is estimated to grow further, which is expected to drive the market for acetone during the forecast period.
  • Owing to all the aforementioned factors, China is expected to dominate the market during the forecast period.
Acetone Market Growth

Competitive Landscape

The acetone market is expected to be fragmented, with the presence of both global and local players in the market. Key players in the acetone market include Formosa Chemicals and Fibre Corporation, Borealis AG, Royal Dutch Shell PLC, INEOS, and Mitsui Chemicals Inc.

Recent Developments

  • In November 2019, ALTIVIA Ketones & Additives LLC, an affiliate of ALTIVIA Petrochemicals, acquired Dow’s Acetone Derivatives Business and associated chemical manufacturing assets at Institute, West Virginia, as well as the Institute Industrial Park.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Growing Usage in the Production of Personal Care and Household Products

      2. 4.1.2 Growing Electronics Industry in Asia-Pacific​

      3. 4.1.3 Increasing Demand for Polycarbonate Products

    2. 4.2 Restraints

      1. 4.2.1 Increasing Regulations by the European Commission on BPA​

      2. 4.2.2 Increasing Production of Methyl Methacrylate from Non-acetone Raw Materials

      3. 4.2.3 Negative Impact of the COVID-19 Pandemic

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Production Capacity Analysis

    6. 4.6 Trade Analysis

    7. 4.7 Price Trend Analysis

    8. 4.8 Regulatory Policies

  5. 5. MARKET SEGMENTATION

    1. 5.1 Application

      1. 5.1.1 Methyl Methacrylate (MMA)

      2. 5.1.2 Bisphenol A (BPA)

      3. 5.1.3 Solvents

      4. 5.1.4 Methyl Isobutyl Ketone

      5. 5.1.5 Other Applications

    2. 5.2 End-user Industry

      1. 5.2.1 Cosmetics and Personal Care

      2. 5.2.2 Electronics

      3. 5.2.3 Automotive

      4. 5.2.4 Pharmaceutical

      5. 5.2.5 Paints, Coatings, and Adhesives

      6. 5.2.6 Textile Industry

      7. 5.2.7 Other End-user Industries

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 ASEAN Countries

        6. 5.3.1.6 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%)**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Altivia

      2. 6.4.2 BASF SE

      3. 6.4.3 Borealis AG

      4. 6.4.4 Cepsa

      5. 6.4.5 Formosa Chemicals and Fibre Corporation

      6. 6.4.6 Honeywell International Inc.

      7. 6.4.7 INEOS

      8. 6.4.8 KUMHO P&B CHEMICALS INC.

      9. 6.4.9 LCY GROUP

      10. 6.4.10 Mitsui Chemicals Inc.

      11. 6.4.11 Prasol Chemicals Pvt Ltd

      12. 6.4.12 PTT Phenol Company Limited

      13. 6.4.13 Reliance Industries Limited

      14. 6.4.14 Royal Dutch Shell PLC

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Increasing Usage by Dermatologists

    2. 7.2 Other Opportunities

**Subject to Availability

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Frequently Asked Questions

The Acetone Market market is studied from 2016 - 2026.

The Acetone Market is growing at a CAGR of >3% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Formosa Chemicals and Fibre Corporation, Royal Dutch Shell plc, Mitsui Chemicals, Inc., INEOS, Borealis AG are the major companies operating in Acetone Market.

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